Can Form 2553 Be Signed Electronically?

Form 2553, the Election by a Small Business Corporation, is filed with the Internal Revenue Service (IRS) to elect S corporation status. This election allows a qualifying business to pass income, losses, deductions, and credits directly to its shareholders. A common question is whether this form can be signed electronically, as understanding the appropriate signature methods is essential for valid and timely processing.

Understanding Signature Requirements for Form 2553

Form 2553 requires specific individuals to sign the document to ensure the S corporation election is valid. The corporate officer authorized to sign, such as the president, vice president, treasurer, assistant treasurer, or chief accounting officer, must sign and date the form. Additionally, all shareholders of the corporation must consent to the election by signing in the designated section. In certain community property states, a shareholder’s spouse may also need to sign the consent, even if they are not officially a shareholder.

The IRS generally requires a handwritten, or “wet ink,” signature for tax forms unless specific guidance permits electronic signatures. For Form 2553, the IRS typically mandates a real pen ink signature. This means that, in most cases, a traditional electronic signature created through a digital platform is not accepted for this particular form. If Form 2553 is not properly signed, it will not be considered timely filed.

Valid Electronic Signature Methods

The Internal Revenue Service has established guidelines for what constitutes a valid electronic signature for forms where it is permitted. These methods aim to ensure the authenticity and integrity of electronically signed documents. Acceptable electronic signatures can take various forms, including a typed name placed within or at the end of an electronic record, or a scanned or digitized image of a handwritten signature attached to an electronic document. Other recognized methods include a shared secret, such as a password or Personal Identification Number (PIN), a unique biometric identifier like a fingerprint, or a handwritten signature input onto an electronic signature pad or display screen using a stylus. Signatures generated by third-party software are also generally acceptable.

For an electronic signature to be legally binding, it must meet specific requirements. The signer must execute or adopt the signature with the clear intent to sign the form. The electronic signature must also be sufficiently attached to or associated with the form to establish that it was applied to that specific document, allowing the signer to clearly review what they are signing. Furthermore, there must be a reliable method to identify and authenticate the signatory. While these electronic signature methods are valid for a range of IRS forms, it is important to reiterate that Form 2553 is not generally included among the forms for which direct electronic signatures are accepted.

Submitting Form 2553

Once Form 2553 has been accurately completed and properly signed with a wet ink signature, it must be submitted to the Internal Revenue Service. This form cannot be filed online or electronically through typical e-file systems. Instead, the completed form must be mailed or faxed to the appropriate IRS Service Center.

The specific mailing address or fax number depends on the location of the corporation’s principal business, office, or agency. It is always advisable to consult the most current instructions for Form 2553 on the IRS website to confirm the correct address or fax number. The IRS typically takes approximately 60 days to process Form 2553 and notify the corporation of its acceptance or non-acceptance. If a specific tax year ruling is requested by checking box Q1 on the form, the processing time can extend an additional 90 days.