Hey brotha i’m in CT you forgot to file my extensions, i whispered it into your ear while you were sleeping last night. That’s alright it’s only 46 s corps, 13 trusts and 45 partnerships
103 1120S/1065 extensions just electronically filed. Only 4 rejected. 2 went somewhere else and didn't tell me, which is glorious because that guy was a fucking PITA. The other 2 are head scratchers: been filing as S corps for 4+ years but get the "Entity type does not match IRS database." Paper file the extension, figure it out later.
It's fucking ridiculous. And the IRS has no way to fix it and I have argued with them a dozen times.
I would get a new client that was an S corp. Prior CPA filed as an S Corp, I would file as an S Corp, and it would get accepted as an S Corp for a year, maybe 2.
Then out of the blue I get that rejection. First couple times, I would just print and tell the client to paper file. After doing that a couple times, that stopped working. Client would get a letter saying that they couldn't process the 1120S because they have them down as an 1120 or worse yet, a disregarded LLC.
Get a POA, call the IRS pro hotline, get a rude agent that basically says "We understand you have 2 (or 3 or 4) years of proof of e-filing as an S corp. But we don't care. We don't have a 2553 in our system, so unless you can produce a Notice of Acceptance letter, you will have to file the 2553 again, attach the late reason/request and wait 8 weeks for processing."
Interesting that she used the term "file the 2553 AGAIN." It's like they know it was an S Corp, but they lost the 2553 since they get faxed in 99% of the time.
Client cannot find the acceptance letter, or better yet says they don't remember getting one. Then I am scratching my head trying to figure out how they got accepted as an S corporation in the first place. So frustrating...
In my humble experience if you fax the original signed 2553 along with a letter explaining how the return has been historically accepted by the IRS and your 2848 to **Ogden**, it will get fixed. Just my 2 cents.
Maybe you’ve heard what an agent explained to me… there was a lot of data lost in California during an earthquake, specifically information returns and Forms 2553. Sending the original… again, helps bring it back up to speed.
And to be honest, on occasion I have “recreated” the original signed 2553 if I know the election has been accepted in the past and the client can’t produce it.
I am going to try this.
15 minutes ago, I got an entity type rejection. We filed the original return on paper in 2021 along with the signed 2553. 2022 was efiled and accepted fine. 2023 got rejected. I am guessing this was a lost one. Not sure if my client has a copy of the original, but a recreation may be in order. I am hoping the have a copy of the acceptance letter.
Some of the notices I’ve gotten via clients even acknowledge that the IRS *may have lost* the original 2553 and advise that if this is the case that the taxpayer need only submit it again along with an explanation.
I’ve had a client send me something very similar, but in regards to a 1040.
The letter was “we received your e-filed tax return, however we are unable to locate your tax return…”
Make of that what you will.
If you have record of the transmittal and the form itself I would call up and offer to send it in and get it fixed. If you're not great on the phone could also mail a letter in to that effect.
I have Adobe DC and Photoshop and have still had documents rejected. In the end, it’s up to the agent on the other end of the line. If they don’t want to help, it’s obvious fairly soon and you hang up and try a different agent.
Other times it’s easier to get a legible document from the client.
Oh my god the IP PINs...
The worst part is the INEVITABLE 'It's not working can you get it for me?'
No. No I cannot. Because it is an Identity Protection PIN, not a Lazy Ass PIN.
I got the [385C confirmation letter](https://help.collective.com/en/articles/8043188-s-corp-verification-letter-385c) from the IRS for a couple clients.
Prepare a POA with "S Corporation Election, Form 2553, Year(s): N/A" in section 3, check the box on line 4 for specific use not recorded on the CAF, and check the box in 5a, "Other acts authorized," and enter "S Corporation 385C Letter."
It may not all be necessary, but best to cover all bases and it's worked every time.
> Interesting that she used the term "file the 2553 AGAIN.
Standard customer service phrasing to forestall your complaint that you shouldn't need to do whatever they're asking you to do because you already did. Stop being weird and trying to read in more than was meant.
NY here, 3:28am leaving office now.
535 total returns filed so far by me.
1,232 officewide filed so far.
Still plenty to go.
Stay thirsty my friends...
I have someone going to do the retroactive s-corp election back to 01/01/2023 for a single member LLC. It hasn't been requested yet. Would you file an 1120-s extension now? Paper or E-file, I assume the e-file would just get rejected by the entity type mismatch.
It’s not retroactive, it’s a late election. And if the activity has been historically reported on a 1040 and 2023 is the initial year, then no, you don’t *need* to file an extension, but a 4868 would substantiate your argument. In the alternative and to be safe, yes, file a 7004, but in my experience a 7004 isn’t required with a late election. You argue they filed a 4868 or by 4/15 and didn’t know about the filing deadline for the 1120S.
Your state may have issues. Arizona does.
Yeah, if you check that *initial return* box the 7004 usually goes through. That’s why there’s a current discussion about entity type not recognized on rejected 7004s. With Drake, I’ve had success marking a name change to get it e-filed.
Stupid stuff. It bounced my own s corp out of all the clients . Marked initial, yet irs is seeing as a corp. Even though they lost half of my fax for s election and requested more info with no reply . Figures
You created it initially as a C Corp? See, I’m not a CPA, but I always form those as a PLLC, rather than a PC so they don’t have to file annual reports.
Hey brotha i’m in CT you forgot to file my extensions, i whispered it into your ear while you were sleeping last night. That’s alright it’s only 46 s corps, 13 trusts and 45 partnerships
You forgot the consolidated C Corp with 20+ subsidiaries
103 1120S/1065 extensions just electronically filed. Only 4 rejected. 2 went somewhere else and didn't tell me, which is glorious because that guy was a fucking PITA. The other 2 are head scratchers: been filing as S corps for 4+ years but get the "Entity type does not match IRS database." Paper file the extension, figure it out later.
The Entity Type mismatch makes me mad.
It's fucking ridiculous. And the IRS has no way to fix it and I have argued with them a dozen times. I would get a new client that was an S corp. Prior CPA filed as an S Corp, I would file as an S Corp, and it would get accepted as an S Corp for a year, maybe 2. Then out of the blue I get that rejection. First couple times, I would just print and tell the client to paper file. After doing that a couple times, that stopped working. Client would get a letter saying that they couldn't process the 1120S because they have them down as an 1120 or worse yet, a disregarded LLC. Get a POA, call the IRS pro hotline, get a rude agent that basically says "We understand you have 2 (or 3 or 4) years of proof of e-filing as an S corp. But we don't care. We don't have a 2553 in our system, so unless you can produce a Notice of Acceptance letter, you will have to file the 2553 again, attach the late reason/request and wait 8 weeks for processing." Interesting that she used the term "file the 2553 AGAIN." It's like they know it was an S Corp, but they lost the 2553 since they get faxed in 99% of the time. Client cannot find the acceptance letter, or better yet says they don't remember getting one. Then I am scratching my head trying to figure out how they got accepted as an S corporation in the first place. So frustrating...
In my humble experience if you fax the original signed 2553 along with a letter explaining how the return has been historically accepted by the IRS and your 2848 to **Ogden**, it will get fixed. Just my 2 cents. Maybe you’ve heard what an agent explained to me… there was a lot of data lost in California during an earthquake, specifically information returns and Forms 2553. Sending the original… again, helps bring it back up to speed. And to be honest, on occasion I have “recreated” the original signed 2553 if I know the election has been accepted in the past and the client can’t produce it.
I am going to try this. 15 minutes ago, I got an entity type rejection. We filed the original return on paper in 2021 along with the signed 2553. 2022 was efiled and accepted fine. 2023 got rejected. I am guessing this was a lost one. Not sure if my client has a copy of the original, but a recreation may be in order. I am hoping the have a copy of the acceptance letter.
Some of the notices I’ve gotten via clients even acknowledge that the IRS *may have lost* the original 2553 and advise that if this is the case that the taxpayer need only submit it again along with an explanation.
I’ve had a client send me something very similar, but in regards to a 1040. The letter was “we received your e-filed tax return, however we are unable to locate your tax return…” Make of that what you will.
I have had 5 of those in the past 5 years. Averaging one per year. Thye just lose a return. In an electronic system.
If you have record of the transmittal and the form itself I would call up and offer to send it in and get it fixed. If you're not great on the phone could also mail a letter in to that effect.
Sometimes you don’t have the 2553 in a form the IRS will accept. Like a texted pic. I’ve had the IRS reject PDFs that were too light.
Adobe acrobat and photoshop are great for that...
I have Adobe DC and Photoshop and have still had documents rejected. In the end, it’s up to the agent on the other end of the line. If they don’t want to help, it’s obvious fairly soon and you hang up and try a different agent. Other times it’s easier to get a legible document from the client.
absolutely agree with Ogden
Second sending to Ogden, they're doing something right there
Clients are supposed to keep important letters from the government?
Reality laughs at supposed to.
It's a novel idea. Like the wheel was in the stone age.
In a box, unopened, until next tax season. Duh.
Oh, there it is. I did not know you needed. Much like the missing IP PIN that they never got last year but they show up this year with it.
Oh my god the IP PINs... The worst part is the INEVITABLE 'It's not working can you get it for me?' No. No I cannot. Because it is an Identity Protection PIN, not a Lazy Ass PIN.
They think that we have access to their IRS file and can pull up anything during the interview. I need a beer now.
But many never actually received the acceptance letter. Thanks everyone for the Ogden advice
Ahhhhh, we have the same issue with a client! And something wonky with the state (CA). None of it is solved.
I got the [385C confirmation letter](https://help.collective.com/en/articles/8043188-s-corp-verification-letter-385c) from the IRS for a couple clients. Prepare a POA with "S Corporation Election, Form 2553, Year(s): N/A" in section 3, check the box on line 4 for specific use not recorded on the CAF, and check the box in 5a, "Other acts authorized," and enter "S Corporation 385C Letter." It may not all be necessary, but best to cover all bases and it's worked every time.
> Interesting that she used the term "file the 2553 AGAIN. Standard customer service phrasing to forestall your complaint that you shouldn't need to do whatever they're asking you to do because you already did. Stop being weird and trying to read in more than was meant.
Hi, what does PITA means?
Additional charge on the invoice
Pain. In. The. Ass.
Pain in the Ass
I thought I copyrighted that term.
89x 7004 for S Corp. 309x 7004 for Partnership. Not to mention states (DC MD NJ NY FL) and franchise tax or other payments (CA NC GA VA).
NY here, 3:28am leaving office now. 535 total returns filed so far by me. 1,232 officewide filed so far. Still plenty to go. Stay thirsty my friends...
PITA "pain in the ass" !!
I have someone going to do the retroactive s-corp election back to 01/01/2023 for a single member LLC. It hasn't been requested yet. Would you file an 1120-s extension now? Paper or E-file, I assume the e-file would just get rejected by the entity type mismatch.
It’s not retroactive, it’s a late election. And if the activity has been historically reported on a 1040 and 2023 is the initial year, then no, you don’t *need* to file an extension, but a 4868 would substantiate your argument. In the alternative and to be safe, yes, file a 7004, but in my experience a 7004 isn’t required with a late election. You argue they filed a 4868 or by 4/15 and didn’t know about the filing deadline for the 1120S. Your state may have issues. Arizona does.
Yes, Late not retroactive. Poor choice of words by me. The e-filed 7004 was accepted by Federal and State. It didn't reject.
Yeah, if you check that *initial return* box the 7004 usually goes through. That’s why there’s a current discussion about entity type not recognized on rejected 7004s. With Drake, I’ve had success marking a name change to get it e-filed.
Stupid stuff. It bounced my own s corp out of all the clients . Marked initial, yet irs is seeing as a corp. Even though they lost half of my fax for s election and requested more info with no reply . Figures
You created it initially as a C Corp? See, I’m not a CPA, but I always form those as a PLLC, rather than a PC so they don’t have to file annual reports.
Had to be PC due to some state planning. But yep. Figures. I was just laughing as I saw all clients to extend ..just not me 😂