Treasury Regulations, Subchapter F, Sec. 301.7701-3T
From TaxAlmanac
Sec. 301.7701-3T Classification of certain business entities (temporary)
(a) through (c)(1)(v)(B) [Reserved] For further guidance, see §301.7701–3(a) through (c)(1)(v)(B).
(c)(1)(v) (C) S corporations. An eligible entity that timely elects to be an S corporation under section 1362(a)(1) is treated as having made an election under this section to be classified as an association, provided that (as of the effective date of the election under section 1362(a)(1)) the entity meets all other requirements to qualify as a small business corporation under section 1361(b). Subject to §301.7701–3(c)(1)(iv), the deemed election to be classified as an association will apply as of the effective date of the S corporation election and will remain in effect until the entity makes a valid election, under §301.7701–3(c)(1)(i), to be classified as other than an association.
(c)(2) through (h)(2)(iii) [Reserved] For further guidance, see §301.7701–3(c)(2) through (h)(2)(iii).
(3) Deemed elections for S corporations. Paragraph (c)(1)(v)(C) of this section applies to timely S corporation elections under section 1362(a) filed on or after July 20, 2004. Eligible entities that filed timely S elections before July 20, 2004, may also rely on the provisions of the regulation.
[T.D. 9139, 69 FR 43318, July 20, 2004]
