SECTION 13. PARTNERSHIP — Internal Revenue Bulletin 2018-50

Statute or Regulation Act Postponed

Secs. 1.442–1(b)(1) and (3) A partnership may obtain approval of the Commissioner to adopt, change or retain and 1.706–1(b)(8) an annual accounting period by filing Form 1128, Application to Adopt, Change,

or Retain a Tax Year, within such time as provided in administrative procedures published by the Commissioner. See Rev. Procs. 2006–46, 2006–2 C.B. 859, and 2002–39, 2002–1 C.B. 1046.

Sec. 1.743–1(k)(2) A transferee that acquires, by sale or exchange, an interest in a partnership with an election under section 754 in effect for the taxable year of the transfer, must notify the partnership, in writing, within 30 days of the sale or exchange. A transferee that acquires, on the death of a partner, an interest in a partnership with an election under section 754 in effect for the taxable year of the transfer, must notify the partnership, in writing, within one year of the death of the deceased partner.
Sec. 1.754–1(c)(1) Generally, a partnership may revoke a section 754 election by filing the revocation no later than 30 days after the close of the partnership taxable year with respect to which the revocation is intended to take effect.
Sec. 1.761–2(b)(3) A partnership may generally elect to be excluded from subchapter K. The election will be effective unless within 90 days after the formation of the organization any member of the organization notifies the Commissioner that the member desires subchapter K to apply to such organization and also advises the Commissioner that he has so notified all other members of the organization. In addition, an application to revoke an election to be excluded from subchapter K must be submitted no later than 30 days after the beginning of the first taxable year to which the revocation is to apply.
Sec. 1.761–2(c) A partnership requesting permission to be excluded from certain provisions of subchapter K must submit the request to the Commissioner no later than 90 days after the beginning of the first taxable year for which partial exclusion is desired.
Sec. 1361(e) In general, the trustee of the electing small business trust (ESBT) must file the ESBT election within the two-month and 16-day period beginning on the day the stock is transferred to the trust. See § 1.1361–1(m)(2)(ii).
Sec. 1.1361–1(j)(6) The current income beneficiary of a qualified subchapter S trust (QSST) must make a QSST election within the 2-month and 16-day period from one of the dates prescribed in § 1.1361–1(j)(6)(iii).
Sec. 1.1361–1(j)(10) The successive income beneficiary of a QSST may affirmatively refuse to consent to the QSST election. The beneficiary must sign the statement and file the statement with the IRS within 15 days and two months after the date on which the successive income beneficiary becomes the income beneficiary.
Sec. 1.1361–3(a)(4) If an S corporation elects to treat an eligible subsidiary as a qualified subchapter S subsidiary (QSUB), the election cannot be effective more than two months and 15 days prior to the date of filing the election.
Sec. 1.1361–3(b)(2) An S corporation may revoke a QSUB election by filing a statement with the service center. The effective date of a revocation of a QSUB election cannot be more than two months and 15 days prior to the filing date of the revocation.

Bulletin No. 2018–50 1011 December 10, 2018

Statute or Regulation Act Postponed

Sec. 1.1362–2(a)(2), (4) If a corporation revokes its subchapter S election after the first 2 1/2 months of its taxable year, the revocation will not be effective until the following taxable year. An S corporation may rescind a revocation of an S election at any time before the revocation becomes effective.
Sec. 1362(b)(1) An election under section 1362(a) to be an S corporation may be made by a small business corporation for any taxable year at any time during the preceding taxable year, or at any time during the taxable year and on or before the 15th day of the third month of the taxable year.
Rev. Proc. 2003–43, 2003–1 This revenue procedure provides a simplified method for taxpayers requesting C.B. 998 relief for late S corporation elections, Qualified Subchapter S Subsidiary (QSUB)
Rev. Proc. 2003–43, 2003–1 This revenue procedure provides a simplified method for taxpayers requesting C.B. 998 relief for late S corporation elections, Qualified Subchapter S Subsidiary (QSUB)

elections, Qualified Subchapter S Trust (QSST) elections, and Electing Small Business Trust (ESBT) elections. Generally, this revenue procedure provides that certain eligible entities may file late elections within 24 months of the due date of the election.

Rev. Proc. 2004–48, 2004–2 This revenue procedure provides a simplified method for taxpayers to request C.B. 172 for a late S corporation election and a late corporate classification election which
Rev. Proc. 2004–48, 2004–2 This revenue procedure provides a simplified method for taxpayers to request relief C.B. 172 for a late S corporation election and a late corporate classification election which

was intended to be effective on the same date that the S corporation election was intended to be effective. This revenue procedure provides that within six months after the due date for the tax return, excluding extensions, for the first year the entity intended to be an S corporation, the corporation must file a properly completed Form 2553, Election by a Small Business Corporation, with the applicable service center.

Sec. 1378(b) and Sec. An S or electing S corporation may obtain the approval of the Commissioner to 1.1378–1(c) adopt, change or retain an annual accounting period by filing Form 1128, Application to Adopt, Change, or Retain a Tax Year, within such time as is provided in administrative procedures published by the Commissioner. See Rev. Procs. 2006–46 and 2002–39.