Entities normally have two and half months to file a request with the IRS to be taxed as an S corporation. Typically, for calendar year corporations, this means that you need to file your election by March 15, 2018 to have your corporation be taxed as an S corporation for 2018.
However, if a taxpayer planned on filing as an S corporation, but inadvertently failed to make the election, the IRS is very generous in granting the election anyway. As long as you have reasonable cause, the IRS will grant a late S Corporation election in almost all cases.
With the passage of the new tax law, there is many unknowns about whether a company should be taxed as an S corporation or remain as a C corporation. The IRS had tentatively indicated that they will issue guidance on Section 199A by June 30. This guidance is really needed to determine if you want to switch to an S corporation.
Therefore, the National Society of Accountants has sent a formal letter to the IRS requesting that the S Corporation election due date be moved to September 15, 2018 for 2018 calendar year returns. The letter lays out the reasons for the extension and also indicates that due to the IRS not getting information to taxpayers before March 15, 2018, this should qualify as reasonable cause for filing an S Corporation election late.
This appears to a very good idea and we will keep you posted on any IRS response.