IRS PLR: S Corporation Status Preserved Despite Inadvertent Termination (I.R.C. §1362)

The IRS has published a private letter ruling on I.R.C. §1362 confirming S corporation status continuation despite an inadvertent termination when shares were transferred to trusts without proper electing small business trust (ESBT) elections. This ruling is contingent on the trustees filing elections within 120 days. [PLR 202601001]

This story was produced by Bloomberg Tax Automation, and edited by Bloomberg Tax staff.