Skip to main content
All CollectionsTaxSlayer Online
TaxSlayer IRS Reject Code F7004-905-03
TaxSlayer IRS Reject Code F7004-905-03
Angelica Acebes avatar
Written by Angelica Acebes
Updated over 3 weeks ago

Reject Code F7004-905-03 occurs when an S corporation files Form 7004 (Request for Extension), but the IRS does not recognize the entity as an S corporation in their records.


Why This Happens:

  • The EIN is not associated with an S corporation in the IRS database.

  • The S corporation election (Form 2553) may not have been filed or accepted.

  • The IRS has the corporation listed as a C corporation instead of an S corporation.


How to Fix This Rejection:

1. Confirm the S Corporation Election

Ask the corporate officer the following questions:
✔️ Did the corporation revert back to a C corporation?
✔️ Did they receive IRS Notice CP261 (confirmation of S corp election)?
✔️ Did they file Form 2553 for S corp election on time?

  • If they did not file Form 2553, they must do so before they can file as an S corporation.

  • If they filed Form 2553 but haven’t received CP261, they should contact the IRS for status.


2. Indicate "Initial Return" If This Is Their First Year as an S Corporation

  • If this is the first tax year filing as an S corporation, update the extension request:

    • Go to the Form 7004 menu → Select "Reason if Tax Year Less than 12 Months" → Choose "Initial Return".

    • This tells the IRS that this is the first year of S corp election.


3. File Form 2553 for Late Election Relief (If Applicable)

  • If the corporation missed the Form 2553 deadline, they may still qualify for late election relief.

  • The Form 2553 instructions provide guidance on how to request relief.


4. Consider Paper Filing the Extension

  • If the electronic extension request is rejected before the filing deadline,

    • The preparer can submit a paper-filed extension.

    • Then, file Form 2553 and request late election relief if necessary.


5. If Uncertain, Contact the IRS

  • If the issue persists, the corporation should contact the IRS directly for clarification.

By ensuring that the S corp election is properly recorded and updating the extension request accordingly, this rejection can be avoided.

Did this answer your question?