KPMG report: Analysis of relief provisions of Rev. Proc. 2013-30 for late S corporation elections
A KPMG that explains the evolution and relief provisions of Rev. Proc. 2013-30
A KPMG that explains the evolution and relief provisions of Rev. Proc. 2013-30
Rev. Proc. 2013-30 was published just over a decade ago, on September 3, 2013. The revenue procedure creates a system under which entities filing a late election related to S corporations can correct their tardiness directly with the IRS service center/campus instead of filing private letter ruling requests with the Passthroughs and Special Industries division of IRS Chief Counsel in Washington.
Rev. Proc. 2013-30 [PDF 102 KB] consolidates, modifies, supersedes, and obsoletes a series of revenue procedures that evolved between 1997 and 2007 into a single, one-stop shop for relief for late elections related to S corporations. It provides late election relief for:
- S corporation elections
- Electing small business trust (ESBT) elections
- Qualified subchapter S trust (QSST) elections
- Qualified subchapter S subsidiary (QSub) elections
- Check-the-box elections for an eligible entity intended to take effect on the same date that the S corporation election would take effect
Generally, the relief afforded to taxpayers can be granted by the IRS when the entity fails to qualify for its intended status (an S corporation, QSub, QSST, or ESBT) solely because it failed to file the appropriate election with the IRS and all returns reported their respective income consistently as if the late election(s) were in effect.
Read an October 2023 report* [PDF 1.4 MB] prepared by KPMG LLP that explains the evolution and relief provisions of Rev. Proc. 2013-30 and examines situations in which it could and could not be used over the past decade, highlighting some unintended consequences.
*This article appears in Tax Notes Federal (October 2, 2023) and is provided with permission.
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