Form 8832 (2013): Entity Classification Checklist
This checklist is a practical reference for completing Form 8832 for federal tax purposes in
2013, covering eligibility, election choices, effective dates, late relief, filing steps, and recordkeeping obligations.
Purpose and Scope of the Entity Classification Election
The entity classification election allows an eligible business entity to choose how it is treated for
United States tax purposes, affecting tax liabilities, reporting obligations, and long-term federal tax consequences.
This checklist follows the December 2013 revision and aligns with Internal Revenue Service instructions, Title 26 regulations, and Revenue Procedure 2009-41, without substituting for professional judgment or entity-specific tax advice.
Step-by-Step Checklist for Making the Election
Step 1: Confirm the entity is eligible
An eligible entity generally includes limited liability companies and certain foreign eligible entities that are not classified as per se corporations under federal tax laws. Per Se Corporations, including specific foreign entities listed in regulations, cannot change tax classification using this election.
Eligibility must be confirmed before proceeding, particularly for foreign businesses, single-member LLCs, and entities with complex ownership structures subject to Controlled
Foreign Corporation or Subpart F income rules.
Step 2: Identify the default tax classification
If no election is filed, tax classification is determined by default rules based on domestic or foreign status and the number of owners. Domestic single-owner entities default to disregarded entity status, while multi-owner entities default to general partnerships.
Understanding the default classification helps determine whether an election is necessary, especially when the desired tax treatment already applies without filing additional IRS forms.
Step 3: Select the intended tax classification
The election permits choosing treatment as a C corporation, a partnership, or a disregarded entity, provided the ownership structure permits it. A single-member LLC cannot elect partnership status, and a multi-member LLC cannot elect to be disregarded.
This decision affects how income flows to Schedule C, Schedule K-1, Form 1065, or Form 1120, and influences downstream tax obligations and reporting consistency.
Step 4: Determine whether this is an initial or changed election
The filer must indicate whether the submission represents an initial classification for a newly formed business entity or a change from an existing tax classification. Changes may be subject to the sixty-month limitation rule.
Entities that changed classification within the prior sixty months should review applicable exceptions, including deemed transactions and Section 338-related events, before proceeding.
Step 5: Gather required entity identification information
Accurate entity identification is required, including the legal name, address, and taxpayer identification number obtained from Form SS-4. An election cannot be processed without an issued identification number.
If an address change occurred, it must be indicated clearly, and the information must match IRS records to avoid rejection codes or processing delays.
Step 6: Choose and verify the effective date
The effective date establishes when the elected tax classification applies for federal tax purposes and must be entered in the month/day/year format.
The selected date must be within 75 days before or 12 months after the filing date; otherwise, it will be automatically adjusted in accordance with regulatory rules.
Step 7: Evaluate eligibility for late election relief
Late election relief may be requested under Revenue Procedure 2009-41 when failure to file timely was due to reasonable cause and no inconsistent tax returns were filed.
Relief is only available if the request is made within three years and seventy-five days of the intended effective date and requires a detailed explanation and additional signatures.
Step 8: Complete signatures and consent requirements
Proper execution requires signatures from authorized members, managers, or officers with authority under organizational documents and local law. Certain retroactive elections require signatures from prior owners.
Electronic or digital signature workflows are permitted only when compliant with IRS standards, and unsigned or improperly signed forms will be rejected.
Step 9: Attach copies to the required tax returns
A copy of the completed election must be attached to the entity’s federal tax return for the election year or to the owners’ returns when the entity has no filing obligation.
Failure to attach copies does not invalidate the election but may create compliance exposure or administrative follow-up with the Internal Revenue Service.
- Full IRS transcript retrieval (Wage & Income + Account)
- Professional tax form review
- Preparation & filing support
- Tax relief options if you owe the IRS
Step 10: File with the correct service center and track acceptance
The completed form must be mailed to the appropriate IRS service center, such as Kansas City or Ogden, Utah, as instructed for the 2013 revision.
Proof of mailing and follow-up tracking should be retained, and acceptance or rejection notices are typically issued within sixty days after filing.
Post-Election Compliance and Consistency
After the effective date, all federal tax filings must consistently reflect the elected tax classification, including income reporting, ownership disclosures, and treatment of tax liabilities across schedules and returns.
Inconsistent reporting by owners or foreign subsidiaries may invalidate the election’s practical effect and create unintended federal tax consequences.
Recordkeeping and Ongoing Review
Entities should permanently retain the filed election, acceptance correspondence, effective date documentation, and any late relief materials as part of their core tax records.
Periodic review is recommended when ownership structure changes, foreign operations expand, or tax laws evolve, particularly for entities subject to recent developments or cross-border reporting obligations.
If you’re missing tax documents or want to ensure the numbers you enter match IRS records, we can help.
