What This Letter Means
Letter 3853C covers a Form 1120 or Form 1120-S filing requirement mismatch. Your corporation filed a return that doesn't match what IRS records show about its S corporation status. The return couldn't post to your account until the conflict is resolved.
Two common situations trigger it:
- You filed Form 1120-S, but IRS records show no accepted S election, or show an election effective for a later year, or show the election was revoked or terminated.
- You filed Form 1120, but IRS records show an S election in effect for that year.
What the Letter May Ask For
The letter is written for your situation. Depending on what the IRS found, it may:
- Ask for a copy of your IRS-approved Form 2553, or the IRS notice accepting your election.
- Tell you the effective date of your S election, or of its revocation or termination, and explain why the form you filed is wrong for that year.
- Tell you the IRS has no record of a Form 2553, and that you may be able to request relief for a late election under Revenue Procedure 2013-30.
- Ask you to send a corrected return on the right form.
What to Do
- Find your election paperwork. The IRS acceptance notice for Form 2553 is the best proof you have.
- Respond by the date on the letter and include a copy of the letter.
- Don't refile on the wrong form. Fix the election question first.
- If you missed the election, deal with late election relief before filing any more 1120-S returns.
Get this right. Whether the corporation is an S corporation affects every year after this one, and it affects the shareholders' individual returns too.
If your S election is in question and you need it fixed, call us at (813) 229-7100.