Form-8832 | Meaning and Definition

What is form-8832?

It is a type of official document submitted to the IRS to change the default classification of tax of partnerships, a single member of Limited Liability Company, multi-member of and other types of foreign entities.

What’s the reason behind filing Form 8832? 

Limited Liability Companies, i.e., LLCs are, have, been assigned a default tax status. This is not always considered one of the cost-effective classifications of taxes. Some of the Limited Liability Companies file this, to increase the savings on the tax. A requested appeal is made to be taxed as a partnership, proprietorship, S corporation, and C corporation. Usually, it is filed by the Limited Liability Company if they wish to be taxed as a corporation, i.e., C corporation. 

The method to file this form is very easy. One must visit the site of the IRS and then download form 8832, and then check the details of submission based on the place they are residing in.