Notice of Acceptance of S Election
After approximately 60 days of processing, the Notice of Acceptance will either be sent to the address listed on the FEIN application (IRS Form SS-4), or to the address listed on the Election by a Small Business Corporation (IRS Form 2553). If you do not receive the Notice of Acceptance, our advice is to attach the filed Election by a Small Business Corporation (IRS Form 2553) to the corporation’s initial 1120 S.
In recent years, the IRS has become unpredictable regarding the delivery of the Notice of Acceptance. The IRS explains that the unpredictability is due to a “high volume” of filings. Although in the past this was a matter of considerable concern, it is now appropriate to file the S-election with the corporation’s first 1120 S. In fact, the IRS recommends that taxpayers file the 2553 with the corporation’s first tax return if the Notice of Acceptance is not received prior to filing the first tax return.