Contents
The IRS 8832 form plays a crucial role for businesses seeking to change their tax classification. This form allows eligible entities, such as limited liability companies (LLCs) and partnerships, to elect to be treated as a corporation or another type of entity for federal tax purposes. Understanding the implications of this election is essential, as it can significantly impact tax liabilities and operational flexibility. The form requires specific information, including the entity’s name, address, and the desired classification. Additionally, it must be filed within a designated timeframe to ensure that the election is effective for the intended tax year. By carefully completing and submitting the IRS 8832 form, businesses can align their tax treatment with their financial goals and operational strategies, making it an important tool in tax planning and compliance.
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the important update information below.
New Mailing Addresses
Addresses for mailing certain forms have changed since the forms were last published. The new mailing
addresses are shown below.
Mailing address for Forms 706A, 706GS(D), 706GS(T), 706NA, 706QDT, 8612, 8725, 8831, 8842, 8892,
8924, 8928:
Department of the Treasury
Internal Revenue Service Center
Kansas City, MO 64999
Mailing address for Forms 2678, 8716, 8822-B, 8832, 8855:
Taxpayers in the States Below Mail the Form to This Address
Connecticut, Delaware, District of Columbia, Georgia,
Illinois, Indiana,Kentucky, Maine, Maryland,
Massachusetts, Michigan, New Hampshire, New Jersey,
New York, North Carolina, Ohio, Pennsylvania, Rhode
Island, South Carolina, Vermont, Virginia, West Virginia,
Wisconsin
Department of the Treasury
Internal Revenue Service Center
Kansas City, MO 64999
Alabama, Alaska, Arizona, Arkansas, California,
Colorado, Florida, Hawaii, Idaho, Iowa, Kansas,
Louisiana, Minnesota, Mississippi, Missouri, Montana,
Nebraska, Nevada, New Mexico, North Dakota,
Oklahoma, Oregon, South Dakota, Tennessee, Texas,
Utah, Washington, Wyoming
Department of the Treasury
Internal Revenue Service Center
Ogden, UT 84201
This update supplements these forms’ instructions. Filers should rely on this update for the changes described,
which will be incorporated into the next revision of the forms’ instructions.
5
Form 8832
(Rev. December 2013)
Department of the Treasury
Internal Revenue Service
Entity Classification Election
a
Information about Form 8832 and its instructions is at www.irs.gov/form8832.
OMB No. 1545-1516
Type
or
Print
Name of eligible entity making election Employer identification number
Number, street, and room or suite no. If a P.O. box, see instructions.
City or town, state, and ZIP code. If a foreign address, enter city, province or state, postal code and country. Follow the country’s practice for entering the
postal code.
a
Check if: Address change Late classification relief sought under Revenue Procedure 2009-41
Relief for a late change of entity classification election sought under Revenue Procedure 2010-32
Part I Election Information
1 Type of election (see instructions):
a
Initial classification by a newly-formed entity. Skip lines 2a and 2b and go to line 3.
b
Change in current classification. Go to line 2a.
2 a Has the eligible entity previously filed an entity election that had an effective date within the last 60 months?
Yes. Go to line 2b.
No. Skip line 2b and go to line 3.
2 b
Was the eligible entity’s prior election an initial classification election by a newly formed entity that was effective on the date of
formation?
Yes. Go to line 3.
No. Stop here. You generally are not currently eligible to make the election (see instructions).
3 Does the eligible entity have more than one owner?
Yes. You can elect to be classified as a partnership or an association taxable as a corporation. Skip line 4 and go to line 5.
No. You can elect to be classified as an association taxable as a corporation or to be disregarded as a separate entity. Go
to line 4.
4 If the eligible entity has only one owner, provide the following information:
a
Name of owner
a
b Identifying number of owner
a
If the eligible entity is owned by one or more affiliated corporations that file a consolidated return, provide the name and
employer identification number of the parent corporation:
a
Name of parent corporation
a
b
Employer identification number
a
For Paperwork Reduction Act Notice, see instructions.
Cat. No. 22598R
Form
8832 (Rev. 12-2013)
Form 8832 (Rev. 12-2013)
Page
2
Part I Election Information (Continued)
6 Type of entity (see instructions):
a
A domestic eligible entity electing to be classified as an association taxable as a corporation.
b
A domestic eligible entity electing to be classified as a partnership.
c A domestic eligible entity with a single owner electing to be disregarded as a separate entity.
d A foreign eligible entity electing to be classified as an association taxable as a corporation.
e
A foreign eligible entity electing to be classified as a partnership.
f A foreign eligible entity with a single owner electing to be disregarded as a separate entity.
7 If the eligible entity is created or organized in a foreign jurisdiction, provide the foreign country of
organization
a
8 Election is to be effective beginning (month, day, year) (see instructions) . . . . . . . . . . . .
a
9 Name and title of contact person whom the IRS may call for more information 10 Contact person’s telephone number
Consent Statement and Signature(s) (see instructions)
Under penalties of perjury, I (we) declare that I (we) consent to the election of the above-named entity to be classified as indicated
above, and that I (we) have examined this election and consent statement, and to the best of my (our) knowledge and belief, this
election and consent statement are true, correct, and complete. If I am an officer, manager, or member signing for the entity, I further
declare under penalties of perjury that I am authorized to make the election on its behalf.
Signature(s)
Date Title
Form 8832 (Rev. 12-2013)
Form 8832 (Rev. 12-2013)
Page
3
Part II Late Election Relief
11
Provide the explanation as to why the entity classification election was not filed on time (see instructions).
Under penalties of perjury, I (we) declare that I (we) have examined this election, including accompanying documents, and, to the best
of my (our) knowledge and belief, the election contains all the relevant facts relating to the election, and such facts are true, correct,
and complete. I (we) further declare that I (we) have personal knowledge of the facts and circumstances related to the election. I (we)
further declare that the elements required for relief in Section 4.01 of Revenue Procedure 2009-41 have been satisfied.
Signature(s)
Date Title
Form 8832 (Rev. 12-2013)
Form 8832 (Rev. 12-2013)
Page
4
General Instructions
Section references are to the Internal
Revenue Code unless otherwise noted.
Future Developments
For the latest information about developments
related to Form 8832 and its instructions,
such as legislation enacted after they were
published, go to www.irs.gov/form8832.
What's New
For entities formed on or after July 1, 2013,
the Croatian Dionicko Drustvo will always be
treated as a corporation. See Notice 2013-44,
2013-29, I.R.B. 62 for more information.
Purpose of Form
An eligible entity uses Form 8832 to elect
how it will be classified for federal tax
purposes, as a corporation, a partnership, or
an entity disregarded as separate from its
owner. An eligible entity is classified for
federal tax purposes under the default rules
described below unless it files Form 8832 or
Form 2553, Election by a Small Business
Corporation. See Who Must File below.
The IRS will use the information entered on
this form to establish the entity’s filing and
reporting requirements for federal tax
purposes.
Note. An entity must file Form 2553 if making
an election under section 1362(a) to be an S
corporation
TIP
A new eligible entity should not file
Form 8832 if it will be using its
default classification (see Default
Rules below).
Eligible entity. An eligible entity is a business
entity that is not included in items 1, or 3
through 9, under the definition of corporation
provided under Definitions. Eligible entities
include limited liability companies (LLCs) and
partnerships.
Generally, corporations are not eligible
entities. However, the following types of
corporations are treated as eligible entities:
1. An eligible entity that previously elected
to be an association taxable as a corporation
by filing Form 8832. An entity that elects to be
classified as a corporation by filing Form 8832
can make another election to change its
classification (see the 60-month limitation
rule discussed below in the instructions for
lines 2a and 2b).
2. A foreign eligible entity that became an
association taxable as a corporation under
the foreign default rule described below.
Default Rules
Existing entity default rule. Certain
domestic and foreign entities that were in
existence before January 1, 1997, and have
an established federal tax classification
generally do not need to make an election to
continue that classification. If an existing
entity decides to change its classification, it
may do so subject to the 60-month limitation
rule. See the instructions for lines 2a and 2b.
See Regulations sections 301.7701-3(b)(3)
and 301.7701-3(h)(2) for more details.
Domestic default rule. Unless an election is
made on Form 8832, a domestic eligible entity
is:
1. A partnership if it has two or more
members.
2. Disregarded as an entity separate from
its owner if it has a single owner.
A change in the number of members of an
eligible entity classified as an association
(defined below) does not affect the entity’s
classification. However, an eligible entity
classified as a partnership will become a
disregarded entity when the entity’s
membership is reduced to one member and a
disregarded entity will be classified as a
partnership when the entity has more than
one member.
Foreign default rule. Unless an election is
made on Form 8832, a foreign eligible entity
is:
1. A partnership if it has two or more
members and at least one member does not
have limited liability.
2. An association taxable as a corporation if
all members have limited liability.
3. Disregarded as an entity separate from
its owner if it has a single owner that does not
have limited liability.
However, if a qualified foreign entity (as
defined in section 3.02 of Rev. Proc. 2010-32)
files a valid election to be classified as a
partnership based on the reasonable
assumption that it had two or more owners as
of the effective date of the election, and the
qualified entity is later determined to have a
single owner, the IRS will deem the election to
be an election to be classified as a
disregarded entity provided:
1. The qualified entity's owner and
purported owners file amended returns that
are consistent with the treatment of the entity
as a disregarded entity;
2. The amended returns are filed before the
close of the period of limitations on
assessments under section 6501(a) for the
relevant tax year; and
3. The corrected Form 8832, with the box
checked entitled: Relief for a late change of
entity classification election sought under
Revenue Procedure 2010-32, is filed and
attached to the amended tax return.
Also, if the qualified foreign entity (as
defined in section 3.02 of Rev. Proc. 2010-32)
files a valid election to be classified as a
disregarded entity based on the reasonable
assumption that it had a single owner as of
the effective date of the election, and the
qualified entity is later determined to have two
or more owners, the IRS will deem the
election to be an election to be classified as a
partnership provided:
1. The qualified entity files information
returns and the actual owners file original or
amended returns consistent with the
treatment of the entity as a partnership;
2. The amended returns are filed before the
close of the period of limitations on
assessments under section 6501(a) for the
relevant tax year; and
3. The corrected Form 8832, with the box
checked entitled: Relief for a late change of
entity classification election sought under
Revenue Procedure 2010-32, is filed and
attached to the amended tax returns. See
Rev. Proc. 2010-32, 2010-36 I.R.B. 320 for
details.
Definitions
Association. For purposes of this form, an
association is an eligible entity taxable as a
corporation by election or, for foreign eligible
entities, under the default rules (see
Regulations section 301.7701-3).
Business entity. A business entity is any
entity recognized for federal tax purposes
that is not properly classified as a trust under
Regulations section 301.7701-4 or otherwise
subject to special treatment under the Code
regarding the entity’s classification. See
Regulations section 301.7701-2(a).
Corporation. For federal tax purposes, a
corporation is any of the following:
1. A business entity organized under a
federal or state statute, or under a statute of a
federally recognized Indian tribe, if the statute
describes or refers to the entity as
incorporated or as a corporation, body
corporate, or body politic.
2. An association (as determined under
Regulations section 301.7701-3).
3. A business entity organized under a
state statute, if the statute describes or refers
to the entity as a joint-stock company or joint-
stock association.
4. An insurance company.
5. A state-chartered business entity
conducting banking activities, if any of its
deposits are insured under the Federal
Deposit Insurance Act, as amended, 12 U.S.
C. 1811 et seq., or a similar federal statute.
6. A business entity wholly owned by a
state or any political subdivision thereof, or a
business entity wholly owned by a foreign
government or any other entity described in
Regulations section 1.892-2T.
7. A business entity that is taxable as a
corporation under a provision of the Code
other than section 7701(a)(3).
8. A foreign business entity listed on page
7. See Regulations section 301.7701-2(b)(8)
for any exceptions and inclusions to items on
this list and for any revisions made to this list
since these instructions were printed.
9. An entity created or organized under the
laws of more than one jurisdiction (business
entities with multiple charters) if the entity is
treated as a corporation with respect to any
one of the jurisdictions. See Regulations
section 301.7701-2(b)(9) for examples.
Disregarded entity. A disregarded entity is
an eligible entity that is treated as an entity
not separate from its single owner for income
tax purposes. A “disregarded entity” is treated
as separate from its owner for:
• Employment tax purposes, effective for
wages paid on or after January 1, 2009; and
• Excise taxes reported on Forms 720, 730,
2290, 11-C, or 8849, effective for excise taxes
reported and paid after December 31, 2007.
Form 8832 (Rev. 12-2013)
Page
5
See the employment tax and excise tax
return instructions for more information.
Limited liability. A member of a foreign
eligible entity has limited liability if the
member has no personal liability for any
debts of or claims against the entity by
reason of being a member. This determination
is based solely on the statute or law under
which the entity is organized (and, if relevant,
the entity’s organizational documents). A
member has personal liability if the creditors
of the entity may seek satisfaction of all or
any part of the debts or claims against the
entity from the member as such. A member
has personal liability even if the member
makes an agreement under which another
person (whether or not a member of the
entity) assumes that liability or agrees to
indemnify that member for that liability.
Partnership. A partnership is a business
entity that has at least two members and is
not a corporation as defined above under
Corporation.
Who Must File
File this form for an eligible entity that is one
of the following:
• A domestic entity electing to be classified as
an association taxable as a corporation.
• A domestic entity electing to change its
current classification (even if it is currently
classified under the default rule).
• A foreign entity that has more than one
owner, all owners having limited liability,
electing to be classified as a partnership.
• A foreign entity that has at least one owner
that does not have limited liability, electing to
be classified as an association taxable as a
corporation.
• A foreign entity with a single owner having
limited liability, electing to be an entity
disregarded as an entity separate from its
owner.
• A foreign entity electing to change its
current classification (even if it is currently
classified under the default rule).
Do not file this form for an eligible entity that
is:
• Tax-exempt under section 501(a);
• A real estate investment trust (REIT), as
defined in section 856; or
• Electing to be classified as an S corporation.
An eligible entity that timely files Form 2553 to
elect classification as an S corporation and
meets all other requirements to qualify as an
S corporation is deemed to have made an
election under Regulations section
301.7701-3(c)(v) to be classified as an
association taxable as a corporation.
All three of these entities are deemed to
have made an election to be classified as an
association.
Effect of Election
The federal tax treatment of elective changes
in classification as described in Regulations
section 301.7701-3(g)(1) is summarized as
follows:
• If an eligible entity classified as a
partnership elects to be classified as an
association, it is deemed that the partnership
contributes all of its assets and liabilities to
the association in exchange for stock in the
association, and immediately thereafter, the
partnership liquidates by distributing the
stock of the association to its partners.
• If an eligible entity classified as an
association elects to be classified as a
partnership, it is deemed that the association
distributes all of its assets and liabilities to its
shareholders in liquidation of the association,
and immediately thereafter, the shareholders
contribute all of the distributed assets and
liabilities to a newly formed partnership.
• If an eligible entity classified as an
association elects to be disregarded as an
entity separate from its owner, it is deemed
that the association distributes all of its assets
and liabilities to its single owner in liquidation
of the association.
• If an eligible entity that is disregarded as an
entity separate from its owner elects to be
classified as an association, the owner of the
eligible entity is deemed to have contributed
all of the assets and liabilities of the entity to
the association in exchange for the stock of
the association.
Note. For information on the federal tax
consequences of elective changes in
classification, see Regulations section
301.7701-3(g).
When To File
Generally, an election specifying an eligible
entity’s classification cannot take effect more
than 75 days prior to the date the election is
filed, nor can it take effect later than 12
months after the date the election is filed. An
eligible entity may be eligible for late election
relief in certain circumstances. For more
information, see Late Election Relief, later.
Where To File
File Form 8832 with the Internal Revenue
Service Center for your state listed later.
In addition, attach a copy of Form 8832 to
the entity’s federal tax or information return
for the tax year of the election. If the entity is
not required to file a return for that year, a
copy of its Form 8832 must be attached to
the federal tax returns of all direct or indirect
owners of the entity for the tax year of the
owner that includes the date on which the
election took effect. An indirect owner of the
electing entity does not have to attach a copy
of the Form 8832 to its tax return if an entity in
which it has an interest is already filing a copy
of the Form 8832 with its return. Failure to
attach a copy of Form 8832 will not invalidate
an otherwise valid election, but penalties may
be assessed against persons who are
required to, but do not, attach Form 8832.
Each member of the entity is required to file
the member's return consistent with the entity
election. Penalties apply to returns filed
inconsistent with the entity’s election.
If the entity’s principal
Use the following
business, office, or
Internal Revenue
agency is located in:
Service Center
address:
Connecticut, Delaware,
District of Columbia,
Florida, Illinois, Indiana,
Kentucky, Maine,
Maryland, Massachusetts,
Michigan, New Hampshire,
Cincinnati, OH 45999
New Jersey, New York,
North Carolina, Ohio,
Pennsylvania, Rhode
Island, South Carolina,
Vermont, Virginia, West
Virginia, Wisconsin
If the entity’s principal Use the following
business, office, or Internal Revenue
agency is located in: Service Center
address:
Alabama, Alaska, Arizona,
Arkansas, California,
Colorado, Georgia, Hawaii,
Idaho, Iowa, Kansas,
Louisiana, Minnesota,
Mississippi, Missouri,
Ogden, UT 84201
Montana, Nebraska,
Nevada, New Mexico,
North Dakota, Oklahoma,
Oregon, South Dakota,
Tennessee, Texas, Utah,
Washington, Wyoming
Ogden, UT
possession
A foreign country or U.S.
84201-0023
Note. Also attach a copy to the entity’s
federal income tax return for the tax year of
the election.
Acceptance or Nonacceptance of
Election
The service center will notify the eligible entity
at the address listed on Form 8832 if its
election is accepted or not accepted. The
entity should generally receive a
determination on its election within 60 days
after it has filed Form 8832.
Care should be exercised to ensure that the
IRS receives the election. If the entity is not
notified of acceptance or nonacceptance of
its election within 60 days of the date of filing,
take follow-up action by calling
1-800-829-0115, or by sending a letter to the
service center to inquire about its status.
Send any such letter by certified or registered
mail via the U.S. Postal Service, or equivalent
type of delivery by a designated private
delivery service (see Notice 2004-83, 2004-52
I.R.B. 1030 (or its successor)).
If the IRS questions whether Form 8832
was filed, an acceptable proof of filing is:
• A certified or registered mail receipt (timely
postmarked) from the U.S. Postal Service, or
its equivalent from a designated private
delivery service;
• Form 8832 with an accepted stamp;
• Form 8832 with a stamped IRS received
date; or
• An IRS letter stating that Form 8832 has
been accepted.
Form 8832 (Rev. 12-2013)
Page
6
Specific Instructions
Name. Enter the name of the eligible entity
electing to be classified.
Employer identification number (EIN). Show
the EIN of the eligible entity electing to be
classified.
F
!
CAUTION
Do not put “Applied For” on
this line.
Note. Any entity that has an EIN will retain
that EIN even if its federal tax classification
changes under Regulations section
301.7701-3.
If a disregarded entity’s classification
changes so that it becomes recognized as a
partnership or association for federal tax
purposes, and that entity had an EIN, then the
entity must continue to use that EIN. If the
entity did not already have its own EIN, then
the entity must apply for an EIN and not use
the identifying number of the single owner.
A foreign entity that makes an election
under Regulations section 301.7701-3(c) and
(d) must also use its own taxpayer identifying
number. See sections 6721 through 6724 for
penalties that may apply for failure to supply
taxpayer identifying numbers.
If the entity electing to be classified using
Form 8832 does not have an EIN, it must
apply for one on Form SS-4, Application for
Employer Identification Number. The entity
must have received an EIN by the time Form
8832 is filed in order for the form to be
processed. An election will not be accepted if
the eligible entity does not provide an EIN.
F
!
CAUTION
Do not apply for a new EIN for an
existing entity that is changing its
classification if the entity already
has an EIN.
Address. Enter the address of the entity
electing a classification. All correspondence
regarding the acceptance or nonacceptance
of the election will be sent to this address.
Include the suite, room, or other unit number
after the street address. If the Post Office
does not deliver mail to the street address
and the entity has a P.O. box, show the box
number instead of the street address. If the
electing entity receives its mail in care of a
third party (such as an accountant or an
attorney), enter on the street address line
“C/O” followed by the third party’s name and
street address or P.O. box.
Address change. If the eligible entity has
changed its address since filing Form SS-4 or
the entity’s most recently-filed return
(including a change to an “in care of”
address), check the box for an address
change.
Late-classification relief sought under
Revenue Procedure 2009-41. Check the box
if the entity is seeking relief under Rev. Proc.
2009-41, 2009-39 I.R.B. 439, for a late
classification election. For more information,
see Late Election Relief, later.
Relief for a late change of entity
classification election sought under
Revenue Procedure 2010-32. Check the box
if the entity is seeking relief under Rev. Proc.
2010-32, 2010-36 I.R.B. 320. For more
information, see Foreign default rule, earlier.
Part I. Election Information
Complete Part I whether or not the entity is
seeking relief under Rev. Proc. 2009-41 or
Rev. Proc. 2010-32.
Line 1. Check box 1a if the entity is choosing
a classification for the first time (i.e., the entity
does not want to be classified under the
applicable default classification). Do not file
this form if the entity wants to be classified
under the default rules.
Check box 1b if the entity is changing its
current classification.
Lines 2a and 2b. 60-month limitation rule.
Once an eligible entity makes an election to
change its classification, the entity generally
cannot change its classification by election
again during the 60 months after the effective
date of the election. However, the IRS may
(by private letter ruling) permit the entity to
change its classification by election within the
60-month period if more than 50% of the
ownership interests in the entity, as of the
effective date of the election, are owned by
persons that did not own any interests in the
entity on the effective date or the filing date of
the entity’s prior election.
Note. The 60-month limitation does not apply
if the previous election was made by a newly
formed eligible entity and was effective on the
date of formation.
Line 4. If an eligible entity has only one
owner, provide the name of its owner on line
4a and the owner’s identifying number (social
security number, or individual taxpayer
identification number, or EIN) on line 4b. If the
electing eligible entity is owned by an entity
that is a disregarded entity or by an entity that
is a member of a series of tiered disregarded
entities, identify the first entity (the entity
closest to the electing eligible entity) that is
not a disregarded entity. For example, if the
electing eligible entity is owned by
disregarded entity A, which is owned by
another disregarded entity B, and disregarded
entity B is owned by partnership C, provide
the name and EIN of partnership C as the
owner of the electing eligible entity. If the
owner is a foreign person or entity and does
not have a U.S. identifying number, enter
“none” on line 4b.
Line 5. If the eligible entity is owned by one or
more members of an affiliated group of
corporations that file a consolidated return,
provide the name and EIN of the parent
corporation.
Line 6. Check the appropriate box if you are
changing a current classification (no matter
how achieved), or are electing out of a default
classification. Do not file this form if you fall
within a default classification that is the
desired classification for the new entity.
Line 7. If the entity making the election is
created or organized in a foreign jurisdiction,
enter the name of the foreign country in which
it is organized. This information must be
provided even if the entity is also organized
under domestic law.
Line 8. Generally, the election will take effect
on the date you enter on line 8 of this form,
or on the date filed if no date is entered on
line 8. An election specifying an entity’s
classification for federal tax purposes can
take effect no more than 75 days prior to the
date the election is filed, nor can it take effect
later than 12 months after the date on which
the election is filed. If line 8 shows a date
more than 75 days prior to the date on which
the election is filed, the election will default to
75 days before the date it is filed. If line 8
shows an effective date more than 12 months
from the filing date, the election will take
effect 12 months after the date the election is
filed.
Consent statement and signature(s). Form
8832 must be signed by:
1. Each member of the electing entity who
is an owner at the time the election is filed; or
2. Any officer, manager, or member of the
electing entity who is authorized (under local
law or the organizational documents) to make
the election. The elector represents to having
such authorization under penalties of perjury.
If an election is to be effective for any
period prior to the time it is filed, each person
who was an owner between the date the
election is to be effective and the date the
election is filed, and who is not an owner at
the time the election is filed, must sign.
If you need a continuation sheet or use a
separate consent statement, attach it to
Form 8832. The separate consent statement
must contain the same information as shown
on Form 8832.
Note. Do not sign the copy that is attached to
your tax return.
Part II. Late Election Relief
Complete Part II only if the entity is requesting
late election relief under Rev. Proc. 2009-41.
An eligible entity may be eligible for late
election relief under Rev. Proc. 2009-41,
2009-39 I.R.B. 439, if each of the following
requirements is met.
1. The entity failed to obtain its requested
classification as of the date of its formation (or
upon the entity's classification becoming
relevant) or failed to obtain its requested
change in classification solely because Form
8832 was not filed timely.
2. Either:
a. The entity has not filed a federal tax or
information return for the first year in which
the election was intended because the due
date has not passed for that year's federal tax
or information return; or
b. The entity has timely filed all required
federal tax returns and information returns (or
if not timely, within 6 months after its due
date, excluding extensions) consistent with its
requested classification for all of the years the
entity intended the requested election to be
effective and no inconsistent tax or
information returns have been filed by or with
respect to the entity during any of the tax
years. If the eligible entity is not required to
file a federal tax return or information return,
each affected person who is required to file a
federal tax return or information return must
have timely filed all such returns (or if not
timely, within 6 months after its due date,
excluding extensions) consistent with the
Form 8832 (Rev. 12-2013)
Page
7
entity's requested classification for all of the
years the entity intended the requested
election to be effective and no inconsistent
tax or information returns have been filed
during any of the tax years.
3. The entity has reasonable cause for its
failure to timely make the entity classification
election.
4. Three years and 75 days from the
requested effective date of the eligible entity's
classification election have not passed.
Affected person. An affected person is either:
• with respect to the effective date of the
eligible entity's classification election, a
person who would have been required to
attach a copy of the Form 8832 for the eligible
entity to its federal tax or information return
for the tax year of the person which includes
that date; or
• with respect to any subsequent date after
the entity's requested effective date of the
classification election, a person who would
have been required to attach a copy of the
Form 8832 for the eligible entity to its federal
tax or information return for the person's tax
year that includes that subsequent date had
the election first become effective on that
subsequent date.
For details on the requirement to attach a
copy of Form 8832, see Rev. Proc. 2009-41
and the instructions under Where To File.
To obtain relief, file Form 8832 with the
applicable IRS service center listed in Where
To File, earlier, within 3 years and 75 days
from the requested effective date of the
eligible entity's classification election.
If Rev. Proc. 2009-41 does not apply, an
entity may seek relief for a late entity election
by requesting a private letter ruling and
paying a user fee in accordance with Rev.
Proc. 2013-1, 2013-1 I.R.B. 1 (or its
successor).
Line 11. Explain the reason for the failure to
file a timely entity classification election.
Signatures. Part II of Form 8832 must be
signed by an authorized representative of the
eligible entity and each affected person. See
Affected Persons, earlier. The individual or
individuals who sign the declaration must
have personal knowledge of the facts and
circumstances related to the election.
Foreign Entities Classified as Corporations for
Federal Tax Purposes:
American Samoa—Corporation
Argentina—Sociedad Anonima
Australia—Public Limited Company
Austria—Aktiengesellschaft
Barbados—Limited Company
Belgium—Societe Anonyme
Belize—Public Limited Company
Bolivia—Sociedad Anonima
Brazil—Sociedade Anonima
Bulgaria—Aktsionerno Druzhestvo
Canada—Corporation and Company
Chile—Sociedad Anonima
People’s Republic of China—Gufen
Youxian Gongsi
Republic of China (Taiwan)
—Ku-fen Yu-hsien Kung-szu
Colombia—Sociedad Anonima
Costa Rica—Sociedad Anonima
Croatia—Dionicko Drustvo
Cyprus—Public Limited Company
Czech Republic—Akciova Spolecnost
Denmark—Aktieselskab
Ecuador—Sociedad Anonima or Compania
Anonima
Egypt—Sharikat Al-Mossahamah
El Salvador—Sociedad Anonima
Estonia—Aktsiaselts
European Economic Area/European Union
—Societas Europaea
Finland—Julkinen Osakeyhtio/Publikt
Aktiebolag
France—Societe Anonyme
Germany—Aktiengesellschaft
Greece—Anonymos Etairia
Guam—Corporation
Guatemala—Sociedad Anonima
Guyana—Public Limited Company
Honduras—Sociedad Anonima
Hong Kong—Public Limited Company
Hungary—Reszvenytarsasag
Iceland—Hlutafelag
India—Public Limited Company
Indonesia—Perseroan Terbuka
Ireland—Public Limited Company
Israel—Public Limited Company
Italy—Societa per Azioni
Jamaica—Public Limited Company
Japan—
Kabushiki Kaisha
Kazakstan—Ashyk Aktsionerlik Kogham
Republic of Korea—Chusik Hoesa
Latvia—Akciju Sabiedriba
Liberia—Corporation
Liechtenstein—Aktiengesellschaft
Lithuania—Akcine Bendroves
Luxembourg—Societe Anonyme
Malaysia—Berhad
Malta—Public Limited Company
Mexico—Sociedad Anonima
Morocco—Societe Anonyme
Netherlands—Naamloze Vennootschap
New Zealand—Limited Company
Nicaragua—Compania Anonima
Nigeria—Public Limited Company
Northern Mariana Islands—Corporation
Norway—Allment Aksjeselskap
Pakistan—Public Limited Company
Panama—Sociedad Anonima
Paraguay—Sociedad Anonima
Peru—Sociedad Anonima
Philippines—Stock Corporation
Poland—Spolka Akcyjna
Portugal—Sociedade Anonima
Puerto Rico—Corporation
Romania—Societe pe Actiuni
Russia—Otkrytoye Aktsionernoy
Obshchestvo
Saudi Arabia—Sharikat Al-Mossahamah
Singapore—Public Limited Company
Slovak Republic—Akciova Spolocnost
Slovenia—Delniska Druzba
South Africa—Public Limited Company
Spain—Sociedad Anonima
Surinam—Naamloze Vennootschap
Sweden—Publika Aktiebolag
Switzerland— Aktiengesellschaft
Thailand—Borisat Chamkad (Mahachon)
Trinidad and Tobago—Limited Company
Tunisia—Societe Anonyme
Turkey—Anonim Sirket
Ukraine—Aktsionerne Tovaristvo Vidkritogo
Tipu
United Kingdom—Public Limited
Company
United States Virgin Islands—Corporation
Uruguay—Sociedad Anonima
Venezuela—Sociedad Anonima or Compania
Anonima
F
!
CAUTION
See Regulations section
301.7701-2(b)(8) for any
exceptions and inclusions to items
on this list and for any revisions
made to this list since these instructions were
printed.
Paperwork Reduction Act Notice
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carry out the Internal Revenue laws of the
United States. You are required to give us the
information. We need it to ensure that you are
complying with these laws and to allow us to
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You are not required to provide the
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Generally, tax returns and return information
are confidential, as required by section 6103.
The time needed to complete and file this
form will vary depending on individual
circumstances. The estimated average time is:
Recordkeeping . . . . 2 hr., 46 min.
Learning about the
law or the form . . . . 3 hr., 48 min.
Preparing and sending
the form to the IRS . . . . . 36 min.
If you have comments concerning the
accuracy of these time estimates or
suggestions for making this form simpler, we
would be happy to hear from you. You can
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Forms and Publications, SE:W:CAR:MP:TFP,
1111 Constitution Ave. NW, IR-6526,
Washington, DC 20224. Do not send the form
to this address. Instead, see Where To File
above.
Document Specifics
| Fact Name | Details |
|---|---|
| Purpose | The IRS Form 8832 allows eligible entities to elect how they will be classified for federal tax purposes. This can include choosing between being treated as a corporation or a partnership. |
| Eligibility | Entities such as limited liability companies (LLCs) and partnerships can use this form to change their tax classification. However, certain restrictions apply based on the entity type. |
| Filing Deadline | Form 8832 must be filed within 75 days of the desired effective date of the election. Late elections may be accepted under specific circumstances, but additional documentation may be required. |
| State-Specific Forms | Some states may have their own forms or requirements for tax classification. For example, California requires Form 568 for LLCs, governed by California Revenue and Taxation Code Section 17375. |
IRS 8832: Usage Instruction
Once you have gathered all necessary information, you can begin filling out IRS Form 8832. This form is used by eligible entities to choose how they will be classified for federal tax purposes. Make sure to have all relevant details on hand to ensure a smooth process.
- Download the Form: Visit the IRS website and download Form 8832. You can also find instructions to help guide you through the process.
- Fill in Basic Information: In Part I, provide the name of the entity, its address, and the Employer Identification Number (EIN) if applicable.
- Choose the Classification: In Part II, select the classification you are choosing for your entity. This could be a corporation, partnership, or disregarded entity.
- Provide Additional Information: If your entity has more than one owner, you may need to provide details about each owner. This includes their names and addresses.
- Sign and Date: At the bottom of the form, ensure that an authorized person signs and dates the form. This is crucial for the form to be valid.
- Submit the Form: Send the completed form to the appropriate IRS address listed in the instructions. Be sure to keep a copy for your records.
After submitting the form, you will await confirmation from the IRS regarding your classification choice. Make sure to monitor any correspondence from the IRS to ensure everything is processed correctly.
Learn More on IRS 8832
- Limited liability companies (LLCs)
- Partnerships
- Sole proprietorships
- Certain foreign entities wanting to be treated as domestic entities
- If an LLC elects to be treated as a corporation, it may be subject to corporate income tax rates.
- A partnership election may allow for pass-through taxation, avoiding double taxation.
- Complete the form accurately, providing all necessary information about the entity.
- Sign and date the form.
- Submit the form to the appropriate IRS address listed in the instructions.
- The official instructions for Form 8832
- FAQs about entity classification
- Guidance on specific scenarios for filing
What is IRS Form 8832?
IRS Form 8832, also known as the "Entity Classification Election," allows eligible entities to choose how they want to be classified for federal tax purposes. This form is typically used by businesses to elect to be treated as a corporation, partnership, or disregarded entity.
Who needs to file Form 8832?
Entities that may need to file Form 8832 include:
Any entity that wishes to change its classification for tax purposes must file this form.
When is the deadline to file Form 8832?
The deadline for filing Form 8832 is typically 75 days from the date the election is made. If you miss this deadline, you may need to wait until the next tax year to file or request a late election with additional documentation.
What are the tax implications of filing Form 8832?
Filing Form 8832 can significantly impact how an entity is taxed. For example:
Understanding these implications is crucial for effective tax planning.
Can Form 8832 be revoked?
Yes, an entity can revoke its election made on Form 8832. However, the revocation must be filed with the IRS and typically requires a waiting period before a new election can be made. The process can vary depending on the specific circumstances of the entity.
How do I file Form 8832?
To file Form 8832, follow these steps:
It is recommended to keep a copy for your records.
Where can I find additional resources about Form 8832?
Additional resources can be found on the IRS website, including:
Consulting a tax professional is also advisable for personalized assistance.
Common mistakes
Filling out the IRS Form 8832, which is used to elect how a business entity is classified for federal tax purposes, can be a complex process. Many individuals and businesses make common mistakes that can lead to delays or complications. Understanding these pitfalls can help ensure a smoother filing experience.
One frequent error is not checking the eligibility requirements before completing the form. The IRS has specific criteria for entities that wish to elect their classification. If an entity does not meet these requirements, the election may be rejected, leading to unnecessary complications.
Another common mistake involves incorrectly completing the entity information. This includes providing the wrong name, address, or Employer Identification Number (EIN). Accuracy is crucial, as any discrepancies can result in processing delays or even denial of the election.
Many people also fail to sign and date the form. This may seem minor, but without a signature, the IRS will not consider the form valid. It’s essential to ensure that all required signatures are present before submission.
Additionally, individuals sometimes neglect to provide the necessary supporting documentation. Depending on the entity type, additional paperwork may be required to validate the election. Omitting these documents can lead to a rejection of the application.
Another mistake occurs when people misunderstand the effective date of the election. The election is generally effective on the date specified on the form, but if not clearly stated, the IRS may default to the date they receive the form. This can impact tax obligations significantly.
Some filers also fail to consider the implications of the election. Choosing a certain classification can affect tax liabilities and compliance requirements. It’s important to weigh these factors carefully before making a decision.
Lastly, individuals often miss the filing deadline for the election. The IRS has specific timeframes within which the form must be submitted to be effective for the desired tax year. Missing this deadline can result in the election being ineffective for that year, causing potential tax issues.
By being aware of these common mistakes, individuals and businesses can navigate the IRS Form 8832 process more effectively. Taking the time to review the form thoroughly and ensuring all requirements are met can save time and reduce stress in the long run.
Documents used along the form
When you are considering filing the IRS Form 8832, also known as the Entity Classification Election, it's essential to understand that other forms and documents may accompany it. These documents help clarify your business structure and ensure compliance with tax regulations. Below are four commonly used forms that you might encounter alongside the IRS 8832.
- IRS Form 1065: This form is used for partnerships to report income, deductions, gains, and losses from the operation of a partnership. It provides the IRS with a comprehensive overview of the partnership’s financial activities for the year.
- IRS Form 1120: Corporations utilize this form to report their income, gains, losses, deductions, and credits. It is essential for C corporations, as it outlines the corporation’s tax obligations and is used to calculate the corporate income tax owed.
- IRS Form 2553: If your business elects to be treated as an S corporation, this form must be filed. It allows eligible domestic corporations to choose S corporation status, which can provide tax benefits by avoiding double taxation on corporate income.
- IRS Form SS-4: This application for an Employer Identification Number (EIN) is often necessary when forming a new business entity. An EIN is essential for tax purposes and is required for various business activities, including opening a bank account and hiring employees.
Understanding these related forms can help streamline your filing process and ensure that you meet all necessary requirements. Taking the time to gather the correct documents will facilitate a smoother experience as you navigate your business's tax obligations.
Similar forms
The IRS Form 2553 is similar to the IRS 8832 in that both are used by businesses to elect a specific tax classification. While Form 8832 allows a business to choose to be treated as a corporation, partnership, or disregarded entity, Form 2553 is specifically for small businesses that want to be taxed as an S corporation. This election can provide tax benefits, such as avoiding double taxation on corporate income. The process for filing both forms requires careful attention to detail, as mistakes can lead to delays or rejection of the election.
Another document that shares similarities with the IRS 8832 is the IRS Form 1065. This form is used by partnerships to report their income, deductions, gains, and losses. While Form 8832 is about electing how a business will be taxed, Form 1065 is focused on reporting the financial activities of a partnership once that election has been made. Both forms require a clear understanding of the business structure and its financial implications, ensuring that all partners are on the same page regarding their tax responsibilities.
The IRS Form 1120 is also akin to the IRS 8832, as it pertains to corporate tax filings. Businesses that elect to be treated as corporations via Form 8832 will eventually need to file Form 1120 to report their income and pay corporate taxes. This form outlines the financial performance of the corporation and is essential for compliance with federal tax laws. Understanding the connection between these forms is crucial for businesses that want to manage their tax liabilities effectively.
Lastly, the IRS Form 8831, which is used for making an election to treat a foreign entity as a domestic corporation, parallels the IRS 8832 in its purpose of classifying entities for tax purposes. Both forms involve significant decisions regarding how an entity will be treated under U.S. tax law. While Form 8832 is more commonly used for domestic entities, Form 8831 addresses unique situations involving foreign entities. Each form requires careful consideration of the potential tax implications and compliance requirements that come with the chosen classification.
Dos and Don'ts
When filling out the IRS 8832 form, it's important to follow specific guidelines to ensure accuracy and compliance. Here are some things you should and shouldn't do:
- Do: Read the instructions carefully before starting. Understanding the requirements can save you time and prevent errors.
- Do: Double-check all information for accuracy. Mistakes can lead to delays or complications.
- Do: Submit the form on time. Ensure you meet the deadlines to avoid penalties.
- Do: Keep a copy of the completed form for your records. This can be useful for future reference.
- Don't: Rush through the process. Taking your time can help you avoid mistakes.
- Don't: Ignore any specific requirements for your entity type. Each type may have different rules.
- Don't: Forget to sign and date the form. An unsigned form can be rejected.
- Don't: Submit the form without reviewing it first. A final review can catch any overlooked errors.
Misconceptions
The IRS Form 8832, also known as the Entity Classification Election, can often be misunderstood. Here are six common misconceptions about this form that many individuals and businesses encounter:
- Form 8832 is only for corporations. Many people believe this form is exclusively for corporations, but it is applicable to various types of entities, including partnerships and limited liability companies (LLCs). Any eligible entity can use this form to choose how it will be classified for federal tax purposes.
- Filing Form 8832 is mandatory for all businesses. This is not true. Form 8832 is optional. Businesses can choose whether or not to file it based on their desired tax classification. If a business is satisfied with its current classification, it does not need to file the form.
- Once filed, the election cannot be changed. While it is true that changing your entity classification can be complex, it is possible to revoke or change the election made with Form 8832. However, specific rules and timelines apply, so it is important to be aware of the requirements.
- Form 8832 affects state tax classifications automatically. This misconception can lead to confusion. The IRS Form 8832 only affects federal tax classification. States may have their own rules and forms for tax classification, which may differ from federal regulations.
- The form must be filed every year. This is incorrect. Once an entity makes an election using Form 8832, it does not need to file it annually. The election remains in effect until it is changed or revoked, unless the entity undergoes a significant change in structure.
- Filing Form 8832 guarantees tax benefits. While choosing a certain classification may offer potential tax advantages, it does not guarantee them. Each business's situation is unique, and the benefits depend on various factors, including income, expenses, and overall business strategy.
Understanding these misconceptions can help individuals and businesses navigate their tax options more effectively. Always consider consulting with a tax professional for personalized advice.
Key takeaways
The IRS Form 8832 is a crucial document for businesses looking to change their tax classification. Understanding how to fill it out and use it effectively can lead to significant tax benefits. Here are some key takeaways to keep in mind:
- Purpose of the Form: Form 8832 allows eligible entities to elect to be classified as a corporation, partnership, or disregarded entity for federal tax purposes.
- Eligibility: Not all entities can use this form. Only certain types, such as LLCs and partnerships, are eligible to make this election.
- Filing Deadline: The form must be filed within 75 days of the desired effective date of the election. Late elections may be accepted under certain circumstances.
- Signature Requirement: The form must be signed by a person authorized to act on behalf of the entity, ensuring that the election is valid.
- Impact on Taxes: Choosing a different classification can significantly affect how the entity is taxed, including implications for income, self-employment taxes, and eligibility for certain deductions.
- State Considerations: States may have their own rules regarding tax classification. It's essential to check local regulations after filing the IRS form.
- Revocation: If an entity wishes to revoke its election, it must file another form, typically Form 8832 again, under specific guidelines.
- Consulting Professionals: Due to the complexities involved, consulting with a tax professional is advisable to ensure the election aligns with business goals.