Fillable Form IRS 8832

Since there are differences in the way business entities are taxed, it is important that your business is classified according to its actual type of entity, so that you could get the most out of your income from your business.

This information shows only the basic differences. Kindly read through the form for more information. For an in-depth explanation, please consult a professional for aprropriate advice.

What entities are eligible to file Form 8832?

The entities that are eligible to elect their tax classification are as follows:

• A domestic entity electing to be classified as an association taxable as a corporation
• A domestic entity electing to change its current classification (even if it is currently classified under the default rule).
• A foreign entity that has more than one owner, all owners having limited liability, electing to be classified as a partnership
• A foreign entity that has at least one owner that does not have limited liability, electing to be classified as an association taxable as a corporation
• A foreign entity with a single owner having limited liability, electing to be an entity disregarded as an entity separate from its owner
• A foreign entity electing to change its current classification (even if it is currently classified under the default rule)

You are not required to file Form 8832 if you are any of the following:

• Sole proprietor. If you’re a sole proprietor, there is no need for you to fill out Form 8832. If you want to change your classification, you would have to file to become an LLC first.
• An LLC who wants to be taxed as an S-corp. In this instance, you would have to file Form 2553 or the Election by a Small Business Corporation Form.
• A corporation that wants to be taxed as an LLC. You would have to consult the secretary of state for this matter.

How to fill out Form 8832?

The form has seven pages. Pages 1 to 3 contain the actual form which you need to answer. Pages 4 to 7 contains information about Form 8832 and instructions on how to fill out the sections in the form. The instructions that will be given in this article are simplified. Kindly read pages 4 to 7 of the form for clarifications on the instructions for each item.

Entity Information
Type or print the following information on the space provided

• Name of eligible entity making election
• Employer Identification Number
• Complete address

Below the address part, you are presented with three choices pertaining to the purpose of your application. Check the box that is applicable to you.

• Address change
• Late classification relief sought under Revenue Procedure 2009-41
• Relief for a late change of entity classification election sought under Revenue Procedure 2010-32

Part I: Election Information
Item 1. Type of Election

• Box a. Check here if you are filing for an initial classification by a newly-formed entity (If you check this, skip lines 2a and 2b and proceed to line 3).
• Box b. Check here if you are filing for a change in the current classification.

Item 2A. You are asked if you have previously filed an entity election that has an effectivedate within the last 60 months.Check Yes if applicable, and proceed to line 2B.If this is not applicable to you, check No and proceed to item 3.

Item 2B. You are asked if you are a newly-formed entity.Check Yes if the last time you filed for a classification election was for the classification election.

Item 3. You are asked if your entity has more than one owner. Check Yes if applicable.

Item 4. If your entity has only one owner, you are to provide the owner’s name andidentifying number (social security number, tax identification number, or employer’s identification number).

Item 5. If your entity is owned by one or more affiliated corporations, you are to provide thename of the parent corporation and its employer identification number on the spaces provided.

Item 6. You are asked about your current entity classification and what you are planning to select your entity. Check the box that applies.

Item 7. You are asked if your entity is created or organized in a foreign jurisdiction. If so, provide the country where you created or organized your entity in the space provided. If this does not apply to you, leave it blank.

Item 8. Provide here the date you want the election to be effective.

Item 9. Provide here the name and title of a contact person whom the IRS may call for more information about your application.

Item 10. Provide here the telephone number of the contact person you have indicated above.

Consent Statement(s) and Signature(s)
The owner/s of the business entity must consent to the application for an election of entity classification.
Provide your signature on the space provided, as well as the date you signed the form and your title in the organization or business entity. If there are multiple owners of the entity, they must all provide their signatures in this form.

Part II. Late Election Relief
If you are applying for a late election relief, you are required to answer this part of the form. If this is not applicable to you, you may skip this part and leave this unanswered.

Item 11. You are asked to provide an explanation as to why your entity classification election
was not filed on time.
Below Item 11, provide the signature of the business entity’s authorized representative and the persons affected by this classification election to certify that the above explanation is factual. The signatories should be the same people who signed the consent section above.

Where do I submit Form 8832?

You can submit your accomplished Form 8832 by mail. The mailing addresses differ for each state. Visit the IRS website to see where you have to submit your Form 8832.

Note: Remember to keep a copy of your accomplished Form 8832 and attach it to your individual income tax form for the tax year.

Is there a deadline for filing Form 8832?

There is no deadline for filing Form 8832, meaning you can file it anytime. However, you would have to take into consideration the date when you elect a new tax classification for your business.

• Your new tax classification cannot take effect more than 75 days before the date you filed Form 8832.
• Your new tax classification cannot take effect later than 12 months after the date the election is filed.

Final Note: This article is not intended as legal or tax advice. Kindly consult a professional for further clarification and appropriate advice.