Which entity's filing is necessary for S Corporations to receive special tax considerations?

For S Corporations to receive special tax considerations, they must file with the Internal Revenue Service (IRS). This specific filing is necessary because an S Corporation status allows a corporation to pass income, losses, deductions, and credits directly to shareholders for federal tax purposes. To elect S Corporation status, the corporation must file IRS Form 2553, which must be signed by all shareholders.

This designation is crucial as it allows the corporation to avoid double taxation on the income at the corporate level, which is a significant tax advantage over traditional C Corporations. By filing with the IRS, the S Corporation is able to elect to be taxed under Subchapter S of the Internal Revenue Code, and this election must be made in a timely manner to be effective for the desired tax year.

Entities like the State tax authority, Department of Labor, or Small Business Administration do not handle the special tax statuses or considerations associated with S Corporations. Their roles pertain to other regulatory and operational aspects rather than the specific tax treatment that the IRS governs through the filing of the appropriate election.