First and foremost, you can’t check S Corp status online; rather, you will have to contact the IRS directly to know the status of your S Corp. If you have properly filed and sent in your S corporation form to the IRS and have not heard back, you will have to reach the IRS via (800) 829-4933 and they will let you know your application status.
S corporations are corporations that elect to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes. Note that shareholders in these corporations are expected to report the flow-through of income and losses on their personal tax returns and they are evaluated based on their individual income tax rates.
Note that this ensures that S corporations can avoid double taxation on their corporate income, while they are also expected to pay tax on certain built-in gains and passive income at the entity level. Have it in mind that an S corporation is established through filing Articles of Incorporation with the Secretary of State or a similar governing body.
These businesses also issue stock and will have to be governed as a corporation, with directors, officers, and shareholders who function in the same capacity as their C corporation counterparts. Also, note that the shareholders will have the same protection from liability as shareholders of a C corporation.
Ideally, the IRS is meant to send you your S corporation application determination within 60 of submitting your application, also referred to as Form 2553. Your determination form might be delayed for several reasons. Owing to that, you may want to inquire with the IRS about your application.
Aside from that, your original Form 2553 remains a very important document even after your S corporation has been approved by the IRS. When you prepare your taxes you will be expected to add a copy of Form 2553. You should either keep the original or ask the IRS for a copy of your original form.
Steps to Check Your S Corporation Status
To be treated as an S-corporation, note that the corporation or business will have to make an election with the Internal Revenue Service.
Once the election is approved, the business will get an official notice of its classification, and this will need for banking, license applications, and tax returns. If for any reason you have lost proof of your S-corp. status, or will want to contact the IRS to check your status, here are steps to take;
Check To See How Long It Has Been
Just as it was noted above, the IRS is meant to send you your S corporation application determination within 60 of submitting your application, also referred to as Form 2553. Therefore, you will first have to count the number of days since you filled and submitted your original request.
Check to verify that it has been 60 days from the date you provided the form to the IRS before you can reach out to the IRS to check your status.
Contact the IRS
If it has been at least 60 days from the date you submitted form 2553 to the IRS, you can call the IRS Business Services line at 800-829-4933. The IRS has a Specialty Tax division that can be reached during daytime hours on business days and their agents are available to answer your inquiries.
Verify Your Authorization
If you are lucky to be connected to a real person quickly, note that the agent will begin verifying your identity and matching your company with the proper Form 2553. You will also be expected to provide your company’s location, federal employer ID number, and phone number. You will also need to provide your personal information and your relationship with the business.
If a power of attorney makes the call, then the IRS will need to have a valid Form 2848 on file for the representative, and the power of attorney will also need to be able to prove or verify the same information about the company. A power of attorney can be a CPA, personal attorney, enrolled agent, or employee of the business.
Request To Know Your Election Status
Once the IRS agent has verified your authorization, you can then ask to know the status of your S Corp election. You can also request a copy of your S-corporation election documents. Have it in mind that the IRS agent will either mail or fax you a copy of your S-corporation election form, or forward you an official letter that notes that the IRS’ has processed and accepted your S Corp election request.
Just as it was noted above, you can’t check S Corp status online; rather, you will have to contact the IRS directly to know the status of your S Corp. If you have properly filed and sent in your S corporation form to the IRS and have not heard back, you will have to reach the IRS via (800) 829-4933 and they will let you know about your application status.
Once your application has been approved, the IRS will be able to provide you the Form 2553 by mail or fax. When you receive your Form 2553, ensure to store it carefully as getting a new copy can be a very tasking and time-consuming process.