Note:

A single-member LLC cannot elect to be classified as a partnership.

A limited liability company uses Form 8832, Entity Classification Election, to elect their entity classification.

When the Form 8832 election is processed, transaction code 076 appears in the entity module if the election was accepted. Transaction code 078 appears if the election was rejected.

An LLC that fails to file Form 8832 electing its classification will DEFAULT:

An LLC with at least two members, that does not file a Form 8832 to classify itself as a corporation, is classified by default as a partnership for federal tax purposes.

A single-member LLC that fails to make an election is disregarded as an entity separate from its owner.

In the year 2001 and prior, an LLC electing to be classified for federal income tax purposes as disregarded as an entity separate from its owner filed Form 966, Corporate Dissolution or Liquidation.

When an applicant submits a Form 966 (filed in 2001 or prior) and claims that the LLC is classified for federal income tax purposes as a disregarded entity (DRE), but a TC 076 cannot be located, you must:

Process the applicant as an LLC-DRE using the procedures below, provided the required POP was submitted.

Forward a copy of the Form 966 with the POP to Entity requesting input of TC 076, using Form 4442.

When certifying an LLC that is classified as a partnership entity for federal tax purposes, click the LLC box. See IRM 21.8.4.4.12.8, Partnership Applicants, for procedures.

When certifying an LLC that has elected to be classified as a corporate entity for federal tax purposes, see IRM 21.8.4.4.12.1, Corporate Applicants, for procedures.

Form 8802 of a single-member LLC requires:

Applicant's Information (the name of single-member LLC)

Applicant's TIN, EIN of the single-member LLC

Permanent Residence Address (when applicable)

Mailing Address (if other than applicant's address)

TIA (when applicable)

Entity information single-member LLC owner (must be entered in applicant Entity field)

Primary TIN field (a single-member LLC applicant's owner's EIN must be entered in this field)

Entity

Tax Form filed

Requested certification year (the year the applicant wants printed on the Form 6166)

Tax Period

Certification Type

Country and number of certifications requested

Penalties of Perjury statements (when certification is for a disregarded single-member LLC that is newly formed or certification is for the current year)

A signature and date

Any other information required by the procedures for the certification for the single member LLC owner's type entity

Single-member owners will be one of the following type entities:

Individual (1040 LLC) - in addition to the requirements above, see IRM 21.8.4.4.12.5, Individual Applicants, for more information.

Corporation (1120 LLC) - in addition to the requirements above, see IRM 21.8.4.4.12.1, Corporate Applicants, for more information.

S Corporation (1120-S LLC) - in addition to the requirements above, see IRM 21.8.4.4.12.1.3, S Corporation Applicants, for more information.

Partnership (1065 LLC) - in addition to the requirements above, see IRM 21.8.4.4.12.8, Partnership Applicants, for more information.

Trust (1041 LLC-T) - in addition to the requirements above, see IRM 21.8.4.4.12.9, Trust Applicants, for more information.

Estate (1041 LLC-E) - in addition to the requirements above, see IRM 21.8.4.4.12.3, Estate Applicants, for more information.

When required, the Single-Member LLC Penalties of Perjury Statement paragraph must state:

"Under penalties of perjury, I declare that: (i) [insert name, TIN, of the owner of the disregarded entity], is the single owner of [insert trading name of the disregarded entity], a [insert Limited Liability Company, Limited Partnership, Limited Liability Partnership, or other, as appropriate] that is classified as a disregarded entity for United States income tax purposes; (ii) the single owner is a [insert federal tax classification of the owner, i.e., corporation, partnership, individual, etc.]; (iii) as such, [insert name of the single owner of the disregarded entity] is required to take into account all the income, gain, losses, deductions, and credits against tax of the disregarded entity on its/his/her U.S. federal income tax or information return; and (iv) the single owner of the disregarded entity is a U.S. resident and will continue to be throughout the current tax year. I further declare under penalties of perjury that I am an officer, manager, or member of the disregarded entity with the authority to legally bind the entity and, to the best of my knowledge and belief, the statements herein made are true, correct, and complete."

A Single Member LLC classified as a disregarded entity of a foreign person is not eligible for U.S. Residency Certification.

A single member LLC organized outside of the U.S., but the owner is a U.S. Corporation, and the corporation has identified the LLC in the Schedule N attached to its Form 1120, can be issued certification for tax years ending prior to January 1, 2004.

For tax years beginning on or after January 1, 2004, an applicant that is a disregarded entity organized outside of the United States whose owner is a U.S. person or entity, must attach a copy of the Form 8858, Information Return of U.S. Persons With Respect to Foreign Disregarded Entities (FDEs) and Foreign Branches (FBs), filed with the owner's return.

Applicants whose owners fail to identify the foreign disregarded entity on a Form 8858 must not be certified.

If the certification application is for a tax year prior to January 1, 2004, the applicant must provide proof, such as a Schedule N, that the foreign disregarded entity is owned by a U.S. resident.

Applicants that were rejected but believe they are entitled to U.S. Residency Certification, must submit a copy of their completed Form 8802, and attach a detailed explanation or regulation or Code section, including documentary evidence, as to why they believe they are entitled to certification. Once you receive the application:

Place the case in status 702.

Note in the Remarks Section "forwarded to Planning and Analysis."

Forward to Planning and Analysis.

If you have all the LLC applicant's required information, in addition to inputting the other required fields, you must:

Enter the TIN of the LLC owner in the primary TIN field.

Enter the TIN of the LLC in the secondary TIN field.

Enter the form that the single member's owner files in the Form field.

Enter the LLC owner's name in the applicant Entity field.

Enter the LLC owner's Name Control in the Name Control field.

Enter the LLC's name in the Certified Name Line field.

Check the penalties of perjury box indicating you have verified receipt of the LLC Penalties of Perjury Statement (when applicable).

If

Then

1. The LLC application generates a Status Code 103

Verify that the application information was entered according to (13) above.

2. The LLC application information was incorrectly entered

Correct, if needed and continue processing.

3. The information was correctly entered

Check CC INOLE and/or ENMOD for discrepancy, correct when able or contact taxpayer for more information.

4. All the required information is received, entered and validated (status code 099)

Issue certification.

5. The LLC owner failed to file the required return

Issue letter 3426 or letter 3444.

6. The response to your correspondence indicates that the LLC is newly established, created using Form 966, or established by default

Verify that the required POP statement has been submitted and a TC 076 is posted, or Form 8832 was approved.

7. The required POP statement has been submitted and a TC 076 is posted, or the approved Form 8832 was submitted and all other LLC-DRE certification requirements have been met

Issue certification. Check the “not required” file field, then check the U.S. DRE LLC box which will ensure the correct paragraph is used for a DRE LLC.

8. The applicant fails to respond to letter 3426 or 3444 with the required information within 30 days (60 days overseas)

Close the application as a No Reply, using status code 199.

Any single member LLC applicant that has had its application declined, but believes it is entitled to U.S. Residency Certification, must submit a copy of its completed Form 8802, and attach a detailed explanation, regulation or Code section, including documentary evidence, as to why it believes it is entitled to certification. Once the application is received:

Place the case in status 702.

Notate in the Remarks section "forwarding the application to Planning and Analysis."

Forward the application to Planning and Analysis.