IRS Extends Relief for Late “Check-the-Box” Elections

Claire Ollinger, CPA

A recent Internal Revenue Service (IRS) ruling aims to provide relief to taxpayers who missed check-the-box elections.

On September 3, 2009 the IRS issued Rev. Proc. 2009-41 which provides guidance for an eligible entity that requests relief for a late-filed entity classification election (commonly referred to as a “check-the-box election”) within three years and 75 days of the requested effective date of such election.

The Rev. Proc. supersedes and significantly liberalizes the relief for late-filed entity classification elections that was allowed under Revenue Procedure 2002-59.