Harris Texas Election of 'S' Corporation Status and Instructions — IRS 2553 is a process that allows certain qualifying small business corporations in Harris County, Texas to elect to be treated as an S Corporation for federal tax purposes. By making this election, these corporations can benefit from pass-through taxation, where the profits and losses of the corporation are passed through to the shareholders and are reported on their individual tax returns. The IRS Form 2553, Harris Texas Election of 'S' Corporation Status, must be completed and filed with the Internal Revenue Service (IRS) to make this election. It is important to carefully follow the instructions provided by the IRS to ensure the election is valid and properly executed. Some relevant keywords for Harris Texas Election of 'S' Corporation Status and Instructions — IRS 2553 are: 1. Harris County, Texas: This refers to the specific location where the election is being made, as the process may vary depending on the jurisdiction. 2. 'S' Corporation: This highlights the specific type of corporation that is being elected for tax purposes, providing the advantages of pass-through taxation. 3. Small business corporations: This indicates that only certain qualifying businesses can make the election, typically those with a limited number of shareholders and meeting specific criteria set by the IRS. 4. Pass-through taxation: This phrase defines the tax treatment that allows the shareholders to report their share of the corporation's profits and losses on their individual tax returns. 5. IRS Form 2553: This is the specific form provided by the IRS that must be completed and filed to make the election. It is worth noting that different types of corporations may have varying eligibility and instructions for making a similar election. For example, there may be separate instructions and requirements for C Corporations or entities operating in different counties or states. However, for the purpose of this description, the focus is on the Harris Texas Election of 'S' Corporation Status and Instructions — IRS 2553 specifically related to Harris County, Texas.