What is a Late C Corporation election?
A Late C Corporation election is an IRS relief procedure that allows eligible businesses to retroactively elect C Corporations tax classification even after missing the standard election deadline. This process operates under Revenue Procedure 2009-41, which provides relief for taxpayers who can demonstrate reasonable cause for their failure to make timely entity classification elections. Eligible businesses must satisfy specific criteria, including filing consistent tax returns, showing reasonable cause, and submitting the request within three years and 75 days of the intended effective date. The election uses Form 8832 and creates significant tax planning opportunities through corporate tax rate advantages, enhanced deduction capabilities, and strategic income timing benefits. Late C Corporation elections enable powerful tax arbitrage opportunities for qualifying businesses.
.png){kind=small}