SECTION 4. RELIEF FOR LATE

INITIAL CLASSIFICATION ELECTIONS

.01 Eligibility for Relief. An entity is eligible for relief under section 4.03 of this revenue procedure for a late initial classification election if the following requirements are met: (1) the entity, newly formed under local law (whether or not the entity is relevant within the meaning of § 301.7701–3(d)), failed to obtain its desired classification as of the date of its formation solely because Form 8832 was not filed timely under § 301.7701–3(c)(1); (2) the due date of the federal tax return for the entity’s desired classification (excluding extensions) for the taxable year beginning with the date of the entity’s formation has not passed (regardless of whether a federal tax return is actually required to be filed); and (3) the entity has reasonable cause for its failure to timely make the initial entity classification election.

.02 Procedural Requirements for Re- questing Relief. On or before the due date of the first federal tax return (excluding extensions) of the entity’s desired classification, the newly formed entity must file with the applicable service center (determined in accordance with the instructions to Form 8832) a completed Form 8832, signed in accordance with § 301.7701–3(c)(2). The Form 8832 must state at the top of the document “FILED PURSUANT TO REV. PROC. 2002–59.” Attached to the Form 8832 must be a statement explaining the reason for the failure to file a timely initial classification election.

.03 Relief for Late Entity Classifica- tion Elections. Upon receipt of a completed application requesting relief under this revenue procedure, the Service will determine whether the requirements for granting additional time have been satisfied and will notify the entity of the result of its determination.