IRS Issues PLR Treating S Corporation Status as Continuing After Missed QSST Election

The IRS has issued a private letter ruling on I.R.C. §1362 granting relief for an inadvertent termination of S corporation status when a trust became an ineligible shareholder after failing to make a required qualified subchapter S trust (QSST) election. The corporation will be treated as continuing its S status, and the trust will be treated as a QSST during the relevant period. [PLR 202617006]

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