Financial Glossary
Checking S Corp Status
Checking S corporation status means verifying whether the IRS has accepted a business's election to be taxed as an S corp under Form 2553. Because the IRS does not offer a public online lookup tool for election status, confirmation generally comes from the IRS acceptance letter (CP261) or by contacting the IRS directly through its business help line. Confirming status matters because it determines how the entity's income is taxed and reported.
Problem & Application
Owners often assume their S corp election went through, only to discover at tax time that it was never accepted or was filed late, which changes how income and self-employment taxes are handled. Verifying status before filing prevents returns from being rejected and avoids unexpected tax liability. Be skeptical of websites promising a free instant online check, since the IRS itself does not provide one.
In Short
Confirming your S corp status with the IRS, rather than assuming it, protects you from a surprise reclassification at tax time. It is a quick check that prevents an expensive mistake.