Ezel / IRS Rulings / 200929009

CCA says an S corporation election may be revoked only prospectively

Number
200929009
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Election by Small Business Corporation
Topics
S corporations
Code sections
§ 1362, § 6110
Ruling dated
June 18, 2009
Publicly released
July 17, 2009
Source
View Official PDF

Apply this to your situation

This page covers legal advice the IRS Office of Chief Counsel wrote for IRS staff, issued in 2009, 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 2009
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

Chief Counsel Advice addresses undoing an S corporation election. The memorandum states that there is no process for a taxpayer to undo an S corporation election retroactively and that the taxpayer can revoke the election only going forward into future years. It also notes that Chief Counsel may not have access to the taxpayer's election documents, while the relevant Service Center may have them.

Ruling snapshot

  • Question: Can a taxpayer retroactively undo an S corporation election?
  • Outcome: Advice given, the memorandum states that revocation can operate only prospectively.
  • Key authorities: IRC § 1362; IRC § 6110(k)(3).

Full text (IRS public release)

ID: CCA_2009061811175739 Number: 200929009
Release Date: 7/17/2009
Office: ----------
UILC: 1362.00-00

From: -----------------
Sent: Thursday, June 18, 2009 11:17:59 AM
To: ----------------------
Cc:
Subject: RE: Recovering an Election ---------

I did some research, and there is no process by which a taxpayer had retroactively undo an S corp election. He can only revoke the election going forward into future years.

Chief Counsel doesn't have access to documents like the TP's ------- election but the Service Center (either in Cincinnati or Ogden, depending on where the taxpayer is located) may have the access.

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