IRS Offers Relief for Late Elections for S Corporation Status

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The Internal Revenue Service offered relief Aug. 14 to taxpayers who make late elections for status as Subchapter S corporations or a variety of related tax-favored structures and trusts.
In Revenue Procedure 2013-30, IRS provided the exclusive simplified methods for taxpayers to request relief for late S corporation elections.
With an S corporation, income and losses are passed through to shareholders and included on their individual tax returns. As a result, there is just one level of federal tax to pay. The entity has been increasingly popular in recent years as more taxpayers opt for “passthrough” structures such as S corporations and partnerships.

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