Form 8869
(Rev. December 2017)
Department of the Treasury
Internal Revenue Service
Qualified Subchapter S Subsidiary Election
(Under section 1361(b)(3) of the Internal Revenue Code)
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OMB No. 1545-0123
Part I Parent S Corporation Making the Election
1a Name of parent
b Number, street, and room or suite no. If a P.O. box, see instructions.
c City or town, state or province, country, and ZIP or foreign postal code
2 Employer identification number (EIN)
3 Tax year ending (month and day)
4 Service center where last return was filed
5 Name and title of officer or legal representative whom the IRS may call for more information
6 Telephone number of officer or legal
Part II Subsidiary Corporation for Which Election is Made (For additional subsidiaries, see instructions.)
7a Name of subsidiary
b Number, street, and room or suite no. If a P.O. box, see instructions.
c City or town, state or province, country, and ZIP or foreign postal code
8 EIN (if any)
9 Date incorporated
10 State of incorporation
11 Date election is to take effect (month, day, year) (see instructions) . . . . . . . . . . . . . . . . . . .
12 Did the subsidiary previously file a federal income tax return? If “Yes,” complete lines 13a, 13b, and 13c . . . . . . . . .
Yes No
13a Service center where last return was filed 13b Tax year ending date of last
return (month, day, year)
13c Check type of return filed:
Form 1120
Form 1120S Other
Is this election being made in combination with a section 368(a)(1)(F) reorganization described in Rev. Rul. 2008-18, where the subsidiary was
an S corporation immediately before the election and a newly formed holding company will be the subsidiary’s parent? . . . . .
Yes No
15 Was the subsidiary’s last return filed as part of a consolidated return? If “Yes,” complete lines 16a, 16b, and 16c . . . . . . .
Yes No
16a Name of common parent 16b EIN of common parent 16c Service center where consolidated return was filed
Under penalties of perjury, I declare that I have examined this election, including accompanying statements, and to the best of my knowledge and belief, it is true, correct,
and complete.
Signature of officer
of parent corporation
General Instructions
Section references are to the Internal Revenue Code unless otherwise
Future Developments
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its instructions, such as legislation enacted after they were published,
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Purpose of Form
A parent S corporation uses Form 8869 to elect to treat one or more of
its eligible subsidiaries as a qualified subchapter S subsidiary (QSub).
The QSub election results in a deemed liquidation of the subsidiary
into the parent. Following the deemed liquidation, the QSub is not
treated as a separate corporation and all of the subsidiary’s assets,
liabilities, and items of income, deduction, and credit are treated as
those of the parent.
Because the liquidation is a deemed liquidation, do not file
Form 966, Corporate Dissolution or Liquidation. However, a
final return for the subsidiary may have to be filed if it was a
separate corporation prior to the date of the deemed
liquidation. No final return is required if this election is being made
pursuant to a reorganization under section 368(a)(1)(F) and Rev. Rul.
2008-18. See Rev. Rul. 2008-18, 2008-13 I.R.B. 674, for details.
Eligible Subsidiary
An eligible subsidiary is a domestic corporation whose stock is owned
100% by an S corporation and is not one of the following ineligible
• A bank or thrift institution that uses the reserve method of accounting
for bad debts under section 585.
• An insurance company subject to tax under subchapter L of the Code.
• A corporation that has elected to be treated as a possessions
corporation under section 936.
• A domestic international sales corporation (DISC) or former DISC.
See sections 1361(b)(3), 1362(f), and their related regulations for
additional information.
When To Make the Election
The parent S corporation can make the QSub election at any time
during the tax year. However, the requested effective date of the QSub
election generally cannot be more than:
• 12 months after the date the election is filed, or
• 2 months and 15 days before the date the election is filed.
An election filed more than 12 months before the requested effective
date will be made effective 12 months after the date it is filed. An
election filed more than 2 months and 15 days after the requested
effective date generally is late and will be made effective 2 months and
15 days before the date it is filed. However, an election filed more than 2
months and 15 days after the requested effective date will be accepted
as timely filed if the corporation can show that the failure to file on time
was due to reasonable cause.
To request relief for a late election, the corporation generally must
request a private letter ruling and pay a user fee in accordance with
Rev. Proc. 2017-1, 2017-1 I.R.B. 1 (or its successor). However, relief
from the ruling and user fee requirements is available. See Rev. Proc.
2013-30, 2013-36 I.R.B. 173, for details.
For Paperwork Reduction Act Notice, see instructions.
Cat. No. 28755K
Form 8869 (Rev. 12-2017)
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Form 8869 (Rev. 12-2017)
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Where To File
File Form 8869 with the service center where the subsidiary filed its
most recent return. However, if the parent S corporation forms a
subsidiary, and makes a valid election effective upon formation, submit
Form 8869 to the service center where the parent S corporation filed its
most recent return.
Acceptance of Election
The service center will notify the corporation if the QSub election is
(a) accepted, and when it will take effect, or (b) not accepted.
The corporation should generally receive a determination on its
election within 60 days after it has filed Form 8869. However, if the
corporation is not notified of acceptance or nonacceptance of its
election within 2 months of the date of filing (date mailed), take
follow-up action by calling 1-800-829-4933.
If the IRS questions whether Form 8869 was filed, an acceptable
proof of filing is (a) a certified or registered mail receipt (timely
postmarked) from the U.S. Postal Service, or its equivalent from a
designated private delivery service (see Notice 2016-30, 2016-18 I.R.B.
676 (or its successor)); (b) a Form 8869 with an accepted stamp; (c) a
Form 8869 with a stamped IRS received date; or (d) an IRS letter stating
that Form 8869 has been accepted.
End of Election
Once the QSub election is made, it remains in effect until it is
terminated. If the election is terminated, IRS consent generally is
required for another QSub election with regard to the former QSub (or
its successor) for any tax year before the 5th tax year after the first tax
year in which the termination took effect. See Regulations section
1.1361-5 for details.
Specific Instructions
Include the suite, room, or other unit number after the street address. If
the Post Office does not deliver to the street address and the
corporation has a P.O. box, show the box number instead.
If the subsidiary has the same address as the parent S corporation,
enter “Same as parent” in Part II.
Additional Subsidiaries
If the QSub election is being made for more than one subsidiary, attach
a separate sheet for each subsidiary. Use the same size, format, and
line numbers as in Part II of the printed form. Put the parent
corporation’s name and employer identification number at the top of
each sheet.
If the QSub elections are being made effective on the same date for a
tiered group of subsidiaries, the parent S corporation may specify the
order of the deemed liquidations on an attachment. If no order is
specified, the deemed liquidations will be treated as occurring first for
the lowest tier subsidiary and proceeding successively upward. See
Regulations section 1.1361-4(b)(2).
A QSub election for a tiered group of subsidiaries may, in
certain circumstances, result in the recognition of income. A
primary example is excess loss accounts (see Regulations
section 1.1502-19).
Line 14. This box should be checked “Yes” if this election is being
made pursuant to a reorganization under section 368(a)(1)(F) and
Rev. Rul. 2008-18. This occurs when a newly formed parent holding
company holds the stock of the subsidiary that was an S corporation
immediately before the transaction and the transaction otherwise
qualifies as a reorganization under section 368(a)(1)(F). No Form 2553,
Election by a Small Business Corporation, is required to be filed by the
parent. See Rev. Rul. 2008-18 for details.
Employer Identification Number (EIN)
A QSub may not be required to have an EIN for federal tax purposes. If
the QSub does not have an EIN, enter “N/A” on line 8.
However, if the QSub has previously filed a return, separately or as
part of a consolidated return, and used an EIN, enter that EIN on line 8
and (if applicable) the EIN of its common parent on line 16b. If this
election is being made pursuant to a reorganization under section
368(a)(1)(F) and Rev. Rul. 2008-18, the old S corporation for which this
QSub election is being made will retain its EIN. The newly formed parent
must get a new EIN. See Rev. Rul. 2008-18 for details.
Caution. Failure to enter the subsidiary’s EIN may result in the service
center sending a notice of delinquent filing to the QSub.
If the QSub wants its own EIN, but does not have one, see Form
SS-4, Application for Employer Identification Number, for details on
how to obtain an EIN.
If the QSub has not received its EIN by the time the election is made,
write “Applied for” on line 8. See the Instructions for Form SS-4 for
Effective Date of Election
Form 8869 generally must be filed no earlier than 12 months
before or no later than 2 months and 15 days after the
effective date requested on line 11. For details and
exceptions, see When To Make the Election, earlier.
A parent S corporation that forms a new subsidiary and wants the
election effective upon formation should enter the formation date. A
parent corporation that wants to make the election for an existing
subsidiary should enter the requested effective date. For details about
the effect of a QSub election, see Regulations section 1.1361-4.
Form 8869 must be signed and dated by the president, vice president,
treasurer, assistant treasurer, chief accounting officer, or any other
corporate officer (such as tax officer) authorized to sign the parent’s
S corporation return.
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