Bulletin No. 1997–3 January 21, 1997

REG–209762–95, page 12. Proposed regulations under section 1245 of the Code relate to the allocation of depreciation recapture among partners in a partnership. A public hearing will be held on March 27, 1997.

Notice 97–12, page 11. Electing Small Business Trust (ESBT) election. This notice provides the time and manner for the trustee to elect to be treated as an ESBT. This notice also provides that only the trustee need consent to the S corporation election on Form 2553.

Announcement 97–4, page 14. Invalid and late S corporation elections. In order to obtain relief for invalid and late S corporation elections, taxpayers must generally request a private letter ruling. However, if an S corporation election is untimely made for the 1996 taxable year, there is a special transition rule for seeking late election relief.

ADMINISTRATIVE

Announcement 97–5, page 15. New Form 8832, Entity Classification Election, is now available.