Form 8832 (Rev. 12-2013) Page 4 General Instructions Domestic default rule. Unless an election is entity classification election sought under made on Form 8832, a domestic eligible entity Revenue Procedure 2010-32, is filed and Section references are to the Internal is: attached to the amended tax returns. See Revenue Code unless otherwise noted. 1. A partnership if it has two or more Rev. Proc. 2010-32, 2010-36 I.R.B. 320 for Future Developments members. details. For the latest information about developments 2. Disregarded as an entity separate from Definitions related to Form 8832 and its instructions, its owner if it has a single owner. such as legislation enacted after they were Association. For purposes of this form, an published, go to www.irs.gov/form8832. A change in the number of members of an association is an eligible entity taxable as a eligible entity classified as an association corporation by election or, for foreign eligible What's New (defined below) does not affect the entity’s entities, under the default rules (see For entities formed on or after July 1, 2013, classification. However, an eligible entity Regulations section 301.7701-3). the Croatian Dionicko Drustvo will always be classified as a partnership will become a Business entity. A business entity is any treated as a corporation. See Notice 2013-44, disregarded entity when the entity’s entity recognized for federal tax purposes 2013-29, I.R.B. 62 for more information. membership is reduced to one member and a that is not properly classified as a trust under disregarded entity will be classified as a Regulations section 301.7701-4 or otherwise Purpose of Form partnership when the entity has more than subject to special treatment under the Code An eligible entity uses Form 8832 to elect one member. regarding the entity’s classification. See how it will be classified for federal tax Foreign default rule. Unless an election is Regulations section 301.7701-2(a). purposes, as a corporation, a partnership, or made on Form 8832, a foreign eligible entity Corporation. For federal tax purposes, a an entity disregarded as separate from its is: corporation is any of the following: owner. An eligible entity is classified for 1. A partnership if it has two or more 1. A business entity organized under a federal tax purposes under the default rules members and at least one member does not federal or state statute, or under a statute of a described below unless it files Form 8832 or have limited liability. Form 2553, Election by a Small Business federally recognized Indian tribe, if the statute Corporation. See Who Must File below. 2. An association taxable as a corporation if describes or refers to the entity as all members have limited liability. The IRS will use the information entered on incorporated or as a corporation, body this form to establish the entity’s filing and 3. Disregarded as an entity separate from corporate, or body politic. reporting requirements for federal tax its owner if it has a single owner that does not 2. An association (as determined under purposes. have limited liability. Regulations section 301.7701-3). Note. An entity must file Form 2553 if making However, if a qualified foreign entity (as 3. A business entity organized under a an election under section 1362(a) to be an S defined in section 3.02 of Rev. Proc. 2010-32) state statute, if the statute describes or refers corporation files a valid election to be classified as a to the entity as a joint-stock company or joint- partnership based on the reasonable stock association. A new eligible entity should not file assumption that it had two or more owners as 4. An insurance company. TIP Form 8832 if it will be using its of the effective date of the election, and the default classification (see Default qualified entity is later determined to have a 5. A state-chartered business entity Rules below). single owner, the IRS will deem the election to conducting banking activities, if any of its be an election to be classified as a deposits are insured under the Federal An eligible entity is a business Eligible entity. disregarded entity provided: Deposit Insurance Act, as amended, 12 U.S. entity that is not included in items 1, or 3 C. 1811 et seq., or a similar federal statute. through 9, under the definition of corporation 1. The qualified entity's owner and provided under Definitions. Eligible entities purported owners file amended returns that 6. A business entity wholly owned by a include limited liability companies (LLCs) and are consistent with the treatment of the entity state or any political subdivision thereof, or a partnerships. as a disregarded entity; business entity wholly owned by a foreign government or any other entity described in Generally, corporations are not eligible 2. The amended returns are filed before the Regulations section 1.892-2T. entities. However, the following types of close of the period of limitations on corporations are treated as eligible entities: assessments under section 6501(a) for the 7. A business entity that is taxable as a relevant tax year; and corporation under a provision of the Code 1. An eligible entity that previously elected 3. The corrected Form 8832, with the box other than section 7701(a)(3). to be an association taxable as a corporation checked entitled: Relief for a late change of by filing Form 8832. An entity that elects to be 8. A foreign business entity listed on page entity classification election sought under classified as a corporation by filing Form 8832 7. See Regulations section 301.7701-2(b)(8) Revenue Procedure 2010-32, is filed and can make another election to change its for any exceptions and inclusions to items on attached to the amended tax return. classification (see the 60-month limitation this list and for any revisions made to this list rule discussed below in the instructions for Also, if the qualified foreign entity (as since these instructions were printed. defined in section 3.02 of Rev. Proc. 2010-32) lines 2a and 2b). 9. An entity created or organized under the files a valid election to be classified as a laws of more than one jurisdiction (business 2. A foreign eligible entity that became an disregarded entity based on the reasonable entities with multiple charters) if the entity is association taxable as a corporation under assumption that it had a single owner as of treated as a corporation with respect to any the foreign default rule described below. the effective date of the election, and the one of the jurisdictions. See Regulations qualified entity is later determined to have two Default Rules section 301.7701-2(b)(9) for examples. or more owners, the IRS will deem the Existing entity default rule. Certain election to be an election to be classified as a Disregarded entity. A disregarded entity is domestic and foreign entities that were in partnership provided: an eligible entity that is treated as an entity existence before January 1, 1997, and have not separate from its single owner for income an established federal tax classification 1. The qualified entity files information returns and the actual owners file original or tax purposes. A “disregarded entity” is treated generally do not need to make an election to as separate from its owner for: continue that classification. If an existing amended returns consistent with the entity decides to change its classification, it treatment of the entity as a partnership; • Employment tax purposes, effective for may do so subject to the 60-month limitation 2. The amended returns are filed before the wages paid on or after January 1, 2009; and rule. See the instructions for lines 2a and 2b. close of the period of limitations on • Excise taxes reported on Forms 720, 730, See Regulations sections 301.7701-3(b)(3) assessments under section 6501(a) for the 2290, 11-C, or 8849, effective for excise taxes and 301.7701-3(h)(2) for more details. relevant tax year; and reported and paid after December 31, 2007. 3. The corrected Form 8832, with the box checked entitled: Relief for a late change of Form 8832 (Rev. 12-2013) Page 5 See the employment tax and excise tax • If an eligible entity classified as a If the entity’s principal Use the following return instructions for more information. partnership elects to be classified as an business, office, or Internal Revenue association, it is deemed that the partnership agency is located in: Service Center Limited liability. A member of a foreign contributes all of its assets and liabilities to address: eligible entity has limited liability if the the association in exchange for stock in the member has no personal liability for any Connecticut, Delaware, association, and immediately thereafter, the debts of or claims against the entity by District of Columbia, partnership liquidates by distributing the Florida, Illinois, Indiana, reason of being a member. This determination stock of the association to its partners. Kentucky, Maine, is based solely on the statute or law under Maryland, Massachusetts, which the entity is organized (and, if relevant, • If an eligible entity classified as an association elects to be classified as a Michigan, New Hampshire, Cincinnati, OH 45999 the entity’s organizational documents). A New Jersey, New York, partnership, it is deemed that the association member has personal liability if the creditors North Carolina, Ohio, of the entity may seek satisfaction of all or distributes all of its assets and liabilities to its Pennsylvania, Rhode any part of the debts or claims against the shareholders in liquidation of the association, Island, South Carolina, entity from the member as such.