Form 2553 is an IRS tax form used by a corporation to make an election with the IRS for S corporation status. This election allows the corporation to avoid paying double taxation on corporate income. A key reason for forming an S corporation is to reduce the company’s and its owners’ tax liability. The S corporation designation allows the company to pass on income to shareholders, who are then taxed at their personal tax rate. However, there are a number of rules that must be followed to maintain eligibility and avoid double taxation.
Form 2553 collects a variety of information about the company and shareholders. It begins in Part 1 with basic company information, including its name, address, and Employer Identification Number (EIN). It then asks for the effective date of the election, a list of all shareholders, and the percentage of shares each owns. Each shareholder must also sign and date the form, providing their Social Security number. It’s important to note that there is no single deadline for submitting this form. Rather, the timing of when it is filed can affect how long the IRS considers the S-corp election valid. The IRS provides a breakdown of which tax year to use for each state on its website.

How to Complete Form 2553?
Part I Election Information
Enter the following info:
- Employer identification number (A)
- Date incorporated (B)
- State of incorporation (C)
- Name
- Number, street, and room or suite no
- City or town, state or province, country, and ZIP or foreign postal code
Line D: Check the appropriate box: name or address.
Line E: Enter the election date is to be effective for the tax year (month, day, year).
Line F: Choose tax year:
- Calendar year
- Fiscal year ending (month and day)
- 52-53-week year ending with reference to the month of December 52-53-week year ending with reference to the month of ………..
- If box (2) or (4) is checked, complete Part II.
Line G: Checkbox. Check this box if treating members of a family as one shareholder results in no more than 100 shareholders. (If more than 100 shareholders are listed for item J)
Line H: Enter Name and title of officer or legal representative whom the IRS may call for more information
Line I: “If this S corporation election is being filed late, I declare I had reasonable cause for not filing Form 2553 timely. If this late election is being made by an entity eligible to elect to be treated as a corporation, I declare I also had reasonable cause for not filing an entity classification election timely and the representations listed in Part IV are true. See below for my explanation of the reasons the election or elections were not made on time and a description of my diligent actions to correct the mistake upon its discovery.” – SIGN.
Line J: Name and address of each shareholder or former shareholder required to consent to the election
Line K: Shareholder’s Consent Statement
- Under penalties of perjury, I declare that I consent to the election of the above-named corporation (entity) to be an S corporation under section 1362(a) and that I have examined this consent statement, including accompanying documents, and, to the best of my knowledge and belief, the election contains all the relevant facts relating to the election, and such facts are true, correct, and complete. I understand my consent is binding and may not be withdrawn after the corporation (entity) has made a valid election. If seeking relief for a late-filed election, I also declare under penalties of perjury that I have reported my income on all affected returns consistent with the S corporation election for the year for which the election should have been filed (see beginning date entered on line E) and for all subsequent years.
Line L: Stock owned or percentage of ownership
Line M: Social security number or employer identification number.
Line N: Shareholder’s tax year ends (month and Signature Date day.
Part II – Selection of Fiscal Tax Year
Line O: Check the applicable box.
Line P: Check the applicable box below to indicate the representation statement the corporation is making
- Natural Business Year
- Ownership Tax Year
Line Q: Business Purpose. Check the appropriate boxes.
Line R: Section 444 Election. Check the appropriate boxes.
Part III – Qualified Subchapter S Trust (QSST) Election Under Section 1361(d)(2)
- Enter Income beneficiary’s name and address
- Enter SSN
- Enter Trust’s name and address
- Enter EIN
- Enter date on which stock of the corporation was transferred to the Trust.
Part IV - Late Corporate Classification Election Representations
- The representations listed in Part IV must be attached to a late corporate classification election intended to be effective on the same date that a late S corporation election was intended to be effective.
Note: Additional QSST election. If you are making more than one QSST election, use additional copies of page 4 or use a separate election statement and attach it to Form 2553. It must contain all information requested under Part III.