Services
Late S-election eligibility and filing
Missed Form 2553? KDM first reviews whether late-election relief under Revenue Procedure 2013-30 may be available, then prepares the filings. A one-year, single-shareholder late S-election filing is $1,500 flat; each additional year is $750 and each additional shareholder $450.
The standard filing deadline
Form 2553 is generally due no later than two months and 15 days after the start of the tax year the election is intended to cover, or during the preceding tax year. The calculation depends on the entity’s tax year and circumstances.
When late relief may be available
Revenue Procedure 2013-30 provides relief for qualifying late elections. Many requests must be made within three years and 75 days of the intended effective date. Additional conditions and limited exceptions apply.
- The entity intended to be an S corporation from the requested effective date.
- The failure to qualify was caused by an untimely election, with reasonable cause and diligent corrective action.
- Shareholder eligibility, consent and required statements are satisfied.
- The entity and shareholder reporting history meets the applicable consistency requirements.
What we review first
Provide formation records, ownership details, prior business and personal returns, payroll records, IRS letters, and a factual explanation of the missed filing. Previously filing Schedule C or a partnership return can affect the relief analysis. Amending those returns does not, by itself, establish eligibility.
What the engagement can include
After reviewing eligibility, we confirm which filings are appropriate and quote the work.
- Form 2553 and the required supporting statements.
- Coordination of affected business and shareholder returns when legally appropriate.
- Identification of payroll or bookkeeping corrections that need separate scope.
- A referral for legal or specialized ruling work when the available relief requires it.
Timing, costs and possible outcomes
IRS processing times vary. Acceptance, refunds and tax savings are not guaranteed. Any potential benefit must be compared with payroll taxes, penalties, preparation costs and state consequences. A private letter ruling is a separate procedure with its own requirements and IRS fees.
Published fees
| Item | Complexity | Typical flat fee |
|---|---|---|
| Late S-election filing — 1 year back | Single shareholder, one year | $1,500 flat |
| Each additional year amended | Per recovered year (2nd and 3rd year) | $750/year |
| Each additional shareholder | Multi-shareholder S-Corps | $450 each |
| PLR coordination (if Rev. Proc. fails) | Out-of-scope cases requiring §1362(b)(5) ruling | $1,000 flat + tax attorney fees passed through |
Final scope and fee are confirmed in writing. Additional work is quoted separately.
Questions and answers
Can an older LLC request relief?
The intended effective date matters, along with the applicable relief requirements. Entity age alone does not determine eligibility.
Does filing an amended return guarantee relief?
No. The election relief requirements must be satisfied independently.
Will this automatically create a refund?
No. The result depends on eligibility, prior reporting, reasonable compensation, payroll compliance and other tax rules.