Ezel / IRS Rulings / 201310035

CCA 201310035: A late S election does not reopen closed tax years

Number
201310035
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Election by Small Business Corporation; Late Elections
Topics
S corporations
Code sections
§ 1362, § 6501
Ruling dated
April 30, 2012
Publicly released
March 8, 2013
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 2013, 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 2013
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 explained the effect of a private letter ruling that allowed a taxpayer to make a late S corporation election effective on its incorporation date. The ruling did not authorize the taxpayer to amend returns for closed years, and it did not authorize the IRS to adjust those years. For tax years still open under IRC § 6501, the taxpayer should be treated as an S corporation.

Ruling snapshot

  • Question: Does a ruling permitting a late S election authorize changes to closed tax years?
  • Outcome: Advice given, the ruling applies to open years but does not reopen closed years.
  • Key authorities: IRC §§ 1362(b)(5) and 6501

Full text (IRS public release)

ID: CCA_2012043015453339 Number: 201310035
Release Date: 3/8/2013
Office: -----------------
UILC: 1362.00-00, 1362.01-03

From: -----------------
Sent: Monday, April 30, 2012 3:45:44 PM
To: ----------------------
Cc:
Subject: PLR question

-------

To memorialize our recent conversations, the private letter ruling (PLR) that this office issued to Taxpayer pursuant to § 1362(b)(5) does not give the Service authority to make adjustments in closed tax years. The ruling simply permits Taxpayer to make a late subchapter S election effective on the date of its incorporation, but does not allow either Taxpayer to amend closed-year returns or the Service to make adjustments in closed tax years.

Therefore, for tax years that remain open under § 6501, Taxpayer should be treated as an S corporation, but we cannot change the treatment of Taxpayer in closed tax years.

--------

--------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------

What does the Code say today, for your facts?

This advice was written for IRS staff and cannot be cited. Ezel checks the current Internal Revenue Code and IRS guidance against your situation, with citations.

Opens in Ezel Pro.

  • Checks the law as it stands today, not only this page
  • Cites every source it relies on, so you can verify it
  • Chat, drafting and research in one workspace