• Sub S election - Late Filing Relief

    From Taxed and Spent@21:1/5 to All on Sat Oct 9 10:44:20 2021
    LLC wishes to elect Sub S status to take advantage of California's new pass-trough entity tax law related to SALT.

    It is too late for file a Sub S election for tax year 2021. Any chance
    the IRS would grant Late Filing Relief under these circumstances?

    --
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  • From Stuart O. Bronstein@21:1/5 to Taxed and Spent on Sat Oct 9 11:22:29 2021
    Taxed and Spent <nospamplease@nonospam.com> wrote:

    LLC wishes to elect Sub S status to take advantage of California's
    new pass-trough entity tax law related to SALT.

    It is too late for file a Sub S election for tax year 2021. Any
    chance the IRS would grant Late Filing Relief under these
    circumstances?

    According to the Franchise Tax Board the new tax only applies to "S corporations, general partnerships, limited liability companies taxed
    as partnerships, limited liability partnerships or limited
    partnerships...." If this is accurate, then an LLC taxed as an S-
    corporation may not qualify.

    --
    Stu
    http://DownToEarthLawyer.com

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    << >>
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    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
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  • From Taxed and Spent@21:1/5 to Stuart O. Bronstein on Sat Oct 9 18:05:49 2021
    On 10/9/2021 8:22 AM, Stuart O. Bronstein wrote:
    Taxed and Spent <nospamplease@nonospam.com> wrote:

    LLC wishes to elect Sub S status to take advantage of California's
    new pass-trough entity tax law related to SALT.

    It is too late for file a Sub S election for tax year 2021. Any
    chance the IRS would grant Late Filing Relief under these
    circumstances?

    According to the Franchise Tax Board the new tax only applies to "S corporations, general partnerships, limited liability companies taxed
    as partnerships, limited liability partnerships or limited
    partnerships...." If this is accurate, then an LLC taxed as an S- corporation may not qualify.


    That is what I asked about here previously.

    But at least one FTB web page says "A qualifying PTE is an entity taxed
    as a partnership or S corporation.", which jibes with the language of
    the act.

    Now the question is whether the IRS will accept a late filing of a Sub S election for tax year 2021. Will "I didn't know I had to file the Sub S election by its due date because Calif didn't enact its Small Business
    Relief Act until after its due date" be considered by the IRS to be a reasonable cause for the late filing of the Sub S election for tax year
    2021.

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2011) - All rights reserved. >>
    << ------------------------------------------------------- >>

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