My S Corp was revoked by another party mailing a revocation letter to revoke my business S election without my consent 2 years ago. I have been trying to reinstate my S election for my business by sending IRS a new 2553 form with a letter explaining my situation every year.
This year, I finally get a mail from IRS mentioning:
"I am not eligible to make a new election under Section 1362(g) of the IRS Code, without the consent of the Commissioner of IRS for tax period ending MMDDYYYY and the following four years."
My question is how do I get the consent of the Commissioner of IRS?
I appreciate your help
@kiddkevin01 wrote:My question is how do I get the consent of the Commissioner of IRS?
You most likely need to assert that the termination was inadvertent and, in accordance with Section 1.1362-4(c), you will need to make the request in the form of a ruling request.
See https://www.law.cornell.edu/cfr/text/26/1.1362-4
The following is a passage from a PLR requesting a determination that the termination was inadvertent.
The IRS will generally deny consent unless you can show that the termination was not within the control of the corporation or shareholders having a substantial interest in the corporation and was not a part of a plan on the part of the corporation or of such shareholders to terminate the election.
This is more a legal matter than a tax matter. You need to seek the services of a qualified legal authority for this. Maybe a CPA or tax lawyer?
@kiddkevin01 wrote:My question is how do I get the consent of the Commissioner of IRS?
You most likely need to assert that the termination was inadvertent and, in accordance with Section 1.1362-4(c), you will need to make the request in the form of a ruling request.
See https://www.law.cornell.edu/cfr/text/26/1.1362-4
The following is a passage from a PLR requesting a determination that the termination was inadvertent.
The IRS will generally deny consent unless you can show that the termination was not within the control of the corporation or shareholders having a substantial interest in the corporation and was not a part of a plan on the part of the corporation or of such shareholders to terminate the election.
@Anonymous_ Thanks for the reply. I did a google search but I can't find how to make the request in the form of a ruling request. Can you advise?
Here is the IRS link: How would I obtain a Private Letter Ruling?
However, as Champ Carl advised, you need to contact a tax lawyer before proceeding. Even the IRS recommends legal assistance in preparing a PLR request.
@kiddkevin01 wrote:
@Anonymous_ Thanks for the reply. I did a google search but I can't find how to make the request in the form of a ruling request. Can you advise?
Find a tax attorney in your area.
https://www.avvo.com/tax-lawyer.html
Be prepared to spend a few dollars on this endeavor; it is not cheap and in some instances is not worth the cost. Your lawyer will advise you of that, one way or the other.