Simplified method for requesting relief for late S elections - IRS News - S Corporation Internal Revenue Service regulations - Brief Article

California CPA, July, 2003

Stuart R. Josephs, CPA, of the San Diego-based Tax Assistance Practice, reports that Rev. Proc. 2003-43, IRB 2003-23, June 9, 2003, generally may grant relief to certain eligible entities for failing to timely file elections if the request for relief is filed within 24 months of the election's due date.

Rev. Proc. 2003-43 applies to late:

* S Corporation elections;

* Electing small business trust elections;

* Qualified Subchapter S trust elections; and

* Qualified Subchapter S subsidiary elections.

This Revenue Procedure provides procedures in lieu of the letter ruling process ordinarily used to obtain relief for late elections under Subchapter S. Therefore, user fees do not apply to corrective actions under Rev. Proc. 2003-43.

These new procedures are effective June 9 and cover requests pending with the IRS on that date. A letter ruling request pending in the IRS National Office June 9 may be withdrawn and the user fee will be refunded.