Financial Glossary
Faxing Form 2553 to the IRS
Form 2553 is the IRS election by which an eligible corporation or LLC chooses to be taxed as an S corporation. The IRS generally accepts the form by either fax or mail to the service center designated for the entity's state, and the correct fax number and address should be confirmed against current IRS instructions. After submission, the IRS issues a determination letter confirming whether the S corporation election was accepted.
Problem & Application
Businesses electing S corporation status care about submission method because timing matters: the election must be filed within the IRS window to take effect for the intended tax year. Faxing provides a quicker, datable record of submission than mail, which owners value when a deadline is close. Keeping the fax confirmation and following up for the IRS acceptance letter protects the entity if the filing is ever questioned.
In Short
Form 2553 can be faxed to the IRS, but confirming the current number, meeting the deadline, and retaining proof of acceptance are what make the election stick.