Taxation

Ca. Tax Lawyer March 2021, Volume 30, Number 1

Request for Guidance Regarding Making Proper S Corporation Consents of Form 2553, Election by a Small Business Corporation

(Clarifying Who and How to Sign the Form 2553 "Consent Statement" for Grantor Trust Shareholders and Community Interest Spouse Shareholders)1

By John C. Miles and Eric D. Swenson2

EXECUTIVE SUMMARY

Corporations which qualify as "Small Business Corporations" pursuant to Internal Revenue Code ("IRC")3 Section 1361(b) may elect to be treated as an "S Corporation" if certain requirements are met. The election to be treated as an S Corporation (the "S Election") is made on Form 2553, Election by a Small Business Corporation ("Form 2553").4

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