internal_revenue_service number release date index number ------------------------------------------ ------------------------------------------ --------------------------- --------------------------------- legend 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 b05 plr-140343-13 date date x ------------------------------------------------- ------------------------------------------ y ------------------------------------------------- ------------------------------------------------------------- z ------------------------------------------------- ------------------------------------------ possession --------------- year ------ dear ------------------- this responds to the letter dated date and related correspondence submitted on behalf of x requesting rulings under sec_50 of the internal_revenue_code facts the facts represented are as follows x was a wholly-owned domestic limited_liability_company treated as a disregarded_entity for federal tax purposes y a domestic_corporation was the sole member of x y has not elected to be exempt from federal_income_tax pursuant to sec_936 plr-140343-13 z also a domestic_corporation made a capital_contribution to x in exchange for a membership interest in x y and z intended that upon the capital_contribution of z x would convert from a disregarded_entity to a partnership for federal tax purposes z has not elected to be exempt from federal_income_tax under sec_936 x’s primary business is to acquire operate and manage solar_energy facilities located in possession hereinafter each such facility will be referred to as project x will acquire a number of the projects and place them in service in year x will use the projects to generate electricity with solar_energy and sell all of the electricity produced by each project to a host customer under a power purchase agreement the projects are not eligible for production tax_credits under sec_45 at no time will any portion of the projects be used i for lodging ii by a tax-exempt_organization described in sec_50 or iii by governments or foreign persons x intends that each project constitute equipment which uses solar_energy to generate electricity within the meaning of sec_48 and qualify for the tax_credit under sec_48 energy_credit x will not elect to depreciate any portion of a project under the alternative_depreciation_system under sec_168 x requests the following rulings assuming that x will be regarded as a valid partnership for federal tax purposes and that each partner of x will be regarded as a valid partner each partner will be regarded as an owner and user of the projects to the extent of its respective share of the basis of each project for purposes of sec_50 and therefore will be entitled to a share of the energy_credit in accordance to sec_1 f and to the extent each partner is so regarded the projects will not be ineligible for the energy_credit by sec_50 law and analysis sec_48 provides for an energy_credit equal to percent of the cost_basis of qualifying energy_property placed_in_service before date sec_48 provides that energy_property includes equipment which uses solar_energy to generate electricity to heat or cool or provide hot water for use in a structure or to provide solar process heat excepting property used to generate energy for the purposes of heating a swimming pool sec_1_48-9 of the income_tax regulations provides that in order to qualify as energy_property under sec_48 property must be depreciable_property with an estimated_useful_life when placed_in_service of at least three years and constructed after certain dates sec_1_48-9 provides as follows plr-140343-13 d solar_energy property-- in general energy_property includes solar_energy_property the term solar_energy_property includes equipment and materials and parts related to the functioning of such equipment that use solar_energy directly to i generate electricity ii heat or cool a building or structure or iii provide hot water for use within a building or structure generally those functions are accomplished through the use of equipment such as collectors to absorb sunlight and create hot liquids or air storage tanks to store hot liquids rockbeds to store hot air thermostats to activate pumps or fans which circulate the hot liquids or air and heat exchangers to utilize hot liquids or air to create hot air or water property that uses as an energy source fuel or energy derived indirectly from solar_energy such as ocean thermal energy fossil fuel or wood is not considered solar_energy_property sec_1_48-9 provides in part that solar_energy_property includes equipment that uses solar_energy to generate electricity and includes storage devices power conditioning equipment transfer equipment and parts related to the functioning of those items such property however does not include any equipment that transmits or uses the electricity generated sec_1_46-3 provides in part that in the case of a partnership each partner shall take into account separately for his taxable_year with or within which the partnership taxable_year ends his share of the basis of partnership new sec_38 property and his share of the cost of partnership used sec_38 property placed_in_service by the partnership during such partnership taxable_year each partner shall be treated as the taxpayer with respect to his share of the basis of partnership new sec_38 property and his share of the cost of partnership used sec_38 property sec_50 provides that except as provided in sec_50 no credit is determined with respect to any property which is used predominantly outside the united_states sec_50 provides that sec_50 does not apply to any property described in sec_168 sec_168 provides that any tangible_property used predominantly outside the united_states during the taxable_year must be determined under the alternative_depreciation_system of sec_168 sec_168 lists exceptions to sec_168 for certain property used outside the united_states sec_168 provides that property will not be treated as used predominantly outside the united_states if the property is owned by a domestic_corporation other than a corporation which has an election in effect under former sec_936 or by a united_states citizen other than a citizen entitled to the benefits of sec_931 or sec_933 and which is used predominantly in a possession_of_the_united_states plr-140343-13 by such a corporation or such a citizen or by a corporation created or organized in or under the law of a possession_of_the_united_states the background of sec_168 provides insight in determining whether sec_168 applies to domestic partnerships where all of the partners are domestic corporations none of which has an election in effect under sec_936 or united_states citizens none of whom is entitled to the benefits of sec_931 or sec_933 the rules in sec_168 are derived from former sec_48 prior to sec_168 provided in relevant part that for purposes of sec_168 rules similar to the rules under sec_48 including the exceptions contained in sec_48 shall apply in determining whether property is used predominantly outside the united_states when former sec_48 was repealed in sec_168 was amended to incorporate the enumerated exceptions contained in former sec_48 see of the omnibus budget reconciliation act of publaw_101_508 the act the language of sec_168 is the same as the language in former sec_48 prior to its repeal in the senate_finance_committee stated the following comments in relevant part on the reason for the enactment of former sec_48 your committee’s amendment extends the application of the investment_credit provision to property used in a possession by a u_s_person or by a corporation organized in a possession provided the property would otherwise have qualified for the investment_credit this rule is not extended if the property is owned or used in the possession by u s persons who are presently exempt from u s tax due to the application of the special provisions of the code which exempt u s persons who derive substantially_all of their income from a u s possession sec_931 sec_932 sec_933 sec_934 s rep no 89th cong 2d sess 1966_2_cb_1100 based on the senate report it appears that congress intended former sec_48 to apply to united_states persons even though the literal language of former sec_48 applied to united_states citizens or domestic corporations when former sec_48 was enacted in the term united_states_person was defined under sec_7701 as meaning a a citizen or resident_of_the_united_states b a domestic_partnership c a domestic_corporation and d any estate_or_trust other than a foreign_estate or foreign_trust within the meaning of sec_7701 similar to former sec_48 the literal wording of sec_168 applies to domestic corporations or united_states citizens but not to domestic partnerships however the repeal of the former provision and the amendment to sec_168 by of the act were not intended to be substantive changes in the tax law h_r rep no 101st cong 2d sess date plr-140343-13 sec_7701 defines the term united_states_person as a a citizen or resident_of_the_united_states b a domestic_partnership c a domestic_corporation d any estate other than a foreign_estate within the meaning of sec_7701 and d any trust if a court within the united_states is able to exercise primary supervision over the administration of the trust and one or more united_states persons have the authority to control all substantial decisions of the trust in light of the legislative_history of sec_168 and former sec_48 we believe that sec_168 is intended to apply to a domestic_partnership where all of its partners are domestic corporations that do not have an election in effect under sec_936 or are united_states citizens that are not entitled to the benefits of sec_931 or sec_933 x represents when the projects are placed_in_service and begin commercial operations x will be a domestic_partnership and the partnership will own and operate the projects therefore provided that x is a domestic_partnership where all of its partners are domestic corporations other than a corporation which has an election in effect under sec_936 or united_states citizens other than a citizen entitled to the benefits of sec_931 or sec_933 the projects that are owned by x for depreciation purposes and are used by x only in possession is property described in sec_168 conclusion based solely upon the facts submitted and representations made we conclude that i assuming that x will be regarded as a valid partnership for federal tax purposes and that each partner of x will be regarded as a valid partner each partner will be regarded as an owner and user of the projects to the extent of its respective share of the basis of each project for purposes of sec_50 and therefore will be entitled to a share of the energy_credit in accordance to sec_1_46-3 and ii to the extent each partner is so regarded the projects will not be ineligible for the energy_credit by sec_50 except as specifically set forth above we express no opinion concerning the federal tax consequences of the above-described facts under any other provision of the code in particular we express no opinion as to whether x is a valid partnership and that each partner of x is a valid partner for federal tax purposes further we express no opinion as to whether each partner of x will be regarded as an owner and user of the project for purposes of any provision of the code other than sec_50 this ruling 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 plr-140343-13 in accordance with the power_of_attorney on file with this office copies of this letter_ruling will be sent to your authorized representatives sincerely nicole r cimino senior technician reviewer branch office of the associate chief_counsel passthroughs and special industries enclosures copy of this letter copy for sec_6110 purposes cc


internal_revenue_service number release date index number -------------------- ------------------------------------ ------------------------- -------------------------------- ------------------------ --------- ty ------- ty ------- 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 intl b04 plr-108241-08 date date -------------------------- --------------------------------------------- fp ds us corp1 -------------------------------------------------------- year1 country1 amount1 amount2 ------- ---------------- ------------------- -------------- dear ------------------ this replies to a letter dated date in which fp ds and us corp1 request extensions of time under sec_301_9100-3 to satisfy the statement notice and withholding requirements of sec_1_897-2 sec_1_897-2 and sec_1_1445-2 the information submitted for consideration is substantially as set forth below the rulings contained in this letter are based upon information and representations submitted by the taxpayer and accompanied by a penalty of perjury statement executed by an appropriate party this office has not verified any of the material submitted in support of the request for rulings verification of the factual information representations and other data may be required as a part of the audit process facts fp a publicly listed country1 corporation owned ds and us corp1 both ds and us corp1 are domestic corporations ds was the parent of an affiliated_group which filed consolidated_returns fp had purchased the shares of us corp in year1 from an unrelated party for cash plr-108241-08 in order that us corp1 would be part of the ds affiliated_group fp contributed the shares of us corp1 to ds in exchange for one share of ds and notes issued by ds in addition on the same day ds distributed cash to fp in the amount of amount1 ds had current_earnings_and_profits for the tax_year ending december year1 the year of the sale in the amount of amount2 ds did not have any accumulated_earnings_and_profits for the tax_year ending december year1 us corp1 had no current or accumulated_earnings_and_profits for the tax_year ending december year1 for federal_income_tax purposes fp ds and us corp1 claim that the ds acquisition of the stock of us corp1 is an exchange governed by sec_351 to the extent no consideration other than the share of ds stock was given for the stock of us corp1 to the extent fp received notes issued by ds as consideration for the stock of us corp1 fp ds and us corp1 assert that the transaction is governed by sec_304 under sec_304 the amount of the notes may be treated in part as a dividend to fp and in part as a return_of_capital and capital_gain for federal_income_tax purposes fp and ds claim that the cash distributed to fp by ds is a return_of_capital to the extent it exceeded distributions if any of ds’s current_earnings_and_profits and to the extent of fp’s basis in ds sec_301 although fp claims that neither ds nor us corp1 was a us real_property holding corporation us rphc any time during the five year period ending with the date of the transactions fp did not request statements pursuant to g from us corp1 and ds that us corp1 and ds were not us rphcs accordingly neither us corp1 nor ds provided statements to fp that they were not us rphcs and that withholding was not required fp ds and us corp1 now seek relief under the provisions of sec_301_9100-1 and -3 for fp to request the applicable statements from us corp1 and ds and for us corp1 and ds to file the applicable notices late as required by sec_1_897-2 discussion sec_301_9100-1 provides that the commissioner has discretion to grant a reasonable extension of time under the standards set forth in sec_301_9100-3 to make a regulatory election under all subtitles of the code except subtitles e g h and i sec_301_9100-1 defines a regulatory election as an election whose due_date is prescribed by a regulation a revenue_ruling revenue_procedure notice or announcement sec_301_9100-3 provides standards for extensions of time for making regulatory elections sec_301_9100-3 provides that requests for relief subject_to this plr-108241-08 section 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 in the present situation the statement and notice fall within the definition of a regulatory election therefore the commissioner has discretionary authority under sec_301_9100-1 to grant fp ds and us corp1 extensions of time provided that fp ds and us corp1 satisfy the standards set forth in sec_301_9100-3 based on the facts and circumstances of this case we conclude that fp us corp1 and ds satisfy sec_301_9100-3 accordingly pursuant to sec_301 and sec_301_9100-3 fp us corp1 and ds are granted an extension of time until days from the date of this ruling letter to satisfy the statement notice and withholding requirements of sec_1_897-2 sec_1_897-2 and sec_1_1445-2 with respect to the distribution that occurred in year1 the granting of an extension of time is not a determination that fp ds and us corp1 are otherwise eligible to comply with the statement and notice requirements sec_301_9100-1 a copy of this ruling letter should be attached with the statement and the notice mailed to the irs this ruling is directed only to the taxpayer who requested it sec_6110 provides that it may not be used or cited as precedent 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 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 david b bailey assistant to the branch chief international branch


tax exempt and sovernment entities division department of the treasury internal_revenue_service washington d c oq uniform issue list jun - tle pasts legend companya ira x plan a date e date f date g amount h amount amount j dear this is in response to your request dated date as supplemented by correspondence dated date for a ruling to waive the 60-day rollover requirement contained in sec_408 and sec_402 of the internal_revenue_code the code’ under penalty of perjury you have submitted the following facts and representations taxpayer a represents that he received a distribution from ira x totaling amount h and a distribution from plan a totaling amount failure to accomplish a rollover of either distribution within the 60-day period prescribed by either sec_408 or sec_402 was due to the delay of a financial planner to provide taxpayer a with timely advice regarding rolling over amounts h and to a qualified_trust which had not yet been established taxpayer a subsequently used the amount h and amount together with other non-retirement amounts on date g to purchase assets for taxpayer a’s new business taxpayer a asserts that his on date e taxpayer withdrew amount h from ira x and on date f withdrew amount less federal withholding of amount j from plan a based on advice he had received from a financial advisor taxpayer a intended to roll over amounts h and to a qualified_plan to be established by his new business taxpayer a asserts that he contacted the financial advisor twice within the applicable day period s but did not receive the information he needed until date g which was after the day rollover period s had expired based on the facts and representations you request that the internal_revenue_service waive the day rollover requirement s contained in sec_408 and sec_402 of the code with respect to the distributions of amounts h and respectively 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 i the entire amount received including money and any other_property is paid into an ira for the benefit of such individual not later than the day after the day on which the individual receives 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 includible 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 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 sec_402 of the code provides that if any portion of the balance_to_the_credit of an employee in a qualified_trust is paid to the employee in an eligible_rollover_distribution and the distributee transfers any portion of the property received in such distribution to an eligible_retirement_plan and in the case of a distribution_of_property other than money the amount so transferred consists of the property distributed then such distribution to the extent transferred shall not be includible in gross_income for the taxable_year in which paid sec_402 states that such rollover must be accomplished within days following the day on which the distributee received the property an individual_retirement_account ira constitutes one form of eligible_retirement_plan sec_402 of the code provides in relevant part that the secretary may waive the 60-day requirement under sec_402 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_402 of the code revproc_2003_16 2003_4_irb_359 date provides that in determining whether to grant a waiver of the 60-day rollover requirement ‘pursuant to sec_408 and sec_402 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 taxpayer a has not presented any evidence to the service as to how any of the factors outlined in revproc_2003_16 affected his ability to timely roll over amounts h and or any portion thereof to either an ira or any other eligible_retirement_plan taxpayer a has stated that he did not have the information to set up the type of rollover account that he wished however the ability to timely roll over amounts h and to a rollover ira or if applicable another eligible_retirement_plan was at all times within his control the information submitted by taxpayer demonstrates that he is solely responsible for failing to timely deposit amounts h and into an ira or another eligible retirement plan’ therefore pursuant to sec_408 and sec_402 of the code the service declines to waive the 60-day rollover requirement s with respect to the distribution of amounts h and thus the contribution of either amount h or amount to either an ira or any other eligible_retirement_plan will not be considered a valid rollover because the 60-day requirement under either sec_408 or sec_402 of the code with respect to such contribution will not be satisfied 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 a copy of this letter has been sent to your authorized representative in accordance with a power_of_attorney on file with this office if you wish to inquire about this ruling please contact me at please address all correspondence to se t ep ra t sincerely yours eres soa employee_plans technical group nager enclosures deleted copy of ruling letter notice of intention to disclose


uil department' of ihe treasuf y intehnal revenue sef vice commerce street dallas tx number release date date december certified mail dear person to ojntact identification_number ojntact telephone number ein in reply refer to internal_revenue_service last date for filing a petition willi 1he united_states tax cdurt this is a final adverse detennination letter as to your exempt status under sec_501 of the internal revenue ojde your exemption from federal_income_tax under sec_501 of the code is hereby revoked effective january 20xx our adverse detennination was made for the following reasons a substantial part of your activities consisted of providing down payment assistance to home buyers to finance the assistance you relied on home sellers and other real-estate related businesses that stand to benefit from these down payment assistance transactions your receipt of a payment from the home seller corresponds to the amount of down payment assistance provided in substantially_all your transactions therefore you are operated for a substantial nonexempt purpose in addition your operations further the private interests of the persons that finance your activities accordingly you are not operated exclusively for exempt purposes described in sec_501 c ojntributions to your organization are no longer deductible under sec_170 of the internal revenue gxie you are required to file federal_income_tax returns on form_1120 these returns should be filed with the appropriate service_center for the year ending december 20xxand for all years thereafter processing of income_tax returns and assessment of any taxes due wi not be delayed should a petition for declaratory_judgment be filed under sec_7428 of the internal revenue gxie if you decide to contest this detennination under the declaratory_judgment provisions of gxie section a petition to the united_states tax ojurt the united_states ojurt of oaims or the district ojurt of the united_states for the district of ojlumbia must be filed before the day after the date this detennination was uil mailed to you contact the clerk of the appropriate court for the rules for initiating suits for declaratory_judgment to secure a petition from the united_states tax_court write to the united_states tax_court second street n w washington d c we will notify the appropriate state officials of this action as required by sec_6104 of the internal_revenue_code you should contact your state officials if you have any questions about how this detennination may affect your state responsibilities and requirements you also have the right to contact the office_of_the_taxpayer_advocate however you should first contact the person whose name and telephone number are shown above since this person can access your tax information and can help you get answers you can calll-877-777-4778 and ask for taxpayer_advocate assistance or vou can contact the taxpayer_advocate from the site where the tax_deficiency was detennined by calling or writing to internal_revenue_service taxpayer advocates office taxpayer_advocate assistance cannot be used as a substitute for established irs procedures formal appeals processes etc the taxpayer_advocate is not able to reverse legal or technically correct_tax detenninations nor extend the time fixed by law that you have to file a petition in the united_states tax_court the taxpayer_advocate can however see that a tax matter that may not have been resolved through normal channels gets prompt and proper handling if you have any questions please contact the person whose name and telephone number are shown in the heading of this letter sincerely yours vicki l aansen acting director eo examinations uil department of the treasury internal_revenue_service date date employer_identification_number form tax_year s ended person to contact number contact number telephone fax certified mail- return receipt requested dear we have enclosed a copy of our report of examination explaining why we believe revocation of your exempt status under sec_501 of the code code and the imposition of income and employment_taxes are necessary if you accept our findings please sign the enclosed form_6018 consent to proposed adverse action and form_4549 income_tax examination changes and return them to our office within days of the date of this letter an envelope has been provided for your convenience lf you do not agree to our findings and wish to protest you must submit to us a written request for appeals consideration within days of the date of this letter your protest should include a statement of facts the applicable law and argument in support of your position uil an appeals officer who is independent of the director eo examinations will review your case the appeals_office resolves most disputes informally and promptly the enclosed publication the examination process and publication exempt_organizations appeal procedures for unagreed issues explain how to appeal an internal_revenue_service irs ecision publication also includes information on your rights as a taxpayer and the irs collection process you may also request that we refer this matter for technical_advice as explained in publication if we issue a determination_letter to you based on technical_advice no further administrative appeal is available to you within the irs retarding the issue that was the subject of the technical_advice if we do not hear from you within days from the date of this letter we will process your case based on the recommendations shown in the report of examination if you do not protest this proposed determination within days from the date of this letter the irs will consider it to be a failure to exhaust your available administrative remedies sec_742b b of the code provides in part a declaratory_judgment or decree under this section shall not be issued in any proceeding unless the tax_court the claims_court or the district_court of the united_states for the district of columbia determines that the organization involved has exhausted its administrative remedies within the internal_revenue_service we will then issue a final revocation letter and assess any_tax as indicated on the attached report of examination we will also notify the appropriate state officials of the revocation in accordance with sec_61 c of the code you are liable for filing federal income and employment_tax returns for all subsequent years these returns are to ba filed with the appropriate campus identified in the instructions for those returns you have the right to contact the office_of_the_taxpayer_advocate taxpayer_advocate assistance is not a substitute for established irs procedures such as the formal appeals process the taxpayer_advocate cannot reverse a legally correct_tax determination or extend the time fixed by law that you have to file a petition in a united_states court the taxpayer ad ocate can however see that a tax mater that may not have been resolved through normal channels gets prompt and proper handling you may call toll-free 7n-4778 and ask for taxpayer_advocate assistance if you prefer you may contact your local taxpayer_advocate at taxpayer_advocate ' uil if you have any questions please call the contact person at the telephone number shown in the heading of this letter if you write please provide a telephone number and the most convenient time to call if we need to contact you thank you fc r your cooperation sincerely 7ickrl fiansen acting director eo examinations enclosure publication publication report of examination envelope form 886-a rev date name of taxpayer issue explanations of items tax identification_number schedule number or exhibit year period ended december 20xx the tax_liability of under sec_11 ofthe internal_revenue_code facts is a not-for-profit corporation incorporated on june 20xx it also has a certificate of authority to transact business in the state of incorporation is to expand the availability of decent safe affordable housing by capitalizing on current opportunities to acquire rehabilitate preserve buy lease rent manage broker or construct housing units for rent and or for sale as stated in the articles of the purpose of on september 20xx code sec_50l c on form_1023 on january 20xx based on the information that in its application_for exemption and on the assumption that its application sec_501 applied for recognition as a tax exempt_organization under internal revenue provided would operate in the manner represented in was recognized as of june 20xx as a tax exempt_organization as described in operates a down payment program that provides financial assistance to homebuyers the amount provided can be used for the down payment closing costs outstanding debt or numerous other needs the funds are generated from payments from builders and sellers although stated in its application_for recognition of exempt status that it also planned to offer interim or specialized housing for the elderly or handicapped it did not engage in that activity the service conducted an examination of tax for the tax_year ended december 20xx based on the examination conducted it was concluded that no longer qualified for exemption from federal_income_tax that conclusion was reached in part for the following reasons form_990 return of organization exempt from income does not exclusively serve an exempt_purpose described in sec_501 provides substantial private benefit to persons who do not belong to a charitable_class down payment gift program does not limit assistance to certain geographic areas or target those areas experiencing deterioration or neighborhood tensions the transactions of make payments to down payment necessary to purchase homes from the sellers the sellers and buyers result in a circular flow of the money the sellers provides the funds to buyers the buyers use the funds to make the form 886-a page of3 department of the treasury- internal_revenue_service form 886-a rev date name of taxpayer explanations of items tax identification_number schedule number or exhibit year period ended december 20xx on october 20xx as a result of the examination of letter letter proposing revocation of tax exempt status form_990 return the service issued a day appealed the service's proposed revocation to the office of appeals law sec_11 of the code imposes a tax for each taxable_year on the taxable_income of every corporation sec_61 ofthe code provides that except as otherwise provided gross_income means all income from whatever source derived sec_162 of the code provides that there shall be allowed as a deduction all the ordinary and necessary expenses paid_or_incurred during the taxable_year in carrying on any trade_or_business sec_1_11-1 ofthe federal tax regulations regs provides that every corporation foreign or domestic is liable to the tax imposed under sec_11 except corporations specifically excepted under such section from such tax corporations expressly exempt from all taxation under subtitle a ofthe code see sec_501 and corporations subject_to tax under sec_511 regs sec_1 61-l a provides that gross_income means all income from whatever source derived unless excluded by law gross_income includes income realized in any form whether in money property or services income may be realized therefore in the form of services meals accommodations stock or other_property as well as in cash regs sec_1_61-3 provides that in a manufacturing merchandising or mining business gross_income means the total sales less the cost_of_goods_sold plus any income from investments and from incidental or outside operations or sources regs sec_1_162-1 a provides that business_expenses deductible from gross_income include the ordinary and necessary expenditures directly connected with or pertaining to the taxpayer's trade_or_business regs sec_1_6012-2 provides that except as provided every corporation subject_to taxation under subtitle a of the code shall make a return of income regardless of whether it has taxable_income or regardless of the amount of its gross_income form 886-a page of3 department of the treasury -internal revenue service form 886-a rev date name of taxpayer explanations of items tax identification_number schedule number or exhibit year period ended december 20xx regs sec_1_6012-2 provides that the return required of a corporation under this section shall be made on form_1120 unless the corporation is of a type for which a special form is prescribed irs position based on the letter referenced above from the service to recognized as exempt from federal_income_tax as an organization described in sec_501 of the code the revocation of tax exempt status is effective as of january 20xx dated october 20xx is no longer for the tax_year ended december 20xx is a taxable corporation as such by sec_11 of the code and is required to file form_1120 u s_corporation income_tax return for the tax years ended december 20xx pursuant to regs section dollar_figure a l and is liable for the tax imposed that statutory period for the limitation of time to assess tax owed by on january 20xx therefore pursuant to sec_6212 of the code the service is sending a notice_of_deficiency to with respect to the tax imposed by sec_11 under sec_11 of the code expires in computing the amount of tax due by amounts reported as revenue and expenses on 20xx to income and deductions on form_1120 return for the tax_year ended december 20xx the adjustments to convert income_tax examination changes form_990 return to form_1120 return are summarized on the enclosed form under section ll a of the code the service converted the form_990 return for the tax_year ended december all revenues reported on a ofthe code and regs sec_1 61-l a and -3 a see line items la-e adjustments to income on form_4549 form_990 return were treated as income pursuant to section all expenses reported on form_990 return were treated as ordinary and necessary expenses and allowed as deductions from income pursuant to sec_61 of the code and regs sec_1 162-l a see line items lf-g adjustments to income form_4549 taxpayer position the issuance of a notice_of_deficiency along with projected tax_liabilities was discussed with an officer of form 886-a page of3 department of the treasury - internal_revenue_service


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-126043-10 date date internal_revenue_service number release date index number ----------------------- ----------------------------------------------------- ----------------------------- ---------------------------------- legend legend x ------------------------------------------- -------------------------- d1 state ------------------------- ----------------- dear ---------------------- this responds to the letter dated date and subsequent correspondence submitted on behalf of x requesting relief under sec_1362 of the internal_revenue_code facts according to the information submitted x was incorporated on d1 under the laws of state the shareholder of x intended that x be treated as an s_corporation for federal tax purposes effective on d1 but the election to be treated as an s_corporation was not timely filed accordingly x requests a ruling that it will be treated as an s_corporation effective d1 law and analysis sec_1362 provides that a small_business_corporation may elect to be an s_corporation sec_1362 provides the rule on when an s election will be effective sec_1362 provides in relevant part that if an s election is made within the first two and one-half months of a corporation's taxable_year then the corporation will be plr-126043-10 treated as an s_corporation for the year in which the election is made under sec_1362 however if an s election is made after the first two and one-half months of a corporation's taxable_year then that corporation will not be treated as an s_corporation until the taxable_year after the year in which the s election is filed sec_1362 provides that if no sec_1362 election is made for any taxable_year and the secretary determines that there was reasonable_cause for the failure to timely make such election then the secretary may treat such an election as timely made for such taxable_year and sec_1362 shall not apply x did not timely file an election to be treated as an s_corporation under sec_1362 effective d1 x has however established reasonable_cause for not making a timely s election and is entitled to relief under sec_1362 conclusion based solely on the facts submitted and the representations made and provided that x otherwise qualifies as an s_corporation we conclude that x will be treated as an s_corporation effective d1 if within days from the date of this letter x submits a properly completed form_2553 with a copy of this letter attached to the appropriate service_center except as specifically set forth above no opinion is expressed or implied as to the federal tax consequences of the facts described above under any other provision of the code specifically no opinion is expressed concerning whether x is in fact an s_corporation for federal tax purposes this ruling is directed only to the taxpayer requesting it sec_6110 provides that it may not be used or cited as precedent pursuant to the power_of_attorney on file with this office a copy of this letter will be sent to x’s authorized representatives sincerely cornelia j schnyder cornelia j schnyder senior technical reviewer branch office of the associate chief_counsel passthroughs and special industries enclosures copy of this letter copy for sec_6110 purposes


internal_revenue_service number release date index number -------------------------------- -------------------------- -------------------------------------------- ------------------------------------------------- ----------------------------- department of the treasury washington dc third party communication none date of communication not applicable_person to contact -------------- id no ------------- telephone number --------------------- refer reply to cc psi b02 plr-138618-09 date date legend x ------------------------------------------ ------------------------------------------------------------------------- state ---------- d1 ------------------ dear ------------ this responds to a letter dated date submitted on behalf of x by x’s authorized representative requesting a ruling under sec_1362 of the internal_revenue_code the information submitted states that x was incorporated in state on d1 it was intended that x elect s_corporation treatment effective d1 however a form_2553 election by a small_business_corporation was not timely filed for x sec_1362 provides that a small_business_corporation may elect to be an s_corporation sec_1362 provides the rule on when an s election will be effective generally if an s election is made within the first two and one-half months of a corporation's taxable_year then the corporation will be treated as an s_corporation for the year in which the election is made sec_1362 provides that if an s election is made after the first two and one-half months of a corporation's taxable_year then the corporation will not be treated as an s_corporation until the taxable_year after the year in which the s election is made plr-138618-09 sec_1362 provides that if an election under sec_1362 is made for any taxable_year after the date prescribed by sec_1362 for making the election for the taxable_year or no sec_1362 election is made for any taxable_year and the secretary determines that there was reasonable_cause for the failure to timely make the election then the secretary may treat the election as timely made for such taxable_year and sec_1362 shall not apply based solely on the facts and the representations submitted we conclude that x has established reasonable_cause for failing to make a timely election to be an s_corporation effective d1 accordingly provided that x makes an election to be an s_corporation by filing a completed form_2553 with the appropriate service_center effective d1 within days following the date of this letter then such election will be treated as timely made for x's taxable_year beginning d1 a copy of this letter should be attached to the form_2553 except as specifically set forth above no opinion is expressed or implied as to the federal_income_tax consequences of the transaction described above under any other provision of the code specifically no opinion is expressed concerning whether x is in fact an s_corporation for federal tax purposes this ruling is directed only to the taxpayer requesting it sec_6110 of the code provides that it may not be used or cited as precedent pursuant to the power_of_attorney on file with this office a copy of this letter is being sent to x’s authorized representative sincerely bradford r poston senior counsel branch passthroughs special industries enclosures copy of this letter copy for sec_6110 purposes


significant index number ‘department of the treasury internal_revenue_service washington d c tax exempt and government entities jul tep caaz re taxpayer dear this letter constitutes notice that approval has been granted for your request for a 5-year automatic_extension for amortizing the unfunded liabilities as of date for the above-named plan which are described in sec_431 and sec_431 of the internal_revenue_code code and sec_304 and sec_304 of the employee_retirement_income_security_act_of_1974 erisa this extension is effective with the plan_year beginning date this extension applies to the eligible amortization charge bases as identified in your application submission established as of date the extension of the amortization periods of the unfunded liabilities of the plan was granted in accordance with sec_431 of the code sec_431 of the code requires the secretary to extend the period of time required to amortize any unfunded_liability of a plan for a period of time not in excess of years if the plan submits an application meeting the criteria stated in sec_431 the plan has submitted the required information to meet the criteria in sec_431 including a certification from the plan’s actuary that i absent the extension under subparagraph a the plan would have an accumulated_funding_deficiency in the current plan_year or any of the succeeding plan years ii the plan_sponsor has adopted a plan to improve the plan's funding status iii the plan is projected to have sufficient assets to timely pay expected benefits and anticipated expenditures over the amortization period as extended and iv the notice required under paragraph a has been provided we have sent a copy of this letter to the to the and to your authorized representative pursuant to a power_of_attorney on file in this office 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 if you require further assistance in this matter please contact sincerely yours ts iz david m ziegler manager ep actuarial group


internal_revenue_service tax_exempt_and_government_entities_division exempt_organizations examinations department of the treasury release number release date date date uil code taxpayer_identification_number form tax_year s ended november 20xx person to contact id number contact numbers telephone fax certified mail - return receipt requested dear we have enclosed a copy of our report of examination explaining why we believe revocation of your exempt status under sec_501 of the internal_revenue_code a is necessary if you accept our findings take no further action we will issue a final revocation letter if you do not agree with our proposed revocation you must submit to us a written request for appeals_office consideration within days from the date of this letter to protest our decision your protest should include a statement of the facts the applicable law and arguments in support of your position an appeals officer will review your case the appeals_office is independent of the director eo examinations the appeals_office resolves most disputes informally and promptly the enclosed publication the examination process and publication exempt_organizations appeal procedures for unagreed issues explain how to appeal an internal_revenue_service irs decision publication also includes information on your rights as a taxpayer and the irs collection process if we issue a determination_letter to you based on technical_advice no further you may also request that we refer this matter for technical_advice as explained in publication administrative appeal is available to you within the irs regarding the issue that was the subject of the technical_advice if we do not hear from you within days from the date of this letter we will process your case based on the recommendations shown in the report of examination if you do not protest this proposed determination within days from the date of this letter the irs will consider it to be a failure to exhaust your available administrative remedies sec_7428 of the code letter rev catalog number 34809f provides in part a declaratory_judgment or decree under this section shall not be issued in any proceeding unless the tax_court the claims_court or the district_court of the united_states for the district of columbia determines that the organization involved has exhausted its administrative remedies within the internal_revenue_service we will then issue a final revocation letter we will also notify the appropriate state officials of the revocation in accordance with sec_6104 of the code you have the right to contact the office_of_the_taxpayer_advocate taxpayer_advocate assistance is not a substitute for established irs procedures such as the formal appeals process the taxpayer_advocate cannot reverse a legally correct_tax determination or extend the time fixed by law that you have to file a petition in a united_states court the taxpayer_advocate can however see that a tax matter that may not have been resolved through normal channels gets prompt and proper handling you may call toll-free and ask for taxpayer_advocate assistance if you prefer you may contact your local taxpayer_advocate at internal_revenue_service office_of_the_taxpayer_advocate if you have any questions please call the contact person at the telephone number shown in the heading of this letter if you write please provide a telephone number and the most convenient time to call if we need to contact you thank you for your cooperation sincerely nanette m downing director eo examinations enclosures publication publication report of examination catalog number 34809f letter rev schedule number or exhibit form 886-a rev date name of taxpayer org year period ended november 20xx explanations of items tax identification_number legend org - organization name state - state president - president xx - date address - address city - city issue should org’s the org federal tax exempt status under sec_501 of the internal_revenue_code be revoked for failure to provide information to the internal_revenue_service to demonstrate that it is operating in accordance with its exempt purposes facts the org was incorporated as a state and established for charitable giving in july 20xx the org applied for federal tax exempt status under sec_501 of the internal_revenue_code on november 20xx the org was recognized as an organization exempt from federal_income_tax under sec_501 of the internal_revenue_code and was described in sec_501 of the code the org has a filing requirement for form_990-pf return of organization exempt from income_tax private org however the org has not reported any activity nor had any activity since the initial and only property donation to a synagogue on june 20xx the forms 990-pf for tax years 20xx through 20xx do not show any activity the certification of election to wind up and dissolve and certificate of dissolution have not been filed with the state secretary of state the final form_990 to terminate the organization and a written_statement of the dissolution of assets has not been filed with the internal_revenue_service the attorney_general of the state of state shows the charity organization registration status is current the agent is president the org president whose address is address city state zip code form 886-a catalog number 20810w page publish no irs gov department of the treasury-internal revenue service schedule number or exhibit form 886-a rev date explanations of items year period ended november 20xx name of taxpayer org tax identification_number the service mailed the org notification of the examination in a letter dated february 20xx to the address shown on the 20xx form_990-pf which is address city state zip code the letter explained the purpose of the examination and requested information needed for the examination on february 20xx the agent spoke with the org president president who confirmed receipt of the letter sent on february 20xx president stated the org had no activity president wished to terminate the org president stated that no bank accounts were utilized and that all assets were donated to a public charity on february 20xx the agent mailed information_document_request number to the org to request information to verify the disposition of all assets to a public charity on march 20xx the agent received a fax from the org’s attorney attorney of law firm attorney does not have a current form_2848 power_of_attorney and declaration of representative on file the fax was in response to information_document_request number and provided a grant deed that was recorded on july 20xx the grant deed showed that all assets had been donated to the synagogue the faxed letter also stated that the org did not retain any rights or interests in any of the property donated to the synagogue a private org can voluntarily terminate it if has transferred or donated all of its assets to a public charity that has been such for at least five years months the agent verified that the synagogue has been a public charity for at least five years on march 20xx the agent mailed information_document_request number to request the final signed form_990-pf return of private org a copy of certificate of dissolution and a valid form_2848 power_of_attorney and declaration of representative the information_document_request number due_date was april 20xx form 886-a catalog number 20810w - page publish no irs gov department of the treasury-internal revenue service schedule number or exhibit form 886-a rev date name of taxpayer org on march 20xx the agent received a hard copy of the fax received on march 20xx by explanations of items year period ended november 20xx tax identification_number certified mail on may 20xx the agent attempted to call the org president president the voice mail did not state the org or president’s name so the agent did not leave a message on may 20xx the agent resent information_document_request number to the org address at address city state zip code the revised due_date was may 20xx on may 20xx the agent attempted to call org president president the voice mail did not state the org or president's name so the agent did not leave a message on may 20xx the agent received a voice mail from the org attorney attorney that stated that the org changed its address had just received information_document_request no and would city state zip code and the new address may 20xx was the last date the agent received contact regarding the taxpayer was expired she would have the taxpayer complete a new form_2848 and fax the form need more time to reply the agent returned the call and left a voice mail requesting a valid form_2848 to the agent the following week the attorney also supplied the new address as address on may 20xx the org attorney attorney left a voice mail for the agent stating that the form department of the treasury-internal revenue service being revoked because the org has not established that it was observing the conditions required i of the regulation and revrul_59_95 1959_1_cb_627 requires every organization in the revocation notice letter dated july 20xx the agent advised the org that sec_1 service failure to comply with such request could result in the org’s federal tax-exempt status which is exempt from tax to submit additional information upon request by the internal revenue catalog number 20810w form 886-a publish no irs gov -page_ schedule number or exhibit form a rev date name of taxpayer org for the continuation of exempt status in order to avoid such adverse action the org must year period ended november 20xx explanations of items tax identification_number provide the requested information or contact the agent to resolve the issue to date the org has failed to provide the agent with the requested information knowing that such failure could result in loss of federal tax-exempt status the agent has made adequate attempts to contact the org and its president president the agent has not received the requested information to date president has failed to respond to the agent law sec_501 of the internal_revenue_code exempts from federal_income_tax corporations and any community chest fund or org organized and operated exclusively for religious charitable scientific testing for public safety literary or educational_purposes or to foster national or international amateur sports competition but only if no part of its activities involve the provision of athletic_facilities or equipment or for the prevention of cruelty to children or animals no part of the net_earnings of which inures to the benefit of any private_shareholder_or_individual no substantial part of the activities of which is carrying on propaganda or otherwise attempting to influence legislation except as otherwise provided in subsection h and which does not participate in or intervene in including the publishing or distributing of statements any political campaign on behalf of or in opposition to any candidate for public_office sec_1_6033-2 of the income_tax regulations provides in part that every organization which is exempt from tax shall submit such additional information as may be required by the internal_revenue_service for the purposes of inquiring into its exempt status revrul_59_95 1959_1_cb_627 provides that a failure_to_file required information_return or comply with the provision of sec_6033 of the code and the regulations which implement it may result in the termination of the exempt status of an organization previously held exempt on the form 886-a catalog number 20810w - page__4 publish no irs gov department of the treasury-internal revenue service schedule number or exhibit form 886-a rev date explanations of items - name of taxpayer org grounds that the organization has not established that it is observing the conditions required for year period ended november 20xx tax identification_number the continuation of an exempt status taxpayer’s position the org’s position is not known at this time government’s position sec_1_6033-2 provides in part that every organization which is exempt from tax whether or not it is required to file an annual information_return must submit additional information upon request by the internal_revenue_service for the purpose of inquiring into its exempt status and administering the provisions of subchapter_f chapter or subtitle a of the code sec_6033 and chapter of subtitle d of the code the information that the service requested is material in establishing the org’s right to maintain its exempt status an organization to be qualified as an entity described in sec_501 of the internal_revenue_code or in certain other categories of tax-exempt_organization must be organized and operated so that no part of its net_earnings inures to the benefit of any private_shareholder_or_individual the essence of the concept is to ensure that a tax-exempt charitable_organization is serving a public interest and not a private interest sec_1_6033-2 of the regulation and revrul_59_95 1959_1_cb_627 requires every organization which is exempt from tax to submit additional information upon request by the internal_revenue_service the service has requested the org to provide information for the purposes of inquiring into its exempt status the requested information was material in determining whether the org continues to qualify for federal tax exempt status under sec_501 the service has given the org adequate opportunities to provide the requested information and has advised the org of the consequences for failing to provide the information the org failed to respond to the service’s request for information knowing that such refusals to provide the requested information may result in the loss of its tax-exempt status by form 886-a catalog number 20810w page publish no irs gov department of the treasury-internal revenue service schedule number or exhibit form 886-a explanations of items rev date year period ended november 20xx name of taxpayer org tax identification_number not providing the requested information the org has failed to demonstrate that it is observing the conditions for continued exemption therefore the org’s federal tax exempt status under sec_501 should be revoked effective december xx conclusion by not providing the requested information the org has failed to establish that it is observing the conditions for continued exemption therefore the org’s federal tax exempt status under sec_501 should be revoked effective december 20xx form 886-a catalog number 20810w -page_ publish no irs gov department of the treasury-internal revenue service


internal_revenue_service number release date index number ------------------ ----------- ------------------------------------------------- --------------------------------------- ------------------------------------------- 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 b06 plr-125585-08 date date legend taxpayer state date year year year year year year year dear ---------- ------------------------------------------------- ------------------------ ------------ ------------------- ------- ------- ------- ------- ------- ------- ------- this responds to a letter dated ----------------------- from taxpayer’s representative requesting permission under sec_301_9100-1 of the procedure and administration regulations for an extension of time to make an election under sec_263 of the internal_revenue_code according to the submission taxpayer is a publicly owned corporation incorporated in state on date taxpayer develops and sells oil_and_gas_properties during the years year through year taxpayer was buying existing oil_and_gas_properties and did not incur any intangible drilling costs idc in year taxpayer started purchasing property without existing wells and developing these properties all these development costs were shown on the balance_sheet under the account oil_and_gas leases for year and year believing the leases account to be expenditures plr-125585-08 for existing oil_and_gas wells as in previous years taxpayer’s qualified_tax professional did not deduct any idc capitalized into the leases account for year and year while preparing the year return in year taxpayer’s qualified_tax professional noticed a substantial increase in the leases account for year and discovered that the leases account included idc from year year and year taxpayer was not aware that an election was required in order to deduct the idc and relied on its qualified_tax professional to make any elections relating to tax matters sec_263 provides an election under regulations prescribed by the secretary to deduct intangible_drilling_and_development_costs the regulations appear under sec_1_612-4 sec_1_612-4 states that the election may be exercised by claiming idc as a deduction on the taxpayer’s return for the first taxable_year in which the taxpayer pays or incurs such costs no formal statement is necessary but if the taxpayer fails to deduct the idc it is deemed to have elected to recover such costs through depletion under sec_301_9100-1 the commissioner in exercising the commissioner’s discretion 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_9100-2 and sec_301_9100-3 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 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 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 sec_301_9100-3 sec_301_9100-3 provides in relevant part 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 solely on the information submitted and the representations made we conclude that the requirements of sec_301_9100-1 through have been satisfied accordingly taxpayer is granted an extension of time of days from the date of this letter to make the election on an amended_return to deduct idc with the plr-125585-08 appropriate service_center a copy of this letter should be attached to the amended_return a copy is enclosed for that purpose except as specifically set forth above no opinion is expressed concerning the federal tax consequences of the facts described above under any other provision of the code and the regulations thereunder specifically no opinion is expressed concerning whether taxpayer satisfies the requirements of sec_263 this letter_ruling is directed only to the taxpayer who requested 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 ruling letter is being sent to your authorized representative sincerely curt g wilson deputy associate chief_counsel passthroughs and special industries 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 psi b02 plr-154285-06 date date legend a x ----------------------- -------------------------- --------------------------------- ----------------------- ---------- ----------------- ---------------------- state d1 d2 dear --------------- this is in response to a letter dated date submitted on behalf of x by its authorized representative requesting an extension of time under sec_301_9100-3 of the procedure and administration regulations to file an election to be classified as a disregarded_entity for federal tax purposes facts the information submitted states that x was formed as a state limited_liability_company on d1 x elected to be treated as an association_taxable_as_a_corporation effective d1 a the sole member of x represents that x intended to be treated as a disregarded_entity for federal tax purposes effective d2 however form_8832 entity classification election electing to be treated as a disregarded_entity was not filed timely for x plr-154285-06 law and analysis sec_301_7701-2 generally provides that a business_entity is any entity recognized for federal tax purposes that is not properly classified as a_trust under sec_301_7701-4 or otherwise subject_to special treatment under the internal_revenue_code sec_301_7701-3 provides that an eligible_entity with at least two members may elect to be classified as either an association and thus a corporation under sec_301 b or as 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 further provides that so long as a business_entity is not classified as a corporation under sec_301_7701-2 or an eligible_entity it may elect its classification for federal tax purposes sec_301_7701-3 provides that unless the entity elects otherwise a domestic eligible_entity is disregarded as an entity separate from its owner if it has a single owner sec_301_7701-3 provides that an eligible_entity may elect to be classified other than as provided under sec_301_7701-3 by filing a form_8832 with the appropriate service_center under sec_301_7701-3 this election 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 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_7701-3 provides that if an eligible_entity makes an election under paragraph c i of this section to change its classification the entity cannot change its classification by election again during the sixty months succeeding the effective date of the election an election by a newly formed eligible_entity that is effective on the date of formation is not considered a change for the purposes of this paragraph c iv sec_301_9100-1 provides that 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 with a deadline prescribed by a regulation published in the internal_revenue_bulletin 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 making elections that do not meet the requirements of sec_301_9100-2 plr-154285-06 sec_301_9100-3 provides that request 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 representations made we conclude that the requirements of sec_301_9100-3 have been satisfied accordingly x is granted an extension of sixty days from the date of this letter to elect to be classified as a disregarded_entity for federal tax purposes effective d2 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 requesting it sec_6110 of the internal_revenue_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 x’s authorized representative sincerely william p o’shea associate chief_counsel passthroughs and special industries enclosures copy of this letter copy for sec_6110 purposes