To revoke a Subchapter S election/small business election that was made on Form 2553, submit a statement of revocation to the service center where you file your annual return.
The statement should state:
- The corporation revokes the election made under Section 1362(a)
- Name of the shareholder(s),
- Address of the shareholder(s),
- Taxpayer identification number of the shareholder(s),
- The number of shares of stock owned by the shareholder(s),
- The date (or dates) on which the stock was acquired
- The date on which the shareholder's taxable year ends
- The name of the S corporation
- The S corporation's EIN
- The election to which the shareholder(s) revokes
- The statement must be signed by the shareholder(s) under penalties of perjury
- Signature and consent of shareholder(s) who collectively own more than 50% of the number of issued and outstanding stock of the corporation, (whether voting or non-voting)
- Indication of the effective date of the revocation (or prospective date)
- Signature of person authorized to sign return
Due date of revocation:
- If revoking effective the first day of the tax year, the revocation is due by the 16th day of the third month of the tax year,
- If revoking effective any day other than the first day of the tax year, the revocation must be received by IRS by the requested effective date.
- For example, the S corporation is on a December 31 tax year ending and requests a revocation effective January 1, the revocation is due March 15.
- The S corporation is on a December 31 tax year ending and requests a revocation effective February 14, the revocation is due February 14.
