Quick Answer

Under Revenue Procedure 2013-30, the IRS will accept a late Form 2553 up to 3 years and 75 days after your intended effective date. You simply fill out Form 2553, write "FILED PURSUANT TO REV. PROC. 2013-30" at the top, and attach a brief statement explaining that you had "reasonable cause" for missing the deadline.

Key Points for 2026

  • Reasonable Cause: The IRS is incredibly lenient. Simply stating "I did not know the deadline existed" is usually accepted.
  • Consistency is Required: To qualify for relief, you must have been acting like an S-Corp all year (e.g., you intended to be an S-Corp and ran payroll).
  • No User Fee: Requesting this relief is free.
  • Attach to Tax Return: You can often attach the late Form 2553 directly to your first 1120-S tax return.

How to Qualify for Late Relief

To use this procedure, you must meet four specific criteria:

  1. You intended to be classified as an S-Corp as of the requested effective date.
  2. You failed to qualify as an S-Corp solely because Form 2553 was not filed on time.
  3. You have "reasonable cause" for the failure to file on time.
  4. All shareholders reported their income consistently with the S-Corp election on all affected tax returns.

How to File for Late Relief

Step 1: Fill out Form 2553

Complete Form 2553 exactly as you normally would. Enter the date you originally intended the S-Corp election to begin in Part I, Line E.

Step 2: Add the Magic Words

At the very top margin of page 1 of Form 2553, you must write or type: "FILED PURSUANT TO REV. PROC. 2013-30".

Step 3: Write the Reasonable Cause Statement

In Part I, Line I (or on an attached piece of paper), you must write a brief explanation of why the form was late. Keep it simple and honest. Examples:

  • "The company's president was unaware of the 75-day filing deadline."
  • "Our tax professional failed to file the form on our behalf."
  • "We did not realize Form 2553 had to be mailed physically and thought it was filed with our state documents."
The Danger of Extreme Retroactive Filing

If it is currently December, and you want to retroactively elect S-Corp status back to January 1, you must immediately catch up on an entire year's worth of payroll taxes by December 31. This requires paying yourself a massive lump-sum salary and remitting thousands of dollars in payroll taxes all at once. If you cannot afford the cash flow to run late payroll, a retroactive election will trigger IRS penalties.

Example Scenario

The Situation: Julia formed her LLC on January 1. She meant to file Form 2553 by March 15 but forgot. It is now August, her business is highly profitable, and she wants to save on self-employment taxes for the current year.

The Solution: Julia files a late Form 2553 under Rev. Proc. 2013-30. She writes that she was unaware of the strict 75-day rule. The IRS approves it. Julia immediately sets up Gusto and begins running a W-2 payroll to catch up on her required salary before December 31.

What to Do Next

  1. Assess your cash flow: Can you afford to run retroactive payroll before the end of the year? If not, wait until next year to make the election.
  2. Draft Form 2553: Write the Rev. Proc. 2013-30 notice at the top.
  3. Mail or Fax: Send the form to the IRS fax number listed in the Form 2553 instructions. Expect a 60-day processing time.

Official Sources