Federal Qualified Subchapter S Subsidiary Election
Extracted from PDF file 2017-federal-form-8869.pdf, last modified December 2017
Qualified Subchapter S Subsidiary Election8869 Form (Rev. December 2017) Department of the Treasury Internal Revenue Service Part I Qualified Subchapter S Subsidiary Election ▶ Go to www.irs.gov/Form8869 for the latest information. Parent S Corporation Making the Election 1a Name of parent 5 OMB No. 1545-0123 (Under section 1361(b)(3) of the Internal Revenue Code) 2 Employer identification number (EIN) b Number, street, and room or suite no. If a P.O. box, see instructions. 3 Tax year ending (month and day) c City or town, state or province, country, and ZIP or foreign postal code 4 Service center where last return was filed 6 Telephone number of officer or legal representative Name and title of officer or legal representative whom the IRS may call for more information Part II Subsidiary Corporation for Which Election is Made (For additional subsidiaries, see instructions.) 7a Name of subsidiary 8 EIN (if any) b Number, street, and room or suite no. If a P.O. box, see instructions. 9 Date incorporated c City or town, state or province, country, and ZIP or foreign postal code 10 State of incorporation 11 Date election is to take effect (month, day, year) (see instructions) . . . . . . . . . . . 12 Did the subsidiary previously file a federal income tax return? If “Yes,” complete lines 13a, 13b, and 13c 13a Service center where last return was filed 13b Tax year ending date of last . return (month, day, year) ▶ . . . . . . . . . . . . . . . . 13c Check type of return filed: Form 1120S ▶ ▶ Yes No Form 1120 Other ▶ 14 Is this election being made in combination with a section 368(a)(1)(F) reorganization described in Rev. Rul. 2008-18, where the subsidiary was an S corporation immediately before the election and a newly formed holding company will be the subsidiary’s parent? . . . . . ▶ Yes No 15 Was the subsidiary’s last return filed as part of a consolidated return? If “Yes,” complete lines 16a, 16b, and 16c . . . . . . . Yes No 16a Name of common parent 16b EIN of common parent 16c Service center where consolidated return was filed ▶ Under penalties of perjury, I declare that I have examined this election, including accompanying statements, and to the best of my knowledge and belief, it is true, correct, and complete. Signature of officer of parent corporation ▶ General Instructions Title ▶ Date ▶ For the latest information about developments related to Form 8869 and its instructions, such as legislation enacted after they were published, go to www.irs.gov/Form8869. • A bank or thrift institution that uses the reserve method of accounting for bad debts under section 585. • An insurance company subject to tax under subchapter L of the Code. • A corporation that has elected to be treated as a possessions corporation under section 936. • A domestic international sales corporation (DISC) or former DISC. See sections 1361(b)(3), 1362(f), and their related regulations for additional information. Purpose of Form When To Make the Election Section references are to the Internal Revenue Code unless otherwise noted. Future Developments A parent S corporation uses Form 8869 to elect to treat one or more of its eligible subsidiaries as a qualified subchapter S subsidiary (QSub). The QSub election results in a deemed liquidation of the subsidiary into the parent. Following the deemed liquidation, the QSub is not treated as a separate corporation and all of the subsidiary’s assets, liabilities, and items of income, deduction, and credit are treated as those of the parent. ! ▲ Because the liquidation is a deemed liquidation, do not file Form 966, Corporate Dissolution or Liquidation. However, a final return for the subsidiary may have to be filed if it was a CAUTION separate corporation prior to the date of the deemed liquidation. No final return is required if this election is being made pursuant to a reorganization under section 368(a)(1)(F) and Rev. Rul. 2008-18. See Rev. Rul. 2008-18, 2008-13 I.R.B. 674, for details. Eligible Subsidiary An eligible subsidiary is a domestic corporation whose stock is owned 100% by an S corporation and is not one of the following ineligible corporations. For Paperwork Reduction Act Notice, see instructions. The parent S corporation can make the QSub election at any time during the tax year. However, the requested effective date of the QSub election generally cannot be more than: • 12 months after the date the election is filed, or • 2 months and 15 days before the date the election is filed. An election filed more than 12 months before the requested effective date will be made effective 12 months after the date it is filed. An election filed more than 2 months and 15 days after the requested effective date generally is late and will be made effective 2 months and 15 days before the date it is filed. However, an election filed more than 2 months and 15 days after the requested effective date will be accepted as timely filed if the corporation can show that the failure to file on time was due to reasonable cause. To request relief for a late election, the corporation generally must request a private letter ruling and pay a user fee in accordance with Rev. Proc. 2017-1, 2017-1 I.R.B. 1 (or its successor). However, relief from the ruling and user fee requirements is available. See Rev. Proc. 2013-30, 2013-36 I.R.B. 173, for details. Cat. No. 28755K Form 8869 (Rev. 12-2017) Page 2 Form 8869 (Rev. 12-2017) Where To File Employer Identification Number (EIN) File Form 8869 with the service center where the subsidiary filed its most recent return. However, if the parent S corporation forms a subsidiary, and makes a valid election effective upon formation, submit Form 8869 to the service center where the parent S corporation filed its most recent return. A QSub may not be required to have an EIN for federal tax purposes. If the QSub does not have an EIN, enter “N/A” on line 8. However, if the QSub has previously filed a return, separately or as part of a consolidated return, and used an EIN, enter that EIN on line 8 and (if applicable) the EIN of its common parent on line 16b. If this election is being made pursuant to a reorganization under section 368(a)(1)(F) and Rev. Rul. 2008-18, the old S corporation for which this QSub election is being made will retain its EIN. The newly formed parent must get a new EIN. See Rev. Rul. 2008-18 for details. Caution. Failure to enter the subsidiary’s EIN may result in the service center sending a notice of delinquent filing to the QSub. If the QSub wants its own EIN, but does not have one, see Form SS-4, Application for Employer Identification Number, for details on how to obtain an EIN. If the QSub has not received its EIN by the time the election is made, write “Applied for” on line 8. See the Instructions for Form SS-4 for details. Acceptance of Election The service center will notify the corporation if the QSub election is (a) accepted, and when it will take effect, or (b) not accepted. The corporation should generally receive a determination on its election within 60 days after it has filed Form 8869. However, if the corporation is not notified of acceptance or nonacceptance of its election within 2 months of the date of filing (date mailed), take follow-up action by calling 1-800-829-4933. If the IRS questions whether Form 8869 was filed, an acceptable proof of filing is (a) a certified or registered mail receipt (timely postmarked) from the U.S. Postal Service, or its equivalent from a designated private delivery service (see Notice 2016-30, 2016-18 I.R.B. 676 (or its successor)); (b) a Form 8869 with an accepted stamp; (c) a Form 8869 with a stamped IRS received date; or (d) an IRS letter stating that Form 8869 has been accepted. End of Election Once the QSub election is made, it remains in effect until it is terminated. If the election is terminated, IRS consent generally is required for another QSub election with regard to the former QSub (or its successor) for any tax year before the 5th tax year after the first tax year in which the termination took effect. See Regulations section 1.1361-5 for details. Effective Date of Election TIP Form 8869 generally must be filed no earlier than 12 months before or no later than 2 months and 15 days after the effective date requested on line 11. For details and exceptions, see When To Make the Election, earlier. A parent S corporation that forms a new subsidiary and wants the election effective upon formation should enter the formation date. A parent corporation that wants to make the election for an existing subsidiary should enter the requested effective date. For details about the effect of a QSub election, see Regulations section 1.1361-4. Specific Instructions Signature Address Form 8869 must be signed and dated by the president, vice president, treasurer, assistant treasurer, chief accounting officer, or any other corporate officer (such as tax officer) authorized to sign the parent’s S corporation return. Include the suite, room, or other unit number after the street address. If the Post Office does not deliver to the street address and the corporation has a P.O. box, show the box number instead. If the subsidiary has the same address as the parent S corporation, enter “Same as parent” in Part II. Additional Subsidiaries If the QSub election is being made for more than one subsidiary, attach a separate sheet for each subsidiary. Use the same size, format, and line numbers as in Part II of the printed form. Put the parent corporation’s name and employer identification number at the top of each sheet. If the QSub elections are being made effective on the same date for a tiered group of subsidiaries, the parent S corporation may specify the order of the deemed liquidations on an attachment. If no order is specified, the deemed liquidations will be treated as occurring first for the lowest tier subsidiary and proceeding successively upward. See Regulations section 1.1361-4(b)(2). A QSub election for a tiered group of subsidiaries may, in certain circumstances, result in the recognition of income. A primary example is excess loss accounts (see Regulations section 1.1502-19). CAUTION ! ▲ Reorganizations Line 14. This box should be checked “Yes” if this election is being made pursuant to a reorganization under section 368(a)(1)(F) and Rev. Rul. 2008-18. This occurs when a newly formed parent holding company holds the stock of the subsidiary that was an S corporation immediately before the transaction and the transaction otherwise qualifies as a reorganization under section 368(a)(1)(F). No Form 2553, Election by a Small Business Corporation, is required to be filed by the parent. See Rev. Rul. 2008-18 for details. Paperwork Reduction Act Notice. We ask for the information on this form to 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. You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law. 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 burden for business taxpayers filing this form is approved under OMB control number 1545-0123 and is included in the estimates shown in the instructions for their business income tax return. 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 send us comments from www.irs.gov/ FormComments. Or you can write to the Internal Revenue Service, Tax Forms and Publications Division, 1111 Constitution Ave. NW, IR-6526, Washington, DC 20224. Don't send the form to this office.
Form 8869 (Rev. December 2017)
More about the Federal Form 8869 Corporate Income Tax
We last updated the Qualified Subchapter S Subsidiary Election in January 2018, and the latest form we have available is for tax year 2017. This means that we don't yet have the updated form for the current tax year. Please check this page regularly, as we will post the updated form as soon as it is released by the Federal Internal Revenue Service. You can print other Federal tax forms here.
Other Federal Corporate Income Tax Forms:
|Form Code||Form Name|
|Form 4684||Casualties and Thefts|
|Form 1120-H||U.S. Income Tax Return for Homeowners Associations|
|Form 941||Employer's Quarterly Federal Tax Return|
|Form 4562||Depreciation and Amortization (Including Information on Listed Property)|
|990 (Schedule O)||Supplemental Information to Form 990 or 990-EZ|
The Internal Revenue Service usually releases income tax forms for the current tax year between October and January, although changes to some forms can come even later. We last updated Federal Form 8869 from the Internal Revenue Service in January 2018.
About the Corporate Income Tax
The IRS and most states require corporations to file an income tax return, with the exact filing requirements depending on the type of company.
Sole proprietorships or disregarded entities like LLCs are filed on Schedule C (or the state equivalent) of the owner's personal income tax return, flow-through entities like S Corporations or Partnerships are generally required to file an informational return equivilent to the IRS Form 1120S or Form 1065, and full corporations must file the equivalent of federal Form 1120 (and, unlike flow-through corporations, are often subject to a corporate tax liability).
Additional forms are available for a wide variety of specific entities and transactions including fiduciaries, nonprofits, and companies involved in other specific types of business.
Historical Past-Year Versions of Federal Form 8869
We have a total of six past-year versions of Form 8869 in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:
Form 8869 (Rev. December 2017)
Form 8869 (Rev. December 2013)
Form 8869 (Rev. December 2013)
Form 8869 (Rev. December 2013)
Form 8869 (Rev. December 2008)
Form 8869 (Rev. December 2008)
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