Missed S Corp election - how to fix?

[sripada]

Dear Tax Guru's..

I incorporated my business on 01-01-2005. I thought we filed S corp election on form 2553 in time. We also filed two year corporation returns as S corp returns and shareholders also reported its income / loss during last two years assuming S election.

Surprisingly, last month we received notice from IRS mentioning not accepting S election saying they never received any form 2553. We filed form 2553 under rev proc 2003-** but they did not approved it.

What are the alternatives for us? We do not want to elapse S election. We want S election with effect from 01/01/05. Do we have to request private ruling or any other rev. proc. can help us?

Appreciate for your time and advice

Thanks.

[andynit]

If you filed all S corp returns and Shareholders also reported said corp income assuming the corp as S corp and IRS did not communicated you of S status in 6 months of timely filing, you can file for 2553 pursuant Rev. Proc. 97-48. If rejected you still have option to request private letter rulings. As you might know, for corp revenue less than 1 million dollar, requesting private letter ruling will cost you $500)

I would file under rev. proc. 97-48 first.

[rstu789]

I like your style. ; o