IRS Wants Feedback on Form 2553, Election by Small Business Corporations.

The Internal Revenue Service is soliciting feedback on Form 2553, which is the form used by small businesses to elect S-Corporation status. If you have comments or suggestions for improving the form to make it easier to fill out or easier for the IRS to process, send your suggestions to the IRS at a special email address. Here's more information from the IRS:

"The Taxpayer Burden Reduction office invites tax professionals to provide feedback on improving the election process, reducing internal costs associated with processing elections and promoting efficient and accurate assessment of tax against entities. Email comments to sbse.scorp.elections@irs.gov."

For the record, here's the suggestion I am mailing in. Many corporations I help are late on their tax returns and want to make a late election for S-Corporation status. Adding the late election wording at the top of the form, although it takes only a few seconds, is cumbersome. So, I have a very simple suggestion:

"Dear IRS Representative, I have just one suggestion for improving Form 2553. Add check-the-box entries near the top of the Form for the late-filing Rev Procs. I envision two check boxes, like this:

[] Filed Persuant to Rev. Proc. 2003-43
[] Filed Persuant to Rev. Proc. 2004-48

A written statement to explain reasonable cause would still need to be attached and signed by all the shareholders."

Hopefully adding check boxes will make it easier for professionals and taxpayers to prepare these forms properly.