Ezel / IRS Rulings / 200848050

CCA 200848050: IRS cannot retroactively revoke an effective S election

Number
200848050
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Revocation
Topics
S corporations
Code sections
§ 1362
Ruling dated
July 22, 2008
Publicly released
November 28, 2008
Source
View Official PDF

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This page covers legal advice the IRS Office of Chief Counsel wrote for IRS staff, issued in 2008, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.

Currency note: this determination was released in 2008
Statutory amendments, regulation changes, court decisions, or later IRS guidance may have changed the analysis since then. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, threshold, or position mentioned here.
Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It is advice from the IRS Office of Chief Counsel to IRS personnel on the facts they presented, and identifying details were redacted by the IRS before release. The official IRS release (linked on this page as a PDF) is the authoritative source.
About this page: The plain-English summary and ruling snapshot below were written by Ezel based on the official IRS release. The full text is the IRS's own document.
View official IRS release (PDF)

Plain-English summary

A question asked whether the IRS could issue a private letter ruling retroactively revoking an S corporation election. Chief Counsel advised that no legal authority permitted that relief. If the election was effective, including all necessary shareholder consents, the IRS could provide only prospective relief.

Ruling snapshot

  • Question: May the IRS retroactively revoke an otherwise effective S election?
  • Outcome: Advice given. No; only prospective relief is available.
  • Key authorities: IRC § 1362(d).

Full text (IRS public release)

ID: CCA-722100-08 Number: 200848050
Office: ----------------
Release Date: 11/28/2008

UILC: 1362.02-01

From: -----------------------
Sent: July 22, 2008
To: ----------------
Cc: -------------------------------------------------
Subject: IRC 1362(d)

We have been asked this question in the past, and have concluded that there is no legal authority for us
to grant a PLR retroactively revoking an S election. Assuming the election was effective (for example, it
included all the necessary consents), then only prospective relief is available from the Service.

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