View Full Version : S Corp 2253 Filing Issue

03-21-2018, 06:01 PM
Hi all,

New to the forum here, been looking around and seems like a lot of sharp people with tax knowledge so wanted to ask what they should do in this situation..

I have a sole member LLC that I just treated as a pass through entity the past few years. I just filed 2253 to elect to be taxed as an S corp for 2018 via Fax midnight 03/14/2018, so they should have received it 03/15/2018 which is the last day I could send it for the election to be valid for this upcoming 2018 year.

Since it takes up to 60 days to hear back if it was accepted or not, that puts me @ May 15 which is after the due dates (April 30) of the first quarter's state (Maryland) unemployment tax/wage reporting and federal Form 941 submission. I have to register an account for unemployment with the state to do this and begin paying myself a salary with distributions now if it takes effect 2018.

What am I supposed to do in this situation? Assume I am taxed as a disregarded entity and then when its accepted just file for quarters 2, 3, 4? Pay late fees and file quarter 1 as though I was an s corp all along since Jan 1 2018? Lean forward now assuming I am an s corp, but if the IRS does not accept, that seems like a huge problem since I would have filed these 1st quarter forms and paid myself a salary by the time I hear back..?

I may be missing an important detail which is why I am confused, but this situation must be common since I technically filed before the deadline but wont hear back in time for 1st quarter tax due dates.