Hello folks,
Taxpayer forms LLC in 2008; Partnership between husband and wife (I did not file the original returns; otherwise I would've opted for Disregarded Entity or something else). Husband passed away in 2016 leaving the wife to operate the business, the default tax structure reverted to a Sole Prop (disregarded entity).
Her wish is to Elect S Status for 2019. Reading over Rev Proc 2013-30, I just want to make sure I am not making an incorrect assumption.
Section 4.03(3) mentions "Additional materials for a late corporate classification election intended to be effective on the same date that the S corporation election was intended to be effective." Do I have it right that my client will qualify for relief due to what is mentioned in 4.03(3)(5)(ii)?
"(ii) The Requesting Entity has not filed a federal tax or information return for the first year in which the election was intended to be effective because the due date has not passed for that year’s federal tax or information return."
If we elect S Status for 01/01/2019, does the Rev Proc grant relief, as the due date has not yet passed? I know reasonable cause must exist. My client is an idiot!! Just kidding, she truly had no idea an election existed, she would rather file her nails in my office!
TIA!!!