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 ...