IRS PLR: Entity Classification Election Consent Granted Less Than 5 Years After Prior Change (IRC §7701)

Although the normally required time period after a prior classification change had not yet passed, a company granted consent to file Form 8832, Entity Classification Election, to change from an association taxable as a corporation to a partnership for federal tax purposes as of the date on which more than 50% of its ownership interests were acquired by a corporation. Treasury Regulations Section 301.7701-3(c)(1)(iv) provides that, if an eligible entity makes an election under Treas. Reg. Section 301.7701-3(c)(1)(i) to change its classification, it cannot again change its classification during the next 60 months; however, the IRS Commissioner ...