SECTION 10. PAPERWORK

REDUCTION ACT

The collection of information contained in this revenue procedure has been reviewed and approved by the Office of Management and Budget (OMB) in accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)) under control number 1545–1548.

The collection of information in this revenue procedure is in Section 4.03 and Sections 5 through 7. The information will help the IRS to determine whether a taxpayer has met the requirements of Sections 4 through 7 of this revenue procedure and whether a taxpayer has reasonable cause for failing to make a timely election. The collection of information is required to make a late election pursuant to this revenue procedure. This information will be used to determine whether the eligibility requirements for obtaining relief have been met. The collection of information is required to obtain a benefit. The likely respondents are business or other for-profit institutions.

The estimated total annual reporting burden is 50,000 hours.

has not passed for that year’s federal tax or information return.

.04 Relief where all returns filed as an S corporation . The requirement for relief imposed by Section 4.02(2) (providing that relief must be sought within three years and 75 days of the Effective Date) is not applicable in the case of corporations if the following conditions are met:

(1) The corporation is not seeking late corporate classification election relief concurrently with a late S corporation election under this revenue procedure;

(2) The corporation fails to qualify as an S corporation solely because the Form 2553 was not timely filed; (3) The corporation and all of its shareholders reported their income consistent with S corporation status for the year the S corporation election should have been made, and for every subsequent taxable year (if any);

(4) At least 6 months have elapsed since the date on which the corporation filed its tax return for the first year the corporation intended to be an S corporation; and

(5) Neither the corporation nor any of its shareholders was notified by the IRS of any problem regarding the S corporation status within 6 months of the date on which the Form 1120S for the first year was timely filed, and

(6) The completed Election Form includes the statement(s) described in Section 5.02 of this revenue procedure.