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 b03 plr-135113-08 date date x ------------------------------------------------------ ----------------------- legend county ------------ date ----------------------- dear ----------- this letter responds to a letter dated date submitted on behalf of x requesting an extension of time under sec_301_9100-3 of the procedure and administration regulations for x to file an entity classification election under sec_301_7701-3 facts the information submitted states that x was formed under the laws of country on date x represents that x is a foreign_entity eligible to elect to be treated as a disregarded_entity for federal tax purposes x intended to elect to be treated as a disregarded_entity for federal tax purposes effective on date however x did not timely file a form_8832 entity classification election law and analysis 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 plr-135113-08 elect its classification for federal tax purposes as provided in sec_301_7701-3 an eligible_entity with at least two members can elect to be classified as either an association and thus a corporation under sec_301_7701-2 or a partnership and an eligible_entity with a single owner can elect to be classified as an association or to be disregarded as an entity separate from its owner sec_301_7701-3 provides that except as provided in sec_301_7701-3 unless the entity elects otherwise a foreign eligible_entity is a a partnership if it has two or more members and at least one member does not have limited_liability b an association if all members have limited_liability or c disregarded as an entity separate from its owner if it has a single owner that does not have limited_liability sec_301_7701-3 provides in part that an eligible_entity may elect to be classified other than as provided under sec_301_7701-3 by filing form_8832 with the appropriate service_center sec_301_7701-3 provides that an election made under sec_301_7701-3 will be effective on the date specified by the entity on form_8832 or on the date filed if no date is specified on the election form the effective date specified on form_8832 can not be more than days prior to the date on which the election is filed and can not be more than months after the date on which the election is filed sec_301_9100-1 provides that the commissioner may grant a reasonable extension of time under the rules set forth in sec_301_9100-2 and sec_301_9100-3 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 a regulatory election to include an election whose due_date is prescribed by a regulation published in the federal_register sec_301_9100-2 provides the rules governing automatic extensions of time for making certain elections sec_301_9100-3 provides the standards the commissioner will use to determine whether to grant an extension of time for regulatory elections that do not meet the requirements of sec_301_9100-2 sec_301_9100-3 provides that requests for relief subject_to sec_301_9100-3 will be granted when the taxpayer provides the evidence including affidavits described in sec_301_9100-3 to establish to the satisfaction of the commissioner that the taxpayer acted reasonably and in good_faith and the grant of relief will not prejudice the interests of the government conclusion based solely on the facts submitted and representations made we conclude that the requirements of sec_301_9100-3 have been satisfied accordingly x is granted an plr-135113-08 extension of time of sixty days from the date of this letter to elect to be treated as a disregarded_entity for federal tax purposes effective date the election should be made by filing form_8832 with the appropriate service_center a copy of this letter should be attached to the election 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 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 will be sent to your authorized representative sincerely s curtis g wilson associate chief_counsel passthroughs special industries enclosures copy of this letter 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 1-plr-114556-02 date date legend a b c d state date date dear this letter responds to a letter dated date submitted on behalf of a requesting a ruling that a be granted an extension of time under sec_301_9100-3 of the procedure and administration regulations to file an election under sec_301_7701-3 to be classified as an association_taxable_as_a_corporation for federal tax purposes facts according to the information submitted b was incorporated on date under the law of state on date b a corporation was converted into a an llc under the law of state a has two members c and d a intended to elect to be classified as an association_taxable_as_a_corporation for federal tax purposes effective date however a inadvertently failed to timely file the proper election plr-114556-02 law and analysis sec_301_7701-3 provides guidance on the classification of a domestic eligible_entity for federal tax purposes generally a domestic eligible_entity is treated as a partnership if it has two or more members unless the entity makes an election to be classified otherwise a domestic eligible_entity with two or more members may elect to be classified as an association_taxable_as_a_corporation pursuant to the rules under 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 on which 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 code except subtitles e g h and i sec_301_9100-1 defines the term regulatory election as including an election whose deadline is prescribed by a regulation published in the internal_revenue_bulletin 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_9100-1 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 sec_301_9100-3 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 a is granted an extension of time of sixty days from the date of this letter to make an election to be treated as a disregarded_entity for federal tax purposes effective date a 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 except as specifically provided herein no opinion is expressed or implied concerning the federal tax consequences of the facts 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 plr-114556-02 pursuant to the power_of_attorney on file with this office a copy of the letter is being sent to your authorized representative sincerely paul f kugler associate chief_counsel passthroughs and special industries enclosures copy of this letter copy for sec_6110 purposes cc


department of the treasury yi internal_revenue_service p o box irs cincinnati oh number release date date date employer 1d number contact person id number contact telephone number form you must file tax years uil dear this letter is our final_determination that you don’t qualify for tax-exempt status under sec_501 of the internal_revenue_code the code recently we sent you a proposed adverse determination in response to your application the proposed adverse determination explained the facts law and basis for our conclusion and it gave you days to file a protest because we didn’t receive a protest within the required days the proposed determination is now final because you don’t qualify as a tax-exempt_organization under sec_501 of the code donors can’t deduct contributions to you under sec_170 of the code you must file federal_income_tax returns for the tax years listed at the top of this letter using the required form also listed at the top of this letter within days of this letter unless you request an extension of time to file we’ll make this final adverse determination_letter and the proposed adverse determination_letter available for public inspection as required under sec_6110 of the code after deleting certain identifying information please read the enclosed notice notice of intention to disclose and review the two attached letters that show our proposed deletions if you disagree with our proposed deletions follow the instructions in the notice on how to notify us if you agree with our deletions you don’t need to take any further action we’ll also notify the appropriate state officials of our determination by sending them a copy of this final letter and the proposed determination_letter under sec_6104 of the code you should contact your state officials if you have questions about how this determination will affect your state responsibilities and requirements letter rev catalog number 47632s if you have questions about this letter you can contact the person listed at the top of this letter if you have questions about your federal_income_tax status and responsibilities call our customer service number pincite-829-1040 tty for deaf or hard of hearing or customer service for businesses pincite-829-4933 sincerely stephen a martin director exempt_organizations rulings and agreements enclosures notice redacted letter proposed adverse determination under sec_501 redacted letter final adverse determination under sec_501 - no protest letter rev catalog number 47632s department of the treasury internal_revenue_service cincinnati oh legend b date c state d name e name g name of scholarship h public high school j public high school dear date date employer id number contact person id number contact telephone number contact fax number uil we considered your application_for recognition of exemption from federal_income_tax under sec_501 of the internal_revenue_code the code based on the information provided we determined that you don’t qualify for exemption under sec_501 of the code this letter explains the basis for our conclusion please keep it for your records issues do you qualify for exemption under sec_501 of the code no for the reasons stated below facts you were incorporated in c on b your articles of incorporation and bylaws state that you are organized exclusively for charitable religious educational and scientific purposes under sec_501 of the internal_revenue_code you were formed by your president d and his wife e after d was hit by a drunk driver and had both legs amputated your bylaws states that you will conduct various fundraising efforts and awareness campaigns with the sole purpose of providing support and guidance for individuals and families who are suffering due to unexpected tragedies and also to assist organizations that focus on serving disabled or wheelchair bound individuals and amputees you were created in direct response to d’s near-death accident the unforeseen medical_expenses that his family incurred and will continue to incur due to the need for prosthetics and the maintenance of the prosthetics will require extensive funds therefore the family will rely on the generosity and support from individuals and corporations for monetary and in-kind support you not only plan to support d’s needs but also want to connect with other disabled and or wheelchair bound individuals to offer assistance and guidance to them your form_1023 also states your mission is to provide support and guidance to individuals and families who are suffering due to unexpected tragedies and also to assist organizations that focus on serving disabled or wheelchair bound individuals and amputees you will engage in various fundraising and activations in hopes of generating much-needed funds community awareness and long term support you plan to hold a 5k run walk a baseball tournament a domino tournament a golf tournament and ultimately a gala silent auction to raise funds for d and others in need you plan to launch the g scholarship to award one partial- scholarship to a student from h and j each year your proposed budgets show receipts from donations and fundraising events and disbursements for salaries and wages professional fees and other expenses law sec_501 of the internal_revenue_code provides for the exemption from federal_income_tax of organizations organized and operated exclusively for charitable educational and other purposes including the prevention of cruelty to children or animals provided that no part of the net_earnings inure to the benefit of any private_shareholder_or_individual sec_1_501_c_3_-1 provides that in order to be exempt as an organization described in sec_501 an organization must be both organized and operated exclusively for one or more of the purposes specified in such section if an organization fails to meet either the organizational_test or the operational_test it is not exempt sec_1 c -i c provides an organization is not operated exclusively for one or more exempt purposes if its net_earnings inure in whole or in part to the benefit of private shareholders or individuals sec_1 c -i d ii provides that an organization is not organized or operated exclusively for an exempt_purpose unless it serves a public rather than a private interest the organization must demonstrate that it is not organized or operated for the benefit of private interests such as designated individuals the creator or his family shareholders of the organization or persons controlled directly or indirectly by such private interests revrul_67_367 1967_2_cb_188 describes a nonprofit organization whose sole activity was the operation of a ‘scholarship’ plan for making payments to pre-selected specifically named individuals the organization did not qualify for exemption from federal_income_tax under sec_501 of the code because it was serving private rather than public or charitable interests in 326_us_279 the court held that the presence of a single non-exempt purpose if substantial in nature will preclude exemption regardless of the number or importance of statutorily exempt purposes in wendy parker rehabilitation foundation inc v commissioner 52_tcm_51 the organization was created by the parker family to aid an open-ended class of victims of coma however the letter rev catalog number 47630w organization stated that it anticipated spending percent of its income for the benefit of wendy parker significant contributions were made to the organization by the parker family and the parker family controlled the organization wendy’s selection as a substantial recipient of funds substantially benefited the parker family by assisting with the economic burden of caring for her the benefit did not flow primarily to the general_public as required under sec_1 c -1 d ii therefore the foundation was not exempt from federal_income_tax under sec_501 application of law you are not described in sec_501 of the code because you fail the operational_test as described in sec_1 c -1 a sec_1_501_c_3_-1 provides that an organization described in sec_501 must be operated exclusively for one or more of the purposes specified in such section sec_1 c - l c provides an organization is not operated exclusively for one or more exempt purposes if its net_earnings inure in whole or in part to the benefit of private shareholders or individuals your net_earnings inure in part or in whole to the benefit of d and his family you do not therefore meet the operational_test under sec_501 likewise you do not meet the requirement of sec_1_501_c_3_-1 because you are operating for private interests rather than public interests in providing financial assistance to designated individuals your creator d and his family you are like the organization described in revrul_67_367 because you serve a private rather than the public interest having been formed to benefit d a preselected individual you closely resemble the organization described in wendy l parker because you were formed by d family in part to pay his medical_expenses relieving them of their economic burden and his although you indicate that you will also assist other disabled persons you have specifically been raising funds since inception for the non-exempt purpose of aiding d and his family according to the court in better business bureau such a single non-exempt purpose if substantial in nature will preclude exemption regardless of the number or importance of the exempt purposes it serves conclusion based on the facts presented above you fail the operational_test under sec_501 of the code because your funds inure to d and e and are operating for private rather than public interests therefore you do not qualify for exemption under sec_501 if you don’t agree you have a right to file a protest if you don’t agree with our proposed adverse determination to do so you must send a statement to us within days of the date of this letter the statement must include e e your name address employer_identification_number ein and a daytime phone number acopy of this letter highlighting the findings you disagree with letter rev catalog number 47630w e e e e anexplanation of why you disagree including any supporting documents the law or authority if any you are relying on the signature of an officer director trustee or other official who is authorized to sign for the organization or your authorized representative one of the following declarations for an officer director trustee or other official who is authorized to sign for the organization under penalties of perjury i declare that i examined this protest statement including accompanying documents and to the best of my knowledge and belief the statement contains all relevant facts and such facts are true correct and complete for authorized representatives under penalties of perjury i declare that i prepared this protest statement including accompanying documents and to the best of my knowledge and belief the statement contains all relevant facts and such facts are true correct and complete your representative attorney certified_public_accountant or other individual enrolled to practice_before_the_irs must file a form_2848 power_of_attorney and declaration of representative with us if he or she hasn’t already done so you can find more information about representation in publication practice_before_the_irs and power_of_attorney we'll review your protest statement and decide if you provided a basis for us to reconsider our determination if so we’ll continue to process your case considering the information you provided if you haven’t provided a basis for reconsideration we’ll forward your case to the office of appeals and notify you you can find more information about the role of the appeals_office in publication how to appeal an irs decision on tax- exempt status if you don’t file a protest within days you can’t seek a declaratory_judgment in court at a later date because the law requires that you use the irs administrative process first sec_7428 of the code where to send your protest please send your protest statement form_2848 if needed and any supporting documents to the applicable address u s mail street address for delivery service internal_revenue_service eo determinations quality assurance room p o box cincinnati oh internal_revenue_service eo determinations quality assurance main street room cincinnati oh letter rev catalog number 47630w you can also fax your statement and supporting documents to the fax number listed at the top of this letter if you fax your statement please contact the person listed at the top of this letter to confirm that he or she received it if you agree if you agree with our proposed adverse determination you don’t need to do anything if we don’t hear from you within days we’ll issue a final adverse determination_letter that letter will provide information on your income_tax filing_requirements you can find all forms and publications mentioned in this letter on our website at www irs gov formspubs if you have questions you can contact the person listed at the top of this letter sincerely stephen a martin director exempt_organizations rulings and agreements enclosure publication letter rev catalog number 47630w


feb a w997 internal_revenue_service national_office technical_advice_memorandum index no control no taxpayers’ names cc ebeo br5- tam-78156-96 taxpayers’ address taxpayer_identification_number kthis document may nob be us sec_6110 j ed or cited as precedent of the internal_revenue_code years involved date of conference legend corporation a b insurance_company issue whether the proper premium rates were used to determine the cost of insurance in connection with arrangements split dollar life_insurance facts a and b are executives of corporation two life_insurance policies owned by corporation are at issue in this memorandum both dollar_figure 6u policies were issued by insurance_company the insured on one of the policies and b other corporation a and b whereby the death_benefits paid under the policies will be split between corporation and the executives in a manner set forth in the agreements the entire cost of the premiums for both policies is paid_by corporation has entered into separate agreements with is the insured of the a is the person named as the policy on a‘s life is a flexible premium variable whole upon a‘s death life policy with a face_amount of dollar_figure million insurance_company will pay insurance proceeds to corporation in an amount equal to total premiums_paid or advanced by corporation in the remaining insurance proceeds will connection with the policy be paid to a‘s spouse the proceeds to be paid upon a‘s death is based on a formula that includes the policy’s face_amount and its policy account under the terms of the policy the amount of a participating whole life policy the policy on b‘s life is dividends payable may be taken as with a face_amount of dollar_figure cash used to pay premiums or provide paid-up additional whole life upon insurance or left in the policy to accumulate with interest b's death insurance_company will pay proceeds to corporation in an amount equal to total premiums_paid or advanced by corporation in connection with the policies to corporation insurance proceeds will be paid to b’s spouse the remaining for purposes of calculating the value of the current insurance protection to a and b insurance_company and or its agent supplied corporation with premium rates applicable to a yearly renewable a memorandum from insurance_company to term plan for three years its agency managers concerning these rates states in relevant part this term policy is renewable annually to the end of the there is no conversion privilege third policy year it the policy has a minimum face_amount of dollar_figure available on an annual premium basis only and is non- participating is there are two premium bands a there are separate male female and the unisex rates are for the employer- premiums are guaranteed low band for policies with face amounts up to dollar_figure and a high band for policies with face amounts of dollar_figure and above unisex rates sponsored market only should be added to the first-year premium to determine the actual economic benefit for split-dollar and pension_plan sales displayed in exhibit i insureds who are smokers retained since there will be no rate leaflet standard and class premium rates are class s rates are applicable to this exhibit should be the policy fee is dollar_figure this fee only regular underwriting is available the policy is not available on a preferred classified or substandard basis internal_revenue_service rulings permit the use of an insurer’s yearly renewable term premium rates available to all standard risks in lieu of use these first-year term rates in single-life split- dollar sales illustrations rates ps agents may separate sales illustrations for the policy itself are not available fhe rates in the various tables attached to the memorandum are for each issue age increasing similarly the rates for policy year are higher than those by issue age and by policy year rates are provided for policy year sec_1 through policy year are higher than those for year age for year standard high-band table the annual rates per dollar_figure of insurance at issue age x are dollar_figure in policy year dollar_figure in policy year the rates are dollar_figure and dollar_figure in policy year and dollar_figure in policy year in policy year for instance under the unisex dollar_figure in policy year at the next issue age at the next issue at issue age x i the rates for the estimates for all policy years are insurance_company or its agent calculated for corporation the amounts includible in the income of the executives using the high- band standard unisex rates based on the executives’ ages but use the rates for policy year for all years based on a rate of dollar_figure for a who was age x the rate for policy following year are based on a rate of dollar_figure the rate for policy year at issue age x rather than dollar_figure the year for an individual whose policy was issued at age x calculations included at least for the first two years the dollar_figure policy fee for example in the year of issue calculations are calculations for the law_ and analysis of the annual premiums revrul_64_328 1964_2_cb_11 considers a so-called split dollar arrangement in which the employer provides the funds to pay the part of the annual premiums equal to the increase in the policy's cash_surrender_value each year and the employee pays the the employer is entitled balance if any to receive out of the proceeds of the policy an amount equal to the policy’s cash_surrender_value or at least a sufficient part thereof to equal the funds it has provided for premium payments the employee has the right to name the beneficiary of the balance of the effect any proceeds payable by reason of the employee’s death of the arrangement is that the earnings on the investment element in the contract are used to provide all or a portion of the cost of the employee's insurance protection an economic benefit the value of which must be included in the employee’s gross_income the service o t f a continuing annual_benefit so long as states in that ruling that in a situation in which the economic benefit to the employee is the split dollar arrangement is kept in force the amount to be included annually is the annual value of the benefit received by the employee under the arrangement therein the ruling holds that the value of the benefit received by the employee is an amount equal to the one-year term cost of the life_insurance protection to which the employee is entitled from less the portion if any provided by the employee year to year the ruling further holds that the cost of life_insurance protection as shown in the table contained in revrul_55_747 1955_2_cb_228 may be used to compute the one-year term cost under the arrangement described revrul_66_110 1966_1_cb_12 amplified by rev_rul the however the employee may receive other_benefits such a sec_11 provides that in the arrangement described in c b rul current insurance protection is the only economic rev benefit that the employee receives and consequently only the value of that benefit is referred to as being includible in the employee's income cash dividends or additional life_insurance the value of which would likewise be includible in the employee’s gross_income amount includible in the employee's gross_income each year is equal to the excess of the total value of all the benefits received under the arrangement for such year over the amount if any provided by the employee for that year dividends payable under a policy that if the dividend is distributed to the employee the amount of the dividend must be aggregated with the other_benefits received by the employee under the arrangement for purposes of determining the amount includible in similarly if the dividend is used to the employee's gross_income purchase for the employee additional one-year term_insurance or paid-up -life insurance in which the employee has a nonforfeitable interest for a period of more that one year the employee receives an additional economic benefit the value of which is equal to the in the case where the dividend is used to amount of dividend purchase additional paid-up life_insurance for a period of more than one-year the employer retains the right to the cash_surrender_value of such additional insurance the annual value of the additional insurance coverage is includible in the employee‘s income in the same manner as set forth in rev the ruling provides with respect to rul if revrul_66_110 further provides that in any case where the current published premium rates per dollar_figure of insurance protection charged by an insurer for individual one-year term life_insurance available to all standard risks are lower than those set forth in such published rates may be used in place of the rev rates set forth in that revenue_ruling for determining the cost of insurance in connection with individual policies issued by the same insurer and used for split dollar arrangements rul revrul_67_154 supra considers whether it substitute an insurer's published one-year term_insurance rates for is proper to those set forth in revrul_55_747 where the insurer’s published rates are applicable only under a dividend option whereby term_insurance may be purchased with dividends on existing policies and are lower than the premium rates charged by the insurer for other individual one-year term life_insurance policies states in that ruling that in referring to rates that may be substituted for those in revrul_55_747 revrul_66_110 contemplates gross premium rates charged by an insurer for initial dividend option issue insurance available to all standard risks rates are not available to all standard risks since an individual seeking to purchase only a basic policy of term_insurance could not obtain it at those rates substituted for the rates set forth in revrul_55_747 accordingly such rates may not be the service applying the above principles to the split dollar life the insurance arrangements entered into by corporation with a and b executives must include in income each year an amount equal to the excess of the total value of all the benefits received under the arrangements for such year over the amount if any provided by the the documents sent to us indicate that for employee for that year the years involved all benefits received by a and b due to premium payments by the corporation earnings on the investment portion of the policy as well as dividends_paid under the policy were in the for each year involved form of current insurance protection a and b must include in income the one-year term cost of the life_insurance protection to which each is entitled total death_benefits payable under the policy for the year involved minus the portion of death_benefits payable to corporation generally determined using the rates in the table contained in revrul_55_747 rates may be substituted for determining such cost maintains that the rates furnished by insurance_company do not satisfy the requirements of rev ruls and they cannot be used in place of the rates set forth in rev the one-year term cost of the life_insurance protection is however rates that comply with rev ruls and often referred to as the p sec_58 cost or pursuant to rev the revenue_agent we agree so that rul p sec_58 thus rul revrul_66_110 requires that the insurer's rates used as a cost be current published one-year substitute for the ps individual term rates available to all standard risks revrul_67_154 the requirements of rev - rul will not be met unless an individual seeking to purchase only a basic policy of initial issue term_insurance could obtain it at those rates rates used by the insurance_company to calculate amounts to be included in a and b’s gross_income fail these requirements for a first the rates are not one-year term rates number of reasons they are three-year duration rates available to all standard risks since they apply only to nonsmokers in the life_insurance industry nonsmokers are generally considered either a preferred risk or a subclass of the standard risk classification with smokers being another subclass of the standard second the rates are not pursuant to the tangs thus because these rates are not available so that they are not available to individuals seeking to also the rates used apply only to policies of dollar_figure or risk classification to standard risk smokers they are not available to all standard risks more purchase only a basic policy of term_insurance of less than that amount employer-sponsored market and are not therefore available to standard risk individuals who do not have an employer sponsor finally the file contains no indication that these rates have been published as required by revrul_66_110 to ensure their rates trustworthiness for use as in addition the rates used are only available for the a substitute for the ps in the request for technical_advice the agent has expressed’ rul neither insurance_company nor the insurance agent who sold concern that insurance_company has furnished corporation with premium rates that do not comply with the requirements of rev the policies to corporation have participated in this technical_advice request this memorandum with respect to penalties imposed under the internal_revenue_code that might apply to insurance_companies and or insurance agents who furnish incorrect substitute premium rates to taxpayers for purposes of calculating amounts to be included in gross_income by reason of participating in a split dollar life_insurance arrangement therefore we decline to make any conclusions in conclusion the premium rates furnished to corporation by insurance_company cannot be used as because they are not the insurer’s current published one- year initial issue individual term rates available to all standard risks a substitute for the rates set forth in rev_rul


department of the treasury internal_revenue_service washington d c tax_exempt_and_government_entities_division uniform issue list apr xxx xx xxxxx xxx xx xxx xx xx xxx legend company c xxxxx taxpayer a xxxxx taxpayer b xxxxx plan x xxxxx trust t xxxxx dear xxxxx this is in response to the request for a ruling dated date as supplemented by letters dated date and date in which you through your authorized representative request a letter_ruling on the application of sec_664 of the internal_revenue_code the code the following facts and representations support your ruling_request company c formed by taxpayer a in established plan x in plan x is an employee_stock_ownership_plan esop as defined in sec_4975 of the code the plan received its most recent favorable determination_letter on date in taxpayer a established trust t a charitable_remainder_trust as described in sec_664 of the code for the benefit of his spouse taxpayer b_trust t provided for payment of shares of company c stock to taxpayer bas an income_beneficiary during her life with the remainder to be transferred to plan x upon her death in a private_letter_ruling issued by the internal_revenue_service the service to company c it was determined that trust t met the requirements of sec_664 upon taxpayer a's death in shares of company c stock passed from the estate of taxpayer a to trust t as required under the terms of trust t shares of company c stock held - 0144206l in the trust were transferred to plan x upon taxpayer b's death in the transfer and held in a suspense_account crt suspense_account as described in sec_646 and provided for in section dollar_figure of plan x you represent that at all relevant times plan x contained provisions meeting the requirements of sec_664 - f as required under sec_664 of the code at the time of the transfer taxpayer a and members of the taxpayer a's family within the meaning of code sec_2032a owned directly or through the application of sec_318 no more than percent of the value of the stock of company c as required under sec_664 of the code immediately_after_the_transfer plan x owned after the application of sec_318 at least percent of the value of the outstanding company c stock on date company c filed with the service a verified written_statement consenting to the application of sec_4978 and sec_4979a of the code as described in sec_664 e of the code section dollar_figure of article vii of plan x provides that for each plan_year the number of shares allocated from the crt suspense_account to eligible participants have a fair_market_value equal to the lesser_of i percent of the participant' sec_415 compensation_for such plan_year or ii dollar_figure as adjusted for increases in the cost of living in accordance with sec_664 g b of the code you propose to amend section dollar_figure by adding sec_1 a to plan x this amendment provides that for each plan_year the total amount of shares allocated from the crt suspense_account will be determined by the board_of directors of company c in a written resolution based upon the fair_market_value of the shares amended section dollar_figure further provides that the annual release formula from the crt suspense_account must be at least equal to the greater of percent of the aggregate of all eligible_plan x participants' compensation_for the plan_year as determined under code sec_415 or the amount needed so that on a rolling five-year basis including the current plan_year and the prior four plan years the average annual allocation from the crt suspense_account is at least percent of the aggregate eligible_plan participants' compensation however the amount released each year as determined by the board_of directors will be limited by the application of sec_664 of the code in a private_letter_ruling issued by the service to company c the service concluded that for purposes of sec_664 and e and g of the code allocations of stock from the crt suspense_account required by sec_664 of the code will be valued at the fair_market_value of the stock at the time the stock is allocated from the crt suspense_account to the accounts of affected plan x participants based upon the above facts and representations you through your authorized representative request a ruling that the above referenced proposed amendment satisfies the requirements of sec_664 of the code r--- ----- ---- sec_4975 of the code provides that an esop is a defined_contribution_plan which is a a stock_bonus_plan which is qualified or a stock_bonus_plan and a money purchase plan both of which are qualified under code sec_401 a and which are designed to invest primarily in qualifying employer_securities and b which is otherwise defined in regulations prescribed by the secretary sec_4975 of the code further provides in relevant part that an esop must meet the requirements of sec_664 if applicable sec_664 of the code enacted in provides the rules governing qualified gratuitous transfers of qualified_employer_securities to an esop as defined in sec_4975 sec_664 a of the code provides that such a transfer only applies to securities which had previously passed from a decedent dying before january to a_trust described in paragraph or of subsection d sec_664 of the code further provides that the transferee esop must have been in existence on august sec_664 of the code provides that the employer whose employees are covered by the plan described in sec_664 must file with the secretary a verified written_statement consenting to the application of sec_4978 and sec_4979a with respect to such employer sec_664 and c of the code provides that at the time of the transfer the decedent and members of the decedent's family within the meaning of sec_2032a own directly or through the application of sec_318 no more than percent of the value of the employer and immediately_after_the_transfer such plan owns after the application of sec_318 at least percent of the value of the stock of the corporation sec_664 - f of the code provide that a plan complies with code sec_664 only if it provides that allocations of the transferred stock are consistent with sec_401 participants have voting rights with regard to that stock an independent_trustee votes the shares that are not allocated such shares are subject_to sec_409 such shares in general are held in a suspense_account and are allocated in the manner so described and upon plan termination any unallocated shares are to be transferred to or for_the_use_of an organization described in sec_170 more specifically sec_664 of the code provides that a plan complies with sec_664 if it provides that such securities are held in a suspense_account under the plan to be allocated each year up to the applicable limitation under paragraph after first allocating all other annual_additions for the limitation_year up to the limitations under sec_415 and e sec_664 of the code provides that for the purposes of paragraph e the applicable limitation under this paragraph with respect to a participant is an amount equal to the lesser_of i dollar_figure or ii percent of the participant's_compensation as defined in sec_415 sec_664 provides that this limitation amount shall be adjusted in the same manner as under sec_415 sec_664 of the code as enacted in is directed to transaction s between a plan established prior to date charitable_remainder_trust containing securities that were passed to it by a decedent dying before date the transfer between plan x and trust t met these requirements additionally the transfer transaction meets the ownership requirements of sec_664 and c of the code company c meets the special filing_requirements of sec_664 e plan x provides all the particular plan provisions that are required under sec_664 as part of the transaction in light of the narrow application of the sec_664 requirements it is not unreasonable to treat the allocation amount set forth in sec_664 and as the maximum amount that may be allocated rather than the amount required to be allocated as a result of this determination we also have concluded that to ensure the yearly release of shares from the crt suspense_account it is reasonable for plan x to have a provision that establishes a minimum amount that must be released from the suspense_account every plan_year such as the one proposed by company c accordingly with respect to your ruling_request we conclude that amendments to sec_1 04a and dollar_figure of plan x as described above are consistent with sec_664 of the code however the specific language of those amendments will need to be approved as part of the service's determination_letter process this letter assumes that plan x is otherwise qualified under sec_401 a of the code and its related trust is exempt from tax under sec_501 a this letter is directed only to the taxpayer who requested it sec_611 o k of the code provides that it may not be used or cited as precedent if you have any questions regarding this letter please contact xxxxx at xxx xxx-xxxx please reference se t ep ra t2 evine plans technical group 20144206l enclosures deleted copy of letter_ruling notice of intention to disclose cc xxxxx xxxxx' xxx xx xxx xx xxx xx xx xxx xxx xx xx xxx


internal_revenue_service number release date index numbers ------------------------------------------------------ ---------------------------------------- ------------------------- ----------------------- -------------------- department of the treasury washington dc person to contact --------------------- id no ---------------- telephone number -------------------- refer reply to cc psi b03 - plr-106101-17 date date legend x ---------------------------------------------------------- ----------------------------------------------------------- fund ----------------------------------------------------------------------------------------- ---------------------------------------------------------- ---------------------- ------------------------------------------------------------------------- ---------------------------------------------------------- country d1 ---------------- ----------------------- 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_9100-3 of the procedure and administration regulations to file an election under sec_301_7701-3 to be classified as a partnership for federal tax purposes plr-106101-17 facts the information submitted discloses that x was formed on d1 under the laws of country the fund which holds x intends it to be classified as a partnership for federal tax purposes effective d1 however x failed to timely file form_8832 entity classification election to be classified as a partnership for federal tax purposes effective d1 law and analysis sec_301_7701-3 provides in part 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 as provided in sec_301_7701-3 an eligible_entity with at least two members can elect to be classified as either an association and thus a corporation under sec_301_7701-2 or a partnership and an eligible_entity with a single owner can elect to be classified as an association or to be disregarded as an entity separate from its owner sec_301_7701-3 provides that except as provided in sec_301 b unless the entity elects otherwise a foreign eligible_entity is a a partnership if it has two or more members and at least one member does not have limited_liability b an association if all members have limited_liability or c disregarded as an entity separate from its owner if it has a single owner that does not have limited_liability sec_301_7701-3 provides in part that for purposes of sec_301_7701-3 a member of a foreign eligible_entity has limited_liability if the member has no personal liability for the debts of or claims against the entity by reason of being a member sec_301_7701-3 provides in part that except as provided in sec_301_7701-3 and v an eligible_entity may elect to be classified other than as provided under sec_301_7701-3 or to change its classification by filing form_8832 with the service_center designated on form_8832 sec_301_7701-3 provides in part that an election made under sec_301_7701-3 will be effective on the date specified by the entity on form_8832 or on the date filed if no such date is specified on the election form the effective date specified on form_8832 can not be more than days prior to the date on which the election is filed and can not be more than months after the date on which the election 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 code except subtitles e g h and i sec_301_9100-1 provides plr-106101-17 that the term regulatory election includes an election whose due_date is prescribed by a regulation published in the federal_register sec_301_9100-1 through 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 regulatory elections that do not meet the requirements of sec_301_9100-2 sec_301_9100-3 provides that requests for relief under sec_301_9100-3 will be granted when the taxpayer provides the evidence including affidavits described in sec_301_9100-3 to establish to the satisfaction of the commissioner that the taxpayer acted reasonably and in good_faith and the grant of relief will not prejudice the interests of the government conclusion based solely on the facts and representations submitted we conclude that x has satisfied the requirements of sec_301_9100-1 and sec_301_9100-3 consequently x is granted an extension of time of one hundred twenty days from the date of this letter to elect under sec_301_7701-3 to be classified as a partnership effective d1 x must file form_8832 within the extension period with the appropriate service_center with a copy of this letter attached except for the specific ruling above we express or imply no opinion concerning the federal tax consequences of the facts of this case under any other provision of the code in addition sec_301_9100-1 provides that the granting of an extension of time for making an election is not a determination that the taxpayer is otherwise eligible to make the election this ruling is directed only to the taxpayer requesting it according to sec_6110 of the code this ruling may not be used or cited as precedent under a power_of_attorney on file with this office we are sending a copy of this letter to x’s authorized representative plr-106101-17 the ruling contained in this letter is 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 ruling_request it is subject_to verification on examination sincerely associate chief_counsel passthroughs special industries by _ s ____________________________ richard t probst senior technician reviewer branch office of the associate chief_counsel passthroughs special industries enclosures copy of this letter copy for sec_6110 purposes


sm 4a ysiee- internal_revenue_service department of the treasury washington dc coniact person telephone number in reference to date mar dear sir or madam this is in reference to your letter of date requesting advance approval of revisions made to your scholarship guidelines and grant procedures we originally approved your grant procedures in a ruling letter dated date your proposed revisions to your scholarship guidelines are a in addition to students attending colleges and as follows universities scholarships will now also be offered for students attending private_schools ie kindergarten through grade b while financial aid will still be a significant factor in the selection process the requirement that all other available sources of funds have been exhausted will be deleted scholarship recipients will be selected pursuant to these the recipient school will monitor all revised guidelines recipient students for continued eligibility and will submit to you periodic reports of each scholarship recipient’s academic performance including courses completed and grades received for each academic period the school will provide you with an annual report on the use of such funds and a report on each recipient’s progress towards a degree accordance with sec_53_4945-4 of the foundation and similar excise_taxes regulations by qualify as scholarships as described in sec_4945 code individuals and condition that the school use such grants to defray the recipient's expenses only if the recipient is enrolled at the school and has standing consistent with the revised scholarship guidelines recovery_of such misused funds ii paying such scholarships to the school and not the you will investigate any misuse of funds and seek a iii making such grants to the school on the in addition you will make grants in i making only grants which of the you will retain records with respect to the scholarship granted which records include i the information used to evaluate the qualifications of the scholarship applicants ii a ppa we ries oe ca toaiend ee complete identification of the scholarship recipients amount and purpose of each grant and iv and other follow-up data outlined in administering the scholarship program the all recipient reports iii sec_4945 of the code provides for the imposition of taxes on each taxable_expenditure of a private_foundation sec_4945 of the code provides that the term taxable_expenditure private_foundation as a grant to an individual for travel study or other similar purposes by such individual unless such grant satisfies the requirements of sec_4945 means any amount_paid or incurred by a sec_4945 of the code provides that section shall not apply to an individual grant awarded on an d objective and nondiscriminatory basis pursuant to approved in advance by the secretary if is demonstrated to the satisfaction of the secretary that the grant constitutes a scholarship or fellowship_grant which is subject_to the a procedure it provisions of sec_117 and is to be used for study at an educational_institution described in sec_170 the code a ii of the information provided indicates that your revised scholarship program and the procedures under which it conducted will not differ materially from your original program approved in the letter dated date is therefore based upon the information submitted and assuming your revised program will be conducted as proposed with a view to providing objectivity and nondiscrimination in the awarding of scholarship grants we rule that your procedures for the awarding of scholarship grants comply with the requirements of sec_4945 of the code accordance with these procedures will not constitute taxable_expenditures within the meaning of sec_4945 of the code provided for in sec_117 such grants are actually used for qualified_tuition_and_related_expenses within the meaning of sec_117 and as such are eligible for the exclusion from income of the code to the extent that thus expenditures made in of the code this ruling is conditioned on the understanding that there is based is further conditioned on the premise that no grants will be will be no material changes in the facts upon which it it awarded to creators officers directors trustees or members of the selection committee or for a purpose inconsistent with the purposes described in sec_170 b of the code 2s please note that this ruling is only applicable to grants awarded under your program as outlined above before you enter into any other scholarship programs you should submit a request for advance approval of that program we are informing your key district_director of this action please keep a copy of this ruling with your organization's permanent records this ruling is directed only to the organization that requested it may not be used or cited as precedent sec_6110 of the code provides that it sincerely yours bevatt v beck gerald v sack chief exempt_organizations technical branch


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-133063-08 date date x -------------------------------------------------- --------------------------- country d1 --------------------- ------------------- dear ---------------- this letter responds to a letter dated date submitted on behalf of x requesting a ruling that x be granted an extension of time to file an election to be classified as a partnership under sec_301_7701-3 of the procedure and administration regulations effective d1 facts the information submitted states that x is an entity formed under the laws of country on d1 x represents that the members of x have limited_liability as defined in sec_301_7701-3 x is not classified as a corporation under sec_301_7701-2 or x also represents that x intended to elect to be a partnership for federal tax purposes effective d1 however due to inadvertence x failed to file a timely form_8832 entity classification election law and analysis 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 as provided in sec_301_7701-3 plr-133063-08 sec_301_7701-3 provides that unless it elects otherwise a foreign eligible_entity is a a partnership if it has two or more members and at least one member does not have limited_liability b an association if all members have limited_liability or c disregarded as an entity separate from its owner if it has a single owner that does not have limited_liability sec_301_7701-3 provides that for purposes of sec_301_7701-3 a member of a foreign eligible_entity has limited_liability if the member has no personal liability for the debts of or claims against the entity by reason of being a member sec_301_7701-3 provides that an eligible_entity may elect to be classified other than as provided in sec_301_7701-3 or to change its classification by filing form_8832 with the service_center designated on form_8832 sec_301_7701-3 provides that an election made under sec_301 c i will be effective on the date specified by the entity on form_8832 or on the date filed if no date is specified on the election form the effective date specified on form_8832 cannot be more than days prior to the date on which the election is filed and cannot be more than months after the date on which the election is filed sec_301_9100-1 provides that the commissioner has discretion to grant a reasonable extension of time under the rules set forth in sec_301_9100-2 and sec_301_9100-3 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 a regulatory election to include an election whose due_date is prescribed by a regulation published in the federal_register or a revenue_ruling revenue_procedure notice or an announcement published in the internal_revenue_bulletin sec_301_9100-2 provides the rules governing automatic extensions of time for making certain elections sec_301_9100-3 sets forth the standards the commissioner will use to determine whether to grant an extension of time for regulatory elections that do not meet the requirements of sec_301_9100-2 sec_301_9100-3 provides that requests for relief subject_to sec_301_9100-3 will be granted when the taxpayer provides evidence including affidavits described in sec_301_9100-3 to establish to the satisfaction of the commissioner that the taxpayer acted reasonably and in good_faith and granting relief will not prejudice the interests of the government conclusion plr-133063-08 based on the facts 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 days from the date of this letter to file form_8832 with the appropriate service_center and to elect to be classified as a partnership for federal tax purposes effective d1 a copy of this letter should be attached to the form_8832 a copy is enclosed for that purpose except as expressly set forth above we express or imply no opinion concerning the federal tax consequences of the facts discussed above under any other provision of the code this ruling is directed only to the taxpayer requesting it sec_6110 provides that it may not be used or cited as precedent in accordance with a power_of_attorney on file with this office we are sending a copy of this letter to x’s authorized representative sincerely curtis g wilson curtis g wilson deputy associate chief_counsel passthroughs special industries enclosures copy of this letter copy for sec_6110 purposes cc


internal_revenue_service department of the treasury number release date index number washington dc person to contact telephone number refer reply to cc psi br - plr-132117-01 date date legend x state d1 this responds to your letter dated date submitted on behalf of x requesting relief under sec_1362 of the internal_revenue_code facts x began doing business under state law on d1 the shareholders of x intended that x elect to be treated as an s_corporation effective d1 however the election to be treated as an s_corporation was not timely filed law and analysis sec_1362 provides that a small_business_corporation can elect to be treated as an s_corporation sec_1362 provides when an s election becomes effective 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 was made if an election is made after the first two and one-half months of a corporation’s taxable_year then the corporation will generally not be treated as an s_corporation until the following taxable_year however sec_1362 provides that if no election is made pursuant to sec_1362 or if the election is made after the date prescribed for making such an election and the secretary determines reasonable_cause existed for the failure to timely make the election then the secretary can treat such an election as timely made for that taxable_year and effective as of the first day of that taxable_year plr- in the present case x failed to timely elect s_corporation treatment effective d1 however x has established reasonable_cause for not making a timely election and is thus entitled to relief under sec_1362 conclusion based solely on the facts submitted and representations made and provided that x otherwise qualifies as a subchapter_s_corporation we conclude that x will be recognized as an s_corporation effective d1 within days from the date of this letter x should submit a properly completed form_2553 with a copy of this letter attached to the relevant service_center 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 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 authorized representative s dianna k miosi sincerely chief branch office of the associate chief_counsel passthroughs special industries enclosures copy of this letter copy for sec_6110 purposes


internal_revenue_service department of the treasury number info release date index no dear washington dc person to contact telephone number refer reply to cc ita - genin-130366-02 date date thank you for your letter of date you asked whether you could deduct the expenses you incurred in bringing your daughter and her husband and their two children to united_states you said they all live in for proceedings making these children citizens of the which is near it appears from your letter that the expenses you incurred were purely family_expenses gifts from you to your daughter and her family that is they were expenses for a trip to the united_states for the benefit of the grandchildren under section from a of the internal_revenue_code no deduction is allowed for personal living or family_expenses unless otherwise expressly permitted by a specific provision of the code you indicated nothing in your letter that would indicate these expenses were for a purpose for which an income_tax deduction is permitted you also asked whether you could give each of your grandchildren dollar_figure each year without paying gift_tax this was correct in under sec_2503 which provides that the first dollar_figure of gifts made to any person by the donor other than gifts of future interests in property during the taxable_year shall not be included in the total_amount_of_gifts made that year subject_to the gift_tax in the inflation adjustment of sec_2503 increased the gift exclusion amount to dollar_figure as we announced in section dollar_figure of revproc_2001_59 2001_52_irb_623 i apologize for this late response and hope it is helpful if you have any questions please call us at the number above sincerely associate chief_counsel income_tax accounting by thomas d moffitt branch chief


internal_revenue_service number release date index no 468a cc psi plr-106006-00 date re revised schedule of ruling amounts taxpayer parent plant location commission director state law report dear this letter responds to your request dated date and subsequent submissions submitted by your authorized legal_representative on behalf of the taxpayer the request is for a revised schedule of ruling amounts under sec_1_468a-3 of the income_tax regulations for the taxpayer’s nuclear decommissioning fund fund under the jurisdiction of commission and has been filed because the commission has adjusted the estimated date on which plant will no longer be included in rate base the taxpayer was previously granted a revised schedule of ruling amounts on the required information for the schedule of ruling amounts was submitted on behalf of the taxpayer pursuant to sec_1_468a-3 we understand the facts as submitted by taxpayer to be as follows plr-106006-00 taxpayer is a wholly owned subsidiary of parent which files a consolidated federal_income_tax return with its affiliated companies including taxpayer taxpayer owns a percent as a tenant in common in the plant which is situated in location taxpayer is subject_to the jurisdiction of the commission taxpayer is under the audit jurisdiction of the director the operating license of the plant expires on the method for decommissioning the plant is prompt removal dismantling on the governor of state signed the law which mandates rate reductions for ratepayers in state and provides for open access to electric energy suppliers the law permits commission to approve restructuring plans submitted by electric utilities within state so long as the plans are consistent with the goals of the law under report issued and adopted by commission on taxpayer was required to file a petition for rate unbundling that includes a per unit charge to separately collect for nuclear decommissioning and other costs on taxpayer filed its response on taxpayer filed a stipulation with commission requesting that the per unit charge be set at the level of costs included in rates as of the effective date of law and that the per unit charge remain at that level throughout a year transition_period beginning and ending commission subsequently approved the stipulation the taxpayer transferred the electric generation portion of its business including plant to affiliated entities on accordingly the requested schedule of ruling amounts is only for the year period from in determining the decommissioning costs for the plant the commission used an estimated base cost of dollar_figure this base cost escalated annually at a rate of percent results in a future decommissioning cost of dollar_figure taxpayer represents that under the sec_468a regulations the defined funding_period and the defined level_funding limitation period extend from the estimated_useful_life of the plant is and the estimated period for which the fund will be in effect is therefore the qualifying percentage is percent the assumed after- tax_rate of return to be earned on the assets of the fund is percent at the present time there are no proceedings before the plr-106006-00 commission that may result in an increase or decrease in the amount of decommissioning costs for the plant to be included in taxpayer’s cost of service for ratemaking purposes sec_468a of the internal_revenue_code provides that a taxpayer may elect to deduct the amount of payments made to a qualified decommissioning fund however sec_468a limits the amount_paid into such fund for any taxable_year to the lesser_of the amount of nuclear decommissioning costs allocable to this fund which is included in the taxpayer's cost of service for ratemaking purposes for the tax_year or the ruling_amount applicable to this year sec_468a of the code provides that no deduction shall be allowed for any payment to the nuclear decommissioning fund unless the taxpayer requests and receives from the secretary a schedule of ruling amounts the ruling_amount for any_tax year is defined under sec_468a as the amount which the secretary determines to be necessary to fund that portion of nuclear decommissioning costs which bears the same ratio to the total nuclear power plant as the period for which the nuclear decommissioning fund is in effect bears to the estimated_useful_life of the plant this term is further defined to include the amount necessary to prevent excessive funding of nuclear decommissioning costs or funding of these costs at a rate more rapid than level_funding taking into account such discount rates as the secretary deems appropriate sec_468a of the code provides that a taxpayer shall be deemed to have made a payment to the nuclear decommissioning fund on the last day of the tax_year if the payment is made on account of this tax_year and is made within ½ months after the close of the tax_year additionally a taxpayer that files for a schedule of ruling amounts and receives such schedule of ruling amounts after the ½ month deadline for making a payment to a nuclear decommissioning fund must make such payment to the fund within days after the date that the taxpayer receives the schedule of ruling amounts for the tax_year sec_1_468a-1 of the regulations provides that an eligible_taxpayer may elect to deduct nuclear decommissioning costs under sec_468a of the code an eligible_taxpayer as defined under sec_1_468a-1 of the regulations is a taxpayer that has a qualifying interest in among other things a direct ownership_interest including an interest as a tenant in common or joint tenant sec_1_468a-2 of the regulations provides that the maximum amount of cash payments made or deemed made to a plr-106006-00 nuclear decommissioning fund during any_tax year shall not exceed the lesser_of i the cost of service amount applicable to the nuclear decommissioning fund for such tax_year or ii the ruling_amount applicable to the nuclear decommissioning fund for such tax_year if the amount of cash payments made or deemed made to a nuclear decommissioning fund during any_tax year exceeds the limitation of paragraph b the excess is not deductible by the electing taxpayer in addition under sec_1_468a-5 there are rules which provide that the internal_revenue_service may disqualify a nuclear decommissioning fund if the amount of cash payments made or deemed made to a nuclear decommissioning fund during any_tax year exceeds the limitation of paragraph b sec_1_468a-3 of the regulations provides that in general a schedule of ruling amounts for a nuclear decommissioning fund is a ruling specifying annual payments that over the tax years remaining in the funding_period as of the date the schedule first applies will result in a projected balance of the nuclear decommissioning fund as of the last day of the funding_period equal to and in no event more than the amount of decommissioning costs allocable to the fund sec_1_468a-3 of the regulations provides that to the extent consistent with the principles and provisions of this section each schedule of ruling amounts shall be based on the reasonable assumptions and determinations used by the applicable public_utility commission in establishing or approving the amount of decommissioning costs to be included in the cost of service for ratemaking purposes under sec_1_468a-3 the internal_revenue_service shall provide a schedule of ruling amounts identical to the schedule proposed by the taxpayer but no such schedule shall be provided by the service unless the taxpayer’s proposed schedule is consistent with the principles and provisions of this section sec_1_468a-3 of the regulations provides that in general the ruling_amount for any_tax year in the level_funding limitation period shall not be less than the ruling_amount for any earlier tax_year under sec_1_468a-3 the level_funding limitation period begins on the first day of the tax_year for which a deductible payment is made to the nuclear decommissioning fund and ends on the last day on which the nuclear power plant will no longer be included in the taxpayer’s rate base for ratemaking purposes sec_1_468a-3 of the regulations provides that in general the total estimated cost of decommissioning a nuclear power plant is the reasonably estimated cost of decommissioning plr-106006-00 used by the applicable public_utility commission in establishing or approving the amount of these costs to be included in cost of service for ratemaking purposes sec_1_468a-3 of the regulations provides that a taxpayer’s share of the total estimated cost of decommissioning a nuclear power plant equals the total estimated cost of decommissioning such plant multiplied by the taxpayer’s qualifying interest in the plant under sec_1_468a-3 the qualifying percentage for any nuclear decommissioning fund is equal to a fraction the numerator of which is the number of tax years in the estimated period for which the nuclear decommissioning fund is to be in effect and the denominator of which is the number of tax years in the estimated_useful_life of the applicable plant sec_1_468a-3 of the regulations provides that the internal_revenue_service shall not provide a taxpayer with a schedule of ruling amounts for any nuclear decommissioning fund unless the public_utility commission that establishes or approves the rates for electric energy generated by the plant has determined the amount of decommissioning costs to be included in the taxpayer’s cost of service for ratemaking purposes and has disclosed the after-tax rate of return and any other assumptions and determinations used in establishing or approving the amount sec_1_468a-3 of the regulations provides that any taxpayer that has previously obtained a schedule of ruling amounts can request a revised schedule of ruling amounts such a request must be made in accordance with the rules of sec_1_468a-3 the internal_revenue_service shall not provide a revised schedule of ruling amounts applicable to a tax_year in response to a request for a schedule of ruling amounts that is filed after the deemed deadline date for such tax_year we have examined the representations and the data submitted by the taxpayer in relation to the requirements set forth in the code and the regulations based solely upon these representations of the facts we reach the following conclusions the taxpayer has a qualifying interest in the plant and is therefore an eligible_taxpayer under sec_1_468a-1 of the regulations the commission has permitted the amount of decommissioning costs to be included in the taxpayer’s cost of service for ratemaking purposes as required by sec_1_468a-3 of the regulations plr-106006-00 the taxpayer has calculated its share of the total decommissioning costs under sec_1_468a-3 of the regulations the taxpayer has determined that percent is the qualifying percentage as calculated under sec_1_468a-3 of the regulations based on the above determinations we conclude that the taxpayer’s proposed schedule of ruling amounts with regard to the commission satisfies the requirements of sec_468a of the code approved schedule of ruling amounts year approval of the schedule of ruling amounts is contingent on there being no change in the facts and circumstances known or assumed at the time the current ruling is issued if any of the events described in sec_1_468a-3 of the regulations occur in future years the taxpayer must request a review and revision of the schedule of ruling amounts generally the taxpayer is required to file such a request on or before the deemed payment deadline date for the first tax_year in which the rates reflecting such action became effective when no such event occurs the taxpayer must file a request for a revised schedule of ruling amounts on or before the deemed payment deadline of the 10th tax_year following the close of the tax_year in which the most recent schedule of ruling amounts was received the approved schedule of ruling amounts is relevant only to those payments made to the fund payments allocable to any funds other than the fund cannot qualify for purposes of the deduction under the provisions of sec_468a of the code payments made to such fund can qualify only to the extent they are made while taxpayer is the owner of the plant and only to the extent that they do not exceed the lesser_of the decommissioning costs applicable to such fund or the ruling amounts applicable to this fund in the tax_year this ruling is directed only to the taxpayer who requested it section 6ll0 k of the code provides 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 pursuant to sec_1_468a-7 plr-106006-00 of the regulations a copy of this letter must be attached with the required election statement to the taxpayer’s federal_income_tax return for each tax_year in which the taxpayer claims a deduction for payments made to the fund sincerely yours peter c friedman assistant to the branch chief branch office of associate chief_counsel passthroughs and special industries


tax exempt and government entities nment e department of the treasury internal_revenue_service washington d c feb ep ba th u i l xxxxxxxxxxxxxx xxxxxxxxxxxxxx xxxxxxxxxxxxxx legend taxpayer a xxxxxxxxxxx ira x xxxxxxxxxxx bank d amount e individual m xxxxxxxxxxx xxxxxxxxxxx xxxxxxxxxxx dear xxxxxxxxxx the following facts and representations have been submitted under penalty of perjury in support of the ruling requested this letter is in response to your request dated date as supplemented by correspondence dated date and date in which you request a waiver of the 60-day rollover requirement contained in sec_408 of the internal_revenue_code the code’ taxpayer a represents that on date he received a distribution totaling amount e from ira x taxpayer a asserts that his failure to accomplish a rollover of amount e within the 60-day period prescribed by sec_408 of the code was due to an error committed by individual m of bank d taxpayer a had ira x with bank d taxpayer a represents that in he visited with individual m of bank d and discussed rolling over his certificate of deposit cd in ira x and reinvesting it in another cd since individual m was not licensed to reinvest the cd in ira x individual m referred taxpayer a to another representative of bank d who was not available at that time to speak to taxpayer a taxpayer a further represents that on date individual m completed a distribution election form to distribute amount e from ira x without the signature or consent of taxpayer a the election form provided that amount e be deposited into individual m’s savings account with bank d after taxpayer a became aware of the distribution from ira x he asked individual m whether he would be taxed on the distribution of amount e individual m told him that amount e would be on hold until it was re-invested in another cd by another representative of bank d taxpayer a never heard further from individual m or any other representative of bank d after the 60-day rollover period had expired taxpayer a contacted bank d and became aware that amount e had not been rolled over and individual m had resigned from bank d amount e has not been used for any other purpose and remains in taxpayer a’s savings account with bank d based on the foregoing facts and representations you request that the internal_revenue_service service waive the 60-day rollover requirement contained in sec_408 of the code with respect to amount e sec_408 of the code provides that except as otherwise provided in sec_408 any amount_paid or distributed out of an ira shall be included in gross_income by the payee or distributee as the case may be in the manner provided under sec_72 of the code sec_408 of the code defines and provides the rules applicable to ira_rollovers sec_408 of the code provides that sec_408 of the code does not apply to any amount_paid or distributed out of an ira to the individual for whose benefit the ira is maintained if- paid into an ira for the benefit of such individual not later than the the entire amount received including money and any other_property is i day after the day on which the individual received the payment or distribution or ii the entire amount received including money and any other_property is paid into an eligible_retirement_plan other than an ira for the benefit of such individual not later than the day after the date on which the payment or distribution is received except that the maximum amount which may be paid into such plan may not exceed the portion of the amount received which is includible in gross_income determined without regard to sec_408 sec_408 of the code provides that sec_408 does not apply to any amount described in sec_408 received by an individual from an ira if at any time during the 1-year period ending on the day of such receipt such individual received any other amount described in sec_408 from an ira which was not included in gross_income because of the application of sec_408 sec_408 of the code provides a similar 60-day rollover period for partial rollovers sec_408 of the code provides that the rollover provisions of sec_408 do not apply to any amount required to be distributed under sec_408 sec_408 of the code provides that the secretary may waive the day requirement under sec_408 and sec_408 of the code where the failure to waive such requirement would be against equity or good conscience including casualty disaster or other events beyond the reasonable control of the individual subject_to such requirement only distributions that occurred after date are eligible for the waiver under sec_408 of the code revproc_2003_16 i r b provides that in determining whether to grant a waiver of the 60-day rollover requirement pursuant to sec_408 the service will consider all relevant facts and circumstances including errors committed by a financial_institution inability to complete a rollover due to death disability hospitalization incarceration restrictions imposed by a foreign_country or postal error the use of the amount distributed for example in the case of payment by check whether the check was cashed and the time elapsed since the distribution occurred the information presented and documentation submitted by taxpayer a is consistent with his assertion that his failure to accomplish a timely rollover was due to an error committed by individual m a representative of bank d therefore pursuant to sec_408 of the code the service hereby waives the 60-day rollover requirement with respect to the distribution of amount e from ira x taxpayer a is granted a period of days from the issuance of this letter to contribute amount e into a rollover ira provided all other requirements of code sec_408 except the 60-day requirement are met with respect to such contribution the contribution of amount e will be considered a rollover_contribution within the meaning of sec_408 of the code this ruling does not authorize the rollover of amounts that are required to be distributed by sec_408 of the code no opinion is expressed as to the tax treatment of the transaction described herein under the provisions of any other section of either the code or regulations which may be applicable thereto this letter is directed only to the taxpayer who requested it sec_6110 of the code provides that it may not be used or cited as precedent if you have any questions concerning this ruling please contact xxxxxxxxxxxxxxxxx xxxxxxxxxxxx at xxxxxxxxxxxxxxx all correspondence should be addressed to se t ep ra t3 enclosures sincerely yours fl cha yor employee_plans technical group av carolyn e zimmerman acting manager deleted copy of letter_ruling notice of intention to disclose