internal_revenue_service number release date index number -------------------------- --------------------------- ---------------------- ----------------------------- in re -------------------------------- department of the treasury washington dc third party communication date of communication month dd yyyy person to contact -------------------------- id no ------------ telephone number -------------------- refer reply to cc psi b09 plr-128902-04 date date legend taxpayer taxpayer trust ---------------------------------------------------- ------------------------------------------------------ ----------------------------------------------------------------------- ------------------------------------------ ----------------------------------------------------- --------------------------------------- ----------------------------- ------------------- ---------------- --------------------- --------------------- ------- ------- ------- ------- ------------- ----------- --------- accounting firm accounting firm law firm date date date date year year year year a b c dear ---------------------------- this is in response to your letter dated date and subsequent correspondence in which you requested an extension of time pursuant to ' g of the internal_revenue_code and ' of the procedure and administration regulations to allocate generation-skipping_transfer gst tax exemption to transfers made to a_trust the facts submitted and the representations made are as follows in year on date taxpayer sec_1 and formed trust for the benefit of the children of their marriage and the descendants of any such children article first a of trust provides that during the lives of taxpayer sec_1 and the trustee is to pay to the children of the marriage of taxpayer sec_1 and and their descendants trust net_income and principal to provide for their education comfort support health maintenance or for any other purpose whatsoever there is no requirement to equalize distributions among beneficiaries net_income not distributed is to be accumulated and added to principal article first a and article second provide that in the event that upon the death of the last to die of taxpayer sec_1 and taxpayer sec_1 and are survived by living children of their marriage or descendants of these children trust principal and undistributed_income is to be divided into equal shares one for each living child and deceased child survived by living descendants article second a provides that each share for a deceased child is to be further divided into equal shares per stirpes one for each descendant and held in further trust pursuant to the terms of article second c article second b provides that each share for a living child is to be held in further trust pursuant to the terms of article second c article second c provides that the trustee of a_trust established for a child or descendant beneficiary is to distribute trust net_income and principal to the beneficiary and the beneficiary’s descendants to provide for their education comfort support health maintenance or for any other purpose whatsoever there is no requirement to equalize distributions among beneficiaries net_income not distributed is to be accumulated and added to principal article second c further provides that each beneficiary has a testamentary limited_power_of_appointment over his or her trust trust estate not effectively appointed is to be divided into equal shares per stirpes one share for each descendant of the beneficiary and held in further trust pursuant to the terms of article second c on date which is in year taxpayer transferred dollar_figurea in cash to trust taxpayer sec_1 and retained accounting firm to prepare their year form sec_709 united_states gift and generation-skipping_transfer_tax returns on these returns taxpayer sec_1 and consented to treat gifts made by either in year as made one-half by each pursuant to ' accounting firm inadvertently failed to allocate taxpayer 1’s and taxpayer 2’s gst exemptions to the year transfer to trust on date which is in year taxpayer transferred dollar_figureb in cash to trust taxpayer sec_1 and retained accounting firm to prepare their year form sec_709 on the returns taxpayer sec_1 and consented to treat gifts made by either in year as made one-half by each pursuant to ' accounting firm inadvertently failed to allocate taxpayer 1’s and taxpayer 2’s gst exemptions to the year transfer to trust on date which is in year taxpayer transferred dollar_figurec in cash to trust accounting firm advised taxpayer sec_1 and that it was not necessary to file form sec_709 for the year transfer to trust since no returns were filed taxpayer 1’s and taxpayer 2’s gst exemptions were not allocated to the year transfer to trust it has been represented that taxpayer sec_1 and intend to consent to treat gifts made by either in year as made one-half by each pursuant to ' in year taxpayer sec_1 and retained law firm to provide estate_planning advice in the course of its engagement law firm discovered that taxpayer 1’s and taxpayer 2’s gst exemptions had not been allocated to the transfers taxpayer made to trust in year sec_1 and it has been represented that taxpayer sec_1 and currently have sufficient gst_exemption available to allocate to the transfers taxpayer made to trust in year sec_1 and taxpayer sec_1 and are requesting an extension of time under g and to allocate their gst exemptions to the transfers taxpayer made to trust in year sec_1 and and that such allocations will be based on the value of the property transferred to trust in year sec_1 and law and analysis sec_2501 provides that a tax computed as provided in ' is imposed for each calendar_year on the transfer of property by gift during such calendar_year by any individual resident or nonresident sec_2511 provides that the tax imposed by ' shall apply whether the transfer is in trust or otherwise whether the gift is direct or indirect and whether the property is real or personal tangible or intangible sec_2513 provides in part that a gift made by one spouse to any person other than his spouse shall for the purposes of this chapter be considered as made one-half by him and one-half by his spouse but only if at the time of the gift each spouse is a citizen or resident_of_the_united_states sec_2513 provides that ' a shall apply only if both spouses have signified under the regulations provided for in ' b their consent to the application of ' a in the case of all such gifts made during the calendar_year by either while married to the other plr-128902-04 sec_25_2513-2 of the gift_tax regulations provides in part that consent to the application of the provisions of ' with respect to a calendar_period as defined in ' c shall in order to be effective be signified by both spouses if both spouses file gift_tax returns within the time for signifying consent it is sufficient if-- i the consent of the husband is signified on the wife's return and the consent of the wife is signified on the husband's return ii the consent of each spouse is signified on his own return or iii the consent of both spouses is signified on one of the returns if only one spouse files a gift_tax_return within the time provided for signifying consent the consent of both spouses shall be signified on that return sec_2601 imposes a tax on every generation-skipping_transfer gst a gst is defined under sec_2611 as a taxable_distribution a taxable_termination and a direct_skip sec_2602 provides that the amount of the tax is the taxable_amount multiplied by the applicable_rate sec_2641 defines applicable_rate as the product of the maximum_federal_estate_tax_rate and the inclusion_ratio with respect to the transfer sec_2642 provides the method for determining the inclusion_ratio sec_2631 provides that for purposes of determining the inclusion_ratio every individual shall be allowed a gst_exemption of dollar_figure adjusted for inflation under sec_2631 which may be allocated by such individual or his executor to any property with respect to which such individual is the transferor sec_2631 provides that any allocation under sec_2631 once made shall be irrevocable sec_2632 provides that any allocation by an individual of his or her gst_exemption under sec_2631 may be made at any time on or before the date prescribed for filing the estate_tax_return for such individual’s estate determined with regard to extensions regardless of whether such a return is required to be filed sec_26_2632-1 of the generation-skipping_transfer_tax regulations provides that an allocation of gst_exemption to property transferred during the transferor’s lifetime other than in a direct_skip is made on form_709 as applicable during the year at issue sec_2642 provided in relevant part that if the allocation of the gst_exemption to any transfers of property is made on a timely filed gift_tax_return or is deemed to be made under sec_2632 deemed allocations to certain lifetime direct skips - a the value of such property for purposes of determining the inclusion_ratio shall be its value for purposes of chapter and b such allocation shall be effective on and after the date of such transfer plr-128902-04 sec_2642 provides that the secretary shall by regulation prescribe such circumstances and procedures under which extensions of time will be granted to make an allocation of gst_exemption described in sec_2642 such regulations shall include procedures for requesting comparable relief with respect to transfers made before the date of the enactment of sec_2642 which was enacted into law on date sec_2642 provides that in determining whether to grant relief the secretary shall take into account all relevant circumstances including evidence of intent contained in the trust instrument or instrument of transfer and such other factors as the secretary deems relevant sec_2642 further provides that for purposes of determining whether to grant relief the time for making the allocation shall be treated as if not expressly prescribed by statute sec_2652 provides that if under sec_2513 one-half of a gift is treated as made by an individual and one-half of the gift is treated as made by the spouse of such individual such gift shall be so treated for purposes of the generation-skipping_transfer_tax notice_2001_50 2001_2_cb_189 provides that under sec_2624 the time for allocating the gst_exemption to lifetime transfers and transfers at death the time for electing out of the automatic allocation rules and the time for electing to treat any trust as a generation-skipping_transfer_trust are to be treated as if not expressly prescribed by statute the notice further provides that taxpayers may seek an extension of time to make an allocation described in sec_2642 or b or an election described in sec_2632 or c under the provisions of sec_301_9100-3 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 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_9100-3 provides the standards used to determine whether to grant an extension of time to make an election whose due_date is prescribed by a regulation and not expressly provided by statute under sec_301_9100-1 a regulatory election includes an election whose due_date is prescribed by a notice published in the internal_revenue_bulletin in accordance with sec_2642 and notice_2001_50 taxpayers may seek an extension of time to make an allocation described in sec_2642 under the provisions of sec_301_9100-3 plr-128902-04 requests for relief under sec_301_9100-3 will be granted when the taxpayer provides the evidence to establish to the satisfaction of the commissioner 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 provides that a taxpayer is deemed to have acted reasonably and in good_faith if the taxpayer reasonably relied on a qualified_tax professional including a tax professional employed by the taxpayer and the tax professional failed to make or advise the taxpayer to make the election based on the facts submitted and the representations made we conclude that the requirements of sec_301_9100-3 have been satisfied therefore taxpayer sec_1 and are granted an extension of time of sixty days from the date of this letter to allocate their available gst exemptions to the transfers to trusts made in year sec_1 and the allocations will be effective as of the dates of the transfers and should be made based on the value of the property transferred to trusts on those dates the allocations for the transfers made to trust on date sec_2 and should be made on supplemental form sec_709 for year sec_1 and and filed with the internal_revenue_service center cincinnati ohio a copy of this letter should be attached to each supplemental form_709 copies are enclosed for this purpose because the year transfer to trust was not reported on form sec_709 form sec_709 for year must be filed with the internal_revenue_service center cincinnati ohio reporting the gift and allocating gst_exemption thereto a copy of this letter should be attached to each form_709 filed copies are enclosed for this purpose the rulings contained in this letter are based upon information and representations submitted by the taxpayers 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 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 specifically no opinion is expressed or implied concerning the value of the property taxpayer transferred to trust in year sec_1 through for federal transfer_tax purposes this ruling is directed only to the taxpayers requesting it sec_6110 provides that it may not be used or cited as precedent plr-128902-04 in accordance with the power_of_attorney on file with this office a copy of this letter is being sent to your authorized representatives sincerely heather c maloy heather c maloy associate chief_counsel passthroughs special industries enclosure copy for sec_6110 purposes copies of this letter cc


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 corp b03 plr-153799-08 date april legend parent -------------------------------------------------------------------- ------------------------------- sub -------------------------------------------------------------------- -------------------------- date a date b ----------------------- -------------------------- parent officials ------------------------------------------------------------------------ -------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------ dear --------------- this letter responds to a letter dated date submitted on behalf of parent requesting an extension of time under sec_301_9100-3 of the procedure and administration regulations to file certain elections additional information was submitted in a letter dated date parent is requesting an extension of time to file statements under sec_1_337_d_-2 and sec_1_1502-35 the elections that were required to be filed with its consolidated federal_income_tax return for the taxable_year ended date a the material information submitted for consideration is summarized below plr-153799-08 parent is the common parent of a consolidated_group that included sub during the taxable_year ended date a parent’s stock in sub became worthless however parent failed to claim a worthless securities deduction on the group’s original tax_return for such year on date b a date after the due_date for the elections parent filed an amended_return to claim a worthless securities deduction pursuant to sec_165 for the sub stock elections under sec_1_337_d_-2 and sec_1_1502-35 to recognize the loss with respect to the disposition of the stock of sub were required to be filed with or as part of parent's timely filed return for its taxable_year ended date a however for various reasons the elections were not filed subsequently this request was submitted under sec_301_9100-3 for an extension of time to file the elections the period of limitations on assessment under sec_6501 of the internal_revenue_code has not expired for parent's taxable_year for which it desires to make the elections or for any taxable years that would be affected by the elections had they been timely filed sec_1_337_d_-2 provides that no deduction is allowed for any loss recognized by a member of a consolidated_group with respect to the disposition of stock of a subsidiary sec_1_337_d_-2 provides that a disposition means any event in which gain_or_loss is recognized in whole or in part sec_1_337_d_-2 provides that sec_1_337_d_-2 applies with respect to stock of a subsidiary only if a separate statement entitled sec_1_337_d_-2 statement is included with the return in accordance with sec_1_337_d_-2 sec_1_337_d_-2 provides that loss is not disallowed under sec_1_337_d_-2 to the extent the taxpayer establishes that the loss is not attributable to the recognition of built-in_gain on the disposition of an asset including stock and securities sec_1_337_d_-2 provides that the statement required under sec_1_337_d_-2 must be included with or as part of the taxpayer's return for the year of the disposition in general sec_1_337_d_-2 applies with respect to dispositions and deconsolidations on or after date and before date sec_1_1502-35 provides that any loss recognized by a member of a consolidated_group with respect to the disposition of a share of subsidiary stock shall be suspended to the extent of the duplicated_loss with respect to such share of stock if immediately after the disposition the subsidiary is a member of the consolidated_group of which it was a member immediately prior to the disposition or any successor group plr-153799-08 sec_1_1502-35 provides that a disposition means any event in which gain_or_loss is recognized in whole or in part sec_1_1502-35 provides in part that any loss suspended under sec_1 c shall be allowed on a return filed by the group of which the subsidiary was a member on the date the consolidated_group is allowed a worthless_stock deduction under sec_165 taking into account the provisions of sec_1_1502-80 with respect to all of the subsidiary stock owned by members sec_1_1502-35 provides that the suspended_loss will be allowed only if a separate statement entitled allowed loss under sec_1_1502-35 is filed with or as part of the taxpayer’s return for the year in which the loss is allowable sec_1_1502-80t as in effect for the year at issue provided that stock of a member is not treated as worthless under sec_165 before the stock is treated as disposed of under the principles of sec_1_1502-19 sec_1_1502-19 as in effect for the year at issue provided that a corporation’s stock is treated as worthless at the time substantially_all of the corporation’s assets are treated as disposed of abandoned or destroyed for federal_income_tax purposes an asset is not considered to be disposed of or abandoned to the extent the disposition is in complete_liquidation of the corporation or is in exchange for consideration other than relief from indebtedness under sec_301_9100-1 the commissioner has discretion to 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 through provide the standards the commissioner will use to determine whether to grant an extension of time to make a regulatory 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 regulatory 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 in this case the time for filing the elections is fixed by the regulations ie sec_1 d - c and c therefore the commissioner has discretionary authority under sec_301_9100-3 to grant an extension of time for parent to file the elections provided parent establishes it acted reasonably and in good_faith the requirements of sec_301_9100-1 and sec_301_9100-3 are satisfied and granting relief will not prejudice the interests of the government plr-153799-08 information affidavits and representations submitted by parent and parent officials explain the circumstances that resulted in the failure to timely file valid elections the information establishes that parent reasonably relied on qualified_tax professionals who failed to make or advise parent to make the elections and that the request for relief was filed before the failure to make the elections was discovered by the internal_revenue_service see sec_301_9100-3 and v based on the facts and information submitted including the representations that have been made we conclude that parent has established it acted reasonably and in good_faith in failing to timely file the elections the requirements sec_301_9100-1 and sec_301 are satisfied and granting relief will not prejudice the interests of the government accordingly we grant an extension of time under sec_301_9100-3 until days from the date on this letter for parent to file the elections within days of the date on this letter parent having already amended its return for its taxable_year that ended date a to claim the worthless securities loss and to include the statements described in sec_1_337_d_-2 and sec_1_1502-35 must further amend its return to attach a copy of this letter to the return and any other relevant return alternatively in lieu of attaching a copy of this letter to the returns taxpayers filing their returns electronically may attach a statement to the return that provides the date and control number of the letter_ruling the above extension of time is conditioned on parent's consolidated group's tax_liability if any not being lower in the aggregate for all years to which the elections apply than it would have been if the elections had been made timely taking into account the time_value_of_money no opinion is expressed as to parent’s consolidated group's tax_liability for the years involved a determination thereof will be made upon audit of the federal_income_tax returns involved further no opinion is expressed as to the federal_income_tax effect if any if it is determined that parent's consolidated group's liability is lower sec_301_9100-3 we express no opinion with respect to whether parent qualifies substantively to make the elections specifically no opinion is expressed regarding whether or when sub’s stock became worthless in addition no opinion is expressed as to the tax effects or consequences of filing the elections late under the provisions of any other section of the code and regulations or as to the tax treatment of any conditions existing at the time of or resulting from filing the elections late that are not specifically set forth in the above ruling for purposes of granting relief under sec_301 we relied on certain statements and representations made by the taxpayer and its representatives however all of the essential facts must be verified in addition notwithstanding that an extension is granted under sec_301_9100-3 to file the elections penalties and interest that would otherwise be applicable if any continue to apply plr-153799-08 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 __________________ ken cohen acting chief branch office of associate chief_counsel corporate


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 corp b03 plr-115807-15 date date legend parent -------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------ -------------------------------------------------------------------------------- new parent ------------------------------------------------------------ -------------------------------------------------- corp x ------------------------------------------------------------ ---------------------------------------------- sub ------------------------------------------------------------ ------------------------------------------- sub ------------------------------------------------------------ --------------------------------------------------------- sub ------------------------------------------------------------ ----------------------------------------------------------------------- sub ------------------------------------------------------------------------------------------------------------- ----------------------------------------------------- ------------------------------------------------------------ -------------------------------------------------------------------------------- sub ------------------------------------------------------------ ------------------------------ plr-115807-15 sub llc ------------------------------------------------------------ ------------------------------- date a date b date c date d date e state a state b state c y ------------------- ---------------------------- --------------------------- ------------------------ --------------- ----------- -------------- -------------- -- dear ------------------- this letter is in response to your authorized representative’s letter dated date requesting rulings concerning the federal_income_tax consequences of the proposed transactions described below under sec_1_1502-13 and sec_1_1502-13 of the income_tax regulations the material information submitted in your letter and subsequent correspondence dated date and date is summarized below parent was the common parent of a consolidated_group parent group parent owned all the stock of sub sub owned all the stock of sub and sub sub owned all the stock of sub on date a which was prior to the parent group’s first taxable_year beginning on or after date sub distributed all the stock of sub to sub in a distribution to which sec_301 and sec_311 applied sub distribution sub recognized gain under sec_311 all of which was deferred under the regulations effective at that time dig on the same date sub contributed all the stock of sub and sub to sub in a transaction qualifying under sec_351 contribution immediately following contribution and also on date a sub distributed all the stock of sub to parent in a distribution to which sec_301 and sec_311 applied sub distribution sub recognized gain under sec_311 all of which was deferred under the regulations effective at that time dig plr-115807-15 on date b sub merged with and into sub in a transaction qualifying as a reorganization under sec_368 merger on date c parent contributed all the stock of sub to sub a wholly owned subsidiary of parent in a transaction qualifying under sec_351 on date d sub converted under state a law to sub llc as a result of which sub llc was disregarded as an entity separate from parent for federal tax purposes also on date d new parent acquired all the stock of parent in a transaction that resulted in the termination of the parent group and with all the members of parent group becoming members of a consolidated_group of which new parent was the common parent new parent group on date e new parent group underwent a restructuring that included a reorganization in which newly formed corp x succeeded new parent as common parent of the new parent group now called corp x group corp x group proposes the following transactions sub will convert under state b law to an llc disregarded as an entity separate from parent for federal tax purposes sub conversion sub will convert under state c law into an llc disregarded as an entity separate from parent for federal tax purposes sub conversion sub will convert under state a law into an llc disregarded as an entity separate from parent for federal tax purposes sub conversion sub conversion sub conversion and sub conversion will take place in that order over a y day period we have received the following representations from appropriate parties a other than the transactions described in this letter no corporate restructuring or similar transaction under sec_368 sec_351 sec_355 or similar provision took place within the parent group or took place or will take place on or before the date of the sub conversion within the corp x group including the time period during which new parent was the parent of the consolidated_group in which the basis of the stock of any corporation or a successor thereto whose stock was the subject of dig or dig would have been impacted b other than the sub conversion the sub conversion and the sub conversion there will be no other transaction involving the stock of any of sub sub or sub c beginning with the sub conversion and continuing through the time of the sub conversion no business activities outside the ordinary course will be conducted by sub sub or sub except for the deemed extinguishment of intercompany notes between sub including entities disregarded as separate from sub and parent including entities disregarded as separate from parent in connection with the sub conversion based on the facts and information submitted and the representations made and provided that a valid election has been made under sec_1_1502-13 of the regulations plr-115807-15 for the taxpayers to elect to apply the intercompany_transaction regulations under sec_1_1502-13 to stock elimination transactions described in sec_1_1502-13 to which prior_law would otherwise apply we rule as follows as a result of the deemed liquidation arising from the sub conversion parent will become a successor person within the meaning of sec_1_1502-13 to sub and will succeed to dig upon the deemed liquidation of sub resulting from the sub conversion dig will be redetermined to be excluded from gross_income under sec_1_1502-13 as a result of the merger sub became a successor person within the meaning of sec_1_1502-13 to sub and succeeded to dig upon the deemed liquidation of sub resulting from the sub conversion dig will be redetermined to be excluded from gross_income under sec_1_1502-13 no opinion is expressed or implied about the federal_income_tax consequences of any other aspect of any transaction or item discussed or referenced in this letter or the federal_income_tax treatment of any conditions existing at the time of or effects resulting from the transaction that are not specifically covered by the above rulings this ruling letter is directed only to the taxpayer requesting it sec_6110 provides that it may not be used or cited as precedent a copy of this letter_ruling must be attached to any income_tax return to which it is relevant alternatively taxpayers filing their returns electronically may satisfy this requirement by attaching a statement to their return that provides the date and control number of the letter_ruling in accordance with the power_of_attorney on file with this office a copy of this letter_ruling is being sent to your authorized representative sincerely ___________________ ken cohen senior technician reviewer branch office of associate chief_counsel corporate


oo department of the treasury internal_revenue_service washington d c ' aug -ep fast od lh y ‘ tax exempt and government entities re dear ein this letter constitutes notice that your request of date for a waiver of the minimum_funding_standard for the above-named plan for the plan_year ending date has been granted subject_to the following conditions by date the company will make contributions to the plan in amounts sufficient to meet the minimum_funding requirements for the plan for the plan_year ending date beginning date and every months thereafter through date the company will make quarterly contributions to the plan of not less than dollar_figure the company will make contributions to the plan in amounts sufficient to meet the minimum_funding requirements for the plan for the plan years ending date and date by date and date respectively you agreed to these conditions if they are not satisfied the waiver is retroactively null and void this conditional waiver has been granted in accordance with sec_412 of the code and sec_303 of the employee_retirement_income_security_act_of_1974 erisa except for the amount determined under sec_412 of the code the amount for which this waiver has been granted is the contribution that would otherwise be required to reduce the balance in the funding_standard_account to zero as of date the plan sponsor's primary business is as a liquid tank farm operator and lessor of dry cargo operations as a liquid tank farm operator the plan_sponsor leases barrel space on a throughput basis to various customers for storage of petroleum and chemical products the storage tank facilities owned by the plan_sponsor have a million barrel capacity as a lessor the plan_sponsor leases its dry cargo operations to another company the company lost a major customer who had leased due to unique circumstances occurring in the oil industry over the last few years the plan_sponsor has lost considerable income from its tank farm operations in february million barrels of oil tank storage capacity in august expectations it had not been selected by the department of energy to receive an allocation of oil for the strategic petroleum reserve furthermore volatility ir the oil markets resulted in a decrease in the demand for oil storage in and for the fiscal years ending in june over dollar_figure during this same period in each year the plan_sponsor has also experienced cashflow problems the plan_sponsor operated at a net_loss of the plan_sponsor leamed that contrary to and however the plan sponsor's financial outlook has recently improved the market conditions for the storage of heating oil have improved the plan_sponsor entered into a lease agreement for oil storage with a major customer and that lease has been renewed furthermore the prospect for additional leases has improved and the plan_sponsor has been approached by a current lessee to increase the amount of storage it leases as a result of this improved financial outlook the plan_sponsor has indicated that it will be able to begin funding the plan at the current time and has agreed to the conditions described above hence this conditional waiver of the minimum_funding_standard for the plan_year ending date has been granted the plan had an accumulated_funding_deficiency for the plan_year ending date based on information submitted with the request the excise_tax under sec_4971 has been paid_by the plan_sponsor for the tax_year associated with this plan_year your attention is called to the following sec_412 of the code describes the consequences which result in the event the plan is amended to increase benefits to change the rate in the accrual_of_benefits or to change the rate of vesting while any portion of the waived_funding_deficiency remains unamortized sec_412 of the code as amended by section c of the omnibus budget reconciliation act of provides that the amortization charge described in sec_412 must be computed by using an interest rate equal to the greater of the plan’s valuation rate or of the federal_mid-term_rate this provision is applicable to a request for a waiver made after date sec_412 of the code as amended by section a of the omnibus budget reconciliation act of requires that for plan years beginning after date each waived_funding_deficiency must be amortized by equal annual installments over a period of years this provision is applicable to an amortization base established in a plan_year beginning after date as in this case for the waiver granted for the plan_year ending date this ruling is directed only to the taxpayer that requested it sec_6110 of the internal_revenue_code provides that it may not be used or cited by others as precedent when filing form_5500 for the plan_year ending date the date of this letter should be entered on schedule b actuarial information for this reason we suggest that you furnish a copy of this letter to the individual who is responsible for the completion of the schedule b a copy of this letter is being sent to the northeast area office in brooklyn new york if you require further assistance in this matter please contact at sincerely yours vat’ igpene martin l pippins manager employee_plans actuarial group


t c memo united_states tax_court james w winters ii petitioner v commissioner of internal revenue respondent docket no 20189-09l filed date james w winters ii pro_se kelley andrew blaine for respondent memorandum findings_of_fact and opinion thornton judge pursuant to sec_6320 and sec_6330 petitioner seeks review of respondent’s determination sustaining the filing of a notice_of_federal_tax_lien nftl with respect to unpaid income taxes for taxable years and findings_of_fact the parties have stipulated some facts which we incorporate by this reference when he petitioned the court petitioner resided in washington state on date respondent assessed petitioner’s federal_income_tax for on date respondent assessed petitioner’s federal_income_tax for on date respondent filed an nftl with the county auditor of clark county washington with respect to petitioner’s and tax_liabilities that same day respondent sent petitioner a letter notice_of_federal_tax_lien filing and your right to a hearing under sec_6320 on date respondent received from petitioner a timely form request for a collection_due_process or equivalent_hearing on the form petitioner indicated that he wished to pursue a collection alternative 1unless otherwise indicated all section references are to the internal_revenue_code all monetary amounts have been rounded to the nearest dollar 2although the record is unclear on this point respondent asserts that petitioner received a notice_of_deficiency for tax_year and voluntarily filed his return late showing a balance due by letter dated date respondent’s settlement officer so notified petitioner that she had scheduled a telephone conference with him for date and offered him the option of a face-to-face hearing the letter requested that petitioner provide a completed form 433-a collection information statement for wage earners and self-employed individuals noting in bold font please provide the required_documentation on page of the form_433 a the letter also requested that petitioner provide a copy of his federal_income_tax return which had not been filed the letter indicated that if these documents were not provided by date the so could not consider collection alternatives at petitioner’s conference on date petitioner called the so and requested that his hearing be rescheduled in a telephone conversation the next day petitioner and the so agreed to a rescheduled hearing date of date the so gave petitioner until the new hearing date to provide the requested form 433-a his tax_return and any 3page of the form 433-a requires submission of copies of income items earnings statements pay stubs etc statements for banks accounts stock investments life_insurance etc statements from lenders with respect to all personal and business_assets billing statements for all out-of-pocket expenses credit card statements profit and loss statements etc and a copy of the prior year’s form_1040 u s individual_income_tax_return with all attachments other information he wished her to consider she reiterated that he also needed to provide the documents indicated on page of the form 433-a at the appointed time on date the so called petitioner and left a voice mail message stating that she was calling for the rescheduled hearing and that she had not received a form 433-a and other materials as requested on date the so received from petitioner a letter in which he proposed to pay the entire balance of his tax_liability and to pay dollar_figure a month toward his liability with yearly review enclosed with this letter were a form 433-a and a copy of petitioner’s income_tax return of the documents required to be submitted as indicated on page of the form 433-a petitioner attached only an date statement for a payment due on a porsche and an account summary and statement dated date with respect to a line of credit with a bank the form 433-a petitioner submitted indicated that he was the ceo of tier one enterprises but that he had zero gross monthly income he listed dollar_figure of total monthly living_expenses including dollar_figure of court-ordered payments the form 433-a also indicated that petitioner was plaintiff in a dollar_figure million lawsuit for 4petitioner listed individual expenses of dollar_figure dollar_figure dollar_figure and dollar_figure but incorrectly added these up to dollar_figure instead of dollar_figure breach of guaranty in response to the question whether the individual or sole_proprietorship ever filed bankruptcy petitioner checked no the so called petitioner after receiving these submissions on date according to the so’s log petitioner stated that the company for which he had worked had gone out of business and filed for bankruptcy he also indicated that a dollar_figure million judgment had been entered against him and a business partner according to her log the so advised petitioner that for her to consider a collection alternative he had to provide the required financial information and asked him to fax her the information by date on date the so noted in her log that she still had not received from petitioner the documentation requested on page of the form 433-a on date respondent issued a notice_of_determination concerning collection action s under sec_6320 and or notice sustaining the filing of the nftl with respect to petitioner’s unpaid liabilities for and the notice indicated that petitioner’s proposed collection alternative could not be considered because the form 433-a he had submitted was incomplete the notice indicated that the so had verified that all legal and procedural requirements had been met for the proposed collection action opinion petitioner disputes only whether the so improperly rejected his offer of a collection alternative because petitioner has not challenged his underlying tax_liability in this proceeding we review the notice_of_determination for abuse_of_discretion asking whether it was arbitrary capricious or without sound basis in fact or law see eg 125_tc_301 aff’d 469_f3d_27 1st cir 114_tc_604 the commissioner may enter into installment agreements with taxpayers under specified circumstances sec_6159 in general the decision to accept or reject an installment_agreement proposed by a taxpayer is subject_to the commissioner’s discretion sec_301_6159-1 proced admin regs at the collection_due_process_hearing the taxpayer is expected to provide all relevant information requested by the appeals_office including financial statements sec_301_6320-1 sec_301_6330-1 proced admin regs it is not an abuse_of_discretion for appeals personnel to refuse to consider collection alternatives where a taxpayer fails to submit the requested financial information see eg kansky v 5although the petition challenges the underlying liability at trial petitioner conceded that he was no longer disputing it commissioner tcmemo_2007_40 schwersensky v commissioner tcmemo_2006_178 the so gave petitioner a number of opportunities to provide the requested financial information but he never did provide it petitioner suggests that because he told the so in a phone call about his company’s bankruptcy and a dollar_figure million judgment against him it was up to the so to verify these matters of public record we disagree in any event the documentation of these two matters was only a small part of the documentation petitioner was required to submit but did not submit with the form 433-a petitioner suggests that the so gave him inadequate time to submit the information the evidence indicates that the so first requested the information on date and as of date still had not received it we are not persuaded that the so gave petitioner inadequate time or otherwise 6petitioner also asserts on brief that he could have easily faxed respondent the requested documentation but that respondent does not accept faxes the so’s log however indicates that she asked petitioner to fax her the information to a fax number listed in the log abused her discretion in sustaining the filing of the nftl accordingly we uphold respondent’s determination sustaining the filing of the nftl to reflect the foregoing decision will be entered for respondent


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 b02 plr-118943-04 date may trust ------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------ a b ----------------------- -------------------------- -------------------------- state ---------- d1 d2 d3 d4 a b c ------------------- ------------------ ---------------- -------------- --- ---- --- dear ---------------- this responds to a letter dated date and subsequent correspondence submitted on behalf of trust by its authorized representative requesting rulings under sec_664 sec_507 sec_1001 and sec_4941 of the internal_revenue_code the information submitted states that a created trust a charitable_remainder_unitrust crut on d1 a and a’s spouse b are entitled to receive payments of the unitrust amounts under the trust instrument the trust instrument provides that the trustee will pay to a and b for their concurrent and consecutive lifetimes a unitrust_amount equal to the lesser_of a the trust income for the taxable_year as defined in sec_643 and the regulations thereunder or b a percent of the net fair_market_value of the assets of the trust valued as of the first day of each taxable_year of the trust the plr-118943-04 valuation_date upon the death of a or b the entire unitrust_amount is to be paid to the survivor the payments of the unitrust amounts shall also include any amount of trust income for the year that is in excess of the amount required under b above to the extent that the aggregate of the amounts paid in prior years was less than the aggregate of the amounts computed at a percent of the net fair_market_value of the trust assets a is currently the sole trustee of trust upon the death of the survivor the trustee shall distribute all of the principal and income of trust to a charity or charities described in sec_170 sec_170 sec_2055 and sec_2522 designated by a a has not irrevocably designated any charity as remainderman if a has not made a designation before a’s death then b shall make the designation a and b propose to terminate trust a as trustee will make a one-time lump sum distribution to a b and public_charities designated by a equal to the present_value of their respective interests effective on the date of termination a represents that this early termination is allowable under state law a’s date of birth is d2 and a is aware of no physical condition that would decrease a’s normal life expectancy a‘s personal physician submitted a statement confirming that there was no indication that a’s life expectancy was less than would otherwise be expected for a person a’s age b’s date of birth is d3 and b is aware of no physical condition that would decrease b’s normal life expectancy b‘s personal physician submitted a statement confirming that there was no indication that b’s life expectancy was less than would otherwise be expected for a person b’s age ruling sec_664 defines a crut for the purposes of sec_664 as a_trust a from which a fixed percentage which is not less than percent nor more than percent of the net fair_market_value of its assets valued annually is to be paid not less often than annually to one or more persons at least one of which is not an organization described in sec_170 and in the case of individuals only to an individual who is living at the time of the creation of the trust for a term of years not in excess of years or for the life or lives of such individual or individuals b from which no amount other than the payments described in sec_664 and other than qualified gratuitous transfers described in sec_664 may be paid to or for the life or lives of such individual or individuals c following the termination of the payments described in sec_664 the remainder_interest in the trust is to be transferred to or for_the_use_of an organization described in sec_170 or is to be retained by the trust for such a use or to the extent the remainder_interest is in qualified_employer_securities as defined in sec_664 all or part of such securities are to be transferred to an employee_stock_ownership_plan as defined in sec_4975 in a gratuitous transfer as defined by sec_664 and d with respect to each contribution of property to the trust the value plr-118943-04 determined under sec_7520 of such remainder_interest in such property is at least percent of the net fair_market_value of such property as of the date such property is contributed to the trust sec_664 provides that notwithstanding the provisions of sec_664 and b the trust instrument of a crut may provide that the trustee shall pay the income_beneficiary for any year a the amount of the trust income if such amount is less than the amount required to be distributed under sec_664 and b any amount of the trust income which is in excess of the amount required to be distributed under sec_664 to the extent that by reason of sec_664 the aggregate of the amounts paid in prior years was less than the aggregate of such required amounts based solely on the facts and representations submitted we conclude that the early termination of trust allowed by state law will not cause trust to be disqualified as a crut under sec_664 this ruling is conditioned on a b and trust treating the early termination as described in ruling sec_2 through below ruling sec_2 sec_507 imposes a tax on a private_foundation under certain circumstances sec_507 defines the term substantial_contributor to include in the case of a_trust the creator of the trust sec_664 generally exempts cruts as defined in sec_664 and above from income_tax sec_4941 imposes an excise_tax on disqualified persons for each act of self-dealing between a disqualified_person and a private_foundation sec_4941 defines self-dealing as including any direct or indirect sale_or_exchange or leasing of property between a private_foundation and a disqualified_person or transfer to or use by or for the benefit of a disqualified_person of the income or assets of a private_foundation sec_4946 provides that for purposes of subchapter_a of chapter of subtitle d of title_26 the term disqualified_person includes with respect to a private_foundation a person who is a substantial_contributor to the foundation or a foundation_manager within the meaning of sec_4946 sec_4946 provides that for purposes of sec_4946 the term substantial_contributor means a person who is described in sec_507 plr-118943-04 sec_4946 provides that for purposes of subchapter_a of chapter of subtitle d of title_26 the term foundation_manager means with respect to any private_foundation an officer director or trustee of a foundation or an individual having powers or responsibilities similar to those of officers directors or trustees of the foundation and with respect to any act or failure to act the employees of the foundation having authority or responsibility with respect to such act or failure to act sec_4947 provides in pertinent part that in the case of a_trust which is not exempt from tax under sec_501 not all of the unexpired interests of which are devoted to charitable purposes and which has amounts in trust for which a charitable deduction was allowed sec_507 and sec_4941 apply as if such trust were a private_foundation sec_4947 provides that sec_4947 shall not apply with respect to any amounts payable under the terms of such trust to non-charitable income beneficiaries sec_53_4947-1 of the foundation and similar excise_taxes regulations provides in essence that payments of income by a crut to its individual income beneficiaries do not result in any_tax on self-dealing under sec_4947 sec_1_7520-3 of the income_tax regulations provides that the standard sec_7520 annuity life_estate or remainder factor may not be used to value a restricted beneficial_interest however a special factor may be used to value a restricted beneficial_interest in some circumstances sec_1_7520-3 provides that the standard factor for an ordinary remainder_interest represents the present worth of the right to receive dollar_figure at the end of a defined period sec_1_7520-3 provides that the standard factor for an ordinary life_estate interest represents the right to receive the use of dollar_figure for a defined period trust is a split-interest trust described in sec_4947 by being described in sec_4947 trust is subject_to the provisions of sec_507 and sec_4941 and certain other provisions as if it were a private_foundation a and b are disqualified persons with respect to trust within the meaning of sec_4946 sec_507 defines the term substantial_contributor to include the creator of the trust by early termination trust will distribute lump sums to a b and the charities equal to the actuarial value of their interests in trust taking into account the net-income and make-up provisions of trust and the distributions are also treated as a constructive_sale or exchange between a b and the charities generally payments to a and b from trust would constitute self-dealing however because the distribution to a and b equals the actuarial value of the income_interest taking into account the net-income provisions of the trust the exception to self- plr-118943-04 dealing provided by sec_53_4947-1 applies and the distribution will not be an act of self-dealing furthermore because the designated charities are public_charities sec_4941 does not apply to the transaction between a b and the charities the appropriate calculation of the actuarial value of the income_interest of trust taking into account the net-income provisions of trust requires the use of a reasonable method for the calculation which does not inappropriately inflate a and b’s interest to the detriment of the charitable remaindermen one reasonable method to calculate the actuarial value of the income and remainder interests is the following the computation of the remainder_interest is found using a special factor as indicated in sec_1_7520-3 the special remainder factor is found by using the methodology stated in sec_1_664-4 for computing the factor for a remainder_interest in a unitrust with the following modification where sec_1_664-4 provides an assumption that the trust’s stated payout percentage is to be paid out each year instead the assumed payout shall be that of a fixed percentage which is equal to the lesser_of the trust’s stated payout percentage or the sec_7520 rate for the month of termination the special factor for the non-charitable payout interest i sec_1 minus the special remainder factor based on this methodology the calculation of a’s income_interest in trust may be demonstrated as follows the sec_7520 rate for d3 is b percent assuming the termination occurred on d3 the lesser_of this rate and trust’s stated payout percentage is b percent a and b’s assumed ages as of their nearest birthdays are both c based on table 90cm interest at b percent an unadjusted payout rate of b percent and quarterly payments made at the end of each quarter the present_value of the remainder_interest in a unitrust which falls in at the death of the last of two persons aged c is dollar_figure362 for each dollar_figure of the trust estate the present_value of the payout interest in the same unitrust until such death is dollar_figure minus dollar_figure362 or dollar_figure638 for each dollar_figure of the trust estate in this case the income beneficiaries are not expected to receive more than they would during the full term of the trust under the above-described methodology for valuing their interest in a crut with a net_income make-up feature further it is represented that state law allows for early termination under the facts presented in addition a and b’s personal physicians have conducted a physical examination of a and b and have stated that they find no medical_condition expected to result in a shorter-than-average longevity under sec_1_72-9 a and b have each signed a similar statement under penalties of perjury furthermore because the effect of the transaction is to vest the income_interest and remainder_interest in the remainder beneficiaries trust no longer will be a split- interest trust under sec_4947 and sec_507 will not apply plr-118943-04 accordingly we hold as follows the proposed early termination of trust will not be subject_to termination_tax under sec_507 and will not constitute an act of self-dealing under sec_4941 as to a and b or as to trust using the methodology described above for the date of termination ruling sec_1001 provides that the gain from the sale_or_other_disposition of property is the excess of the amount_realized therefrom over the adjusted_basis provided in sec_1011 for determining gain and the loss shall be the excess of the adjusted_basis provided in such section for determining loss over the amount_realized sec_1001 states that the amount_realized from the sale_or_other_disposition of property is the sum of any money received plus the fair_market_value of the property other than money received under sec_1001 except as otherwise provided in subtitle a the entire amount of gain_or_loss determined under sec_1001 on the sale_or_exchange of property shall be recognized sec_1001 generally provides that in determining gain_or_loss from the sale or disposition of a term_interest_in_property that portion of the adjusted_basis of the interest which is determined under sec_1014 or sec_1015 to the extent that the adjusted_basis is a portion of the entire adjusted_basis of the property shall be disregarded sec_1001 defines a term_interest_in_property to include an income_interest in a_trust however sec_1001 states that the term_interest rule described in sec_1001 shall not apply to a sale_or_other_disposition of property that is a part of a transaction in which the entire_interest in property is transferred to any person or persons sec_1_1001-1 provides that for purposes of determining the gain_or_loss from the sale_or_other_disposition of a term_interest_in_property a taxpayer shall not take into account that portion of the adjusted_basis of such interest which is determined pursuant to sec_1015 relating to the basis_of_property acquired by gift or by a transfer in trust to the extent that such adjusted_basis is a portion of the adjusted uniform basis of the entire property as defined in sec_1_1014-5 sec_1_1001-1 states that the exception in sec_1001 applies when the entire_interest in property is sold or otherwise_disposed_of as part of a single transaction to a third person or persons sec_1015 provides that if property is acquired by a transfer in trust other than by a transfer in trust by a gift bequest or devise the basis shall be the same as it would be in the hands of the grantor increased by the amount of gain or decreased in the amount of loss recognized to the grantor on the transfer plr-118943-04 sec_1_1015-2 provides that the principles stated in sec_1_1015-1 apply in determining the basis_of_property where more than one person acquires an interest in property by transfer in trust sec_1_1015-1 provides that property acquired by gift has a uniform basis and that the proportionate parts of that basis represented by the interests of the life_tenant and remainder_interest holder are determined under rules provided in sec_1_1014-5 however see sec_1001 through discussed above sec_1222 provides that the term long-term_capital_gain means gain from the sale_or_exchange of a capital_asset held for more than one year sec_1221 defines the term capital_asset as property held by the taxpayer with certain listed exceptions not applicable here sec_1223 provides that in determining the period for which a taxpayer has held property however acquired there shall be included the period for which the property was held by any other person if the property has the same basis in the taxpayer's hands as it would have in the hands of that other person revrul_72_243 1972_1_cb_233 provides that the proceeds received by the life_tenant of a_trust in consideration for the transfer of the life tenant's entire_interest in the trust to the holder of the remainder_interest are treated as an amount_realized from the sale_or_exchange of a capital_asset under sec_1222 the right to income_for_life from a_trust estate is a right in the estate itself see 157_f2d_235 2d cir cert_denied 330_us_826 although the proposed transaction takes the form of a distribution of the present values of the respective interests of a b and the charities in substance it is a sale of a and b’s interest to the charities the amount received by a and b as a result of the termination of trust is an amount received from the sale_or_exchange of a capital_asset under sec_1015 a and b’s basis in the life_estate is a portion of the entire basis of the property and the disposition of a and b’s interest is not part of a transaction in which the entire_interest in trust is transferred to a third party therefore under sec_1001 a and b’s adjusted_basis in their interest is disregarded a and b’s holding_period in the life interest exceeds one year accordingly under sec_1222 the entire amount_realized by a and b as a result of the early termination of trust will be long-term_capital_gain this ruling is conditioned on any assets distributed in-kind from trust being distributed on a pro-rata basis between a b and the charities except as specifically ruled above we express no opinion concerning the federal tax consequences of the transactions described above under any other provisions of the code specifically no opinion is expressed as to whether trust otherwise qualifies as a charitable_remainder_unitrust under sec_664 this ruling is directed only to the taxpayer that requested it sec_6110 provides that it may not be used or cited as precedent plr-118943-04 pursuant to a power_of_attorney on file with this office a copy of this letter is being sent to trust’s authorized representative sincerely j thomas hines chief branch office of the associate chief_counsel passthroughs special industries enclosures copy of this letter copy for sec_6110 purposes


internal_revenue_service number release date index numbers ---------------------------------- ----------------------------------------------------- ------------------------ --------------------------------- ------------------------------------- -------------------------------------- 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 plr-122170-09 date date legend x --------------------------------------------------- ------------------------------------------------------ d1 d2 country ------------------ ---------------- ---------------------- dear -------------- this is in response 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 to file an election under sec_301_7701-3 to be treated as a disregarded_entity for federal tax purposes facts according to the information submitted x was formed on d1 under the laws of country x intended to be treated as a disregarded_entity for federal tax purposes effective d2 however x inadvertently failed to timely file form_8832 entity classification election to be treated as a disregarded_entity for federal tax purposes effective d2 plr-122170-09 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 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 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 a single owner having limited_liability may elect to be treated as a disregarded_entity pursuant to the rules of sec_301_7701-3 sec_301_7701-3 and iii 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 sec_301_7701-3 provides that an election under sec_301_7701-3 must be signed by - a each member of the electing entity who is an owner at the time the election is filed or b any officer manager or member of the electing entity who is authorized under local law or the entity’s organizational documents to make the election and who represents to having such authorization under penalties of perjury sec_301_7701-3 provides that if a purchasing_corporation makes an election under sec_338 regarding an acquired subsidiary an election under sec_301 c i for the acquired subsidiary can be effective no earlier than the day after the acquisition_date within the meaning of sec_338 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 section b 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_9100-1 sec_301_9100-2 provides automatic extensions of time for making certain elections sec_301_9100-3 provides rules for requesting extensions of time for regulatory elections that do not meet the requirements of sec_301_9100-2 plr-122170-09 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 file a properly executed form_8832 effective d2 with the appropriate service_center to elect to be classified as a disregarded_entity a copy of this letter should be attached to the form_8832 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 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 curt g wilson curt g wilson associate chief_counsel passthroughs special industries enclosures copy of this letter copy for sec_6110 purposes