As part of year-end tax diligence, sell-side due diligence, or prior to an Internal Revenue Service (IRS) examination, it is advisable that private companies operating as S corporations confirm whether they have timely S corporation elections in place.
In this regard, the IRS recently released Rev. Proc. 2013-30, which provides relief to taxpayers who failed to timely file certain elections, including S corporation elections, electing small business trust (ESBT) elections , qualified subchapter S trust (QSST) elections, qualified subchapter S subsidiary (QSub) elections, and corporate classification elections. Rev. Proc. 2013-30 also consolidates the relief provisions provided for in prior revenue procedures and extends the time period for relief in certain circumstances.