What Is 9100 Relief for a Late Tax Election?
Understand the IRS remedy for a late tax election. Learn how taxpayers who acted in good faith can request relief through either a simple or formal process.
The Internal Revenue Service (IRS) provides a remedy for taxpayers who miss a deadline for certain tax elections. This relief, governed by Treasury Regulations section 301.9100, allows an extension of time to make the election. It is a formal procedure for taxpayers who made honest mistakes, treating the late filing as if it were made on time, rather than for those who intentionally delay a decision.
Core Eligibility Requirements for Relief
To be considered for relief, a taxpayer must demonstrate that they acted reasonably and in good faith, with an honest intent to comply with the law. An example of meeting this standard is relying on a tax professional who fails to make the election. Relief is not granted to taxpayers who were informed but chose not to file, or who use hindsight to request relief after circumstances change to make the election more favorable.
Another requirement is that granting the extension must not prejudice the interests of the government. This means the relief cannot result in the taxpayer owing less tax than they would have if the election had been filed on time. The government’s position is protected by ensuring the taxpayer does not gain an unfair tax advantage from the delay.
Eligibility also depends on the type of election missed. The relief applies only to regulatory elections, which are those whose deadlines are set by Treasury Regulations or other IRS guidance. Deadlines prescribed directly by a statute passed by Congress are not eligible for this type of extension. For instance, the choice to be taxed as an S corporation is a regulatory election.
Automatic Relief Provisions
For certain frequently missed elections, the IRS created a simplified path called automatic relief, which avoids a formal ruling request. This is available for a specific list of elections detailed in IRS guidance. One prominent example is Revenue Procedure 2013-30, which provides relief for late S corporation elections and related elections for Electing Small Business Trusts (ESBT), Qualified Subchapter S Trusts (QSST), and Qualified Subchapter S Subsidiaries (QSub).
To secure automatic relief for a late S corporation election, the corporation must file the completed Form 2553. A statement explaining the reasonable cause for the late filing must be attached. The taxpayer must also write “FILED PURSUANT TO REV. PROC. 2013-30” at the top of the form.
This automatic relief has a time limit. For late S corporation elections, the request must be filed within three years and 75 days of the intended effective date. Other elections may have different automatic extension windows, such as a six or 12-month period, depending on the specific regulation.
Information and Documentation for a Private Letter Ruling Request
When a missed election does not qualify for automatic relief, the taxpayer must request a private letter ruling (PLR) from the IRS. This formal process is the only avenue for seeking an extension in these situations.
The core of the PLR submission is a detailed affidavit from the taxpayer, signed under penalties of perjury. This document must provide a chronological narrative of the events leading to the failure to make the election. It should explain who was relied upon for tax advice, the discovery of the error, and how the “reasonable action and good faith” standard was met. If a tax professional was responsible for the error, they may also need to submit a supporting affidavit.
The application package must also include copies of all relevant documents that support the facts presented. This could include tax returns for the years in question or correspondence with tax advisors.
Requesting a PLR requires paying a user fee. The amount is updated annually by the IRS in the first Revenue Procedure issued each year, such as Rev. Proc. 2025-1. The fee varies based on the taxpayer’s gross income. For requests submitted after February 1, 2025, the standard fee is $14,500, with reduced fees of $3,450 for taxpayers with gross income under $400,000 and $9,775 for those with gross income between $400,000 and $10 million.
The Private Letter Ruling Submission Process
The complete submission package must be assembled with the affidavits, supporting documents, and user fee payment. A cover letter must state the relief being requested and include the required procedural checklists from the annual user fee Revenue Procedure.
The request is sent to a specific IRS address for PLR submissions. After mailing the package, the taxpayer or their representative will receive an acknowledgment letter from the IRS. This letter confirms receipt and assigns the case to a branch within the IRS Chief Counsel’s office.
An IRS attorney will analyze the request and may contact the taxpayer for additional information. The timeline for a final determination can take several months. If relief is granted, the IRS issues a formal private letter ruling, which provides a 120-day window for the taxpayer to file the late election.