July 30, 1997
Small Business Corporations Get Tax Relief
WASHINGTON - The Internal Revenue Service issued a revenue
procedure today that will significantly ease the burden on small business corporations
that filed their S corporation elections late.
Before the passage of the Small Business Job Protection Act of
1996, there was no relief for late S corporation elections. The change in the law gave the
IRS the authority to treat late S corporation elections as timely filed elections.
Before today's new procedure, the only way corporations could
seek this relief was to request a private letter ruling. The new procedure allows
corporations to seek relief without incurring a user fee for requesting a private letter
ruling. The revenue procedure allows a corporation to request relief by writing to the
local service center, if the late election was filed within six months of the due date of
the original S corporation election.
Further information can be found in Revenue Procedure 97-40
which will be published in Internal Revenue Bulletin 1997-33 dated August 18, 1997.
Previous | Next
1997 IRS News Releases | News Releases Main | Home