120-day extension for 10 foreign entities to file late check-the-box classification elections

Plain-English summary

Ten foreign entities wanted to pick how they are classified for US federal tax
purposes under the "check-the-box" rules of Treas. Reg. § 301.7701-3: eight to be
disregarded as separate from their owners (treated as if they don't exist for tax),
and two to be treated as partnerships. That choice is made by filing Form 8832, but
all ten missed the filing deadline. Under Treas. Reg. §§ 301.9100-1 and 301.9100-3,
the IRS can grant a reasonable extension to make a late regulatory election when the
taxpayer acted reasonably and in good faith and relief will not prejudice the
government. Finding those conditions met, the IRS gave each entity 120 days to file
its Form 8832, on the condition that the entities and their owners also file all
consistent US tax and information returns (such as Forms 5471, 8865, and 8858)
within that window. The IRS added the usual cautions: granting the extension does
not decide whether an entity is actually eligible to make the election, it takes no
position on late-filing penalties, and the elections are ignored for purposes of the
§ 965 transition-tax calculations if they would otherwise change a US shareholder's
§ 965 amounts.

Ruling snapshot

• Question: Should foreign entities that missed the Form 8832 deadline get an extension to make late entity-classification elections?
• Outcome: Approved (each entity granted 120 days to file Form 8832)
• Key authorities: Treas. Reg. § 301.7701-3; Treas. Reg. §§ 301.9100-1, 301.9100-3; Treas. Reg. § 1.965-4(c)(2)

Full text (IRS public release)

Internal Revenue Service                                     Department of the Treasury
                                                             Washington, DC 20224

Number: 202629010                                            Third Party Communication: None
Release Date: 7/17/2026                                      Date of Communication: Not Applicable
Index Number: 7701.00-00, 9100.31-00
                                                             Person To Contact:
--------------------                                         -------------------------, ID No. -----------------
-----------------------------------------                    -----------------------------------------------------
-------------------------------------------------            Telephone Number:
-------------------                                          --------------------
------------                                                 Refer Reply To:
-------------------------------------------------------      CC:PT&E:B01

                                                             PLR-117133-25
                                                             PLR-117134-25
                                                             PLR-117136-25
                                                             PLR-117137-25
                                                             PLR-117138-25
                                                             PLR-117139-25
                                                             PLR-117140-25
                                                             PLR-117141-25
                                                             PLR-117142-25
                                                             PLR-117143-25

                                                             Date:
                                                             April 20, 2026



                                                  LEGEND

Entity 1       = ----------------------------------------------------------------------
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Entity 2       = ----------------------------------------------------------------------
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Entity 3       = ----------------------------------------------------------------------
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Entity 4       = ----------------------------------------------------------------------
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Entity 5       = ----------------------------------------------------------------------
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Entity 6       = ----------------------------------------------------------------------
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PLR-117133-25; PLR-117134-25; PLR-117136-25; PLR-117137-25; PLR-117138-25;
PLR-117139-25; PLR-117140-25; PLR-117141-25; PLR-117142-25; and PLR-117143-
25
                                                        2
 Entity 7      = ----------------------------------------------------------------------
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 Entity 8      = ----------------------------------------------------------------------
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 Entity 9      = ----------------------------------------------------------------------
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 Entity 10     = ----------------------------------------------------------------------
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 Country 1 = ------------

 Country 2 = ------------

 Country 3 = ---------------------------

 Date 1        = ------------------------

 Date 2        = ------------------

 Date 3        = ------------------

 Date 4        = --------------------------

 Date 5        = -------------------------
 Date 6        = ------------------

 Date 7        = ------------------

 Date 8        = ------------------


Dear -------------------------:

This responds to a letter dated September 22, 2025, and subsequent correspondence,
submitted on behalf of Entity 1, Entity 2, Entity 3, Entity 4, Entity 5, Entity 6, Entity 7,
Entity 8, Entity 9, and Entity 10, (collectively, “the Entities”), by the authorized
representatives of the Entities, requesting extensions of time under § 301.9100-3 of the
Procedure and Administration Regulations to file entity classification elections under
§ 301.7701-3.
PLR-117133-25; PLR-117134-25; PLR-117136-25; PLR-117137-25; PLR-117138-25;
PLR-117139-25; PLR-117140-25; PLR-117141-25; PLR-117142-25; and PLR-117143-
25
                                                3
                                           FACTS

According to the information submitted, Entity 1, Entity 2, and Entity 3 were formed
under the laws of Country 1 on Date 1, Date 2, and Date 3, respectively. Entity 4, Entity
5, and Entity 8 were formed under the laws of Country 2 on Date 4. Entity 6, Entity 7,
Entity 9, and Entity 10 were formed under the laws of Country 3 on Date 5, Date 6, Date
7, and Date 8, respectively. Entity 1, Entity 2, Entity 3, Entity 4, Entity 6, Entity 8, Entity
9, and Entity 10 represent that they are foreign entities eligible to be treated as
disregarded as entities separate from their owners for federal tax purposes effective
Date 1, Date 2, Date 3, Date 4, Date 5, Date 4, Date 7, and Date 8, respectively. Entity
5 and Entity 7 represent that they are foreign entities eligible to elect to be classified as
partnerships for federal tax purposes effective Date 4 and Date 6, respectively.
However, the Entities failed to timely file Forms 8832, Entity Classification Election,
electing to classify the Entities as partnerships or disregarded entities, as applicable,
effective Date 1, Date 2, Date 3, Date 4, Date 5, Date 6, Date 7, and Date 8.

                                   LAW AND ANALYSIS

Section 301.7701-3(a) provides, in part, that a business entity that is not classified as a
corporation under § 301.7701-2(b)(1), (3), (4), (5), (6), (7), or (8) (an eligible entity) can
elect its classification for federal tax purposes as provided in § 301.7701-3. An eligible
entity with at least two members can elect to be classified as either an association (and
thus a corporation under § 301.7701-2(b)(2)) or a partnership, and an eligible entity with
a single owner can elect to be classified as an association or to be disregarded as an
entity separate from its owner.

Section 301.7701-3(b)(2)(i) provides that, except as provided in § 301.7701-3(b)(3),
unless the entity elects otherwise, a foreign eligible entity is (A) a partnership if it has
two or more members and at least one member does not have limited liability; (B) an
association if all members have limited liability; or (C) disregarded as an entity separate
from its owner if it has a single owner that does not have limited liability.

Section 301.7701-3(b)(2)(ii) provides, in part, that for purposes of § 301.7701-3(b)(2)(i),
a member of a foreign eligible entity has limited liability if the member has no personal
liability for the debts of or claims against the entity by reason of being a member.

Section 301.7701-3(c)(1)(i) provides, in part, that an eligible entity may elect to be
classified other than as provided under § 301.7701-3(b), or to change its classification,
by filing Form 8832 with the service center designated on Form 8832.

Section 301.7701-3(c)(1)(iii) provides that an election made under § 301.7701- 3(c)(1)(i)
will be effective on the date specified by the entity on Form 8832 or on the date filed if
PLR-117133-25; PLR-117134-25; PLR-117136-25; PLR-117137-25; PLR-117138-25;
PLR-117139-25; PLR-117140-25; PLR-117141-25; PLR-117142-25; and PLR-117143-
25
                                              4
no such date is specified on the election form. The effective date specified on Form
8832 cannot be more than 75 days prior to the date on which the election is filed and
cannot be more than 12 months after the date on which the election is filed. If an
election specifies an effective date more than 75 days prior to the date on which the
election is filed, it will be effective 75 days prior to the date it was filed.

Section 301.9100-1(c) provides that the Commissioner may grant a reasonable
extension of time under the rules set forth in §§ 301.9100-2 and 301.9100-3 to make a
regulatory election, or a statutory election (but not more than 6 months except in the
case of a taxpayer who is abroad), under all subtitles of the Internal Revenue Code
(Code), except subtitles E, G, H, and I. Section 301.9100-1(b) provides that the term
“regulatory election” includes an election whose due date is prescribed by a regulation
published in the Federal Register.

Sections 301.9100-1 through 301.9100-3 provide the standards the Commissioner will
use to determine whether to grant an extension of time to make the election. Section
301.9100-2 provides the standards the Commissioner will use to determine whether to
grant an automatic extension of time for making certain elections. Section 301.9100-3
provides the guidelines for granting extensions of time for making elections that do not
meet the requirements of § 301.9100-2.

Section 301.9100-3(a) provides that requests for relief subject to § 301.9100-3 will be
granted when the taxpayer provides evidence (including affidavits described in
§ 301.9100-3(e)) to establish to the satisfaction of the Commissioner that the taxpayer
acted reasonably and in good faith, and the grant of relief will not prejudice the interests
of the Government.

                                      CONCLUSION

Based solely on the facts submitted and the representations made, we conclude that
the requirements of §§ 301.9100-1 and 301.9100-3 have been satisfied. As a result, we
grant Entity 1, Entity 2, Entity 3, Entity 4, Entity 6, Entity 8, Entity 9, and Entity 10
extensions of time of 120 days from the date of this letter to make elections to be
treated as disregarded as entities separate from their owners for federal tax purposes
effective Date 1, Date 2, Date 3, Date 4, Date 5, Date 4, Date 7, and Date 8,
respectively. Furthermore, we grant Entity 5 and Entity 7 extensions of time of 120 days
from the date of this letter to make elections to be treated as partnerships for federal tax
purposes effective Date 4 and Date 6, respectively. Each of the Entities must make the
election by filing a properly executed Form 8832 with the appropriate service center. A
copy of this letter should be attached to each Form 8832.
PLR-117133-25; PLR-117134-25; PLR-117136-25; PLR-117137-25; PLR-117138-25;
PLR-117139-25; PLR-117140-25; PLR-117141-25; PLR-117142-25; and PLR-117143-
25
                                               5
This ruling is contingent on each of the Entities and its owner(s) filing, within 120 days of
the date of this letter, all required federal income tax returns and information returns
(including amended returns) consistent with the requested relief granted in this letter.
These returns may include, but are not limited to, the following forms: (i) Form 5471,
Information Return of U.S. Persons With Respect to Certain Foreign Corporations, (ii)
Form 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships, and
(iii) Form 8858, Information Return of U.S. Persons With Respect to Foreign
Disregarded Entities, such that these forms reflect the consequences of the relief
granted in this letter. A copy of this letter should be attached to any such returns.

If applicable, the elections made by each entity described above are disregarded for
purposes of determining the amounts of all § 965 elements of all United States
shareholders of each entity described above if the elections otherwise would change the
amount of any § 965 element of any such United States shareholder. See § 1.965-
4(c)(2).

Except as specifically set forth above, we express or imply no opinion concerning the
federal tax consequences of the facts described above under any other provision of the
Code and regulations thereunder. In addition, § 301.9100-1(a) provides that the
granting of an extension of time for making an election is not a determination that the
taxpayer is otherwise eligible to make the election.

In addition, we express no opinion concerning the assessment of any interest, additions
to tax, additional amounts, or penalties for failure to file a timely income tax or
information return with respect to any taxable year that may be affected by this ruling.
For example, we express no opinion as to whether a taxpayer is entitled to relief from
any penalty on the basis that the taxpayer had reasonable cause for failure to file timely
any income tax or information returns.

The ruling contained in this letter is based on information and representations submitted
by the taxpayers and accompanied by penalty of perjury statements executed by an
appropriate party. While this office has not verified any of the material submitted in
support of the ruling request, it is subject to verification on examination.

This ruling is directed to the taxpayers requesting it. Section 6110(k)(3) provides that it
may not be used or cited as precedent.

In accordance with a power of attorney on file with this office, we are sending a copy of
this letter ruling to the Entities’ authorized representative.
PLR-117133-25; PLR-117134-25; PLR-117136-25; PLR-117137-25; PLR-117138-25;
PLR-117139-25; PLR-117140-25; PLR-117141-25; PLR-117142-25; and PLR-117143-
25
                                                      6
                                               Sincerely,


                                               Jeffrey A. Van Hove
                                               Acting Associate Chief Counsel
                                               (Passthroughs, Trusts, and Estates)



                                           By: _____________________________
                                               Christiaan T. Cleary
                                               Branch Chief, Branch 3
                                               Office of the Associate Chief Counsel
                                               (Passthroughs, Trusts, and Estates)

Enclosure
      Copy of letter for § 6110 purposes

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