Converting an ESBT to a QSST. For a trust that seeks to convert from an ESBT to a QSST, the consent of the Commissioner is hereby granted to re- voke the ESBT election as of the effec- tive date of the QSST election, if all the following requirements are met:
Converting an ESBT to a QSST. For a trust that seeks to convert from an ESBT to a QSST, the consent of the Commissioner is hereby granted to re- voke the ESBT election as of the effec- tive date of the QSST election, if all the following requirements are met:
(i) The trust meets all of the require- ments to be a QSST under section 1361(d).
(ii) The trustee and the current in- come beneficiary of the trust sign the QSST election. The QSST election must be filed with the service center where the S corporation files its in- come tax return. This QSST election must state at the top of the document ‘‘ATTENTION ENTITY CONTROL— CONVERSION OF AN ESBT TO A QSST PURSUANT TO SECTION 1.1361– 1(m)’’ and include all information oth- erwise required for a QSST election under § 1.1361–1(j)(6). A separate QSST election must be made with respect to the stock of each S corporation held by the trust.
(iii) The trust has not converted from a QSST to an ESBT within the 36- month period preceding the effective date of the new QSST election.
(iv) The date on which the QSST election is to be effective cannot be more than 15 days and two months 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 15 days and two months prior to the date on which the election is filed, it will be effective on the day that is 15 days and two months prior to the date on which it is filed. If an election specifies an effec- tive date more than 12 months after the date on which the election is filed, it will be effective on the day that is 12 months after the date it is filed.
