Yes! You can use AI to fill out Form 8832, Entity Classification Election

This form's instructions (page 5) list outdated IRS Service Center addresses, while a crucial update on the first page provides the new, correct mailing addresses. Filers often overlook the update page and send the form to the wrong location, such as Cincinnati, OH. This results in the IRS never receiving the election, causing the entity to remain under its default tax classification, which can lead to significant tax complications and penalties. Always verify the mailing address on the first page of the document (Kansas City, MO or Ogden, UT) before sending.

The instructions explicitly state that the form will not be processed without a valid Employer Identification Number (EIN) and warn against writing 'Applied For'. This mistake occurs when an entity files Form 8832 before receiving its EIN from the IRS. Submitting the form this way guarantees its rejection, delaying the effective date of the election and potentially causing it to fall outside the desired tax year. To avoid this, an entity must apply for and receive its EIN before filing Form 8832.

On line 8, filers often enter an effective date that is either more than 75 days before the filing date or more than 12 months after. The IRS will automatically adjust an invalid date to the closest allowable limit (75 days prior or 12 months after), which may not align with the filer's intended start for the new tax status. This can create accounting mismatches and tax reporting errors. It is crucial to choose a date within this specific window to ensure the election takes effect as planned.

The form requires signatures from all members/owners at the time of filing, or one authorized person. A common error is missing signatures from all required parties. Furthermore, if a retroactive effective date is chosen, any person who was an owner during that retroactive period but is no longer an owner must also sign. Failure to obtain all necessary signatures, including those of former owners, will invalidate the election and lead to its rejection by the IRS.

On line 1, filers often confuse an 'Initial classification' (1a) with a 'Change in current classification' (1b). An entity that has been operating under its IRS-assigned default status (e.g., a multi-member LLC defaulting to a partnership) and now wants a different status (e.g., a corporation) is making a 'change' (1b), not an 'initial' election. Incorrectly selecting 1a can cause processing delays or require clarification from the IRS, as it misrepresents the entity's history.

On lines 2a and 2b, filers may attempt to change their entity's classification within 60 months of a previous election to change classification. The IRS generally prohibits making another election within this five-year period, with very limited exceptions. Attempting to file a new election during this locked-in period will result in an automatic rejection, and the entity will be forced to retain its current tax status. Filers must confirm they are outside this 60-month window before submitting the form.

For a single-owner entity (line 4), the form requires the name and identifying number (SSN or EIN) of the owner, not the entity itself. Filers, particularly for single-member LLCs, often mistakenly enter the LLC's name and EIN in this section. This error creates confusion and can lead to processing delays or rejection, as the IRS cannot correctly link the disregarded entity to its owner's tax profile. The owner's information must be provided, not the entity's.

The form instructions include a tip that a newly formed eligible entity does not need to file Form 8832 if it will be using its default classification (e.g., a new domestic single-member LLC being a disregarded entity). Some filers submit the form to 'confirm' the default status, which is unnecessary and creates extra paperwork for both the filer and the IRS. This can lead to confusion and potential correspondence from the IRS. If the default classification is desired, no filing is required.

When requesting late election relief in Part II, filers must provide a detailed explanation for why the form was not filed on time. A common mistake is providing a vague or weak reason on line 11, such as 'I forgot' or 'I was busy.' The IRS requires a compelling 'reasonable cause' to grant relief, and an insufficient explanation will likely lead to the denial of the request, forcing the entity to accept a later effective date for its election. AI-powered tools like Instafill.ai can help ensure all required fields, including detailed explanations, are completed properly.

Filers sometimes use a DBA ('Doing Business As') name instead of the full legal entity name as registered with the state, or they enter an address that doesn't match IRS records without checking the 'Address change' box. These discrepancies can cause the form to be rejected or, more problematically, result in the acceptance notice being sent to the wrong address and never received. This leaves the filer unaware of the election's status. Using an AI form-filling tool like Instafill.ai can help prevent this by auto-populating and validating data from a central source, ensuring consistency across all documents. If you only have a non-fillable PDF, Instafill.ai can also convert it into a fillable version.