IRS Issues Private Letter Ruling Preserving S Corporation Status Despite Failure to Make Timely QSST Election

The IRS issued a private letter ruling on I.R.C. §§1361 and 1362, confirming that S corporation status remains intact when trust beneficiaries fail to make timely qualified subchapter S trust (QSST) elections, provided the terminating event was inadvertent and remedial action occurs within 120 days of the ruling. [PLR 202607012]

This story was produced by Bloomberg Tax Automation, and edited by Bloomberg Tax staff.