Fillable Form 8832 - Entity Classification Election (Page 5 of 7) in pdf

Form 8832 (Rev. 1-2012)

Page

Use the following

Limited liability. A member of a foreign

• If an eligible entity classified as a

If the entity’s principal

Internal Revenue

business, office, or

eligible entity has limited liability if the

partnership elects to be classified as an

Service Center

agency is located in:

member has no personal liability for any

association, it is deemed that the partnership

address:

debts of or claims against the entity by

contributes all of its assets and liabilities to

reason of being a member. This determination

the association in exchange for stock in the

Connecticut, Delaware,

is based solely on the statute or law under

association, and immediately thereafter, the

District of Columbia,

which the entity is organized (and, if relevant,

partnership liquidates by distributing the

Illinois, Indiana, Kentucky,

the entity’s organizational documents). A

stock of the association to its partners.

Maine, Maryland,

member has personal liability if the creditors

Massachusetts, Michigan,

• If an eligible entity classified as an

of the entity may seek satisfaction of all or

New Hampshire, New

association elects to be classified as a

Cincinnati, OH 45999

any part of the debts or claims against the

Jersey, New York, North

partnership, it is deemed that the association

Carolina, Ohio,

entity from the member as such. A member

distributes all of its assets and liabilities to its

Pennsylvania, Rhode

has personal liability even if the member

shareholders in liquidation of the association,

Island, South Carolina,

makes an agreement under which another

and immediately thereafter, the shareholders

Vermont, Virginia, West

person (whether or not a member of the

contribute all of the distributed assets and

Virginia, Wisconsin

entity) assumes that liability or agrees to

liabilities to a newly formed partnership.

indemnify that member for that liability.

If the entity’s principal

Use the following

• If an eligible entity classified as an

Partnership. A partnership is a business

business, office, or

Internal Revenue

association elects to be disregarded as an

entity that has at least two members and is

agency is located in:

Service Center

entity separate from its owner, it is deemed

not a corporation as defined above under

address:

that the association distributes all of its assets

Corporation.

and liabilities to its single owner in liquidation

Alabama, Alaska, Arizona,

of the association.

Who Must File

Arkansas, California,

Colorado, Florida, Georgia,

• If an eligible entity that is disregarded as an

File this form for an eligible entity that is one

Hawaii, Idaho, Iowa,

entity separate from its owner elects to be

of the following:

Kansas, Louisiana,

classified as an association, the owner of the

• A domestic entity electing to be classified as

Minnesota, Mississippi,

eligible entity is deemed to have contributed

an association taxable as a corporation.

Missouri, Montana,

Ogden, UT 84201

all of the assets and liabilities of the entity to

Nebraska, Nevada, New

• A domestic entity electing to change its

the association in exchange for the stock of

Mexico, North Dakota,

current classification (even if it is currently

the association.

Oklahoma, Oregon, South

classified under the default rule).

Dakota, Tennessee, Texas,

Note. For information on the federal tax

Utah, Washington,

• A foreign entity that has more than one

consequences of elective changes in

Wyoming

owner, all owners having limited liability,

classification, see Regulations section

electing to be classified as a partnership.

301.7701-3(g).

Ogden, UT

A foreign country or U.S.

• A foreign entity that has at least one owner

When To File

84201-0023

possession

that does not have limited liability, electing to

Generally, an election specifying an eligible

Note. Also attach a copy to the entity’s

be classified as an association taxable as a

entity’s classification cannot take effect more

federal income tax return for the tax year of

corporation.

than 75 days prior to the date the election is

the election.

• A foreign entity with a single owner having

filed, nor can it take effect later than 12

Acceptance or Nonacceptance of

limited liability, electing to be an entity

months after the date the election is filed. An

Election

disregarded as an entity separate from its

eligible entity may be eligible for late election

owner.

relief in certain circumstances. For more

The service center will notify the eligible entity

information, see Late Election Relief, later.

• A foreign entity electing to change its

at the address listed on Form 8832 if its

current classification (even if it is currently

Where To File

election is accepted or not accepted. The

classified under the default rule).

entity should generally receive a

File Form 8832 with the Internal Revenue

determination on its election within 60 days

Do not file this form for an eligible entity that

Service Center for your state listed below.

after it has filed Form 8832.

is:

In addition, attach a copy of Form 8832 to

• Tax-exempt under section 501(a);

Care should be exercised to ensure that the

the entity’s federal tax or information return

IRS receives the election. If the entity is not

• A real estate investment trust (REIT), as

for the tax year of the election. If the entity is

notified of acceptance or nonacceptance of

defined in section 856; or

not required to file a return for that year, a

its election within 60 days of the date of filing,

copy of its Form 8832 must be attached to

• Electing to be classified as an S corporation.

take follow-up action by calling

the federal tax returns of all direct or indirect

An eligible entity that timely files Form 2553 to

1-800-829-0115, or by sending a letter to the

owners of the entity for the tax year of the

elect classification as an S corporation and

service center to inquire about its status.

owner that includes the date on which the

meets all other requirements to qualify as an

Send any such letter by certified or registered

election took effect. An indirect owner of the

S corporation is deemed to have made an

mail via the U.S. Postal Service, or equivalent

electing entity does not have to attach a copy

election under Regulations section

type of delivery by a designated private

of the Form 8832 to its tax return if an entity in

301.7701-3(c)(v) to be classified as an

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

which it has an interest is already filing a copy

association taxable as a corporation.

I.R.B. 1030 (or its successor)).

of the Form 8832 with its return. Failure to

All three of these entities are deemed to

attach a copy of Form 8832 will not invalidate

If the IRS questions whether Form 8832

have made an election to be classified as an

an otherwise valid election, but penalties may

was filed, an acceptable proof of filing is:

association.

be assessed against persons who are

• A certified or registered mail receipt (timely

Effect of Election

required to, but do not, attach Form 8832.

postmarked) from the U.S. Postal Service, or

Each member of the entity is required to file

its equivalent from a designated private

The federal tax treatment of elective changes

the member's return consistent with the entity

delivery service;

in classification as described in Regulations

election. Penalties apply to returns filed

section 301.7701-3(g)(1) is summarized as

• Form 8832 with an accepted stamp;

inconsistent with the entity’s election.

follows:

• Form 8832 with a stamped IRS received

date; or

• An IRS letter stating that Form 8832 has

been accepted.

Form 8832 - Entity Classification Election Page 5

Related Articles

Related forms

Related Categories