What is a Late S Corporation election?
A Late S Corporation election is a tax relief procedure that allows eligible business entities, like Partnerships, LLCs, and corporations, to elect S Corporation tax treatment after missing the standard filing deadline. This election requires demonstrating reasonable cause for the delay and can provide significant self-employment tax savings. Entities making this election convert their tax treatment to follow S Corporation rules, allowing distributions above reasonable compensation to avoid self-employment taxes. This strategy often pairs with the Augusta rule for additional tax benefits. Relief is available through automatic procedures or private letter rulings based on timing.
Easily save clients thousands in taxes.
Scan client returns.
Uncover savings.
Export a professional tax plan.
.png){kind=small}