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Form 8869 Instruktioner

Vejledning til Form 8869, Kvalificeret Subchapter S Subsidiary valg

Rev. december 2020

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  • Form 8869 - Kvalificeret Subchapter S Subsidiary valg
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Department of the Treasury  
Internal Revenue Service  
Instructions for Form 8869  
Qualified Subchapter S Subsidiary Election  
(Rev. December 2020)  
Section references are to the Internal Revenue Code  
unless otherwise noted.  
after the date it is filed. An election filed more than 2  
months and 15 days after the requested effective date  
generally is late and will be made effective 2 months and  
15 days before the date it is filed. However, an election  
filed more than 2 months and 15 days after the requested  
effective date will be accepted as timely filed if the  
corporation can show that the failure to file on time was  
due to reasonable cause.  
Future Developments  
For the latest information about developments related to  
Form 8869 and its instructions, such as legislation  
enacted after they were published, go to IRS.gov/  
To request relief for a late election, the corporation  
must generally request a private letter ruling and pay a  
user fee in accordance with Rev. Proc. 2021-1, 2021-1  
I.R.B. 1 (or its successor). However, relief from the ruling  
and user fee requirements is available. See Rev. Proc.  
2013-30, 2013-36 I.R.B. 173, for details.  
General Instructions  
Purpose of Form  
A parent S corporation uses Form 8869 to elect to treat  
one or more of its eligible subsidiaries as a qualified  
subchapter S subsidiary (QSub).  
Even if a QSub election is made 12 months before  
The QSub election results in a deemed liquidation of  
the subsidiary into the parent. Following the deemed  
liquidation, for federal tax purposes, the QSub is not  
treated as a separate corporation and all of the  
or 2 months and 15 days after the effective date, a  
QSub election will be ineffective if made for a  
corporation that was formerly eligible, but is ineligible at  
the time the election is made. See Regulations section  
subsidiary’s assets, liabilities, and items of income,  
deduction, and credit are treated as those of the parent.  
Where To File  
Because the liquidation is a deemed liquidation,  
do not file Form 966, Corporate Dissolution or  
File Form 8869 with the service center where the  
subsidiary filed its most recent return. However, if the  
parent S corporation forms a subsidiary, and makes a  
valid election effective upon formation, submit Form 8869  
to the service center where the parent S corporation filed  
its most recent return.  
Liquidation. However, a final return for the  
subsidiary may have to be filed if it was a separate  
corporation prior to the date of the deemed liquidation. No  
final return is required if this election is being made  
pursuant to a reorganization under section 368(a)(1)(F)  
and Rev. Rul. 2008-18. See Rev. Rul. 2008-18, 2008-13  
I.R.B. 674, available at IRS.gov/irb/  
Acceptance of Election  
The service center will notify the corporation if the QSub  
election is (a) accepted, and when it will take effect, or (b)  
not accepted. The corporation may also receive an  
administrative letter confirming the receipt of Form 8869.  
2008-13_IRB#RR-2008-18, for details.  
Eligible Subsidiary  
An eligible subsidiary is a domestic corporation whose  
stock is owned 100% by an S corporation and is not one  
of the following ineligible corporations.  
The corporation should generally receive a  
determination on its election within 60 days after it has  
filed Form 8869. However, if the corporation is not notified  
of acceptance or nonacceptance of its election within 2  
months of the date of filing (date mailed), take follow-up  
action by calling 800-829-4933.  
A bank or thrift institution that uses the reserve method  
of accounting for bad debts under section 585.  
An insurance company subject to tax under subchapter  
L of the Internal Revenue Code.  
A domestic international sales corporation (DISC) or  
If the IRS questions whether Form 8869 was filed, an  
acceptable proof of filing is (a) a certified or registered  
mail receipt (timely postmarked) from the U.S. Postal  
Service, or its equivalent from a designated private  
delivery service (go to IRS.gov/PDS for the current list of  
designated services); (b) a Form 8869 with an accepted  
stamp; (c) a Form 8869 with a stamped IRS received  
date; or (d) an IRS letter stating that Form 8869 has been  
former DISC.  
See sections 1361(b)(3), 1362(f), and their related  
regulations for additional information.  
When To Make the Election  
The parent S corporation can make the QSub election for  
an eligible corporation at any time during the tax year.  
However, the requested effective date of the QSub  
election generally cannot be more than:  
12 months after the date the election is filed, or  
End of Election  
2 months and 15 days before the date the election is  
Once the QSub election is made, it remains in effect until  
it is terminated. If the election is terminated, IRS consent  
generally is required for another QSub election with  
regard to the former QSub (or its successor) for any tax  
An election filed more than 12 months before the  
requested effective date will be made effective 12 months  
Dec 02, 2020  
Cat. No. 74389E  
year before the fifth tax year after the first tax year in which  
the termination took effect. See Regulations section  
1.1361-5 for details.  
Failure to enter the subsidiary’s EIN may result in  
the service center sending a notice of delinquent  
filing to the QSub.  
If the QSub wants its own EIN, but does not have one,  
apply for an EIN in the following ways.  
Specific Instructions  
Online—Go to IRS.gov/EIN. The EIN is issued  
immediately once the application information is validated.  
Include the suite, room, or other unit number after the  
street address. If the post office does not deliver to the  
street address and the corporation has a P.O. box, show  
the box number instead.  
By faxing or mailing Form SS-4, Application for  
Employer Identification Number.  
If the QSub has not received its EIN by the time the  
election is made, write “Applied For” on line 8. See the  
Instructions for Form SS-4 for details.  
If the subsidiary has the same address as the parent S  
corporation, enter “Same as parent” in Part II.  
Effective Date of Election  
Additional Subsidiaries  
Form 8869 must generally be filed no earlier than  
If the QSub election is being made for more than one  
subsidiary, attach a separate sheet for each subsidiary.  
Use the same size, format, and line numbers as in Part II  
of the printed form. Put the parent corporation’s name and  
employer identification number at the top of each sheet.  
12 months before or no later than 2 months and  
15 days after the effective date requested on  
line 11. For details and exceptions, see When To Make  
the Election, earlier.  
A parent S corporation that forms a new subsidiary and  
wants the election effective upon formation should enter  
the formation date. A parent corporation that wants to  
make the election for an existing subsidiary should enter  
the requested effective date. For details about the effect  
of a QSub election, see Regulations section 1.1361-4.  
If the QSub elections are being made effective on the  
same date for a tiered group of subsidiaries, the parent S  
corporation may specify the order of the deemed  
liquidations on an attachment. If no order is specified, the  
deemed liquidations will be treated as occurring first for  
the lowest tier subsidiary and proceeding successively  
upward. See Regulations section 1.1361-4(b)(2).  
A QSub election for a tiered group of subsidiaries  
Form 8869 must be signed and dated by the president,  
vice president, treasurer, assistant treasurer, chief  
accounting officer, or any other corporate officer (such as  
tax officer) authorized to sign the parent’s S corporation  
may, in certain circumstances, result in the  
recognition of income. A primary example is  
excess loss accounts (see Regulations section  
Paperwork Reduction Act Notice. We ask for the  
information on this form to carry out the Internal Revenue  
laws of the United States. You are required to give us the  
information. We need it to ensure that you are complying  
with these laws.  
Line 14. This box should be checked “Yes” if this election  
is being made pursuant to a reorganization under section  
368(a)(1)(F) and Rev. Rul. 2008-18. This occurs when a  
newly formed parent holding company holds the stock of  
the subsidiary that was an S corporation immediately  
before the transaction and the transaction otherwise  
qualifies as a reorganization under section 368(a)(1)(F).  
No Form 2553, Election by a Small Business Corporation,  
is required to be filed by the parent. See Rev. Rul.  
2008-18 for details.  
You are not required to provide the information  
requested on a form that is subject to the Paperwork  
Reduction Act unless the form displays a valid OMB  
control number. Books or records relating to a form or its  
instructions must be retained as long as their contents  
may become material in the administration of any Internal  
Revenue law. Generally, tax returns and return  
Employer Identification Number (EIN)  
information are confidential, as required by section 6103.  
A QSub may not be required to have an EIN for federal tax  
purposes. If the QSub does not have an EIN, enter “N/A”  
on line 8.  
The time needed to complete and file this form will vary  
depending on individual circumstances. The estimated  
burden for business taxpayers filing this form is approved  
under OMB control number 1545-0123 and is included in  
the estimates shown in the instructions for their business  
income tax return.  
However, if the QSub has previously filed a return,  
separately or as part of a consolidated return, and used  
an EIN, enter that EIN on line 8 and (if applicable) the EIN  
of its common parent on line 16b. If this election is being  
made pursuant to a reorganization under section 368(a)  
(1)(F) and Rev. Rul. 2008-18, the old S corporation for  
which this QSub election is being made will retain its EIN.  
The newly formed parent must get a new EIN. See Rev.  
Rul. 2008-18 for details.  
If you have comments concerning the accuracy of  
these time estimates or suggestions for making this form  
simpler, we would be happy to hear from you. You can  
send us comments from IRS.gov/FormComments. Or you  
can write to the Internal Revenue Service, Tax Forms and  
Publications Division, 1111 Constitution Ave. NW,  
IR-6526, Washington, DC 20224. Don't send the form to  
this office.  
Instructions for Form 8869 (December 2020)