Correcting Errors and Changing Accounting Methods: Missed Elections, Rescinding Elections, Uncertain Tax Positions

Section 9100 Relief, PLRs, Late S-Elections, and Forms 8275 and 8275-R

Note: CLE credit is not offered on this program

Recording of a 110-minute CPE webinar with Q&A


Conducted on Tuesday, June 9, 2020

Recorded event now available

or call 1-800-926-7926
Program Materials

This webinar will explain the many ways to obtain relief for missed, late, or retrospective tax elections after tax reform. Our authoritative panel will cover the types of relief available, applying for relief, and when an adviser should include Form 8275 or 8275-R with a tax return.

Description

Few matters are more troubling than discovering a new or existing client has missed a critical election. Relief exists for missed S-elections, check-the box elections, Section 754 elections, grouping elections, and other critical deadlines. Updated annually, the recent IRS Revenue Procedure 2019-43 provides a list of automatic accounting method changes. These changes can be made immediately, without IRS approval, and often include a Section 481(a) adjustment. Some taxpayers are reevaluating entity choices after tax reform. IRS Regulations 301.7701-3(c)(1)(iv) provide a method of changing entity classification.

Revenue Procedure 2013-30 provides relief for missed or late S-elections, and Section 9100 regulations provide automatic relief for certain late elections, including Section 754 elections. If an entity qualifies under the automatic procedures, corrections can be made without a costly private letter ruling (PLR). Sometimes, a PLR is the only option; however, at $30,000, this is not a viable option for many taxpayers. Certain taxpayers, however, may be eligible to submit a PLR for as little as $2,800.

Neglecting to mail Form 3115 to the proper IRS office and attach a second copy to your return, not waiting five years when changing an entity classification, and not correctly noting the applicable revenue procedure on the face of a return are examples of foot faults the IRS can use to deny the requested relief. Practitioners must not only understand relief available but also how to apply for relief properly and avoid missteps.

Listen as our panel of experts discusses using statutory and regulatory relief available under Section 9100 regulations, preparing Form 3115 for method changes, applying for a PLR, as well as when it is advisable to disclose an uncertain tax position in a return.

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Outline

  1. Missed elections: an overview
  2. Section 9100 relief
    1. Regulatory
    2. Statutory
  3. Form 3115 relief
  4. Rescissions
  5. Other relief
  6. Private letter rulings
  7. Uncertain tax positions
  8. CARES Act changes

Benefits

The panel will review these and other critical issues:

  • What automatic relief is available by filing Form 3115?
  • When does the fear of potential penalties outweigh the fear of filing Forms 8275 or 8275-R?
  • How to make a late Section 754 election
  • What relief is available for late S-corporation elections?

Faculty

Fuller, Pamela
Pamela A. Fuller, JD, LLM

Of Counsel
Tully Rinckey

Ms. Fuller’s practice has a triple focus: tax planning, tax controversies, and tax compliance. She advises a wide...  |  Read More

Lovett, Brian
Brian T. Lovett, CPA, JD

Partner
Withum Smith & Brown

Mr. Lovett has extensive experience serving the tax needs of both public companies and closely-held businesses,...  |  Read More

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