Help getting out of tax limbo
Not sure if this is the right place to ask but here it goes.
I own a small business. Super small. My profit for 2025 was $14k. Another small business owner helped me set up my business. He set it up as a c-corp when I thought it was being set up as an LLC. He also helped me elect s-corp designation... so I thought. I filed out the s-corp election form and mailed it to the IRS. I didn't know I needed a confirmation letter. Lesson learned.
I guess the IRS never got or filed my election form. So when it came time to file my 2025 taxes in March as an s-corp, the return bounced and I realized my s-corp designation was never filed. I did a late election and filed an extension on my taxes. The IRS sent the form back to me saying they didn't accept electronically signed signatures, only handwritten and gave me 30 days to fix it. Fine. I fixed it, sent it back within one day. I got a rejection notice this week (6 weeks later) saying it was rejected for 2025 (but accepted for 2026) because my request was missing reasonable cause. In the reason section of the form, I had said it was inadvertent oversight, however I did not go into detail about what that oversight was, which is the reason why I think it may have not been accepted.
No where, when the first letter was sent to me to fix the signature, was it mentioned that I needed to also fix the reasonable cause.
I called and emailed my CPA for our personal taxes to ask for his help but I'm not getting a response. So that brings me here. Is it possible to appeal this again? Can I do it faster that having to mail something and wait several weeks for a mailed response? Do I just bite the bullet and file as a c-corp and lose out on a lot of money? I'm pretty sick of this game the government is making me play to just pay my damn taxes like an honest American.
I know accountants can't give personalized accounting or legal advice here so I'm wondering what you might do in this situation.