Blame the Lawyer: Accountants Always Do
Joe Kristan writes about Relief for Late S Corporation Elections over on the Roth & Company Tax Update blog. The deadline for making an S corporation is 2 1/2 months after the start of the year the election is to take effect. The IRS will allow corporations to make their election when they file their first S corporation tax return, if they have "reasonable cause" for the late election. The IRS will modify the S election form, Form 2553, to accomodate relief requests under Rev. Proc. 2007-62.
What is "reasonable cause"? Kristan says the time-honored justification is to blame the accountant but as an accountant he prefers the "blame the lawyer" approach.
Don't worry, Joe. A business lawyer has broad shoulders. And you are not the first accountant to blame the lawyer. I can assure you of that.:)
