Understanding your CP288 notice - Internal Revenue Service
CP288 tells you we accepted your election or treatment as a Qualified Subchapter S Trust (QSST).
What Is a QSST Trust? Requirements and Tax Rules
A Qualified Subchapter S Trust (QSST) is a trust specifically designed to hold S corporation stock without disqualifying the company’s pass-through tax status. S corporations can only have certain types of shareholders, and an ordinary trust is not one of them.
QUALIFIED SUBCHAPTER S TRUST (QSST) - CMRS Law
Although Qualified Subchapter S Trusts (QSSTs) are an option, they have disadvantages. For example, only one beneficiary can benefit from the QSST throughout their lifetime. As a result, the beneficiary’s children cannot be beneficiaries of the trust.
Use of QSSTs in Closely Held S Corporation Planning
Qualified Subchapter S Trusts (QSSTs) enable closely held S corporations to maintain their tax status while allowing trust ownership. They require a single income beneficiary who is a U.S. citizen or resident, with all income distributed annually.
Making Sense of Qualified Subchapter S Trusts (QSST)
QSSTs allow for professional management of the S corporation shares, ensuring that the assets are handled wisely and in accordance with your estate plan. By maintaining the S corporation status, QSSTs can help avoid double taxation. This means the income is taxed only once—at the beneficiary level.
Tax Facts - ThinkAdvisor
A QSST is a trust that has only one current income beneficiary (who must be a citizen or resident of the U.S.), all income must be distributed currently, and the trust corpus may not be...
Using qualified Subchapter S trusts (QSSTs) - The Tax Adviser
Net investment income tax of a QSST. Individuals, estates, and certain trusts are subject to a net investment income tax, which is an additional tax of 3.8%.
QSST election - Wikipedia
In United States federal income tax law, a qualified Subchapter S trust is one of several types of trusts that may retain ownership as the shareholder of an S corporation. The beneficiary of such a trust makes a QSST election for each S corporation in which the trust holds stock.