Common use of Xxxxxx of making election Clause in Contracts

Xxxxxx of making election. Except as provided in section 1361(b)(3)(D) and § 1.1361–5(c) (five-year prohibition on re- election), an S corporation may elect to treat an eligible subsidiary as a QSub by filing a completed form to be prescribed by the IRS. The election form must be signed by a person au- thorized to sign the S corporation’s re- turn required to be filed under section 6037. Unless the election form provides otherwise, the election must be sub- mitted to the service center where the subsidiary filed its most recent tax re- turn (if applicable), and, if an S cor- poration forms a subsidiary and makes a valid QSub election (effective upon the date of the subsidiary’s formation) for the subsidiary, the election should be submitted to the service center where the S corporation filed its most recent return.