SECTION 4. AUTOMATIC RELIEF

FOR LATE SHAREHOLDER CONSENTS UNDER THIS REVENUE PROCEDURE

.01 Eligibility for Automatic Relief . Automatic relief is available if all of the following conditions are met:

(1) The S corporation election is invalid solely because the Form 2553, Election by a Small Business Corporation, failed to include the signature of a community property spouse who was a shareholder solely pursuant to state community property law; and

(2) Both spouses have reported all items of income, gain, loss, deduction or credit consistent with the S corporation election on all affected federal income tax returns.

.02 Procedural Requirements for Auto- matic Relief . The corporation must file with the service center with which the corporation files its income tax return a dated statement that includes the following information:

(1) A representation that reads, “This statement is being furnished pursuant to Rev. Proc. 2004–35 for a late filing of shareholder consents for community property spouses of S corporation shareholders in community property states.”

(2) The name of the corporation, its employer identification number, its address, date of incorporation, state of incorporation, and the intended effective date of its initially filed Form 2553;

(3) Each spouse’s name, social security number or employee identification number, tax year end and the total number of shares owned at the date of the intended election;

(4) A statement that the community property spouses reported all items of

June 7, 2004 1029 2004-23 I.R.B.

information are confidential, as required by 26 U.S.C. 6103.