IRS Issues PLR Allowing S Corporation Election When Trusts Failed to File QSST Elections

The IRS has issued a private letter ruling on I.R.C. §1362 confirming that an S corporation’s election termination was inadvertent when five trusts acquired stock without filing timely qualified subchapter S trust (QSST) elections, allowing the corporation to maintain S status provided beneficiaries file proper QSST elections within 120 days. [PLR 202612004]

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