Final answer:
The incorrect statement with respect to filing an S election is that an extension of time is available for filing Form 2553. This form must be filed by a set deadline, and unanimous shareholder consent is required.
Step-by-step explanation:
Regarding the question of which statement is incorrect with respect to filing an S election, the incorrect statement is option 1: An extension of time is available for filing Form 2553.
Typically, there are no extensions available specifically for making an S Corporation election; Form 2553 must be filed by a certain deadline, which is generally no later than two months and 15 days after the beginning of the tax year the election is to take effect.
For the other options: Form 2553 must indeed be filed to make an S Corporation election. It is correct that the election can be filed in the previous year for it to be effective for the next tax year, and that all shareholders must consent to the election; without unanimous consent, the S Corporation election is not valid.