For electing large LLCs, the statute of limitations (SOL) runs for three years from the later of the last day for filing the LLC's return or the date such return was actually filed.
An electing large LLC must designate a member or other person who has the sole authority to act on behalf of the entity under the electing large LLC audit procedures.
If, during the election period, there is an executor, a single Form 1041 is filed annually for the combined electing trust and related estate under the name and taxpayer identification number of the estate [Treas.
Information regarding the electing trust is also reported on Form 1041.
2632-1(b)(3)(ii), the election statement must (1) identify the trust, (2) specifically describe or otherwise clearly identify the transfers to be covered by the GST trust election and (3) specifically provide that the taxpayer is electing
to have the trust treated as a GST trust for the described transfers.
2632(c)(5)(A)(ii), the transferor is electing
to have the trust treated as a GST trust as defined in Sec.
In turn, this made it difficult to identify (1) direct-split transfers subject to the deemed-GST-exemption-allocation rules, complicating the task of electing out and (2) other transfers that might warrant GST-exemption allocation, because they might produce a future taxable distribution or termination.
The inability to identify individual split gifts for purposes of electing out of the deemed-GST-exemption allocation was compounded when the deemed-allocation rules were extended to lifetime indirect-skip transfers.
92-67 outlines the process of electing
to amortize market discounts and method of amortization.
1362(b)(5) now gives the IRS the power to correct inadvertent errors in electing
S status if the taxpayer shows that it made the mistake inadvertently, qualified to be an S corporation and acted as though it were an S corporation.
If the spouse dies prematurely, electing
not to recalculate on the spouse's life will guarantee continued payout over a longer joint life expectancy.
To address this problem, the Service requires a taxpayer electing
a different method of accounting for real estate taxes to elect one of two approaches to convert from one accounting method to another: (1) a cut-off approach or (2) a full-year change approach.