S-corporation taxation

PLRs Hold Corporation’s S Corp. Status Remains In Effect Where Termination Was Inadvertent Due to Ineligible Shareholder

Topics: IRS, Regulation, S-corporation taxation, Tax treatment

In two recent private letter rulings, the IRS determined that a corporation’s S corp. status was inadvertently terminated when the owner of the shareholder trust died and the trustee failed to timely file an election to treat the shareholder trust as an electing small business trust (ESBT), and therefore, the corporation will continue to be…