NASSAUSUFFOLK

This message has been cross posted to the following Discussions: Federal Tax and NASSAUSUFFOLK .
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A new client incorporated in the State of New York in September 2014. We just received the paperwork. We would have elected S Corp status on Form 2553 within the 75 days for both Fed & NYS, but were unaware of its existence.  I understand there is a Rev Proc that may allow the S-Corp status by making a statement with the initial return, and am unsure of the procedure if at all possible. It is assumed that NYS would not make the same allowance, if the IRS does approve. The Corporation has been inactive since inception. 

In the past, we would have filed a 4-month year ended 12/31/2014 and make a 2015 Federal and State S-Corp election priot to 03/15/2015.  Can we accomplish the S-Corp election back to inception for 2014?  Any suggestions would be appreciated.

Michael

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Michael Schneider 
MICHAEL L. SCHNEIDER, CPA
Cedarhurst NY
516-569-3340
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Michael:

You can write on top of the 2553 "Filed Pursuant to Rev. Proc. 2013-30, although the 75 day period may not have started for federal purposes. As far as New York State, it starts from date of incorporation and there is no corresponding provision, so you can only get S status effective 1/1/15. As the corporation is inactive, it probably isn't a big deal.

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Robert Brown
ROBERT N. BROWN, CPA
Jericho NY
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Original Message:
Sent: 01-22-2015 11:41
From: Michael Schneider
Subject: S Corp election issues

This message has been cross posted to the following Discussions: Federal Tax and NASSAUSUFFOLK .
-------------------------------------------
A new client incorporated in the State of New York in September 2014. We just received the paperwork. We would have elected S Corp status on Form 2553 within the 75 days for both Fed & NYS, but were unaware of its existence.  I understand there is a Rev Proc that may allow the S-Corp status by making a statement with the initial return, and am unsure of the procedure if at all possible. It is assumed that NYS would not make the same allowance, if the IRS does approve. The Corporation has been inactive since inception. 

In the past, we would have filed a 4-month year ended 12/31/2014 and make a 2015 Federal and State S-Corp election priot to 03/15/2015.  Can we accomplish the S-Corp election back to inception for 2014?  Any suggestions would be appreciated.

Michael

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Michael Schneider 
MICHAEL L. SCHNEIDER, CPA
Cedarhurst NY
516-569-3340
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A follow-up:

I was completing the Federal S-Corp election as well as Form CT-6 for an election of a Federal S Corporation to be treated as a New York S Corporation. The instructions, which was revised on 10/14, states on page one under the  section "Retroactive elections" which appears to mirror that of Rev Proc 2013-30. It is my intention to follow the instructions and to gain acceptance back to September 2014. I do believe that the attached description, similar to the late filing statement on the bottom of form 2553 should permit the acceptance of both Federal and NYS back to the exist date of September 2014. I will advise as to the success of this endeavor.

 

Michael

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Michael Schneider CPA/PFS/CGMA/CFP
MICHAEL L. SCHNEIDER, CPA
Cedarhurst NY
516-569-3340
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Original Message:
Sent: 01-22-2015 11:41
From: Michael Schneider
Subject: S Corp election issues

This message has been cross posted to the following Discussions: Federal Tax and NASSAUSUFFOLK .
-------------------------------------------
A new client incorporated in the State of New York in September 2014. We just received the paperwork. We would have elected S Corp status on Form 2553 within the 75 days for both Fed & NYS, but were unaware of its existence.  I understand there is a Rev Proc that may allow the S-Corp status by making a statement with the initial return, and am unsure of the procedure if at all possible. It is assumed that NYS would not make the same allowance, if the IRS does approve. The Corporation has been inactive since inception. 

In the past, we would have filed a 4-month year ended 12/31/2014 and make a 2015 Federal and State S-Corp election priot to 03/15/2015.  Can we accomplish the S-Corp election back to inception for 2014?  Any suggestions would be appreciated.

Michael

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Michael Schneider 
MICHAEL L. SCHNEIDER, CPA
Cedarhurst NY
516-569-3340
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