internal_revenue_service number release date index number ---------------------------- ------------------------------------------------- ------------------------------------------------ -------------------------------------- department of the treasury washington dc person to contact ------------------------- id no ------------- telephone number --------------------- refer reply to cc psi b01 plr-105400-08 date date x --------------------------------------------------- ------------------------------ date date -------------------- ---------------------------- trust --------------------------------------------------- ------------------------------------------- trust --------------------------------------------------- -------------------------------------------------- trust --------------------------------------------------- ---------------------------------------------------- dear ------------------- this responds to a letter dated date submitted on behalf of x requesting a ruling under sec_1362 of the internal_revenue_code for an inadvertent termination of an s_corporation_election facts x elected to be treated as an s_corporation for federal tax purposes effective date on date trust trust and trust became shareholders of x because no election was made to treat trust trust and trust as electing small_business plr-105400-08 trusts esbt effective date trust trust and trust were ineligible shareholders as a result x's s_corporation_election terminated on date x represents that there was no intent to terminate x s s_corporation_election and that the failure_to_file timely the esbt elections for trust trust and trust was not motivated by tax_avoidance or retroactive tax planning x represents that trust trust and trust each comply with the requirements under sec_1361 which defines an esbt x and its shareholders agree to make any adjustments required by the secretary consistent with the treatment of x as an s_corporation law and analysis sec_1361 provides that the term s_corporation means with respect to any taxable_year a small_business_corporation for which an election under sec_1362 is in effect for such year sec_1361 defines a small_business_corporation as a domestic_corporation which is not an ineligible_corporation and which does not a have more than shareholders b have as a shareholder a person other than an estate a_trust described in sec_1361 or an organization described in sec_1361 who is not an individual c have a nonresident_alien as a shareholder and d have more than one class of stock sec_1362 provides that an election under sec_1362 shall be terminated whenever at any time on or after the first day of the taxable_year for which the corporation is an s_corporation the corporation ceases to be a small_business_corporation sec_1361 provides that for purposes of sec_1361 a_trust all of which is treated under subpart e of part i of subchapter_j of chapter as owned by an individual who is a citizen or resident_of_the_united_states may be a shareholder sec_1361 and sec_1_1361-1 provide that for purposes of sec_1361 a_trust that is described in sec_1361 immediately before the death of the deemed owner and that continues in existence after such death is a permitted shareholder but only for the two-year period beginning on the day of the deemed owner's death sec_1_1361-1 provides that if stock is held by a_trust described in sec_1_1361-1 the estate of the deemed owner is generally treated as the shareholder as of the day of the deemed owner's death plr-105400-08 sec_1361 states that an esbt is a permissible shareholder of an s_corporation sec_1361 defines an esbt in part as a_trust if -- i such trust does not have as a beneficiary any person other than i an individual ii an estate iii an organization described in paragraph or of sec_170 or iv an organization described in sec_170 which holds a contingent_interest in such trust and is not a potential_current_beneficiary ii no interest in such trust was acquired by purchase and iii an election under this subsection applies to such trust sec_1361 provides that an election to be an esbt shall be made by the trustee any such election shall be applied to the taxable_year of the trust for which made and all subsequent taxable years of such trust unless revoked with the consent of the secretary sec_1362 provides in relevant part that if an election under sec_1362 by any corporation was not effective for the taxable_year for which made determined without regard to sec_1362 by reason of a failure to meet the requirements of sec_1361 b or to obtain shareholder consents the secretary determines that the circumstances resulting in such termination were inadvertent no later than a reasonable period of time after discovery of the circumstances resulting in ineffectiveness steps were taken so that the corporation is once more a small_business_corporation and the corporation and each person who was a shareholder of the corporation at any time during the period specified pursuant to sec_1362 agrees to make any adjustments consistent with the treatment of the corporation as an s_corporation as may be required by the secretary with respect to the period then notwithstanding the circumstances resulting in the ineffectiveness the corporation shall be treated as continuing to be an s_corporation during the period specified by the secretary conclusion based solely on the representations made and the information submitted we conclude that x’s s election terminated on date because the trustees of trust trust and trust failed to timely file and complete the required esbt elections under sec_1361 we further conclude however that the termination was an inadvertent termination within the meaning of sec_1362 pursuant to the provisions of sec_1362 x will be treated as continuing to be an s_corporation on and after date unless x’s s election is otherwise terminated under sec_1362 provided that the respective trustee files an esbt election with the appropriate service plr-105400-08 center within days of the date of this letter effective date for trust trust and trust and accordingly that trust trust and trust file any amended returns that are necessary to comply with this ruling a copy of this letter should be attached to the esbt elections except as specifically set forth above we express no opinion concerning the federal tax consequences of the facts described above under any other provision of the code specifically no opinion is expressed on whether x is otherwise eligible to be treated as an s_corporation and whether trust trust and trust are eligible esbts under sec_1361 this ruling is directed only to the taxpayer s requesting it sec_6110 of the code provides that it may not be used or cited as precedent in accordance with the power_of_attorney on file with this office a copy of this letter is being sent to your representative the rulings contained in this letter are based upon information and representations submitted by the taxpayer and accompanied by a penalty of perjury statement executed by an appropriate party while this office has not verified any of the material submitted in support of the request for rulings it is subject_to verification on examination sincerely david r haglund david r haglund senior technician reviewer office of associate chief_counsel passthroughs special industries enclosures copy of this letter copy for ' purposes


internal_revenue_service number release date index number ------------------------------ -------------------------------------------------------------- ------------------------------------------------------------------ ------ ---------------------------------------- ---------------------------------------- ------------------------------------ department of the treasury washington dc third party communication none date of communication not applicable_person to contact ---------------------- id no ----------------- ------------------------------------------------- telephone number -------------------- refer reply to cc psi b01 plr-144291-11 date date legend x ----------------------------------------- ----------------------------------------------------------- country ------------------------------------ date ------------------------ dear ------------ this letter responds to a letter dated date and subsequent correspondence submitted on behalf of x requesting an extension of time under sec_301_9100-1 and sec_301_9100-3 of the procedure and administration regulations to file an election under sec_301_7701-3 to be treated as a partnership for federal tax purposes facts according to the information submitted x was formed under the laws of country x intended to be treated as a partnership for federal tax purposes effective date however x failed to timely file form_8832 entity classification election to be treated as a partnership for federal tax purposes law and analysis plr-144291-11 sec_301_7701-3 provides that a business_entity that is not classified as a corporation under sec_301_7701-2 or an eligible_entity can elect its classification for federal tax purposes an eligible_entity with at least two members can elect to be classified as either an association or a partnership sec_301_7701-3 provides guidance on the classification of a foreign eligible_entity for federal tax purposes generally a foreign eligible_entity is treated as an association if all members have limited_liability unless the entity makes an election to be treated otherwise a foreign eligible_entity with two or more members having limited_liability may elect to be treated as a partnership pursuant to the rules of sec_301_7701-3 sec_301_7701-3 provides that an entity classification election must be filed on form_8832 and can be effective up to days prior to the date the form is filed or up to months after the date the form is filed under sec_301_9100-1 the commissioner may grant a reasonable extension of time to make a regulatory election or a statutory election but no more than six months except in the case of a taxpayer who is abroad under all subtitles of the internal_revenue_code except subtitles e g h and i sec_301_9100-1 defines the term regulatory election as including an election whose due_date is prescribed by a regulation published in the federal_register sec_301_9100-1 through provide the standards that the commissioner will use to determine whether to grant an extension of time to make an election sec_301_9100-2 provides automatic extensions of time for making certain elections sec_301_9100-3 provides extensions of time for making elections that do not meet the requirements of sec_301_9100-2 requests for relief under sec_301_9100-3 will be granted when the taxpayer provides evidence to establish that the taxpayer acted reasonably and in good_faith and that granting relief will not prejudice the interests of the government conclusion based solely on the facts submitted and the representations made we conclude that the requirements of sec_301_9100-3 have been satisfied as a result x is granted an extension of time of days from the date of this letter to make an election to be treated as a partnership for federal tax purposes effective date x should make the election by filing a properly executed form_8832 with the appropriate service_center a copy of this letter should be attached to the form this ruling is contingent on x and the owners of x filing within days from the date of this letter any required amended or original returns consistent with the requested relief to the extent appropriate these returns or amended returns must include forms return of u s persons with respect to certain foreign plr-144291-11 partnerships reflecting the consequences of the relief granted in this letter copies of this letter should be attached to any such returns or amended returns except as expressly provided herein no opinion is expressed or implied concerning the tax consequences of any aspect of any transaction or item discussed or referenced in this letter this ruling is directed only to the taxpayer requesting it sec_6110 of the code provides that it may not be used or cited as precedent in accordance with the power_of_attorney on file with this office a copy of this letter is being sent to your authorized representative sincerely associate chief_counsel passthroughs special industries by joy c spies joy c spies senior technician reviewer branch passthroughs special industries enclosures copy of this letter copy for sec_6110 purposes


internal_revenue_service number release date index no legend disorder surgery department of the treasury washington dc person to contact telephone number in reference to cc ita - plr-103479-02 date date procedure dear this responds to your request for a ruling on whether the cost of surgery is within the definition of medical_care for purposes of the medical_expense_deduction under sec_213 of the internal_revenue_code facts taxpayer is diagnosed with a disorder and is planning to undergo surgery for procedure law and analysis a taxpayer may deduct expenses paid during the taxable_year not_compensated_for_by_insurance_or_otherwise for medical_care of the taxpayer spouse or dependent to the extent the expenses exceed percent of adjusted_gross_income under sec_213 sec_213 defines the term medical_care as amounts paid for the diagnosis cure mitigation treatment or prevention of disease or for the purpose of affecting any structure or function of the body sec_1_213-1 of the income_tax regulations provides in part that amounts paid for operations or treatments affecting any portion of the body are deemed to be for the purpose of affecting any structure or function of the body and are therefore paid for medical_care thus payments for medical_care include payments for hospital services nursing services medical laboratory surgical dental and other diagnostic and healing services x-rays medicine and drugs sec_213 provides that medical_care does not include cosmetic_surgery or similar procedures unless necessary to ameliorate a deformity arising from or related to an illness injury or congenital abnormality cosmetic_surgery includes any plr-103479-02 procedure that is directed at improving the patient’s appearance and that does not meaningfully promote the proper function of the body or treat disease revrul_73_201 1973_1_cb_140 and revrul_73_603 1973_2_cb_76 hold that vasectomies abortions and operations that render a woman incapable of having children affect a structure or function of the body and thus may qualify as medical_care under sec_213 the surgery taxpayer plans to undergo similarly affects a structure or function of the body and may qualify as medical_care the surgery is not directed primarily at improving taxpayer’s appearance and therefore is not a cosmetic procedure conclusion the costs paid for the surgery are medical_care for purposes of the medical_expense_deduction under sec_213 caveats a copy of this letter must be attached to any income_tax return to which it is relevant we enclose a copy of the letter for this purpose also enclosed is a copy of the letter_ruling showing the deletions proposed to be made in the letter when it is disclosed under sec_6110 of the internal_revenue_code except as expressly provided herein no opinion is expressed or implied concerning the tax consequences of any aspect of any item discussed or referenced in this letter this ruling is directed only to the taxpayer s requesting it sec_6110 provides that it may not be used or cited as precedent sincerely clifford m harbourt senior technician reviewer associate chief_counsel income_tax accounting enclosures copy of this letter copy redacted for sec_6110 purposes


internal_revenue_service appeals_office first street suite san francisco ca release number release date date date certified mail dear department of the treasury employer_identification_number person to contact employee id number tel fax tax period ended uil this is a final_determination that you do not qualify for exemption from federal_income_tax under internal_revenue_code the code sec_501 as an organization described in code sec_501 the revocation of your exempt status was made for the following reason s _ you do not promote the advancement of any particular line_of_business or the improvement of business conditions rather you promote the individual businesses of your members therefore you do not qualify for exemption as an organization described in sec_501 of the code you are required to file federal_income_tax returns on forms for the tax periods stated in the heading of this letter and for all tax years thereafter file your return with the appropriate internal_revenue_service center per the instructions of the return for further instructions forms and information please visit www irs gov please show your employer_identification_number on all returns you file and in all correspondence with internal_revenue_service we will make this letter and the proposed adverse determination_letter available for public inspection under code sec_6110 after deleting certain identifying information we have provided to you ina separate mailing notice notice of intention to disclose please review the notice and the documents attached that show our proposed deletions if you disagree with our proposed deletions follow the instructions in notice you also have the right to contact the office_of_the_taxpayer_advocate taxpayer_advocate assistance is not a substitute for established irs procedures such as the formal appeals process the taxpayer_advocate cannot reverse a legally correct_tax determination or extend the time fixed by law that you have to file a petition in a united_states court the taxpayer_advocate can however see that a tax matters that may not have been resolved through normal channels get prompt and proper handling if you want taxpayer_advocate assistance please contact the taxpayer_advocate for the irs office that issued this letter you may call toll-free for the taxpayer_advocate or visit www irs gov advocate for more information if you have any questions about this letter please contact the person whose name and telephone number are shown in the heading of this letter sincerely yours appeals team manager enclosure publication cc department of the treasury internal_revenue_service tax_exempt_and_government_entities_division exempt_organizations examinations date date taxpayer_identification_number form_990 return tax_year s ended december 20xx 20xx 20xx person to contact id number contact numbers telephone fax manager’s name id number manager’s contact number response due_date certified mail - return receipt requested org dear why you are receiving this letter enclosed is a copy of our report of examination explaining why revocation of your organization's tax-exempt status is necessary what you need to do if you agree if you agree with our findings please sign the enclosed form 6018-a consent to proposed action and return it to the contact at the address listed above we'll send you a final letter revoking your exempt status if we don’t hear from you lf we don’t hear from you within calendar days from the date of this letter we'll process your case based on the recommendations shown in the report of examination and this letter will become final effects of revocation letter 3610-r catalog number 59432g in the event of revocation you'll be required to file federal_income_tax returns for the tax_year s shown above file these returns with the contact at the address listed above within calendar days from the date of this letter unless a request for an extension of time is granted file returns for later tax years with the appropriate service_center indicated in the instructions for those returns what you need to do if you disagree with our findings if you disagree with our position you may request a meeting or telephone conference with the supervisor of the contact identified in the heading of this letter you also may file a protest with the irs appeals_office by submitting a written request to the contact person at the address listed above within calendar days from the date of this letter the appeals_office is independent of the exempt_organizations division and resolves most disputes informally for your protest to be valid it must contain certain specific information including a statement of the facts the applicable law and arguments in support of your position for specific information needed for a valid protest please refer to page one of the enclosed publication how to appeal an irs decision on tax-exempt status and page six of the enclosed publication the examination process publication also includes information on your rights as a taxpayer and the irs collection process please note that fast track mediation referred to in publication generally doesn’t apply after we issue this letter if you and appeals don’t agree on some or all of the issues after your appeals_conference or if you don’t request an appeals_conference you may file suit in united_states tax_court the united_states court of federal claims or united_states district_court after satisfying procedural and jurisdictional requirements you may also request that we refer this matter for technical_advice as explained in publication please contact the person identified in the heading of this letter if you’re considering requesting technical_advice if we send a determination_letter to you based on a technical_advice_memorandum issued by the exempt_organizations rulings and agreements office then no further irs administrative appeal will be available to you contacting the taxpayer_advocate office is a taxpayer right you have the right to contact the office_of_the_taxpayer_advocate service tas tas is your voice at the irs this service helps taxpayers whose problems with the irs are causing financial difficulties who have tried but haven’t been able to resolve their problems with the irs and those who believe an irs system or procedure is not working as it should if you believe you are eligible for tas assistance you can call the toll-free number or tty tdd for more information go to www irs gov advocate if you prefer you may contact your local taxpayer_advocate at internal_revenue_service office_of_the_taxpayer_advocate for additional information if you have any questions please call the contact at the telephone number shown in the heading of this letter if you write please provide a telephone number and the most convenient time to call if we need to contact you letter 3610-r catalog number 59432g thank you for your cooperation enclosures report of examination form 6018-a publication publication sincerely margaret von lienen director eo examinations letter 3610-r catalog number 59432g schedule number or exhibit rev 886-a explanations of items name of taxpayer year period ended december 20xx 20xx 20xx tax identification_number org issue s whether org continues to qualify for exemption under sec_501 whether the organization’s exemption under sec_501 an organization described in sec_501 should be revoked effective january 20xx facts org organization was granted exemption from federal_income_tax under sec_501 of the internal_revenue_code in letter dated july 19xx letter showed the former name of the organization as co-1 the organization was incorporated under the laws of the state of state by-laws dated july 20xx states the organization’s mission is the recognition support and promotion of those state professional innkeepers exclusively committed to the highest standards of excellence in distinctive lodging accommodations the organization filed forms retum of organization exempt from income_tax for year 20xx 20xx and 20xx the organization did not file forms 990-t exempt_organization business income_tax retum form_990 described the organization’s mission as to preserve the historical accommodations of state and educate the public and promote conserving utilization of the structures the organization's three largest program services listed on the form_990 are e e e advertising and promoting support for the historic accommodations of state inspections and re-inspections of historical accommodations of state to assure they are being maintained and cared for properly ach and credit card processing facility the organization also conducted an annual convention listed on the form_990 as a fundraising event this convention was open to the membership associated membership and the public the service conducted an examination of the books_and_records and the organization’s form_990 for the year ending december 20xx the director indv-1 stated that the organization had member properties and provided a membership list she was asked in regards of the name of the organization since it was not the same as the one in the determination_letter the director said that as the organization evolved it became org form 886-a department of the treasury-internal revenue service publish no irs gov catalog number 20810w page schedule number or exhibit form 886-a rev date explanations of items name of taxpayer year period ended december 20xx 20xx 20xx tax identification_number org -0 the forms show the following table deleted year ending december 20xx revenue current_year contributions and grants investment_income other revenue total revenue expenses other expenses total expenses revenues less expenses end of year tota assets total liabilities net assets or fund balances revenue expenses total revenue other revenue investment_income contributions and grants year ending december 20xx current_year net assets or fund balances revenues less expenses other expenses total liabilities total expenses total assets end of year - form 886-a department of the treasury-internal revenue service publish no irs gov catalog number 20810w page schedule number or exhibit form 886-a rev date _ explanations of items name of taxpayer year period ended december 20xx 20xx 20xx organization activities tax identification_number org the review of the transaction reports minutes and interview revealed that the organization's main activities were to advertise and promote their membership properties through their website and publications the review of their activities showed that the organizations main activities are advertisement of the membership properties on their website inspections and re-inspections of the properties and served as an ach and credit card processing facility the organization provided to its membership properties advertisement and promotion through their website www statebb org location a the website contained a wedding page listing with direct links to the membership websites the organization also provided gift certificate sales through its website and its number as stated on its brochures the examination showed that the organization held an annual convention for the membership associated members and was open to the public the convention had a basic workshop a conference for members sponsors and vendor registration the examination of the books_and_records showed that the organization’s main activities were to provide particular services to its membership on december 20xx a review of the form_990 statue date was done we mailed form_872 consent to extend the time to assess tax for the year 20xx to as per phone discussion with the director about the form we mailed form_872 to the president of the organization indv-1 in city state on december 20xx we received a letter from organization's president on december 20xx declining to sign form_872 as of the day of this report we have not received an executed form_872 law sec_6001 of the code provides that every person liable for any_tax imposed by the code or for the collection thereof shall keep adequate record as the secretary_of_the_treasury or_his_delegate may from time to time prescribe sec_6033 of the code provides except as provided in sec_6033 every organization exempt from tax under sec_501 shall file an annual return stating specifically the items of gross_income receipts and disbursements and such other information for the purposes of carrying out the internal revenue laws as the secretary may by forms or regulations form 886-a department of the treasury-internal revenue service catalog number 20810w publish no irs gov page schedule number or exhibit form 886-a rev date org explanations of items tax identification_number name of taxpayer yeariperiod ended december 20xx 20xx 20xx prescribe and keep such records render under oath such statements make such other returns and comply with such rules and regulations as the secretary may from time to time prescribe sec_1_6033-1 of the regulations provides that every organization which has established its right to exemption from tax whether or not it is required to file an annual return of information shall submit such additional information as may be required by the district_director for the purpose of enabling him to inquire further into its exempt status and to administer the provision of subchapter_f sec_501 and the following chapter of the code and sec_6033 sec_501 provides for exemption of business_leagues chambers_of_commerce real_estate boards boards_of_trade and professional_football_leagues whether or not administering a pension fund for football players which are not organized for profit and no part of the net_earnings of which inures to the benefit of any private_shareholder_or_individual sec_501 provides for the exemption of business_leagues and similar organization whose purpose is the promotion of the common business_interest of its members net_earnings do not inure to the benefit of any member purpose is not to engage in a regular business of a kind ordinarily carried on for profit principal activity is not the performance of particular services for individual persons sec_1_501_c_6_-1 of the income_tax regulations states that a business league is an association of persons having some common business_interest the purpose of which is to promote such common interest and not to engage in a regular business of a kind ordinarily carried on for profit it is an organization of the same general class as a chamber of commerce or board_of trade thus its activities should be directed to the improvement of business conditions of one or more lines of business as distinguished from the performance of particular services for individual persons an organization whose purpose is to engage in a regular business of a kind ordinarily carried on for profit even though the business is conducted on a cooperative basis or produces only sufficient income to be self-sustaining is not a business league revrul_55_444 states that an organization formed to promote the business of a particular industry that carries out its purposes primarily by conducting a general advertising campaign to encourage the use of products and services of the industry as a whole is exempt from tax notwithstanding that such advertising to a minor extent constitutes the performance of particular services for its members revrul_56_84 states that an organization operated primarily for the purpose of promoting selling and handling the national advertising in its members’ publications is engaged in the performance of particular services for individual members as distinguished from activities for the improvement of the business conditions of its members as a whole and therefore is not entitled to exemption from federal_income_tax as a business league form 886-a publish no irs gov department of the treasury-internal revenue service catalog number 20810w page schedule number or exhibit explanations of items tax identification_number name of taxpayer form 886-a rev date org year period ended december 20xx 20xx 20xx revrul_67_77 states that an organization composed of dealers of a certain make of automobile in a designated area whose primary purpose is the financing of advertising campaigns for the sale of that make of automobile is performing particular services for its members and is not entitled to exemption from federal_income_tax as a business league under sec_501 of the internal_revenue_code of the publishing of trade journals has been found to constitute the performance of particular services where the journals are mainly catalogues of the product of members revrul_68_267 states that an exempt retail food merchants’ association that regularly carries on as a minor portion of its activities a coupon redemption service for its members is engaged in unrelated_trade_or_business advertising that carries the names of members generally constitutes the performance of particular services for members thus an association of the merchants in a particular shopping center whose advertising material contained the names of the individual merchants is denied exemption see revrul_64_315 c b as is an association created to attract tourists to a local area but whose principal activity is the publication of a yearbook consisting largely of paid advertisements by its members see revrul_65_14 c b in another case exemption was denied an association that published catalogues that listed only products manufactured by the members see 168_f2d_366 cir on the other hand an organization formed to promote the business of a particular industry and that conducts a general advertising campaign to encourage the use of products and services of the industry as a whole is exempt notwithstanding that such advertising to a minor extent constitutes the performance of particular services for its members see revrul_55_444 c b activities that constitute the performance of particular services the performance of particular services by an a organization for its members or others is not an exempt activity under sec_501 while such activities do not preclude exemption in and of themselves an organizing whose primary activity is performing particular services is not exempt under sec_501 government’s position we are proposing revocation of the organization’s exemption under sec_501 beginning january 20xx because it is not operated for exempt purposes in accordance with the requirements set forth in sec_501 of the internal_revenue_code form 886-a department of the treasury-internal revenue service catalog number 20810w - page publish no irs gov schedule number or exhibit name of taxpayer tax identification_number explanations of items form 886-a rev date org year period ended december 20xx 20xx 20xx the service position is that the organization has failed the basic tests in order to be exempt under sec_501 the basic tests the organization must meet in order to be exempt under sec_501 are as follows a b c it must be an association of person having some common business_interest and its purpose must be to promote this common business_interest is must not be organized for profit it must be a membership_organization and have a meaningful extent of membership support d no part of its net_earnings may inure to the benefit of any private_shareholder_or_individual e its activities must be directed to the improvement of business conditions of one or more lines of business as distinguished from the performance of particular services for individual persons its purpose must not be to engage in a regular business of a kind ordinarily carried on for profit even if the business is operated on a cooperative basis or produces only sufficient income to be self-sustaining it must be primarily engaged in activities or functions constituting the basis for its exemption its primary activity cannot be performing particular services for members f g h the organization does not qualify for exemption from federal_income_tax under sec_501 of the code because its principal activities constitute the performance of particular services for its members its principal activities were advertisement for its members through the organizations’ website inspections and re-inspections for the membership properties ach and credit card processing service and sale of gift certificates thru the website and organization’s number those activities are considered a personal benefit to your members of a commercial nature and would preclude your exemption since the advertisement and promotion inspections and re-inspections ach and credit card processing are the organization's principal activities the organization does not qualify for exemption from federal_income_tax under sec_501 of the internal_revenue_code taxpayer’s position the organization’s position is unknown at this time conclusion the organization does not qualify for exemption from federal_income_tax under sec_501 of the code because its principal activities constitute the performance of particular services for its members form 886-a publish no irs gov department of the treasury-internal revenue service catalog number 20810w page schedule number or exhibit form 886-a rev date name of taxpayer explanations of items tax identification_number org year period ended december 20xx 20xx 20xx the organization’s tax exempt status should be revoked effective january 20xx because it is not operated for exempt purposes pursuant to the requirements set forth in sec_501 of the internal_revenue_code should this revocation be upheld you are required to file form_1120 for the years ending december 20xx 20xx 20xx and all future periods whether or not you have taxable_income form 886-a catalog number 20810w page publish no irs gov department of the treasury-internal revenue service


t c memo united_states tax_court estate of helen g williamson deceased douglas f woods executor petitioner v commissioner of internal revenue respondent docket no filed date richard j sideman and wendy abkin for petitioner elizabeth l groenewegen and rebecca t hill for respondent memorandum opinion körner judge this case is before the court on petitioner's motion for partial summary_judgment under rule all statutory references are to the internal_revenue_code in effect as of the date of decedent's death and all rule references are to the tax_court rules_of_practice and procedure except as otherwise noted harry and helen williamson decedent were married in california in and resided in california until decedent's death on date real_estate constituted the majority of the spouses' community_property assets while a lesser amount of their community assets consisted of personal_property at all times during the marriage of decedent and harry williamson harry exercised dominion management and control_over all the couple's community assets and legal_title to the community real_estate stood solely in harry's name under decedent's will she confirmed to harry his one-half interest in their community_property and intended to dispose_of her one-half interest after decedent's death decedent's executor in date made demand upon harry williamson for identification and transfer of decedent's one-half interest in the community assets a dispute then arose between decedent's executor and harry concerning the identification and transfer of decedent's one-half interest in the community assets as a result decedent's executor brought an action in the california state courts to establish the claim of decedent's_estate to the community assets seeking an order directing a transfer of the property to decedent's_estate both decedent's_estate and harry williamson were represented by counsel in this action the action by decedent's executor against harry williamson was begun on date because decedent died on date the form_706 united_states estate_tax_return was originally due to be filed on or before date given the dispute between decedent's_estate and her surviving husband and the pending litigation regarding decedent's assets decedent's_estate petitioner herein filed a request for extension of time form in which to file its federal estate_tax_return on date a statement was attached to the request for extension of time which explained that because of the pending dispute between decedent's_estate and harry williamson the executor had been unable to identify inventory or marshal the assets of decedent's_estate the extension of time requested was until date and this request was granted by respondent the federal estate_tax_return was duly filed timely by petitioner on date to that return were attached inter alia a copy of decedent's last will and testament a copy of the california probate_court order appointing the executor of decedent's_estate and a copy of the form_4768 which was petitioner's request for an extension of time to file a federal estate_tax_return and which included an explanation on that extension request form--that because of the ongoing dispute between decedent's_estate and harry williamson it was impossible at the time to identify or value the assets that were returnable as part of decedent's taxable_estate the estate_tax_return itself accordingly did not disclose any such information with respect to these items harry williamson died on date thereafter petitioner and mr williamson's estate agreed to a settlement of petitioner's community_property claim and the probate_court order approving the settlement was entered on date pursuant to that settlement petitioner received from harry williamson's estate cash and real_property valued at dollar_figure a final inventory showing the property and valuation thereof was received date respondent issued a notice_of_deficiency to petitioner on account of decedent's federal estate_tax dated date in that statutory notice respondent correctly determined that the value of decedent's gross_estate exceeded in amount percent of the gross_estate stated in decedent's_estate tax_return which was dollar_figure petitioner thereafter duly brought the present action in this court challenging respondent's determination on the merits and also alleging that respondent's determination was invalid because it was not issued within years from the time the estate_tax_return herein was filed respondent's answer herein asserts that the assets omitted from the gross_estate in the estate_tax_return filed by petitioner are an affirmative defense the statute_of_limitations issue was properly raised in the petition under rule in excess of percent of the gross_estate that the estate_tax_return reported and that respondent's notice_of_deficiency was issued prior to years from the time the estate_tax_return herein was filed petitioner now brings this motion for partial summary_judgment on the ground that the effective statute_of_limitations herein for the determination of an estate_tax deficiency wa sec_3 years under the general_rule of sec_6501 since petitioner's motion if granted would dispose_of the instant case entirely we shall treat petitioner's motion as one for complete summary_judgment under rule b the court may consider and dispose_of a motion for summary_judgment if the facts show that there is no genuine issue as to any material fact and that a decision may be rendered as a matter of law in deciding a motion for summary_judgment however a court must resolve all ambiguities and draw all reasonable inferences in favor of the party against whom summary_judgment is sought with the burden on the moving party to demonstrate the absence of any material factual issue genuinely in dispute 524_f2d_1317 2d cir 452_fsupp_659 w d n y see also estate of ashenhurst v commissioner tcmemo_1982_102 in making the findings_of_fact which we have recited above we have relied solely upon the facts as stipulated by the parties we conclude accordingly that there is no dispute as to any material fact and that we may proceed to dispose_of this case as a matter of law the general period of limitations in both income and estate and gift_tax cases i sec_3 years measured from the date the return is filed until respondent issues the appropriate statutory_notice_of_deficiency sec_6501 various exceptions to the general 3-year rule are provided by the statute for such things as the filing of fraudulent_returns the failure_to_file a return an agreement between the parties extending the time etc of particular interest to us in this case are the provisions of sec_6501 which provide in relevant part as follows e substantial omission of items --except as otherwise provided income taxes --in the case of any_tax imposed by subtitle a-- a general_rule --if the taxpayer omits_from_gross_income an amount properly includable therein which is in excess of percent of the amount of gross_income stated in the return the tax may be assessed or a proceeding in court for the collection of such tax may be begun without assessment at any time within years after the return was filed for purposes of this subparagraph-- ii in determining the amount omitted from gross_income there shall not be taken into account any amount which is omitted from gross_income stated in the return if such amount is disclosed in the return or in a statement attached to the return in a manner adequate to apprise the secretary of the nature and amount of such item estate_and_gift_taxes --in the case of a return of estate_tax under chapter or return of gift_tax under chapter if the taxpayer omits from the gross_estate or from the total amount of the gifts made during the period for which the return was filed items includible in such gross_estate or such total gifts as the case may be as exceed in amount percent of the gross_estate stated in the return or the total_amount_of_gifts stated in the return the tax may be assessed or a proceeding in court for the collection of such tax may be begun without assessment at any time within years after the return was filed in determining the items omitted from the gross_estate or the total gifts there shall not be taken into account any item which is omitted from the gross_estate or from the total gifts stated in the return if such item is disclosed in the return or in a statement attached to the return in a manner adequate to apprise the secretary of the nature and amount of such item the corresponding regulations are of like import see sec_301_6501_e_-1 and b proced admin regs although no estate_tax cases have been found interpreting sec_6501 of the code an examination of sec_6501 and shows that the two are in_pari_materia in dealing with the same subject--the application of the statute of limitations--and accordingly we may give due consideration to income_tax cases in deciding estate_tax cases on this same subject only two gift_tax cases have been found daniels v commissioner tcmemo_1994_591 involving facts not relevant here and 101_tc_499 where the court emphasized that the 6-year statute_of_limitations would not be applied when the return was sufficient to apprise the service of the nature and amount of the omitted item in the 357_us_28 an income_tax case the supreme court interpreting the meaning of this statutory language said we think that in enacting sec_275 the predecessor of sec_6501 congress manifested no broader purpose than to give the commissioner an additional now years to investigate tax returns in cases where because of a taxpayer's omission to report some taxable item the commissioner is at a special disadvantage in detecting errors in such instances the return on its face provides no clue to the existence of the omitted item on the other hand when as here the understatement of a tax arises from an error in reporting an item disclosed on the face of the return the commissioner is at no such disadvantage this court has interpreted the supreme court's clue standard to mean not a detailed revelation of each and every underlying fact but also that it does not simply mean a 'clue' which would be sufficient to intrigue a sherlock holmes quick trust v commissioner 54_tc_1336 affd 444_f2d_90 8th cir furthermore in interpreting this statutory language common to both income and estate_tax provisions in sec_6501 relating to the omission as disclosed in the return or in a statement attached to the return in a manner adequate to apprise the secretary of the nature and amount of such item we have held that disclosure of the omitted material is adequate even without disclosing exact dollar amounts quick trust v commissioner supra 64_tc_460 morris v commissioner tcmemo_1966_245 the disclosure statement however must be sufficiently detailed so that a decision whether to select the return for audit may be a reasonably informed one 98_tc_341 affd in part and revd in part 998_f2d_567 8th cir in this case the application_for extension of time to file the estate_tax_return included a written_statement as to the reasons for requesting the delay that because of a dispute between decedent's_estate and her surviving husband the estate was unable to list and value the items of the estate that should be returned when the federal estate_tax_return of decedent was filed on date those facts were still unknown but that extension of time form with its explanatory statement was attached to the return we think this extension of time with explanation which was adhered to by petitioner was a statement attached to the return and thus falls within the language of sec_6501 it gave adequate notification to respondent of petitioner's failure to itemize and value specific items of decedent's gross_estate that concededly should be returned for estate_tax purposes and the reasons therefor the estate_tax_return itself said nothing to the contrary in fact as the stipulated facts show petitioner did not find out the items of the gross_estate and their value which properly formed part of decedent's gross_estate until date under these circumstances we agree with petitioner that the general 3-year statute_of_limitations applies in this case rather than the 6-year statute_of_limitations provided by sec_6501 accordingly since the parties have stipulated that the statutory_notice_of_deficiency herein was issued more than years after the estate_tax_return was filed such notice_of_deficiency was barred by the statute_of_limitations petitioner's motion for partial summary_judgment will be granted an order granting petitioner's motion for partial summary_judgment and a decision for petitioner will be entered


internal_revenue_service department of the treasury number release date index number u i l no washington dc person to contact telephone number refer reply to cc psi plr-111283-00 date date legend company state shareholders a b dear this letter responds to a letter dated date requesting a ruling on behalf of company under sec_1362 of the internal_revenue_code the information submitted discloses that company was incorporated on a in state company has two shareholders shareholders it is represented that company has intended to be an s_corporation since b however company discovered that its s election had not been timely filed company requests a ruling that its sec_1362 election will be treated as timely made for its taxable_year that begins on b sec_1362 provides that a small_business_corporation may elect to be an s_corporation sec_1362 explains when an s election will be effective generally if an s election is made within the first two and one half months of a corporation's taxable_year then that corporation will be treated as an s_corporation for the year in which the election is made sec_1362 provides that if an s election is made after the first two and one half months of a corporation's taxable_year then that corporation will not plr-111283-00 be treated as an s_corporation until the taxable_year following the year in which the s election is made sec_1362 provides that if no sec_1362 election is made for any taxable_year and the secretary determines that there was reasonable_cause for the failure to timely make such election then the secretary may treat such an election as timely made for such taxable_year and sec_1362 shall not apply applying the relevant law to the facts submitted and representations made we rule that company's sec_1362 election will be treated as timely made for its taxable_year that begins on b however this ruling is contingent on company filing form_2553 election by a small_business_corporation with an effective date of b with the appropriate service_center within days from the date of this ruling a copy of this letter should be attached to the form_2553 the rulings contained in this letter are based upon information and representations submitted by the taxpayer and accompanied by a penalty of perjury statement executed by an appropriate party while this office has not verified any of the material submitted in support of the request for rulings it is subject_to verification on examination except as specifically set forth above we express no opinion concerning the federal tax consequences of the foregoing facts specifically we express no opinion on whether company otherwise qualifies as an s_corporation pursuant to a power_of_attorney on file with this office a copy of this letter is being sent to the taxpayer this ruling is directed only to the taxpayer who requested it sec_6110 provides that it may not be used or cited as precedent sincerely yours robert honigman acting assistant to the chief branch office of the associate chief_counsel passthroughs and special industries enclosure copy for sec_6110 purposes


t c memo united_states tax_court john david zielonka petitioner v commissioner of internal revenue respondent docket no filed date john david zielonka pro_se ladd c brown jr for respondent memorandum findings_of_fact and opinion dawson judge this case was assigned to special_trial_judge robert n armen jr pursuant to the provisions of sec_7443a of the internal_revenue_code_of_1986 as amended and rule sec_180 sec_181 and sec_183 the court agrees with and adopts the opinion of the special_trial_judge which is set forth below opinion of the special_trial_judge armen special_trial_judge respondent determined deficiencies in petitioner's federal income taxes for the taxable years and as well as additions to tax and penalties for negligence as follows addition_to_tax penalty year deficiency sec_6651 sec_6662 dollar_figure big_number dollar_figure dollar_figure big_number big_number the issues for decision are whether petitioner is entitled to gambling_losses in the amounts of dollar_figure and dollar_figure for and respectively whether petitioner is liable pursuant to sec_6651 for additions to tax for failure to timely file his income_tax returns for and and whether petitioner is liable pursuant to sec_6662 for accuracy-related_penalties for negligence for and findings_of_fact some of the facts have been stipulated and they are so found petitioner resided in miami beach florida at the time that his petition was filed with the court unless otherwise indicated all section references are to the internal_revenue_code in effect for the taxable years in issue and all rule references are to the tax_court rules_of_practice and procedure general background petitioner began gambling in sometime thereafter petitioner developed into a compulsive gambler during and the taxable years in issue petitioner attended the dog and horse racing tracks on a regular and frequent basis during those years petitioner gambled on a full-time basis and was not otherwise gainfully_employed at trial petitioner did not introduce any books_or_records reflecting his gambling winnings and losses petitioner does not remember whether he maintained books_or_records reflecting his gambling winnings and losses for petitioner maintained a gambling log for however such log was not accurate because in petitioner's opinion it was time-consuming to make it precise the income_tax returns on his and federal income returns petitioner identified his occupation as a professional gambler and reported gambling winnings in the amounts of dollar_figure and dollar_figure respectively of the dollar_figure reported as gambling winnings on the return dollar_figure represent winnings for which forms w-2g were issued the remaining dollar_figure represent petitioner's estimate of his winnings for that year although the record is not perfectly clear it would appear that the gambling winnings reported on the return represent only winnings for which forms w-2g were issued on schedule a of his and returns petitioner deducted gambling_losses in the amount of his reported winnings ie dollar_figure and dollar_figure respectively petitioner filed his income_tax returns for and in date the notice_of_deficiency in the notice_of_deficiency respondent determined deficiencies in petitioner's federal income taxes in the amounts of dollar_figure and dollar_figure for and respectively specifically respondent determined that petitioner failed to substantiate his gambling_losses accordingly respondent disallowed the gambling loss deductions claimed by petitioner on schedule a of his and returns in the notice_of_deficiency respondent also determined that for and petitioner was liable for additions to tax under sec_6651 for failure to timely file income_tax returns and accuracy-related_penalties under sec_6662 for negligence wagering losses opinion sec_165 provides for a deduction for losses from gambling transactions to the extent of gains from such transactions sec_165 sec_1_165-10 income_tax regs respondent determined that petitioner failed to substantiate deductions that he claimed for gambling_losses on his and income_tax returns petitioner bears the burden of proving error in respondent's determination rule a 503_us_79 290_us_111 specifically petitioner bears the burden of establishing that he sustained the gambling_losses that he claimed on his and income_tax returns rule a 68_tc_867 the issue is factual and must be decided on the evidence presented 66_tc_538 sec_6001 requires taxpayers to keep books_and_records adequate to substantiate their income and deductions see sec_1_6001-1 income_tax regs if the trial record provides sufficient evidence that a taxpayer has incurred a deductible expense but the taxpayer is unable to adequately substantiate the amount of the deduction to which he or she is otherwise entitled the court may under certain circumstances estimate the amount of such expense and allow the deduction to that extent 39_f2d_540 2d cir however in order for the court to estimate the amount of an expense we must have some basis upon which an estimate may be made 85_tc_731 without such a basis any allowance would amount to unguided largesse 245_f2d_559 5th cir at trial petitioner admitted that he could not remember whether he maintained contemporaneous_records of his gambling activity for at trial petitioner also admitted that although he maintained records of his gambling activity for such records were inaccurate in any event petitioner did not provide the court with any records or documentation whatsoever regarding his gambling activity for either or the only evidence presented by petitioner to support the deductions for gambling_losses was petitioner's own testimony we recognize that petitioner must have sustained some losses in view of his substantial gambling activity however we are reminded of petitioner's testimony that petitioner estimated a portion of the gambling winnings reported on his return moreover the gambling winnings that were reported on the return appear to represent only those winnings for which forms w- 2g were issued thus we have no assurance that petitioner reported all of his gambling winnings this uncertainty together with the complete absence of any documentation or other credible corroborating evidence concerning petitioner's gambling activity precludes us from estimating petitioner's alleged losses under the rule_of cohan v commissioner supra accordingly we hold that petitioner has failed to carry his burden_of_proof petitioner is therefore not entitled to deduct any gambling_losses for and sec_6651 addition_to_tax the addition_to_tax under sec_6651 is imposed on a taxpayer who fails to file an income_tax return in a timely fashion unless the taxpayer's failure is due to reasonable_cause and not willful neglect petitioner bears the burden of proving that his failure to timely file is due to reasonable_cause and not due to willful neglect rule a 78_tc_154 petitioner's income_tax return for was due on monday date and petitioner's return for was due on date sec_6072 sec_7503 however petitioner's returns for and were filed in date petitioner offered no persuasive evidence indicative of reasonable_cause to file late this court has consistently held that a taxpayer's failure although petitioner reported his gambling_losses on schedule a rather than on schedule c he considered himself to be a professional gambler in contrast respondent considers petitioner to be an amateur gambler however because of our holding that petitioner is not entitled to deduct any gambling_losses for and we need not decide petitioner's status as a professional or amateur gambler see groetzinger v 480_us_23 to file a timely return because the taxpayer thought that no taxes were due does not constitute reasonable_cause within the meaning of sec_6651 see colbert v commissioner tcmemo_1992_30 and cases cited therein accordingly we hold that petitioner is liable for the additions to tax under sec_6651 for and sec_6662 accuracy-related_penalty sec_6662 provides that if any portion of an underpayment_of_tax is attributable to negligence or disregard of rules or regulations then there shall be added to the tax an amount equal to percent of the amount of the underpayment which is so attributable the term negligence includes any failure to make a reasonable attempt to comply with the statute and the term disregard includes any careless reckless or intentional disregard sec_6662 petitioner bears the burden of proving that he is not liable for the accuracy-related_penalty rule a indopco inc v commissioner supra welch v helvering supra petitioner did not address the penalty for negligence at trial and therefore failed to carry his burden_of_proof in any event we note that petitioner's failure to maintain accurate and complete records of his gambling activity would suffice to sustain respondent's determination accordingly we hold that petitioner is liable for accuracy-related_penalties for and conclusion to give effect to our disposition of the disputed issues decision will be entered for respondent


internal_revenue_service p o box cincinnati oh release number release date date department of the treasury employer_identification_number contact person - id number contact telephone number legend uil b name of scholarship program c name of school district d state j number k number m dollars amount n dollars amount dear you asked for advance approval of your scholarship grant procedures under internal_revenue_code sec_4945 this approval is required because you are a private_foundation that is exempt from federal_income_tax you requested approval of your scholarship program to fund the education of certain qualifying students our determination we approved your procedures for awarding scholarships based on the information you submitted and assuming you will conduct your program as proposed we determined that your procedures for awarding scholarships meet the requiremerits of code sec_4945 as a result expenditures you make under these procedures won't be taxable also awards made under these procedures are scholarship or fellowship grants and are not taxable to the recipients if they use them for qualified_tuition_and_related_expenses subject_to the limitations provided in code sec_117 description of your request your letter indicates you will operate a scholarship program called b letter catalog number 58263t you will provide scholarships to high school seniors of c who demonstrate a strong entrepreneurial spirit and are interested in obtaining a higher education in the state of d to enhance his or her entrepreneurial opportunities you will award between j to k number of scholarships per year in the range of dollar_figurem to dollar_figuren dollars each your criteria for selecting the scholarship recipients will be as follows e e high school senior from c planning to attend a college or vocational school in d in addition to the requirements listed above scholarships will be granted to applicants exhibiting exemplary levels of the following criteria applicant should be goal-oriented self-motivated exemplifying an entrepreneurial spirit possess a clear vision of what he or she desires for his or her future and display passion integrity innovation accountability and other character traits that you hold in high regard applicant can demonstrate that he or she has encountered and overcome some sort of hardship such as personal or family illness high-risk or criminal parental behaviors loss of a loved one etc e the applicants will be asked to submit an essay or video no longer than three minutes describing what being an entrepreneur means to him or her and how he or she will use entrepreneurship to achieve his or her dream for the future you will publicize the scholarship in the following ways emails to all high school seniors in the school district and their parents postings on the school district schools’ websites e e e announcements in school district newsletters e posters in school district schools the screening and selection process to determine recipients is as follows e screening committees at each high school will perform an initial review to find ten applicants from their high school that best fits your criteria each committee is composed of two divisions one is composed of community volunteers who do not have close knowledge of the students and the second group is composed of teachers and administrators from the high school the community volunteers give each application a score based on the scholarship criteria this score is then used by the high school staff division of the committee to narrow down applications before arriving at a group consensus on the finalists your scholarship review committee comprised of six to eight year-round volunteers will read and fill out a score card for each of the remaining applications committee members are asked to recuse themselves from scoring an applicant if they happen to know the person being scored based on the score letter catalog number 58263t cards you will extend an interview to the top six to eight candidates interviews with finalists are scheduled through the school district scholarship coordinator your review committee then meets with each finalist to ask them pre-scripted questions based on the interviews one to five applicants will be selected as recipients of the scholarship award the size of the award will depend on the number of recipients scholarships will be provided to recipients as one-time grants paid directly to the higher educational_institution the recipient chooses to attend under an arrangement whereby the school will apply the grant funds toward tuition fees only for enrolled students who are in good standing the scholarship recipient will be required to provide a report to you upon the conclusion of the school year during which the grant was administered the report will describe the studies the recipients have pursued during the past year a description of any extracurricular activities participated in and a reflection on the goals that had originally been articulated in their scholarship application you represented that you will investigate diversions of funds from their intended purposes take all reasonable and appropriate steps to recover diverted funds ensure other grant funds held by a recipient are used for their intended purposes and withhold further payments to recipients until you obtain recipients’ assurances that future diversions will not occur and that recipients will take extraordinary precautions to prevent future diversions from occurring you represented that you will maintain all records relating to individual grants including information obtained to evaluate recipients identify whether a recipient is a disqualified_person establish the amount and purpose of each grant and establish that you undertook the supervision and investigation of grants basis for our determination the law imposes certain excise_taxes on the taxable_expenditures of private_foundations code sec_4945 a taxable_expenditure is any amount a private_foundation pays as a grant to an individual for travel study or other similar purposes however a grant that meets all of the following requirements of code sec_4945 is not a taxable_expenditure e e e e the foundation awards the grant on an objective and nondiscriminatory basis the irs approves in advance the procedure for awarding the grant the grant is a scholarship or fellowship subject_to the provisions of code sec_117 the grant is to be used for study at an educational_organization described in code sec_170 a ii letter catalog number 58263t other conditions that apply to this determination this determination only covers the grant program described above this approval will apply to succeeding grant programs only if their standards and procedures don't differ significantly from those described in your original request this determination applies only to you it may not be cited as a precedent you cannot rely on the conclusions in this letter if the facts you provided have changed substantially you must report any significant changes to your program to the cincinnati office of exempt_organizations at internal_revenue_service exempt_organizations determinations p o box cincinnati oh you cannot award grants to your creators officers directors trustees foundation managers or members of selection committees or their relatives all funds distributed to individuals must be made on a charitable basis and further the purposes of your organization you cannot award grants for a purpose that is inconsistent with code sec_170 b you should keep adequate_records and case histories so that you can substantiate your grant distributions with the irs if necessary please keep a copy of this letter in your records lf you have questions please contact the person listed at the top of this letter sincerely director exempt_organizations letter catalog number 58263t


internal_revenue_service number info release date index number ------------------------------------------------ ------------------------- ---------------------------------- ------------------------ department of the treasury washington dc person to contact -------------------- id no ----------------- telephone number --------------------- refer reply to cc psi b1 - genin-160624-04 date jan dear ------------ this responds to a letter dated date submitted by your representative in which it was requested that we recognize your election to be an s_corporation effective for the tax_year you are eligible for the relief granted within revproc_2003_43 however the letter sent on your behalf does not conform to the requirements specified within that revenue_procedure you should ensure to take these steps to satisfy rev_proc form_2553 should be filed with the cincinnati service_center by date the filed form_2553 the statement filed pursuant to rev_proc should appear at the top of a statement establishing reasonable_cause for the failure to timely file form_2553 should be attached to the filed form_2553 the filed form_2553 must be signed by an officer eg the president and by all persons who were shareholders at any time during the period that began on the first day of the taxable_year for which the election is to be effective we hope that this information is helpful to you if you have additional questions please contact ---------------at --------------------- not a toll-free call s dianna k miosi sincerely dianna k miosi chief branch office of the associate chief_counsel passthroughs and special industries enclosures revproc_2003_43


department of the treasury internal_revenue_service washington d c tax_exempt_and_government_entities_division release number release date date date uil dollar_figure -01 contact person identification_number telephone number employer_identification_number legend fund union dear this is in reply to your letter of date submitted on behalf of trust requesting a ruling concerning whether providing benefits to the former spouses of its participants will adversely affect trust’s exemption under sec_501 of the internal_revenue_code the code’ the fund is a jointly trusted multi-employer fringe benefit fund established by the union and signatory employers for the purpose of providing insurance benefits under sec_501 of the code the fund currently provides medical hospital surgical benefits prescription drug coverage accidental death and related insurance life_insurance disability vision dental legal services and supplemental accident benefits to the union’s members and eligible dependents the fund was established as a part of a larger scheme of providing a fringe benefit package to the union’s members the fund would like to assist its participants by continuing to provide health care coverage to their spouses even after divorce through the related insurance fund the trustees approved a motion to allow court- ordered continuation_coverage for ex-spouses to be maintained under the eligible participant's account the coverage is to be provided only to the participant's ex- spouse if that participant was ordered to pay for coverage under the terms of a qualified divorce judgment the coverage will be provided for whatever period is specified in the judgment unless the former spouse remarries the fund represents that it will maintain separate_accounting for health benefits and group_life_insurance benefits the fund also represents that the fair_market_value of the health coverage for former spouses will be included in the participant's gross_income rulings requested the fund meets the tax-exempt requirements of sec_501 of the code if it provides permissible benefits without limitation to former spouses who are dependents within the meaning of sec_152 of the code and sec_1_501_c_9_-3 of the regulations the fund’s tax-exempt status under sec_501 of the code will not be jeopardized if impermissible benefits are provided to former spouses who are not dependents within the meaning of sec_152 of the code and sec_1_501_c_9_-3 of the regulations as long as the total amount of impermissible benefits is three percent or less of the total of all benefits paid to all beneficiaries of the fund in the plan_year law sec_104 of the code provides that except in the case of amounts attributable to and not in excess of deductions allowed under sec_213 relating to medical_expenses for any prior taxable_year gross_income does not include amounts received through accident_or_health_insurance or through an arrangement having the effect of accident_or_health_insurance for personal injuries or sickness other than amounts received by an employee to the extent such amounts a are attributable to contributions by the employer which were not included in the gross_income of the employee or b are paid_by the employer sec_105 of the code provides that except as otherwise provided in sec_105 amounts received by an employee through accident_or_health_insurance for personal injuries or sickness shall be included in the gross_income to the extent such amounts are attributable to contributions by the employer which were not includable in the gross_income of the employee or paid_by the employer sec_105 of the code provides that except in the case of amounts attributable to and not in excess of deductions allowed under sec_213 relating to medical_expenses for any prior taxable_year gross_income does not include the amounts referred to in subsection a if such amounts are paid directly or indirectly to the taxpayer to reimburse the taxpayer for expenses_incurred by him for the medical_care as defined in sec_213 of the taxpayer his spouse and his dependents as defined in sec_152 coverage under an accident_or_health_plan for personal injuries or sickness incurred by individuals other than the employee his or her spouse or his or her dependents as defined in sec_152 is not excludable from the employee’s gross_income under sec_106 in addition reimbursements received by the employee through an employer-provided accident_or_health_plan are not excludable from the employee’s gross_income under sec_105 unless the reimbursements are for medical_expenses incurred by the employee his or her spouse or his or her dependents as defined in sec_152 however reimbursements that are not excludable under sec_105 may be excludable under sec_104 if they are attributable to employer contributions that were included in the employee's gross_income sec_106 of the code provides that an accident_or_health_plan is an arrangement for the payment of amounts to employees in the event of personal injuries or sickness sec_1_106-1 of the regulations provides that the gross_income of an employee does not include contributions which his employer makes to an accident_or_health_plan for compensation through insurance or otherwise to the employee for personal injuries or sickness incurred by him his spouse or his dependents as defined in sec_152 sec_501 of the code provides that the organizations exempt from income_tax under sec_501 a of the code include a voluntary employees’ beneficiary association veba providing for the payment of life sick accident or other_benefits to the members of such association or their dependents or designated beneficiaries if no part of the net_earnings of such association inures other than through such payments to the benefit of any private_shareholder_or_individual sec_1_501_c_9_-3 of the regulations provides that for purposes of sec_501 of the code dependent means the member's spouse any child of the member or the member’s spouse who is a minor or a student any other minor child residing with the member and any other individual who an association relying on information furnished to it by a member in good_faith believes is a person described in sec_152 of the code it also provides that the life sick accident or other_benefits provided by a veba must be payable to its members their dependents or their designated beneficiaries and that a veba is not operated for the purpose of providing life sick accident or other_benefits unless substantially_all of its operations are in furtherance of the provision of such benefits further an organization is not described it systematically and knowingly provides benefits of more than a in sec_501 if de_minimis amount that are not permitted by paragraphs b c d or e of this section sec_1_501_c_9_-3 through e of the regulations detail the types of benefits that a tax-exempt veba may provide as well as who is eligible to receive the benefits these benefits include life sick and accident and certain other_benefits permissible benefits sec_1_501_c_9_-3 defines a life benefit as a benefit including a burial benefit or a wreath payable by reason of the death of a member or dependent sec_1_501_c_9_-3 defines sick_and_accident_benefits to mean amounts furnished to or on behalf of a member or a member’s dependents in the event of illness or personal injury to a member or dependent sec_1_501_c_9_-3 provides that the term other_benefits includes only benefits that are similar to life sick or accident benefits a benefit is similar to a sick or accident benefit if life it is intended to safeguard or improve the health of a member or a member's dependents or it protects against a contingency that interrupts or impairs a member's earning power sec_1 c -3 f provides examples of nonqualifying benefits which are benefits not described in paragraphs d or e as being other_benefits sec_152 provides in general that the term dependent means a qualifying_child or a qualifying_relative ruling one analysis the issue is whether fund may maintain its tax exempt status under sec_501 of the code if divorce who meet the definition of dependent under sec_152 of the code and sec_1_501_c_9_-3 of the regulations c of the code it provides health benefits to ex-spouses under a judgment of sec_152 of the code defines the term dependent to include among others any of the following individuals over half of whose support for the calendar_year in which the taxable_year of the taxpayer begins was received from the taxpayer sons and daughters stepsons and stepdaughters nieces and nephews aunts and uncles in- laws and an individual other than the spouse who for the taxable_year has as his her principal_place_of_abode the home of the taxpayer and is a member of the taxpayer's household sec_1_501_c_9_-3 of the regulations allows a tax-exempt veba to provide permissible benefits to individuals who an association relying on information furnished to it by a member in good_faith believes is a person described in sec_152 of the code fund may provide permissible benefits to former spouses who meet the definition of dependent set forth in sec_152 of the code sec_501 regulations require fund to obtain information to determine whether former spouses meet the definition of dependent under these circumstances fund does not jeopardize its tax- exempt status under sec_501 of the code by providing permissible benefits to former spouses who meet the definition of dependent set forth in sec_152 of the code and as dependents within the meaning of sec_1_501_c_9_-3 of the regulations any permissible benefits provided to dependents are not impermissible benefits described in sec_1_501_c_9_-3 of the regulations ruling two the issue is whether fund may provide impermissible benefits to non-dependent former spouses pursuant to a judgment of divorce without adversely affecting fund’s tax-exempt status under sec_501 of the code sec_1_501_c_9_-3 of the regulations allows an exempt veba to provide a de_minimis amount of benefits that are not permitted by paragraphs b c d or e of sec_1_501_c_9_-3 the fund describes the amount of benefits it will provide to former spouses of participants as de_minimis the fund represents that the total amount of impermissible benefits it will provide in a plan_year including health benefits to non-dependent former spouses will not exceed three percent of the total of all benefits it provides in the plan_year to all beneficiaries of the fund under these facts fund providing impermissible benefits of three percent or less of the total of all benefits provided by fund in a plan_year will not adversely affect the tax-exempt status of the fund under sec_501 of the code rulings based on the information submitted representations made and the authorities cited above we conclude as follows the fund meets the tax-exempt requirements of sec_501 of the code if partners who are dependents within the meaning of sec_152 of the code it provides permissible benefits without limitation to domestic and sec_1_501_c_9_-3 of the regulations the fund may provide benefits to former spouses who are not dependents within the meaning of sec_152 of the code and sec_1_501_c_9_-3 of the regulations without adversely affecting fund’s tax-exempt status under sec_501 of the code provided the total amount of impermissible benefits provided by the fund in a plan_year is three percent or less of the total of all benefits provided by the fund in the plan_year to all beneficiaries in addition the fund will in accordance with applicable law include in the gross_income of members or employees the fair_market_value of the health coverage for former spouses who are not dependents of the participants or employees this ruling will be made available for public inspection under sec_6110 of the code after certain deletions of identifying information are made for details see enclosed notice notice of intention to disclose a copy of this ruling with deletions that we intend to make available for public inspection is attached to notice if you disagree with our proposed deletions you should follow the instructions in notice this ruling is directed only to the organization that requested it sec_6110 of the code provides that it may not be used or cited by others as precedent this ruling is based on the facts as they were presented and on the understanding that there will be no material changes in these facts this ruling does not address the applicability of any section of the code or regulations to the facts submitted other than with respect to the sections described because it could help resolve questions concerning your federal_income_tax status this ruling should be kept in your permanent records if you have any questions about this ruling please contact the person whose name and telephone number are shown in the heading of this letter in accordance with the power_of_attorney currently on file with the internal_revenue_service we are sending a copy of this letter to your authorized representative sincerely theodore lieber manager exempt_organizations technical group enclosure notice


internal_revenue_service department of the treasury index number u i l no washington dc number release date legend person to contact telephone number refer reply to cc dom p si plr-105391-99 date date company state shareholder a dear this letter responds to a letter dated date requesting a ruling on behalf of company under sec_1362 of the internal_revenue_code the information submitted discloses that company was incorporated on a in state company has one shareholder shareholder it is represented that company has intended to be an s_corporation since its incorporation believing itself to be an s_corporation company has operated accordingly since a after the end of its taxable_year beginning on a however company discovered that its s election had not been timely filed company requests a ruling that its sec_1362 election will be treated as timely made for its taxable_year that begins on a sec_1362 provides that a small_business_corporation may elect to be an s_corporation sec_1362 explains when an s election will be effective generally if an s election is made within the first two and one half months of a corporation's taxable_year plr-105391-99 then that corporation will be treated as an s_corporation for the year in which the election is made sec_1362 provides that if an s election is made after the first two and one half months of a corporation’s taxable_year then that corporation will not be treated as an s_corporation until the taxable_year following the year in which the s election is made sec_1362 provides that if no sec_1362 election is made for any taxable_year and the secretary determines that there was reasonable_cause for the failure to timely make such election then the secretary may treat such an election as timely made for such taxable_year and sec_1362 shall not apply applying the relevant law to the facts submitted and representations made we rule that company's sec_1362 election will be treated as timely made for its taxable_year that begins on a however this ruling is contingent on company filing form_2553 election by a small_business_corporation with an effective date of a with the appropriate service_center within days from the date of this ruling a copy of this letter should be attached to the form_2553 except as specifically set forth above we express no opinion concerning the federal tax consequences of the foregoing facts specifically we express no opinion on whether company otherwise qualifies as an s_corporation and whether company has passive_investment_income as defined in sec_1362 this ruling is directed only to the taxpayer who requested it sec_6110 provides that it may not be used or cited as precedent sincerely yours william p o’shea chief branch office of the assistant chief_counsel passthroughs and special industries enclosure copy for sec_6110 purposes


internal_revenue_service department of the treasury number release date index number washington dc person to contact telephone number refer reply to cc psi b01- plr-102092-03 date march legend x y state date date dear this letter is in response to your request for a written_determination dated date and submitted on behalf of x requesting an extension of time to make an election under sec_754 of the internal_revenue_code facts based on the materials submitted and representations therein the relevant facts are as follows x is a partnership formed under the laws of state on date y a limited_partner in x died on date x’s partnership return was timely filed but inadvertently without a sec_754 election to adjust the basis of partnership property x is seeking to be granted an extension of time to make a sec_754 election x maintains that neither it nor any other parties involved have been notified of the internal revenue service’s discovery of the failure to make a timely sec_754 plr-102092-03 election as of the date of filing this request x represents that it has acted reasonably and is not using hindsight in making the election and that the interests of the government will not be prejudiced by granting relief law and analysis under sec_754 a partnership may elect to adjust the basis of partnership property where there is a distribution_of_property or a transfer of a partnership_interest the election applies to all distributions of property by the partnership and to all transfers of interests in the partnership during the taxable_year that the election applies and all subsequent years sec_1_754-1 of the income_tax regulations provides that an election under sec_754 is made in a written_statement filed with the partnership return for the taxable_year during which the distribution or transfer occurs for the election to be valid the return must be filed no later than the time for filing for the taxable_year including extensions under sec_301_9100-1 of the procedure and administration regulations the commissioner may grant a reasonable extension of time to make a regulatory election or a statutory election but no more than six months except in the case of a taxpayer who is abroad under all subtitles of the code except subtitles e g h and i sec_301_9100-1 defines the term regulatory election as an election whose deadline is prescribed by a regulation published in the federal_register or a revenue_ruling revenue_procedure notice or announcement published in the internal_revenue_bulletin sec_301_9100-2 and sec_301_9100-3 provide the standards the commissioner will use to determine whether to grant an extension of time to make an election sec_301_9100-2 provides automatic extensions of time for making certain elections sec_301_9100-3 provides extensions of time for making elections that do not meet the requirements of sec_301_9100-2 requests for relief under sec_301_9100-3 will be granted when the taxpayer provides evidence to establish that the taxpayer acted reasonably and in good_faith and that granting relief will not prejudice the interests of the government conclusions based on the information submitted and the representations made we conclude that the requirements of sec_301_9100-1 and sec_301_9100-3 have been satisfied as a result x is granted an extension of time of sixty days following the date of this letter to make a sec_754 election the election should be made in a written_statement filed with the applicable service_center for association with x’s return a copy of this letter should be attached to the statement filed a copy of this letter is enclosed for that purpose plr-102092-03 except as specifically set forth above we express no opinion concerning the federal_income_tax consequences of the transactions described above under any other provision of the code this ruling is directed only to the taxpayer requesting it sec_6110 of the code provides that it may not be used or cited as precedent pursuant to the power_of_attorney on file with this office a copy of this letter is being sent to the taxpayer sincerely heather c maloy office of the associate chief_counsel passthroughs special industries enclosures copy of this letter copy for section purposes