Late Elections

Internal Revenue Service Department of the Treasury
Washington, DC 20224
Number: 202521010
Release Date: 5/23/2025
Index Number: 1362.01-03
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Third Party Communication: None
Date of Communication: Not Applicable
Person To Contact:
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Telephone Number:
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Refer Reply To:
CC:PT&E:B03
PLR-115415-24
Date:
February 25, 2025
LEGEND
Company
Date 1
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Date 2 = ---
Shareholder = ---
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State = ---
Dear ---:
This letter responds to a letter dated August 28, 2024, and subsequent correspondence submitted on behalf of Company by its authorized representative, requesting a ruling under § 1362(b)(5) of the Internal Revenue Code (Code).

# FACTS

The information submitted states that Company was incorporated under the laws of State on Date 1. The sole Shareholder of Company intended for Company to be an S corporation effective Date 2, but Company inadvertently failed to timely file Form 2553, Election by a Small Business Corporation.
PLR-115415-24 2

# LAW

Section 1362(a)(1) provides that, except as provided in § 1362(g), a small business corporation may elect, in accordance with § 1362, to be an S corporation.
Section 1362(b)(1) provides that an election under § 1362(a) may be made by a small business corporation for any taxable year (A) at any time during the preceding taxable year, or (B) at any time during the taxable year and on or before the 15th day of the third month of the taxable year.
Section 1362(b)(3) provides that if (A) a small business corporation makes an election under § 1362(a) for any taxable year, and (B) such election is made after the 15th day of the third month of the taxable year and on or before the 15th day of the third month of the following taxable year, then such election shall be treated as made for the following taxable year.
Section 1362(b)(5) provides that if (A) an election under § 1362(a) is made for any taxable year (determined without regard to § 1362(b)(3)), after the date prescribed by § 1362(b) for making the election for the taxable year or no § 1362(a) election is made for any taxable year, and (B) the Secretary determines that there was reasonable cause for the failure to timely make such election, the Secretary may treat such an election as timely made for the taxable year (and § 1362(b)(3) shall not apply).

# CONCLUSION

Based solely on the facts submitted and the representations made, we conclude that Company has established reasonable cause for failing to timely make an election to be an S corporation and is eligible for relief under § 1362(b)(5). Accordingly, if Company makes an election to be an S corporation by filing with the appropriate service center a completed Form 2553, containing an effective date of Date 2 for the election, within 120 days from the date of this letter, then such election will be treated as timely made. A copy of this letter should be attached to Company’s Form 2553 filed with the service center.
Except as expressly provided herein, we express or imply no opinion concerning the federal tax consequences of any aspect of any transaction or item discussed or referenced in this letter. Specifically, we express or imply no opinion concerning whether Company is otherwise eligible to be an S corporation for federal tax purposes.
This ruling is directed only to the taxpayer requesting it. Section 6110(k)(3) of the Code provides that it may not be used or cited as precedent.
The ruling contained in this letter is based upon information and representations submitted by the taxpayer and accompanied by a penalty of perjury statement executed PLR-115415-24 3 by an appropriate party. While this office has not verified any of the material submitted in support of the requested ruling, it is subject to verification on examination.
Pursuant to a power of attorney on file with this office, we are sending a copy of this letter to your authorized representatives.
Sincerely,
Mary Beth Carchia
Senior Technician Reviewer, Branch 3
Office of Associate Chief Counsel
(Passthroughs, Trusts, and Estates)
Enclosure:
Copy of this letter for § 6110 purposes cc ---
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