IRS Issues Private Letter Ruling Preserving S Corporation Status Despite Failure to File Trust Elections

March 9, 2026, 8:50 PM UTC

The IRS issued a private letter ruling on I.R.C. §1362, confirming that S corporation status will continue despite inadvertent termination when trusts holding corporate shares fail to file the required qualified subchapter S trust (QSST) and electing small business trust (ESBT) elections. [PLR 202610001]

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