IRS 8869 2017 free printable template

8869Form (Rev. December 2017) Department of the Treasury Internal Revenue Serviceman Qualified Subchapter S Subsidiary Election Got www.irs.gov/Form8869 for the latest information. Parent S Corporation

How to fill out IRS 8869

How to fill out IRS 8869

1. Begin by downloading IRS Form 8869 from the IRS website.
2. Fill in the name and address of the entity that is electing to be treated as a corporation.
3. Provide the Employer Identification Number (EIN) of the entity.
4. Indicate the year for which the election is being made.
5. Complete the section that asks about the type of entity.
6. If applicable, include any other relevant information or attachments as instructed.
7. Review your form for accuracy and completeness.
8. Sign and date the form in the designated section.
9. Submit the completed form to the appropriate IRS address.

Who needs IRS 8869?

1. Entities that want to elect to be classified as a corporation for tax purposes.
2. Partnerships wishing to change their tax classification.
3. Certain limited liability companies (LLCs) that need to elect for corporate status.

People Also Ask about

Where do I file IRS 8869?

Or you can write to the Internal Revenue Service, Tax Forms and Publications Division, 1111 Constitution Ave. NW, IR-6526, Washington, DC 20224.

How does a QSub election work?

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.

How do I file an S Corp election with the IRS?

In order to become an S corporation, the corporation must submit Form 2553, Election by a Small Business Corporation signed by all the shareholders. See the Instructions for Form 2553PDF for all required information and to determine where to file the form.

Does a QSub have to file a 2553?

To be treated as a QSSS, the parent corporation files IRS Form 8869 (Qualified Subchapter S Subsidiary Election) pursuant to IRC Sec. 1361(b) (3). The subsidiary does not file a IRS Form 2553, because a QSSS is not treated as a separate corporation for tax purposes. See, IRC Section 1361(b)(3)(A)(i).

Can a single member LLC be a QSub?

Although an S-corporation generally cannot have an entity as a stockholder, an S-corporation can own: A qualified subchapter S subsidiary (QSub). A disregarded entity (for example, a single member LLC).

What is a 8869 tax form?

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.

Does a QSub file a final tax return?

This schedule notifies the FTB that the QSub's items of income, deduction, and credit will be included in the parent's return and the QSub will not file a separate California franchise or income tax return.

What does QSSS stand for?

To be treated as a QSSS, the parent corporation files IRS Form 8869 (Qualified Subchapter S Subsidiary Election) pursuant to IRC Sec. 1361(b) (3). The subsidiary does not file a IRS Form 2553, because a QSSS is not treated as a separate corporation for tax purposes. See, IRC Section 1361(b)(3)(A)(i).

How do you make a Q sub election?

For a corporation to constitute a QSub, three requirements must be met: the subsidiary must be a domestic corporation that would otherwise qualify as an S corporation, the parent S corporation must own 100 percent of the stock of the subsidiary, and. the parent must make an election to treat the subsidiary as a QSub.

Who can make 338 election?

338 election. This election can be made when the acquiring corporation (the buyer) makes a qualifying purchase of 80% or more of the target company's stock. The target company can be either a C corporation or an S corporation, and the buyer can be either a C corporation or an S corporation.

Can an S Corp file a consolidated tax return?

An S corporation can own 80 percent or more of the stock of a C corporation, which can elect to join in the filing of a consolidated return with its affiliated C corporations. However, an S corporation is ineligible to be a member of the affiliated group and to join in the election to file a consolidated return.

What is a qualified S Corp subsidiary?

For a corporation to constitute a QSub, three requirements must be met: the subsidiary must be a domestic corporation that would otherwise qualify as an S corporation, the parent S corporation must own 100 percent of the stock of the subsidiary, and. the parent must make an election to treat the subsidiary as a QSub.

Can an S corporation have a foreign subsidiary?

An S corporation can legally own a foreign subsidiary, but the foreign subsidiary cannot achieve QSub status. An S corporation must hold a foreign subsidiary as a C corporation, and a C corporation must pay tax at the corporate rate on its earnings.

How to make a 338 election?

If the target is an S corporation, a section 338(h)(10) election must be made by all of the shareholders of the target, including shareholders who do not sell target stock in the QSP. File Form 8023 by the 15th day of the 9th month after the acquisition date to make a section 338 election for the target corporation.

Who files form 8869?

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).

Where do I file IRS Form 8869?

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.

How do I make a Section 338 election?

If the target is an S corporation, a section 338(h)(10) election must be made by all of the shareholders of the target, including shareholders who do not sell target stock in the QSP. File Form 8023 by the 15th day of the 9th month after the acquisition date to make a section 338 election for the target corporation.

What is a qualified subchapter?

For a corporation to constitute a QSub, three requirements must be met: the subsidiary must be a domestic corporation that would otherwise qualify as an S corporation, the parent S corporation must own 100 percent of the stock of the subsidiary, and. the parent must make an election to treat the subsidiary as a QSub.

What is a Q sub?

A QSub is a domestic corporation that itself would be eligible to make an S corporation election and is 100 percent owned by an S corporation that makes the QSub election for its subsidiary. 4. For federal income tax purposes, the QSub is not treated as a separate corporation.

Does a QSub file a tax return?

This schedule notifies the FTB that the QSub's items of income, deduction, and credit will be included in the parent's return and the QSub will not file a separate California franchise or income tax return.

What is a qualified subchapter trust?

A Qualified Subchapter S Trust, commonly referred to as a QSST Election, or a Q-Sub election, is a Qualified Subchapter S Subsidiary Election made on behalf of a trust that retains ownership as the shareholder of an S corporation, a corporation in the United States which votes to be taxed.

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What is IRS 8869?

IRS Form 8869 is the 'Qualified Subchapter S Subsidiary Election' form used by eligible S corporations to elect to treat a subsidiary as a qualified subchapter S subsidiary (QSSS).

Who is required to file IRS 8869?

S corporations that own at least 80% of another corporation and wish to treat that corporation as a QSSS must file IRS Form 8869.

How to fill out IRS 8869?

To fill out IRS Form 8869, provide your name, address, employer identification number, and information about the subsidiary such as its name, address, and EIN. Sign and date the form before submitting.

What is the purpose of IRS 8869?

The purpose of IRS Form 8869 is to make the election for a subsidiary to be treated as a qualified subchapter S subsidiary, allowing the income, deductions, and credits of the subsidiary to be reported on the parent's S corporation tax return.

What information must be reported on IRS 8869?

The information required includes the electing S corporation’s name, address, and EIN, the subsidiary's name, address, and EIN, and the effective date of the election.