Oregon Election of 'S' Corporation Status and Instructions - IRS 2553

• Category: Federal - IRS
• State: Multi-State
• Control #: US-IRS-2553
• Format: PDF

Description

A corporation or other entity eligible to elect to be treated as a corporation must use Form 2553 to make an election under section 1362(a) to be an S corporation.

Title: Understanding the Oregon Election of 'S' Corporation Status and Instructions — IRS 2553 Keywords: Oregon Election of 'S' Corporation Status, IRS 2553, Instructions, 'S' Corporation, tax status, criteria, process, benefits, qualifications, deadline, Form 2553, revocation, alternative status Introduction: The Oregon Election of 'S' Corporation Status, as defined by IRS 2553, refers to the process by which a business entity can elect to be treated as an 'S' Corporation for tax purposes in the state of Oregon. This election allows eligible corporations to avail of certain tax advantages while remaining compliant with state and federal tax regulations. In this article, we will delve into the different types of Oregon Election of 'S' Corporation Status and provide detailed instructions on how to complete IRS Form 2553. Types of Oregon Election of 'S' Corporation Status: 1. Initial Election: The initial election of 'S' Corporation status in Oregon is available for eligible corporations that meet the criteria set forth by the Internal Revenue Service (IRS) and the state of Oregon. This election involves filing Form 2553, commonly known as the "Election by a Small Business Corporation," with the IRS. 2. Revocation of 'S' Corporation Status: Corporations that have previously elected 'S' Corporation status can, if they no longer wish to be treated as an 'S' Corporation, file for a revocation. The corporation must meet specific requirements and follow the guidelines mentioned in IRS 2553 to revoke their 'S' Corporation status in Oregon. Instructions for Oregon Election of 'S' Corporation Status — IRS 2553: 1. Determine Eligibility: Before proceeding with the election, corporations must confirm their eligibility for 'S' Corporation status. This typically includes satisfying criteria such as having no more than 100 shareholders, being a domestic corporation, and adhering to specific ownership restrictions. 2. Obtain and Complete Form 2553: Download the latest version of IRS Form 2553 from the official IRS website. Ensure that all required fields are accurately filled out, including information regarding the corporation's legal name, EIN (Employer Identification Number), shareholder details, and the effective date for 'S' Corporation status. 3. Gather Supporting Documents: Depending on your specific circumstances, you may need to include additional attachments or supporting documentation with the completed Form 2553. Examples of possible attachments include shareholder consent statements and a statement indicating any late filing relief previously granted by the IRS. 4. File Form 2553: Submit the completed Form 2553 to the relevant IRS service center, following the instructions provided in the form's accompanying guidelines. It is important to note that there is a specific deadline for filing the form, so ensure timely submission to avoid any potential penalties. 5. Notify Oregon Department of Revenue: While the primary filing is with the IRS, it is recommended to also inform the Oregon Department of Revenue about the election. Although notification is not mandatory, doing so helps ensure compliance with state-specific requirements. Conclusion: The Oregon Election of 'S' Corporation Status, as outlined in IRS 2553, provides eligible corporations in Oregon the opportunity to benefit from the 'S' Corporation tax status. By carefully following the instructions and completing Form 2553 accurately, businesses can navigate the election process and unlock potential tax advantages associated with this status.