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

Form 8869 (Rev. 12-2008)

Page

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

Acceptance of Election

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

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

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

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

election is being made pursuant to a reorganization under section

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

The corporation should generally receive a determination on its

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

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

formed parent must get a new EIN. See Rev. Rul. 2008-18, 2008-13

corporation is not notified of acceptance or nonacceptance

I.R.B. 674, for details.

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

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

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

center sending a notice of delinquent filing to the QSub.

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

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

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

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

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

designated private delivery service (see Notice 2004-83, 2004-52

how to obtain an EIN.

I.R.B. 1030 (or its successor)); (b) a Form 8869 with an accepted

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

stamp; (c) a Form 8869 with a stamped IRS received date; or (d) an

made, write “Applied for” on line 8. See the Instructions for Form

IRS letter stating that Form 8869 has been accepted.

SS-4 for details.

End of Election

Effective Date of Election

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

Form 8869 generally must be filed no earlier than 12

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

months before or no later than 2 months and 15 days

required for another QSub election with regard to the former QSub

TIP

after the effective date requested on line 11. For details

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

and exceptions, see When To Make the Election on

first tax year in which the termination took effect. See Regulations

page 1.

section 1.1361-5 for details.

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

Specific Instructions

election effective upon formation should enter the formation date. A

parent corporation that wants to make the election for an existing

Address

subsidiary should enter the requested effective date. For details about

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

Include the suite, room, or other unit number after the street

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

Signature

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

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

If the subsidiary has the same address as the parent

president, treasurer, assistant treasurer, chief accounting officer, or

S corporation, enter “Same as parent” in Part II.

any other corporate officer (such as tax officer) authorized to sign

the parent’s S corporation return.

Additional Subsidiaries

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

Paperwork Reduction Act Notice. We ask for the information on

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

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

format, and line numbers as in Part II of the printed form. Put the

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

parent corporation’s name and employer identification number at the

that you are complying with these laws.

top of each sheet.

You are not required to provide the information requested on a

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

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

for a tiered group of subsidiaries, the parent S corporation may

displays a valid OMB control number. Books or records relating to a

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

form or its instructions must be retained as long as their contents

order is specified, the deemed liquidations will be treated as

may become material in the administration of any Internal Revenue

occurring first for the lowest tier subsidiary and proceeding

law. Generally, tax returns and return information are confidential, as

successively upward. See Regulations section 1.1361-4(b)(2).

required by section 6103.

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

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

certain circumstances, result in the recognition of income. A primary

on individual circumstances. The estimated average time is:

example is excess loss accounts (see Regulations section 1.1502-19).

Recordkeeping

6 hr., 13 min.

Reorganizations

Learning about the law or the form

53 min.

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

Preparing, copying,

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

assembling, and sending the

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

form to the IRS

1 hr., 2 min.

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

immediately before the transaction and the transaction otherwise

If you have comments concerning the accuracy of these time

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

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

2553, Election by a Small Business Corporation, is required to be

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

filed by the parent. See Rev. Rul. 2008-18, 2008-13 I.R.B. 674, for

Tax Products Coordinating Committee, SE:W:CAR:MP:T:T:SP, 1111

details.

Constitution Ave. NW, IR-6526, Washington, DC 20224. Do not send

the form to this address. Instead, see Where To File on page 1.

Employer Identification Number (EIN)

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

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

line 8.

Form 8869 - Qualified Subchapter S Subsidiary Election Page 2

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