For electing large LLCs, the statute of limitations (SOL) runs for three years from the later of the last day for filing the LLC's return or the date such return was actually filed.
An electing large LLC must designate a member or other person who has the sole authority to act on behalf of the entity under the electing large LLC audit procedures.
It would seem that a gift tax consequence could only arise if the beneficiaries of the electing trust and related estate are not the same persons.
If, during the election period, there is an executor, a single Form 1041 is filed annually for the combined electing trust and related estate under the name and taxpayer identification number of the estate [Treas.
Reporting split gifts by type of transfer, segregating direct- and indirect-skip transfers and providing a simple mechanism for electing
out of the deemed allocation of GST exemption highlight GSTs that may warrant an exemption allocation and greatly simplify the task of tracking a donor's use of the GST exemption.
1.645-1(h)(2)(ii) provides that the electing trust's tax year closes on the election period's last day; the Form 1041 must indicate that it is a final return.
1.645-1(j) states that the election procedures, rules on obtaining a TIN for the electing trust and QRT, rules on duration of the election period and rules on executors appointed later are effective for estates and trusts of decedents dying after Dec.
* A partnership, S corporation, electing S corporation or PSC changing from a 52-53-week tax year to a non-52-53-week tax year that ends with reference to the same calendar month, and vice versa.
The procedure clarifies that a partnership, S corporation, electing S corporation or PSC may change automatically to its required tax year.
This requirement applies whether the transferee is electing
or continuing the use of LIFO.
Both QSSTs and electing
small business trusts (ESBTs) are eligible S shareholders.
92-67 outlines the process of electing
to amortize market discounts and method of amortization.
Because of the many newly created or converted S corporations, many letter rulings, notices, proposed regulations and revenue procedures reflected the 1996 legislative changes regarding qualified subchapter S subsidiaries (QSSSs), qualified subchapter S trusts (QSSTs) and electing small business trusts (ESBTs); in addition, Rev.
1362(b)(5) now gives the IRS the power to correct inadvertent errors in electing S status if the taxpayer shows that it made the mistake inadvertently, qualified to be an S corporation and acted as though it were an S corporation.
For example, a taxpayer's actual allocation ratio would be lower than its HAP, if it implements a just-in-time manufacturing process, which reduces fixed overhead, subsequent to electing
the HAP, method.