Form 8832

Entity Classification Election

Understanding your tax obligations is crucial for ensuring compliance and maximizing your business's financial well-being. Among the various IRS forms, the 8832 form is particularly noteworthy for its role in helping businesses determine their federal tax classification. This guide delves deep into everything you need to know about the 8832 form, providing detailed insights, tips, and official resources to help you navigate your tax filing requirements efficiently.

What is a 8832 Form?

The IRS Form 8832 is known as the "Entity Classification Election" form. It's a crucial document used by businesses to elect how they wish to be classified for federal tax purposes. This election can significantly impact how a business is taxed, its tax obligations, and its filing requirements. The 8832 form allows entities such as corporations and partnerships to choose their tax treatment, either as a corporation, partnership, or, in some cases, a disregarded entity.

  • Purpose and Significance: The primary purpose of this form is to offer flexibility in tax classification, enabling businesses to choose a status that best fits their financial and operational structures. This choice can influence taxation rates, filing obligations, and eligibility for certain tax benefits.
  • Components of the Form: The form includes sections for the entity's information, the election information including the desired classification, and a consent statement signed by all members or officers.

Who Needs a 8832 Form?

Filing a 8832 Form is critical for:

  • Newly established businesses determining their tax status for the first time.
  • Existing entities looking to change their current tax classification.
  • Foreign entities wanting to be treated as a different entity for U.S. tax purposes.

Criteria and Obligations:

Entities eligible to file this form include limited liability companies (LLCs), partnerships, and corporations, among others. The specific criteria and obligations vary depending on the entity's existing structure and the desired classification.


The classification chosen with Form 8832 can be applied retroactively for up to 75 days prior to filing the form, or it can take effect up to 12 months after the form's submission. Meeting these deadlines is crucial for the desired classification to be accepted by the IRS.

How to Read and Understand 8832 Form

The 8832 Form may seem daunting, but understanding its sections is the first step towards accurate completion:

  • Part I requests basic information about the entity, including its name, address, and tax identification number.
  • Part II outlines the election information, where the entity specifies its chosen classification.
  • Part III includes the consent statement, which must be signed by all parties with a stake in the entity's tax classification.

How to Get Your 8832 Form

To obtain the Form 8832, visit the IRS official page. Here you can download a copy of the form for review and completion. Always ensure you're using the most recent version to comply with the latest IRS guidelines.

Common Mistakes and How to Avoid Them

Frequent errors include:

  • Incorrectly identifying the entity.
  • Selecting the wrong classification.
  • Failing to get all necessary consents and signatures.


  • Double-check entity information against official documents.
  • Consult with a tax professional to determine the most beneficial classification.
  • Adhere strictly to deadlines to ensure your election is processed on time.

8832 Form and Tax Filing

Filing Form 8832 can have profound implications on tax filing, potentially altering an entity’s:

  • Tax Rates: Different entities are subjected to different tax rates.
  • Filing Requirements: The form may change the type of tax return the entity must file.
  • Tax Refunds: A change in classification can affect how and when an entity receives tax refunds.

FAQ Section

Q1: Can any business file Form 8832?
A1: Not all businesses are eligible. It primarily applies to LLCs, partnerships, and corporations that meet certain IRS criteria.

Q2: How often can I change my entity’s tax classification using Form 8832?
A2: Generally, after making an election, you must wait at least 60 months before making another election.

Q3: Does filing Form 8832 trigger an IRS audit?
A3: Filing Form 8832 does not inherently increase your audit risk but always ensure accuracy and compliance to avoid scrutiny.

Q4: Can a single-member LLC file Form 8832?
A4: Yes, a single-member LLC can file Form 8832 to elect to be taxed as a corporation instead of a disregarded entity.

Q5: Where do I send my completed 8832 Form?
A5: The mailing address depends on your entity's location. Check the IRS website for specific addresses.


The IRS Form 8832 plays a pivotal role in defining how an entity is taxed. Making an informed decision on your business's tax classification can save money and align with your financial strategy. While this guide aims to equip you with comprehensive knowledge on the 8832 form, tax laws are complex and ever-evolving. Consultation with a tax professional is highly recommended to navigate these waters successfully.

For further exploration and official documents related to the 8832 form, please visit:

Completing Form 8832 requires careful consideration and precise information. Ensure you're well-informed and seek expert advice when necessary to make the best tax classification election for your entity.

Always refer to the IRS website or a tax professional for the most accurate and up-to-date information. provides general information and software tools for tax preparation; however, it does not offer personalized tax, legal, or professional advice. It's recommended to consult with a qualified professional for specific advice related to your financial situation.