Bloomberg Tax
March 1, 2023, 9:45 AM

Tax Pros Say Challenges Remain Following IRS’s S Corp Guidance

Lauren Vella
Lauren Vella

A problem remains for entities seeking to maintain a valid S corporation election without requesting a private letter ruling.

October IRS guidance (Rev. Proc. 2022-19) provides relief to companies by allowing them to correct common mistakes that would otherwise place their status as an S corporation in jeopardy without requesting a PLR, a written decision from the IRS.

Before the revenue procedure was released, entities with varying issues threatening their S selection were required to request a private letter ruling from the IRS to resolve their problem, a time-consuming process costing tens of thousands of dollars.

But some ...

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