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In 2014, customers received IRS Letter 3853C, informing them that the IRS will not be processing Form 1120 U.S. Corporation Income Tax Return OR will not be processing the Form 1120-S U.S. Income Tax Return for an S Corporation that had been filed (the letter may address either situation, depending on which form was originally filed). These letters usually state the IRS had received Form 2553 Election by a Small Business Corporation, and based upon the effective date of that election, they were expecting to see the customer file the opposite form from which had been filed.

The IRS has rejected the e-filed Form 1120 or Form 1120-S, when Form 2553 has been filed, when the opposite form should be filed. Determine whether Form 2553 that had been filed, and the instructions for the form which outlines what the effective date of the election would be, based upon when it was filed, insuring the IRS letter is correct. Contact the IRS, directly, if you are not in agreement with the letter. Verify the letter was accurately generated, and provide proof of the date of your filing Form 1120, or the date of filing Form 1120-S for your corporation. Provide a copy of your statement of revocation or termination, if filed, OR information for relief under Revenue Procedure 2013-30, if applicable. If you are a tax professional, contact the IRS at 1-866-255-0654. If you are the taxpayer, contact the Business & Specialty Tax Line at 1-800-829-4933.

If you determine the IRS letter is correct, you would need to complete, as instructed, either Form 1120, or Form 1120-S, and submit it to the IRS. If the IRS has already accepted a Form 1120 or Form 1120-S filed under the corporation EIN, it should not be necessary for another e-filing with the same EIN (even if the return is now a different form), and a paper filing is needed.

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