Supplemental ruling extended corrective-return deadline to 240 days

Plain-English summary

The IRS supplemented and modified a prior private letter ruling concerning S corporation shareholder eligibility, permitted trusts, and inadvertent termination relief. It replaced the prior ruling's legend and extended the time for the corporation, shareholder, and IRA to file all required original or amended returns. The parties received 240 days to file returns reflecting the shares as if the IRA had distributed them to the shareholder on the specified date.

Ruling snapshot

• Question: How was the prior inadvertent-termination ruling modified?
• Outcome: Relief approved, with 240 days to file corrective returns
• Key authorities: IRC §§ 1361, 1362

Full text (IRS public release)

Internal Revenue Service Department of the Treasury
Washington, DC 20224

Number: 202538012 Third Party Communication: None
Release Date: 9/19/2025 Date of Communication: Not Applicable
Index Number: 1361.00-00, 1361.01-02,
1361.03-00, 1362.04-00 Person To Contact:
------------------------, ID No. -----------------
---------------------------------- Telephone Number:

------------------------- Refer Reply To:
------------------------------- CC:PT&E:B01
------------------------------------ PLR-111397-25
Date:
RE: ----------------------------------- June 25, 2025

Dear ---------------:

This letter supplements and modifies PLR-111847-24, issued January 24, 2025
(Previous Letter).

The legend of the Previous Letter is modified to read as follows:

X = ------------------------------------

Y = ------------------------------------

IRA = ------------------------------------

Date 1 = ---------------------

Date 2 = ----------------------

Date 3 = -----------------------

Date 4 = ------------------------

Date 5 = --------------------------

a = ---------

n = ---------------

PLR-111397-25 2

Additionally, pursuant to a letter sent from this office on May 19, 2025, X, Y, and IRA
are granted an extension of time to file all required returns consistent with the relief
provided in Previous Letter. Accordingly, the second paragraph of the Conclusion
section of Previous Letter is modified to read as follows:

This letter is contingent on, within 240 days of the date of this letter, X, Y, and IRA filing
with the appropriate service center any original or amended returns for the taxable year
including Date 3 and all subsequent years and making adjustments to properly reflect
the treatment of the a shares as if IRA distributed the a shares to Y on Date 3. A copy
of this letter should be attached to each return.

In accordance with a power of attorney on file with this office, we are sending a copy of
this letter ruling to your authorized representatives.

Sincerely,

Laura Fields, Chief
Branch 1
Office of the Associate Chief Counsel
(Passthroughs, Trusts, and Estates)

Enclosures:
Copy for § 6110 purposes

cc: ----------------------------------

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