How is the IRS notified of the entity classification under the tax regulations?
Under regulations, many business entities can elect the tax entity (partnership, corporation, or disregarded entity) that best suits their needs. This approach is popularly called “check the box.” Taxpayers should notify the IRS of any check-the-box election by filing Form 8832, Entity Classification Election. If a taxpayer does not file Form 8832, a default classification will apply. Read Reg. 301.7701-3 and Form 8832 for more information.
