Entity Classification Election - Past Due Returns

Technical topics regarding tax preparation.
#1
kdgalmh  
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30-Sep-2020 11:50am
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California
I have a new client that has not filed personal or business tax returns since 2010. They are husband and wife that are the only two owners of an LLC (in a community property state). Previous tax returns for the LLC were filed as partnership returns, but the client now wants to begin filing as disregarded entity.

When is the earliest year we can go back and file the 8832 to change the entity classification from Partnership to Disregarded entity? Based on Rev Proc 2009-41 it seems like late election relief can only occur if the late election is filed within 3 years and 75 days of the effective date of the entity's classification election. So, does that mean the earliest year we could File the late 8832 election for would be tax year beginning 1/1/2018 (since that is the earliest tax year that begins within 3 years and 75 days from today).

Thanks in advance!
 

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