SECTION 3. SCOPE

.01 In General . This revenue procedure supersedes Rev. Proc. 98–55, 1998–2 C.B. 643, and provides relief for a late Election Under Subchapter S (as defined in section 4.01(1) of this revenue procedure.)

Section 4.01 of this revenue procedure provides a glossary of certain terms as they are used in this revenue procedure. Section 4.02 of this revenue procedure provides the situations in which an entity is eligible for relief. Section 4.03 of this revenue procedure provides the procedural requirements for relief.

This revenue procedure provides procedures in lieu of the letter ruling process ordinarily used to obtain relief for a late Election Under Subchapter S filed pursuant to § 1362(b)(5), § 1362(f), or § 301.9100–1 and § 301.9100–3. Accordingly, user fees do not apply to corrective actions under this revenue procedure.

.02 Entities That Fail to Qualify for Re- lief Under This Revenue Procedure .

(1) Letter Rulings . A corporation or trust that does not meet the requirements for relief or is denied relief under this revenue procedure may request inadvertent termi

nation, inadvertent invalid election, or late election relief (as appropriate) by requesting a letter ruling. The Service will not ordinarily issue a letter ruling if the period of limitations on assessment under § 6501(a) has lapsed for any taxable year for which an election should have been made or any taxable year that would have been affected by the election had it been timely made. The procedural requirements for requesting a letter ruling are described in Rev. Proc. 2003–1, 2003–1 I.R.B. 1 (or its successor).

(2) Rev. Proc. 97–48 . Certain corporations may be eligible for automatic late S corporation election relief pursuant to Rev. Proc. 97–48, 1997–2 C.B. 521. Rev. Proc. 97–48 provides special procedures to obtain automatic relief for certain late S corporation elections. Generally, relief is available in situations in which a corporation intends to be an S corporation, the corporation and its shareholders reported their income consistent with S corporation status for the taxable year the S corporation election should have been made and for every subsequent year, and the corporation did not receive notification from the Service regarding any problem with the S corporation status within 6 months of the date on which the Form 1120S for the first year was timely filed. Rev. Proc. 97–48 does not provide relief for late ESBT, QSST or QSub elections.