Section references are to the Internal Revenue Code unless otherwise noted.
What Is New:
A checkbox was added for explanatory language of the Rev. Proc. 2010-32, foreign entities that meet the requirements of Rev. Proc. 2010-32, 2010-36 I.R.B. 320.
The IRS has created a page on IRS.gov for information about Form 8832 and its instructions at www.irs.gov/form8832. Information about any future developments affecting Form 8832 (such as legislation enacted after we release it) will be posted on that page.
The following posts describe tax form 8832:
- Purpose and Eligibility
- Default Rules and Definitions
- Who Must File Tax Form 8832?
- Effect of Election
- When To File
- Where To File Tax Form 8832
- Acceptance or Nonacceptance of Election
- Specific Instructions for Tax Form 8832
- Tax Form 8832 Part I. Election Information
- Tax Form 8832 Part II. Late Election Relief
- Paperwork Reduction Act Notice
Purpose of Form 8832
An eligible entity uses Form 8832 to elect how it will be classified for federal tax purposes, as a corporation, a partnership, or an entity disregarded as separate from its owner. An eligible entity is classified for federal tax purposes under the default rules described below unless it files Form 8832 or Form 2553, Election by a Small Business Corporation, to elect a classification or change its current classification. See Who Must File below.
The IRS will use the information entered on this form to establish the entity’s filing and reporting requirements for federal tax purposes.
A new eligible entity should not file TIP Form 8832 if it will be using its default classification (see Default Rules below).
An eligible entity is a business entity that is not included in items 1, or 3 through 9, under the definition of corporation provided under Definitions.
Eligible entities include limited liability companies (LLCs) and partnerships.
Generally, corporations are not eligible entities. However, the following types of corporations are treated as eligible entities:
- An eligible entity that previously elected to be an association taxable as a corporation by filing Form 8832. An entity that elects to be classified as a corporation by filing Form 8832 can make another election to change its classification (see the 60-month limitation rule discussed below in the instructions for lines 2a and 2b).
- A foreign eligible entity that became an association taxable as a corporation under the foreign default rule described below.
Next Post: Default Rules and Definitions
This post is an excerpt from the IRS’s fact sheet on IRS Form 8832.