Fillable Form 8869 - Qualified Subchapter S Subsidiary Election (Page 2 of 2) in pdf

Form 8869 (Rev. 12-2013)

Page

Where To File

Employer Identification Number (EIN)

File Form 8869 with the service center where the subsidiary filed its

A QSub may not be required to have an EIN for federal tax purposes. If

most recent return. However, if the parent S corporation forms a

the QSub does not have an EIN, enter “N/A” on line 8.

subsidiary, and makes a valid election effective upon formation, submit

However, if the QSub has previously filed a return, separately or as

Form 8869 to the service center where the parent S corporation filed its

part of a consolidated return, and used an EIN, enter that EIN on line 8

most recent return.

and (if applicable) the EIN of its common parent on line 16b. If this

election is being made pursuant to a reorganization under section

Acceptance of Election

368(a)(1)(F) and Rev. Rul. 2008-18, the old S corporation for which this

The service center will notify the corporation if the QSub election is

QSub election is being made will retain its EIN. The newly formed parent

(a) accepted, and when it will take effect, or (b) not accepted.

must get a new EIN. See Rev. Rul. 2008-18, 2008-13 I.R.B. 674, for

details.

The corporation should generally receive a determination on its

election within 60 days after it has filed Form 8869. However, if the

Note. Failure to enter the subsidiary’s EIN may result in the service

corporation is not notified of acceptance or nonacceptance of its

center sending a notice of delinquent filing to the QSub.

election within 2 months of the date of filing (date mailed), take

If the QSub wants its own EIN, but does not have one, see Form

follow-up action by calling 1-800-829-4933.

SS-4, Application for Employer Identification Number, for details on

If the IRS questions whether Form 8869 was filed, an acceptable

how to obtain an EIN.

proof of filing is (a) a certified or registered mail receipt (timely

If the QSub has not received its EIN by the time the election is made,

postmarked) from the U.S. Postal Service, or its equivalent from a

write “Applied for” on line 8. See the Instructions for Form SS-4 for

designated private delivery service (see Notice 2004-83, 2004-52 I.R.B.

details.

1030 (or its successor)); (b) a Form 8869 with an accepted stamp; (c) a

Form 8869 with a stamped IRS received date; or (d) an IRS letter stating

Effective Date of Election

that Form 8869 has been accepted.

Form 8869 generally must be filed no earlier than 12 months

End of Election

TIP

before or no later than 2 months and 15 days after the

effective date requested on line 11. For details and

Once the QSub election is made, it remains in effect until it is

exceptions, see When To Make the Election, earlier.

terminated. If the election is terminated, IRS consent generally is

required for another QSub election with regard to the former QSub (or

A parent S corporation that forms a new subsidiary and wants the

its successor) for any tax year before the 5th tax year after the first tax

election effective upon formation should enter the formation date. A

year in which the termination took effect. See Regulations section

parent corporation that wants to make the election for an existing

1.1361-5 for details.

subsidiary should enter the requested effective date. For details about

Specific Instructions

the effect of a QSub election, see Regulations section 1.1361-4.

Signature

Address

Form 8869 must be signed and dated by the president, vice president,

Include the suite, room, or other unit number after the street address. If

treasurer, assistant treasurer, chief accounting officer, or any other

the Post Office does not deliver to the street address and the

corporate officer (such as tax officer) authorized to sign the parent’s

corporation has a P.O. box, show the box number instead.

S corporation return.

If the subsidiary has the same address as the parent S corporation,

enter “Same as parent” in Part II.

Paperwork Reduction Act Notice. We ask for the information on this

form to carry out the Internal Revenue laws of the United States. You

Additional Subsidiaries

are required to give us the information. We need it to ensure that you are

If the QSub election is being made for more than one subsidiary, attach

complying with these laws.

a separate sheet for each subsidiary. Use the same size, format, and

You are not required to provide the information requested on a form

line numbers as in Part II of the printed form. Put the parent

that is subject to the Paperwork Reduction Act unless the form displays

corporation’s name and employer identification number at the top of

a valid OMB control number. Books or records relating to a form or its

each sheet.

instructions must be retained as long as their contents may become

If the QSub elections are being made effective on the same date for a

material in the administration of any Internal Revenue law. Generally, tax

tiered group of subsidiaries, the parent S corporation may specify the

returns and return information are confidential, as required by section

order of the deemed liquidations on an attachment. If no order is

6103.

specified, the deemed liquidations will be treated as occurring first for

The time needed to complete and file this form will vary depending

the lowest tier subsidiary and proceeding successively upward. See

on individual circumstances. The estimated average time is:

Regulations section 1.1361-4(b)(2).

Recordkeeping

6 hr., 13 min.

▲

A QSub election for a tiered group of subsidiaries may, in

Learning about the law or the form .

. 53 min.

certain circumstances, result in the recognition of income. A

primary example is excess loss accounts (see Regulations

Preparing and sending the

CAUTION

section 1.1502-19).

form to the IRS

1 hr., 2 min.

Reorganizations

If you have comments concerning the accuracy of these time

estimates or suggestions for making this form simpler, we would be

Line 14. This box should be checked “Yes” if this election is being

happy to hear from you. You can write to the Internal Revenue Service,

made pursuant to a reorganization under section 368(a)(1)(F) and

Tax Forms and Publications, SE:W:CAR:MP:TFP, 1111 Constitution

Rev. Rul. 2008-18. This occurs when a newly formed parent holding

Ave. NW, IR-6526, Washington, DC 20224. Do not send the form to this

company holds the stock of the subsidiary that was an S corporation

address. Instead, see Where To File, earlier.

immediately before the transaction and the transaction otherwise

qualifies as a reorganization under section 368(a)(1)(F). No Form 2553,

Election by a Small Business Corporation, is required to be filed by the

parent. See Rev. Rul. 2008-18, 2008-13 I.R.B. 674, for details.

Form 8869 - Qualified Subchapter S Subsidiary Election Page 2

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