department of the treasury employer_identification_number person to contact - id contact telephone number uil internal_revenue_service p o box cincinnati oh number release date date date legend b name c college e quantity f quantity g quantity h quantity t dollars amount u dollars amount v dollars amount w dollars amount dear you asked for advance approval of your scholarship grant procedures under internal_revenue_code sec_4945 and for advance approval of your educational grant procedures under sec_4945 this is required because you are a private_foundation that is exempt from federal_income_tax our determination we have determined your procedures for awarding scholarships meet the requirements of code sec_4945 we also determined your procedures for awarding educational grants meet the requirements of code sec_4945 as a result expenditures you make under these procedures won't be taxable also awards meeting the requirements of code sec_4945 which are made under these procedures are scholarships or fellowship grants and are not taxable to the recipients if they use them for qualified_tuition_and_related_expenses subject_to the limitations provide in code sec_117 description of your request your letter indicates you will operate a grant program to achieve your purpose of preserving b's legacy by encouraging students attending c to prepare for a life of service to self community and their alma mater under your grant program you are making distributions under both sec_4945 and sec_4945 you will provide grants to students and recent graduates of c on an objective and non-discriminatory basis for the following service projects recipients pursing a service project can receive grants to cover travel_expenses food and housing costs approximately e service project grants will be awarded annually worth about t dollars and each based on the itemized budget submitted by the applicant and reviewed by you educational programs you will provide f grants in the range of u dollars depending on the educational program to cover program fees to recipients enrolled in educational programs at an accredited school under sec_509 and sec_170 a ii portions of these grants may not meet the definition of qualified_tuition_and_related_expenses and may cover travel housing and food expenses internships you will provide about g grants as a work stipend in the range of v dollars to recipients who are completing a for-credit internship during the academic school year recipients may also receive a travel stipend which covers mileage expense computed based on irs current rates for travel from c to the internship site for up to trips per week for up to weeks fellowships you will provide h grants in the amount of w dollars for fellowships which are typically completed by recent graduates and last for one year this includes a work stipend as well as stipends for travel food based on cost of living in the area and housing based on the recipient's actual housing costs as approved by you fellowships are typically out-of-state and often in foreign countries the travel stipend covers the recipient's travel to the fellowship site at the start of the program and back home upon completion internships and fellowships are completed at not-for- profit organizations which you have partnered with service projects may also be completed at not-for-profit_organizations which you have had prior experience with or recipients may design their own project subject_to your approval of the project and supervisor for each type of grant a supervisor is designated to monitor the recipient's work for educational programs this is typically an academic advisor at the school for service projects internships and fellowships this is typically a responsible_party at the not-for-profit organization where the project is taking place your grant program will be publicized using the following methods social media c's website facebook twitter information booths at events organized by c ie new student orientation winter fair etc presentations at c which discuss your history and purpose and the eligibility requirements application process and current program details oral information provided by c's admissions department regarding your programs to prospective students during tours and information sessions letter catalog number 58222y brochures newsletters and announcements to be eligible for a grant applicants must meet all of the following criteria enrolled at cas a second semester freshman or above or be a recent graduate ofc gpa of or above outstanding disciplinary record history of service volunteer work potential recipients must complete a one page grant application and answer questions such as how will participation in the study program internship or service opportunity benefit the applicant's educational experience or future professional plans why is such an experience important to the applicant and how has the applicant prepared for such an experience in the spirit exemplified by b how will the applicant contribute and engage in service to the community besides the application applicants will be required to provide the following copy of their transcript and resume writing sample itemized budget signed release form authorizing you to request judicial records signed code of conduct and waiver of liability all applications must be submitted in person to your director at your foundation office at c by early spring for the summer and fall semesters and by early fall for the spring semester your selection committee made up of your director a trustee and a volunteer will do an initial review of the applications they will disqualify applicants whose applications are incomplete or who do not meet the criteria those qualifying are contacted and must submit letters of recommendation from all of the following the dean of students the academic advisor a professor familiar with the applicant's work ethic and commitment to career path a staff member or respected member of the community who can attest to the student's character and service and the supervisor for the applicant's previous grant if previously granted an award recipients will be selected based on academic merit history of volunteer work and past performance if the recipient has previously received a grant from you recipients who are current students must maintain a dollar_figure gpa and an outstanding disciplinary record through the duration of the program to maintain their grants and qualify for new grants in addition to qualify for new grants recipients must receive outstanding reviews from their supervisors letter catalog number 58222y relatives of members of your selection committee trustees and program supervisors are not eligible for grants in addition substantial contributors managers and their family members as described in sec_4946 are not eligible for grants recipients will be required to fulfill the following expectations complete weekly summaries including photographs of their experiences throughout the duration of the program attend your events attend seminars and other scheduled events which will be held on campus throughout the academic year turn in a reflective essay by the last day of class honor you and b by mentoring and providing student opportunities throughout their college and professional career the distributions that qualify under sec_4945 are for educational programs to cover program fees to recipients enrolled in educational programs at an accredited school under sec_509 and sec_170 b a ii distributions that qualify under sec_4945 are portions of these grants that may not meet the definition of qualified_tuition_and_related_expenses and may cover travel housing and food expenses the other distributions that qualify under sec_4945 are grants for service projects internships and fellowships the distributions made under sec_4945 are distributed to the respective school the school is responsible for allocating the funds to the student accounts if for any reason a selected recipient does not participate in the anticipated program or fails to remain in good academic and judicial standing the grant will be withdrawn the distributions made under sec_4945 are distributed to the recipient periodically during the program period this allows the payments to be stopped if a violation occurs throughout the program period you will communicate with the recipient's project supervisor regarding the recipient's performance if the terms are violated the recipient's participation may be terminated and he she will not be considered for future grants you will operate in compliance with all statutes executive orders and regulations restricting or prohibiting us persons from engaging in transactions and dealings with terrorist designated countries entities individuals or in violation of economic sanctions administered by ofac you will check the ofac list of specially designated nationals and blocked persons basis for our determination the law imposes certain excise_taxes on the taxable_expenditures of private_foundations code sec_4945 a taxable_expenditure is any amount a private_foundation pays as a grant to an individual for travel study or other similar purposes however a grant that letter catalog number 58222y meets all of the following requirements of code sec_4945 is not a taxable_expenditure the foundation awards the grant on an objective and nondiscriminatory basis the irs approves in advance the procedure for awarding the grant the grant is - a scholarship or fellowship subject_to sec_117 and is to be used for study at an educational_organization described in sec_170 or - a prize or award subject_to the provisions of sec_74 if the recipient of the prize or award is selected from the general_public or - to achieve a specific objective produce a report or similar product or improve or enhance a literary artistic musical scientific teaching or other similar skill or talent of the recipient to receive approval of its educational grant procedures sec_53_4945-4 requires that a private_foundation show the grant procedure includes an objective and nondiscriminatory selection process the grant procedure results in the recipients performing the activities the grants were intended to finance the foundation plans to obtain reports to determine whether the recipients have performed the activities that the grants were intended to finance other conditions that apply to this determination this determination covers only the grant program described above this approval will apply to succeeding grant programs only if their standards and procedures don't differ significantly from those described in your original request this determination applies only to you it may not be cited as precedent you cannot rely on the conclusions in this letter if the facts you provided have changed substantially you must report any significant changes in your program to the cincinnati office of exempt_organizations at internal_revenue_service exempt_organizations determinations p o box cincinnati oh you cannot make grants to your creators officers directors trustees foundation managers or members of selection committees or their relatives letter catalog number 58222y all funds distributed to individuals must be made on a charitable basis and must further the purposes of your organization you cannot award grants for a purpose that is inconsistent with code sec_170 b you should keep adequate_records and case histories so that you can substantiate your grant distributions with the irs if necessary please keep a copy of this letter in your records if you have any questions please contact the person listed at the top of this letter sincerely director exempt_organizations letter catalog number 58222y


internal_revenue_service department of the treasury index number u i l no washington dc number release date legend person to contact telephone number refer reply to cc dom p si plr-102056-99 date date company state shareholder a dear this letter responds to a letter dated date requesting a ruling on behalf of company under sec_1362 of the internal_revenue_code the information submitted discloses that company was incorporated on a in state company has one shareholder shareholder it is represented that company has intended to be an s_corporation since a believing itself to be an s_corporation company has operated accordingly since a after the end of its taxable_year beginning on a however company discovered that its s election had not been timely filed company requests a ruling that its sec_1362 election will be treated as timely made for its taxable_year that begins on a sec_1362 provides that a small_business_corporation may elect to be an s_corporation sec_1362 explains when an s election will be effective generally if an s election is made within the first two and one half months of a corporation's taxable_year plr-102056-99 then that corporation will be treated as an s_corporation for the year in which the election is made sec_1362 provides that if an s election is made after the first two and one half months of a corporation’s taxable_year then that corporation will not be treated as an s_corporation until the taxable_year following the year in which the s election is made sec_1362 provides that if no sec_1362 election is made for any taxable_year and the secretary determines that there was reasonable_cause for the failure to timely make such election then the secretary may treat such an election as timely made for such taxable_year and sec_1362 shall not apply applying the relevant law to the facts submitted and representations made we rule that company's sec_1362 election will be treated as timely made for its taxable_year that begins on a however this ruling is contingent on company filing form_2553 election by a small_business_corporation with an effective date of a with the appropriate service_center within days from the date of this ruling a copy of this letter should be attached to the form_2553 except as specifically set forth above we express no opinion concerning the federal tax consequences of the foregoing facts specifically we express no opinion on whether company otherwise qualifies as an s_corporation this ruling is directed only to the taxpayer who requested it sec_6110 provides that it may not be used or cited as precedent sincerely yours william p o’shea chief branch office of the assistant chief_counsel passthroughs and special industries enclosure copy for sec_6110 purposes


internal_revenue_service department of the treasury number release date index number washington dc person to contact telephone number refer reply to cc psi b04-plr-122944-01 date date re legend trust trust agreement child trust decedent spouse child date date state statute dear this is in response to the date letter and other correspondence requesting a ruling concerning the generation-skipping_transfer_tax consequences of the proposed division of a_trust you have requested the following ruling the proposed division of child trust will not cause child trust to lose its exempt status for generation-skipping_transfer_tax purposes under section b a of the tax_reform_act_of_1986 and sec_26_2601-1 of the generation-skipping_transfer_tax regulations nor will the proposed division into partitioned trusts subject either child trust or the resulting partitioned trusts to the generation-skipping_transfer_tax the facts submitted are as follows on date decedent established trust under trust agreement decedent died on date trust agreement became irrevocable on decedent’s death article provides that on the death of decedent if spouse survives decedent the trustee shall set apart as a separate trust a fractional share of trust for spouse’s benefit paragraph of the trust agreement states that the balance of the remaining plr-122944-01 trust property is to be held in a separate trust for the benefit of decedent’s children in accordance with the provisions of article article is comprised of paragraph sec_5 through paragraph divides the trust property held for decedent’s children into equal separate trusts named for each of decedent’s children paragraph provides that the net_income of a_trust named for decedent’s child shall be distributed to such child or the issue of such child in such amounts as the trustee shall from time to time determine to be suitable and prudent paragraph provides that the trustee may distribute portions of the principal of a_trust named for decedent’s child to such child or the issue of such child as the trustee determines to be suitable to provide for the care support maintenance comfort and general welfare of such person paragraph provides that each child of decedent shall have a limited_power_of_appointment over the property held in the trust named for such child if upon the death of a child of decedent there remains any undistributed property of the trust and such child has not effectively appointed such property then the property shall be distributed to the issue of decedent’s child by right of representation and if such child is not survived by issue to the living brothers and sisters of such child in equal shares and to the then living issue of a deceased brother or sister by right of representation paragraph provides that the limited_power_of_appointment granted to each child may be exercised only directly to or in trust for the benefit of issue of that child the power shall be exercised by a written instrument or a will that expressly refers to the power_of_appointment the holder of the power_of_appointment may appoint outright or in trust any interest appointed must vest within years after the death of the survivor of decedent and all issue of decedent who survive him child is a child of decedent child trust was created under the terms of article and article of trust agreement after decedent died on date child trust was irrevocable on date and no additions were made to child trust after date child has three children the trustees of child trust propose to divide child trust into three equal trusts the terms of each partitioned trust will be identical to child trust the division of child trust is proposed in order to separate the interests of each of child’s three children and their respective families state statute provides that a trustee may without the approval of any court divide a_trust before or after it is funded into two or more separate trusts if the trustee determines that dividing the trust is in the best interests of all persons interested in the trust and will not substantially impair the accomplishment of the purposes of the trust plr-122944-01 child intends to execute a will containing a provision that will exercise her limited_power_of_appointment to appoint the remaining assets of each of the three new trusts to each of her three children law and analysis sec_2601 imposes a tax on every generation-skipping_transfer which is defined under sec_2611 as a taxable_distribution a taxable_termination and a direct_skip under section a of the tax_reform_act_of_1986 act and sec_26_2601-1 of the generation-skipping_transfer_tax regulations the generation-skipping_transfer_tax gstt is generally applicable to generation-skipping transfers made after date however under section b a of the act and sec_26_2601-1 the tax does not apply to a transfer under a_trust that was irrevocable on date but only to the extent that such transfer is not made out of corpus added to the trust after date or out of income attributable to corpus so added judicial construction settlement agreement or trustee action with respect to a_trust that is exempt from the gstt under sec_26_2601-1 will not cause the trust to lose its exempt status sec_26_2601-1 provides rules for determining when a modification sec_26_2601-1 provides that a modification will not cause an exempt trust to be subject_to the gstt if the modification does not shift a beneficial_interest in the trust to any beneficiary who occupies a lower generation as defined in sec_2651 than the person or persons who held the beneficial_interest prior to the modification and the modification does not extend the time for vesting of any beneficial_interest in the trust beyond the period provided for in the original trust a modification of an exempt trust will result in a shift in beneficial_interest to a lower generation beneficiary if the modification can result in either an increase in the amount of a generation-skipping_transfer or the creation of a new generation-skipping_transfer sec_26_2601-1 example illustrates a situation where a_trust that is otherwise exempt from the gstt is divided into two trusts under the facts presented the division of a_trust into two trusts does not shift any beneficial_interest in the trust to a beneficiary who occupies a lower generation as defined in sec_2651 than the person or persons who held the beneficial_interest prior to the division and the division does not extend the time for vesting of any beneficial_interest in the trust beyond the period provided for in the original trust accordingly the two partitioned trusts will not be subject_to the provisions of chapter constructive were made to child trust after date for purposes of the present case it is represented that no additions actual or plr-122944-01 in this case the proposed partition of child trust by the trustees will not result in a shift of any beneficial_interest in child trust or the partitioned trusts to any beneficiary who occupies a generation lower than the persons holding the beneficial interests further the proposed partitions will not extend the time for vesting of any beneficial_interest in the new trusts beyond the period provided for in child trust accordingly based on the facts submitted and the representations made we conclude that the proposed partition of child trust into three separate trusts will not cause child trust or the partitioned trusts to lose exempt status for gstt purposes in accordance with the power_of_attorney on file with this office a copy of this letter is being sent to each taxpayer 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 the rulings contained in this letter are based upon information and representations submitted by the taxpayer and accompanied by a penalty of perjury statement executed by an appropriate party while this office has not verified any of the material submitted in support of the request for rulings it is subject_to verification on examination this ruling is directed only to the taxpayer s requesting it sec_6110 of the code provides that it may not be used or cited as precedent sincerely yours lorraine e gardner acting senior technician reviewer branch office of the associate chief_counsel passthroughs and special industries


department of the treasury internal_revenue_service washington d c o f f ic e o f c h ief c o u n sel number info release date uil dear date cc pa apjp b01 mskeen genin-153691-01 this letter responds to your request dated date for information regarding whether the internal_revenue_service irs has incorporated by reference a requirement for an individual to file a form_1040 with the irs and a requirement for an employee to file a form_w-4 with their respective employer in addition you have also requested information about the requirements to file a form_1040 tax_return and for an employee to provide a form_w-4 to his respective employer as is discussed below regulations which are published in the federal_register require taxpayers to file a tax_return with the irs and require employees to provide a form_w-4 to their respective employer further all individuals who have received more than a statutorily determined amount of gross_income are required to file a tax_return finally all employees are required to provide a completed form_w-4 to their respective employer the federal_register publishes regulations promulgated with respect to the internal_revenue_code as is discussed below both the code and the regulations thereunder which are published in the federal_register require that an individual file a tax_return using the forms prescribed by the secretary of treasury and that an employee provide a form_w-4 to his respective employer with respect to the form_1040 all individuals who have received gross_income that exceeds their respective exemption deductions and standard_deduction are required_by_law to file an income_tax return sec_6012 such individuals are required to use the forms prescribed by the secretary sec_6011 sec_1_6011-1 of the regulations on income_tax the secretary has prescribed that the form_1040 is the form that individuals must use when they file a code sections that are published under title_26 are commonly referred to as the internal_revenue_code genin-153691-01 return 114_tc_136 steines v commissioner tcmemo_1991_588 based on the above both the code and the regulations thereunder require individuals to file a tax_return using the forms prescribed by the secretary in the case of an individual taxpayer the prescribed form is the form_1040 further employees are required to complete a form_w-4 and provide such form to their respective employer sec_3402 requires all employees to provide a withholding_exemption certificate to their employer which explains such individual’s marital status and the number of withholding exemptions claimed by the individual see also sec_31_3402_f_2_-1 of the regulations on employment_taxes and collection of income_tax at source the secretary has prescribed that the form_w-4 is the form that individuals must use when providing a withholding_exemption certificate to their employer sec_31 f - a of the regulations on employment_taxes and collection of income_tax at source finally there is no requirement that either the form_1040 or the form_w-4 be published in the federal_register see 83_tc_534 united_states of america v justis u s tax cas united_states v o’ferrall u s tax cas we hope that this information is helpful if you have any further questions please call michael skeen at sincerely __________________________ pamela w fuller senior technical reviewer administrative provisions and judicial practice procedure administration


internal_revenue_service department of the treasury number release date index number washington dc person to contact telephone number refer reply to cc tege eoeg teb plr-139175-01 date date legend administration state department authority x year date date date date date dear this is in response to a request submitted by the administration for an extension of time under sec_301_9100-1 of the procedure and administrative regulations to file a form_8328 to make a carryforward election under sec_146 of the internal_revenue_code and for a ruling that the authority may assume the administration’s carryforward allocation of the state private_activity_bond volume_cap as the administration’s successor entity facts and representations the administration represents the following facts the administration is a body plr-139175-01 public and corporate and instrumentality of the state the administration has the authority under state law to issue taxable and tax-exempt general or limited obligation revenue bonds or similar obligations for the purpose of financing the acquisition and construction of certain projects in the state the secretary of the department is authorized to allocate the state private_activity_bond volume_cap established pursuant to sec_146 the state_ceiling to issuers in the state on or about date the secretary of the department allocated dollar_figurex of the state_ceiling for calendar_year to the administration the administration did not use this volume_cap in year on date the secretary for the department sent a letter to the administration reserving dollar_figurex of year volume_cap for the administration's carryforward election the director of the administration was solely responsible for decisions concerning carryforward elections by the administration and had no professional staff or administrative support assigned to him on a full-time basis on date the director of the administration retired the person assigned to the director’s duties after his retirement was unaware of the administration's intent to carryforward dollar_figurex of volume_cap because of the change in personnel and because the date letter from the department providing the administration with dollar_figurex in carryforward volume_cap did not reach bond counsel for the administration until about date which is after the time for filing a carryforward election the form_8328 was not timely filed on date which is after the time for filing a carryforward election the governor of state signed into law an act which has the effect of dissolving the administration as of date this law provides that upon the administration's dissolution the administration's statutory powers and functions will be consolidated and vested with the authority an agency organized under the jurisdiction of the department law and analysis sec_146 provides that if an issuing authority's volume_cap for any calendar_year after exceeds the aggregate amount of tax-exempt private_activity_bonds issued during the calendar_year by the authority the authority may elect to treat all or any portion of the excess as a carryforward for one or more carryforward purposes the election is made by filing form_8328 with the internal_revenue_service center ogden ut under notice_89_12 1989_1_cb_633 form_8328 must be filed by the earlier of february of the calendar_year following the year in which the excess_amount arises or the date_of_issue of bonds issued pursuant to the carryforward election the election must identify the purpose for which the carryforward is elected and specify the portion of the excess which is to be used for that purpose sec_146 the election is irrevocable sec_146 plr-139175-01 sec_301_9100-1 of the procedure and administrative regulations provides in part that the commissioner has discretion to grant a reasonable extension of time to make a regulatory election defined in sec_301_9100-1 as an election whose due_date is prescribed by regulations or a revenue_ruling revenue_procedure notice or announcement published in the internal_revenue_bulletin or a statutory election but no more than 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_9100-3 provides that requests for extensions of time for regulatory elections that do not meet the requirements for automatic extensions in sec_301_9100-2 must be made under the rules of sec_301_9100-3 requests for relief will be granted if the taxpayer provides evidence establishing to the satisfaction of the commissioner that the taxpayer acted reasonably and in good_faith and that the grant of relief will not prejudice the interests of the government sec_301_9100-3 provides in part that the taxpayer is deemed to have acted reasonably and in good_faith if the taxpayer requested relief under that section before the failure to make the regulatory election is discovered by the irs sec_301_9100-3 provides in part that the interests of the government are prejudiced if granting relief would result in a taxpayer having a lower tax_liability than if the election had been made timely taking into account the time_value_of_money in the instant case the administration’s request for relief was made before the failure to make the regulatory election was discovered by the irs granting an extension of time under sec_301_9100-1 to file an amended from will not prejudice the interest of the government accordingly the administration is granted an extension of time to file its form_8328 the administration however will be dissolved as of date at which time all of the administration’s statutory powers and functions will vest with the authority we conclude that as of date when authority becomes the successor to the administration the authority will succeed to any carryforward election properly made by the administration and will be able to use that carryforward to the same extent that the administration could have used that carryforward had it remained in existence conclusion based on the facts and representations submitted the administration is granted an extension of time to days after the date of this letter to file form_8328 to carryforward dollar_figurex of year state_volume_cap moreover when the authority becomes the successor to the administration the authority will succeed to the administration's carryforward volume_cap as stated in this letter the ruling contained in this letter is based upon information and representations submitted by the taxpayer and accompanied by a penalty of perjury statement executed plr-139175-01 by an appropriate party while this office has not verified any of the material submitted in support of the request for a ruling 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 this ruling is directed only to the taxpayer s requesting it sec_6110 of the code provides that it may not be used or cited as precedent in accordance with the power_of_attorney on file with this office the original of this letter is being sent to the administration’s representatives and a copy of this letter is being sent to the administration sincerely yours assistant chief_counsel exempt_organizations employment_tax government entities by ebecca l harrigal chief tax exempt bond branch


internal_revenue_service department of the treasury index number washington dc number release date person to contact telephone number refer reply to cc ebeo 4-plr-122012-98 date date company y z a b date dear this is in response to a request_for_ruling under sec_162 of the internal_revenue_code regarding the number of covered employees when a publicly_held_corporation has co-chief executive officers on date the company which is the result of a merger between x and y appointed a and b as co-chief executive officers of the company to serve in such capacities after the completion of the merger which occurred shortly thereafter the company intends to adopt a new executive performance compensation plan the plan with the specific purpose of complying with sec_162 of the code and the underlying regulations the plan will be drafted with the specific intent to comply with sec_1_162-27 of the income_tax regulations the plan will provide certain performance-based criteria for determining the maximum amount of bonus compensation payable to covered employees as defined in sec_162 and the plr-122012-98 underlying regulations the plan will be timely established by the company’s compensation committee to comply with sec_1_162-27 and will be included in the company’s proxy to be voted upon by its shareholders as required by sec_1_162-27 at the next annual meeting of the company’s shareholders sec_162 of the code defines a covered_employee as any employee of the taxpayer if a as of the close of the taxable_year such employee is the chief_executive_officer of the taxpayer or is an individual acting in such capacity or b the total compensation of such employee for the taxable_year is required to be reported to shareholders under the securities exchange act of by reason of such employee being among the four highest compensated officers for the taxable_year other than the chief_executive_officer sec_1_162-27 of the regulations defines a covered_employee for sec_162 purposes as any individual who on the last day of the taxable_year is a the chief_executive_officer of the corporation or is acting in such capacity or b among the four highest compensated officers other than the chief_executive_officer sec_1_162-27 of the regulations provides that whether an individual is the chief_executive_officer described in sec_1_162-27 or an officer described in sec_1_162-27 is determined pursuant to the executive compensation disclosure rules under the exchange act item a and of regulation s-k as promulgated by the securities_and_exchange_commission provides in part as follows all compensation covered this item requires clear concise and understandable disclosure of all plan and non-plan compensation awarded to earned by or paid to the named executive officers designated under paragraph a of this item persons covered disclosure shall be provided pursuant to this item for each of the following the named executive officers i all individuals serving as the registrant’s chief_executive_officer or acting in a similar capacity during the last completed fiscal_year ceo regardless of compensation level ii the registrant’s four most highly compensated executive officers other than the ceo who were serving as executive officers at the end of the last completed fiscal_year and iii up to two additional individuals for whom disclosures would have been provided pursuant to paragraph a ii of this item but for the fact that the plr-122012-98 individual was not serving as an executive officer of the registrant at the end of the last completed fiscal_year instructions to item a determination of most highly compensated executive officers the determination as to which executive officers are most highly compensated shall be made by reference to total annual salary and bonus for the last completed fiscal_year as required to be disclosed pursuant to paragraph b iii a and b of this item but including the dollar value of salary or bonus amounts forgone pursuant to instruction to paragraph b iii a and b of this item provided however that no disclosure need be provided for any executive officer other than the ceo whose total annual salary and bonus as so determined does not exceed dollar_figure thus under item a disclosure could be required in this case for sec purposes of up to eight persons both a and b because they will have served as the company’s ceo the four most highly compensated executive officers and the two additional individuals described in paragraphs a iii of item however this list must be pared down to five individuals for deduction-disallowance purposes under sec_162 of the code one ceo because the term chief_executive_officer is stated in the singular in both sec_162 and sec_1_162-27 of the regulations and the four highest compensated officers under the provisions of sec_162 and sec_1_162-27 because nowhere in the legislative_history is it indicated that congress contemplated a situation wherein a company would have co-ceos we must select a method for determining which of the company’s executives should be covered employees that most closely follows the provisions of sec_162 of the code accordingly we rule as follows whichever co-chief executive officer either a or b who is the more highly compensated using the method set out in instructions to item a will be a covered_employee under sec_162 of the code whichever co-executive officer either a or b who is not more highly compensated using the method set out in instructions to item a will be a covered_employee under sec_162 if that co-ceo’s compensation is among the four highest compensated officers other than the ceo except as specifically ruled on above no opinion is expressed as to the consequences of the transaction described above under any other provisions of the code this ruling is directed only to the taxpayer s requesting it sec_6110 of plr-122012-98 the code provides that it may not be used or cited as precedent the company should attach a copy of this ruling to the next federal_income_tax return it files 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 robert misner assistant chief branch associate chief_counsel employee_benefits and exempt_organizations


significant index number department of the treasury internal_revenue_service washington d c tax_exempt_and_government_entities_division apr set ep ra ar 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 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 and to the 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 rcl oa david m ziegler manager ep actuarial group


internal_revenue_service department of the treasury number release date index number washington dc person to contact telephone number refer reply to cc psi 1-plr-1128016-02 date sept legend x y state d1 d2 this responds to your letter dated date submitted on behalf of x requesting relief under sec_301_9100-3 of the procedure and administration regulations facts x incorporated under the laws of state and elected to be treated as a subchapter_s_corporation effective d1 x represents that all of its shareholders are eligible shareholders under sec_1361 on d2 x converted into a state general_partnership changing its name to y at the time x converted to a general_partnership the owners of x intended that it would file form_8832 entity classification election electing to be treated as a corporation the owners of x further intended that the conversion would be treated for federal_income_tax purposes as a reorganization under sec_368 and that x's s_corporation_election and employer_identification_number would be unaffected by the conversion however form_8832 was not timely filed plr-128016-02 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 two or more members can elect to be classified as either a partnership or an association sec_301_7701-3 provides that an eligible_entity with a two or more members will be treated as a partnership unless it elects otherwise sec_301_7701-3 allows an entity to elect to change its classification by filing form_8832 entity classification election with the service_center designated on that form sec_301_7701-3 provides that all such elections become effective on the date specified by the entity on form_8832 or on the date filed if no effective date is specified the specified effective date must not be earlier than days prior to the filing_date of form_8832 nor later than twelve months after the filing_date sec_301_9100-1 gives the commissioner discretion to grant reasonable extensions of time to make regulatory elections under the rules of sec_301_9100-2 and sec_301_9100-3 under sec_301_9100-1 a regulatory election includes an election whose due_date is prescribed by a regulation published in the federal_register or a notice published in the internal_revenue_bulletin sec_301_9100-3 sets forth the standards which the commissioner uses to determine whether to grant a discretionary time extension these standards indicate that the commissioner should grant relief when the taxpayer provides evidence proving 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 a corporation’s s election will not terminate during a reorganization under sec_368 if the surviving corporation meets the requirements of an s_corporation under sec_1361 see revrul_64_250 1964_2_cb_333 conclusion based solely on the facts submitted and the representations made we conclude that y has satisfied the requirements of sec_301_9100-1 and sec_301_9100-3 as a result y is granted an extension of time for making the election to be treated as a corporation for federal tax purposes effective d2 until days following the date of this letter y should make the election by filing form_8832 a copy of this letter should be attached to that form 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 plr-128016-02 referenced in this letter specifically no opinion is expressed concerning whether the original election made by x to be treated as an s_corporation was a valid election under sec_1362 or whether the described transaction constitutes a reorganization under sec_368 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 s heather c maloy sincerely heather c maloy associate chief_counsel passthroughs and special industries enclosures copy of this letter copy for sec_6110 purposes


internal_revenue_service department of the treasury number release date index number washington dc person to contact telephone number refer reply to cc corp 1-plr-130967-01 date date legend distributing controlled company x a b c d e x y z date date date date date date date date plr-130967-01 date date date date a b c d e this letter responds to a letter dated date requesting rulings supplementing our prior letter_ruling dated date plr-111625-01 the original ruling and a supplemental letter_ruling dated date plr-121115- the first supplemental ruling and together with the original ruling the prior rulings the prior rulings addressed a contribution of certain assets to controlled the contribution an initial_public_offering of controlled stock the ipo a pro_rata distribution of controlled stock to the shareholders of distributing the distribution transfers by distributing of shares of controlled class a common_stock to distributing’s creditors in exchange for distributing obligations before the distribution the exchange and a proposed acquisition by company x of a percent or greater interest within the meaning of sec_355 in distributing the proposed combination the prior rulings hold that the contribution followed by the distribution will constitute a tax-free reorganization under sec_368 and sec_355 of the internal_revenue_code that the exchange will not result in the recognition of gain_or_loss to distributing under sec_361 and and that the proposed combination will not be taken into account for purposes of sec_355 since the issuance of the prior rulings the proposed combination has been abandoned before the contribution distributing made several acquisitions in exchange for its common_stock the prior rulings expressed no opinion on whether the last five of those acquisitions the recent acquisitions would be taken into account for purposes of sec_355 plr-130967-01 the recent acquisitions consisted of the acquisition of the stock of a on date the stock of b on date the stock of c on date the stock of d on date and the stock of e on date a b and c were each engaged in the x business d was engaged in the y business and e was engaged in the z business the recent acquisitions were part of distributing’s strategy to fill critical product gaps particularly in its high-growth business segments all of the recent acquisitions except the acquisition of e occurred before the public announcement of the distribution on date on date a shares of controlled class a common_stock were sold in the ipo on date distributing exchanged b shares of controlled class a common_stock pursuant to the exchange distributing owns an additional c shares of controlled class a common_stock that may be exchanged for distributing obligations pursuant to further exchanges if distributing exchanges the additional c shares of controlled stock for distributing obligations and the recent acquisitions and convertible preferred_stock issuance described below are taken into account for purposes of sec_355 a percent or greater interest in the stock of controlled will have been acquired as part of a plan or series of related transactions within the meaning of sec_355 after the contribution distributing pledged the stock of controlled to its creditors as collateral to support distributing's obligation to repay borrowings under its credit facilities the distribution cannot be completed until distributing's creditors release their security_interest in controlled stock under the terms of the credit facilities distributing must satisfy certain financial covenants for the security_interest to be released including an obligation to raise a specified amount of cash from certain asset sales and capital markets transactions and having a minimum level of net_worth as part of its efforts to satisfy the financial covenants distributing issued dollar_figured of convertible preferred_stock the preferred_stock on date each share of preferred_stock is initially convertible into e shares of distributing common_stock immediately after the distribution the conversion ratio of the preferred_stock will be adjusted because distributing will become a smaller and less valuable company as a result of the distribution the preferred_stock will be convertible into a larger number of shares of distributing common_stock after the distribution the preferred_stock is not convertible into common_stock of distributing until the earlier of date or the day after the distribution only distributing shareholders who own distributing common_stock as of the record_date for the distribution will receive controlled stock in the distribution the record_date for the distribution will be before date accordingly holders of the preferred_stock will not receive any controlled stock in the distribution with respect to their ownership of the preferred_stock the prior rulings are based on distributing's representation that the distribution will be consummated no later than the end of the taxable_year of distributing in which the contribution occurred ie by date recent amendments to distributing's credit facilities impose additional obligations on distributing before the security_interest in plr-130967-01 controlled stock can be released the amendments were necessary to enable distributing to implement a restructuring program and to report a related charge to its earnings as a result of the amendments to the credit facilities distributing expects to complete the distribution after date but no later than date in connection with the request for supplemental rulings distributing has made the following representations a all representations in the prior rulings except as modified herein or in the first supplemental ruling are still valid b before the acquisitions of a b c and d neither distributing nor controlled or their respective officers or directors discussed the distribution with a b c or d their respective officers or directors or the persons who acquired distributing stock in those acquisitions c the distribution was never motivated to any degree by a business_purpose to facilitate the acquisition of distributing stock in any of the recent acquisitions d the distribution will occur at the same time and in a similar form regardless of any of the recent acquisitions e all of the recent acquisitions except the acquisition of e occurred at a time when distributing had not yet made a final_decision to proceed with the distribution f all of the recent acquisitions occurred before distributing received requisite regulatory approval for the distribution and thus were undertaken at a time when it was uncertain whether the distribution would occur g the record_date for the distribution will be before date and the distribution will be completed no later than date h holders of the preferred_stock will not receive any controlled stock in the distribution with respect to their preferred_stock based solely on the information submitted and the representations set forth above we rule as follows the issuance by distributing of its stock in the acquisition of a b c and d will not be taken into account for purposes of sec_355 because the holders of the preferred_stock will not receive any controlled plr-130967-01 stock in the distribution and because any indirect interest in controlled acquired by the holders of the preferred_stock will be terminated upon the distribution the issuance of the preferred_stock will not be taken into account for purposes of determining whether a 50-percent_or_greater_interest in controlled has been acquired as part of a plan or series of related transactions with the distribution within the meaning of sec_355 completion of the distribution on or before date will not affect any of the rulings issued in the prior rulings in addition to the caveats in the prior rulings we continue to express no opinion regarding whether the issuance of distributing stock in the acquisition of e will be taken into account for purposes of sec_355 this ruling is directed only to the taxpayers who requested it sec_6110 of the code provides that this private_letter_ruling may not be used or cited as precedent it is important that a copy of this letter together with copies of the prior rulings be attached to the federal_income_tax returns of the taxpayers involved for the taxable_year in which the transactions covered by this letter are consummated pursuant to the power_of_attorney on file in this matter a copy of this letter is being sent to your authorized representatives sincerely associate chief_counsel corporate by michael j wilder senior technician reviewer branch


internal_revenue_service department of the treasury number release date index number washington dc person to contact telephone number refer reply to cc psi plr-130441-03 date date legend a x dear this responds to your request for a ruling concerning whether charges for installation warranty and transportation are excludable from the taxable sales_price of certain truck bodies that are subject_to the retail excise_tax imposed by sec_4051 of the internal_revenue_code i facts a facts relating to installation a’s parent company manufactures certain refuse collection and recycling collection bodies and installs those bodies onto certain truck chassis the first_retail_sale of the chassis and bodies in question is subject_to the tax imposed by sec_4051 the bodies are installed on chassis in transactions involving three general factual situations in situation the body is built and installed on a truck chassis owned by the customer pursuant to the customer’s order in situation a chassis is purchased and the body is built and installed on that chassis pursuant to the customer’s order with the chassis and body sold as a unit in situation the body is built and installed on a purchased chassis for stock inventory to be sold to future customers in all three situations the parent sells these units to a for resale which sells them to retail customers the sales by a are therefore the first_retail_sale of the bodies at issue here the mounting of a body on the chassis generally includes the following steps the chassis is stripped to permit the proper mounting of the new body and equipment the chassis frame rails are lengthened or shortened as necessary to accommodate the particular body a wheel base slide may be performed in which the rear axles are unbolted repositioned and bolted back onto the frame rail the fuel tank air canisters battery and other chassis parts are repositioned as necessary a pump mount is attached to the chassis generally on the front of the truck between the front bumper and engine a specially designed hydraulic pump is attached to the pump mount the hydraulic pump hoses and fittings are required to operate the hoist assemblies as well as the packing and ejecting mechanisms on the body hydraulic tubing is installed and positioned for final connection after the mounting of the body truck chassis electrical wiring to the rear of the chassis is removed and replaced the electrical wiring for the rear of the chassis is incorporated with the electrical wiring necessary for the operation of the body from the truck cab or the outside of the body into a single wiring harness the wiring harness is connected after the body has been mounted on full eject models rear front and side load the body is installed by welding two parallel steel rails to the subfloor of the body and bolting degree angle mounting brackets to both the chassis rails and the parallel steel rails these brackets are then bolted to each other on dump models front and side load and on certain full eject models that offer a service hoist pivot assemblies are installed at the end of the chassis rails to allow the front end of the body to be raised this pivot assembly is installed by welding the assembly to the parallel steel rails and bolting the assembly to the chassis rails vertical guide plates are also bolted to the chassis to position and maintain the body over the chassis rails additional hold down assemblies are bolted onto the two parallel steel rails and the chassis rails to hold the body in place when not dumping or servicing hydraulic hoist lift mechanisms are mounted on the dump models and the models offering service hoists the control linkages for the hydraulic mechanism and other manual or electrical controls for the body and rear of the chassis are positioned and connected to the body the body and chassis are painted and decals are added to the body the entire cost of the mounting operation except for the lengthening of the frame and wheelbase slide is between dollar_figure and dollar_figure depending on the body being mounted of this amount the cost for installing the body on the chassis is between dollar_figure and dollar_figure the costs asserted by a to be excluded from the taxable sales_price of the truck bodies as installation costs are those for the following operations and items stripping the truck chassis to allow for installation of the new body repositioning of chassis parts such as the fuel tank air canisters and battery to allow for installation of the new body removing and replacing the electrical wiring of the chassis with a wire harness that incorporates the chassis wiring with that necessary for the operation of the body the pump mount itself and the attachment of the mount to the chassis the hydraulic tubing hoses fittings and adaptors as well as the installation of these items on full-eject bodies the cost of welding parallel steel rails to the underside of the body and bolting mounting brackets to the chassis rails and the parallel rails on the body as well as the cost of the rails brackets and clips or other fastening material on dump models the cost of welding parallel steel rails and of the rails themselves as in above as well as the cost of vertical guide plates and hold down assemblies that are bolted onto the chassis in addition the process of assembly and attachment of the pivot assemblies at the end of the steel rails is included installation of the control linkages incorporated or coinciding with the electrical wiring harness from the chassis cab to the rear of the refuse body including the cost of the linkage and switch materials direct_labor_costs and associated direct and indirect overhead associated with the listed installation processes material overhead consistent with overhead applied to all materials in the mounting process a gross margin on cost consistent with margins earned historically b facts relating to warranties a offers two different types of warranties on its refuse bodies the first type is the base warranty which is included with all units there is no additional_charge to the customer for the base warranty extended warranties are offered on certain parts or units at the option of the customer additional charges apply to the extended warranties and those charges are separately invoiced to the customer c facts relating to transportation the main manufacturing_facility of a’s parent is located in state x a has several branch sales and service offices located throughout the united_states expenses are incurred by a in transporting a unit consisting of a body installed on either a chassis purchased by a full package or on a customer-owned chassis body only from the main manufacturing_facility to various destinations a presents eight separate factual scenarios they are as follows a unit either a full package or a body only is transported to a branch sales office of a pursuant to an order by a customer the unit is picked up by the customer at the branch sales office a unit either a full package or a body only is transported to the customer’s location some units will stop at a branch location for final inspection or adjustment before delivery to the customer’s location the unit is manufactured and delivered pursuant to customer order and instruction a full package is transported to a branch sales office for stock inventory a customer later purchases the unit with no modifications at the branch sales office the customer picks up the unit at the branch sales office a full package is transported to a branch sales office for stock inventory a customer later purchases the unit with no modifications at the branch sales office the unit is transported from the branch office to the customer’s location a full package is transported to a branch sales office for stock inventory a customer later purchases the unit from stock inventory and the branch sales office modifies the unit as the customer directs the customer picks up the unit at the branch sales office a full package is transported to a branch sales office for stock inventory a customer later purchases the unit from stock inventory and the branch sales office modifies the unit as the customer directs the unit is transported from the branch office to the customer’s location a body is transported to a branch sales office for stock inventory a customer purchases the body and has it installed onto the customer’s chassis at the branch sales office painting or other modifications may be performed at the branch sales office the unit is then picked up by the customer at the branch sales office a body is transported to a branch sales office for stock inventory a customer purchases the body and has it installed onto the customer’s chassis at the branch sales office painting or other modifications may be performed at the branch sales office the unit is then transported from the branch sales office to the customer’s location ii law and analysis a general sec_4051 imposes an excise_tax on the first_retail_sale of truck chassis and bodies including in each case parts or accessories sold on or in connection therewith or with the sale thereof the rate_of_tax i sec_12 percent of the amount for which the article is sold prior to the imposition of the retail tax the excise_tax on heavy vehicles including parts or accessories sold on or in connection therewith was a manufacturers tax imposed by sec_4061 repealed april sec_4052 provides that in determining the price of an article for purposes of the tax on the retail_sale of vehicles there shall be included any charge incident to placing the article in condition ready for use sec_145_4052-1 of the temporary excise_tax regulations under the highway revenue act of pub l provides that if the sale of an article is a taxable sale the tax is computed on the price as determined under sec_145_4052-1 sec_145_4052-1 provides that the price for which an article is sold includes the total consideration paid for the article whether the consideration is paid in money services or other forms in addition there shall be included any charge incident to placing the article in condition ready for use similar rules to sec_4216 and the regulations thereunder relating to charges to be included in the price and excluded from the price shall apply for example charges for transportation delivery insurance and installation other than installation charges to which sec_4051 applies and other expenses actually incurred in connection with the delivery of an article to a purchaser pursuant to a bona_fide sale shall be excluded from the price in computing the tax under sec_4216 which defines the price for which an article is sold for purposes of the chapter manufacturers excise_taxes transportation and delivery charges are excludable from the taxable sale price sec_48_4216_a_-2 of the manufacturers and retailers excise_tax regulations provides that charges for transportation delivery and other expenses actually incurred in connection with the delivery of an article to a purchaser pursuant to a bona_fide sale shall be excluded from the sale price in computing the tax such charges include all items of transportation delivery and similar expense incurred after shipment to a customer begins in response to the customer's order pursuant to a bona_fide sale however costs of such nature incurred by a manufacturer in transporting in the normal course of business and for its benefit and convenience articles from a factory or port of entry to a warehouse or other facility regardless of the location of such warehouse or other facility are not considered as being incurred in connection with the delivery of an article to a purchaser pursuant to a bona_fide sale and charges therefor cannot be excluded from the sale price in computing tax_liability sec_48_4216_a_-2 provides that for purposes of computing the taxable sale price of articles it is immaterial whether the transportation delivery or other services are performed by a common carrier or independent agency for or on behalf of the manufacturer producer or importer or are performed by the manufacturer producer or importer with the use of its own vehicles or other facilities in determining whether an expense is an excludable transportation or delivery expense only those expenses_incurred by reason of the fact that the purchaser accepts delivery at some point other than the manufacturer's place of business shall be considered excludable transportation or delivery expenses in revrul_68_509 1968_2_cb_508 question deals with whether a manufacturer may exclude from the tax_base the expense of delivery from the factory to a warehouse that ruling indicates that it is immaterial whether the expense is incurred as a charge made by a common carrier or whether the expense arises from the use of trucks by the manufacturer if delivery is made prior to sale and is solely for the benefit or convenience of the manufacturer charges based on the expense may not be excluded from the tax_base however if the delivery is made subsequent to entering into a sales contract and the shipment is made as a step in completing delivery to the customer a charge for transportation or delivery may be excluded from the tax_base revrul_76_552 1976_2_cb_336 holds that any portion of the selling_price attributable to the installation of a body on a customer-owned chassis may be excluded from the taxable sales_price revrul_86_68 1986_1_cb_318 addresses the excludability of transportation_expenses in two situations both involving transportation of the taxable vehicle pursuant to an order to the retail dealer by a customer in situation the taxable truck is shipped from the manufacturer to the retail dealer where it is picked up by the customer in this situation the ruling concludes that the transportation costs from the manufacturer to the dealer are includable in the taxable sales_price in situation the taxable truck is shipped from the manufacturer directly to the customer that ordered the truck from the dealer in this situation the ruling concludes that the transportation charges are includable in the taxable sales_price to the extent that they do not exceed the charges that would have been incurred in shipping the vehicle from the manufacturer to the dealer b installation charges initially a has inquired whether installation charges must be separately billed in order to be excluded from the taxable sales_price revrul_57_253 1957_1_cb_381 holds that it is not necessary for installation charges to be billed separately in order for the charges to be excludable from the taxable sales_price however any installation charge must be satisfactorily established by adequate_records a has presented three factual situations for consideration in situation the body is built and installed on a truck chassis owned by the customer pursuant to the customer’s order the costs of attaching the body to the customer’s chassis including modifications to the chassis necessary for the installation of the body such as for lengthening or shortening the wheel base slide are excludable from the taxable sales_price of the body these costs include all overhead direct and indirect properly attributable to the installation as well as labor and material_costs however sec_48_4216_a_-2 provides that only the actual expense incurred for the excludable expense may be excluded from the taxable sales_price thus a gross margin may not be excluded from the taxable sales_price situation involves the installation of a body onto a chassis purchased by a or a’s parent and the sale of the body and chassis as a unit no amount may be excluded from the taxable sales_price for installation in such a case because the excludable installation charges described in sec_145_4052-1 are limited to those charges for installation of a taxable body onto a chassis owned by the customer revrul_76_552 situation involves installing a body onto a chassis for stock inventory in that situation no amount may be excluded from the taxable sales_price for installation to the branch sales and service office because the expenses are not incurred in connection with a bona_fide sale c warranty charges a offers two different types of warranties on its refuse bodies the base warranty which is included with all units at no additional_charge and extended warranties which are offered on certain parts or units at the option of the customer for an additional_charge sec_48_4216_a_-1 provides that for purposes of computing the taxable sale price of articles a charge for a warranty that the manufacturer requires the purchaser pay in order to obtain the article is part of the taxable sales_price however a charge for a warranty that is available at the purchaser’s option is not included in the taxable sales_price d transportation charges in general if delivery is made prior to sale and is solely for the benefit or convenience of the seller charges based on the expense may not be excluded from the tax_base however if the delivery is made subsequent to entering into a sales contract and the shipment is made as a step in completing delivery to the customer a charge for transportation of delivery may be excluded from the tax_base revrul_68_509 transportation or delivery charges for shipping a vehicle directly from the manufacturer to a retail dealer’s customer are includible in the tax_base to the extent that they do not exceed the charges that would have been incurred to ship the vehicle from the manufacturer to the dealer revrul_86_68 the eight factual scenarios presented by a are set forth above in section i c in the first two scenarios the unit either a full package or a body only is transported pursuant to a customer order either to the customer directly or to a branch office of a the charges for transportation in these two scenarios are includible in the taxable sales_price to the extent that they do not exceed the costs that would have been incurred in shipping the unit to a’s branch office in the first scenario all of the transportation costs are includible in the taxable sales_price in the second scenario the costs of transporting the unit from the branch sales office to the customer may be excluded from the taxable sales_price for the other six scenarios the full package or body is first transported to the branch sales office of a for stock inventory no amount may be excluded from the taxable sales_price for transportation to the branch sales office in these scenarios because the transportation_expenses are not incurred in connection with a bona_fide sale and the delivery is therefore solely for the benefit or convenience of a the retail dealer in scenario sec_4 and the finished unit is transported by a to the customer’s location because these charges for transportation to the customer are made subsequent to entering into a sales contract they may be excluded from the taxable sales_price iii conclusions a installation charges expenses related to installation of a body on chassis supplied by a customer situation including labor materials and overhead are excludable from the taxable sales_price whether or not those costs are separately listed on the invoice only actual expenses are excludable thus a gross margin may not be excluded from the taxable sales_price expenses related to installation of bodies in situation sec_2 and are not excludable from the taxable sales_price b warranty charges the charge for a manufacturer’s warranty that a requires the purchaser pay in order to obtain the article is part of the taxable sales_price however a charge for a warranty that is available at the purchaser’s option is not included in the taxable sales_price c transportation charges transportation charges in scenario are included in the taxable sales_price in scenario the charges for transportation of the unit from the manufacturer to the branch sales office are included in the taxable sales_price to the extent that they do not exceed the charges that would have been incurred in shipping the vehicle from the manufacturer to the dealer and the charges for transporting the unit from the branch sales office to the customer are excluded from the taxable sales_price for scenarios no amount is excluded from the taxable sales_price for the charges for transportation to the branch sales office in scenario sec_4 and the charges for transportation of the unit from the branch sales office to the customer’s location are excluded from the taxable sales_price this letter_ruling is directed only to the taxpayer who requested it sec_6110 provides that it shall not be used or cited as precedent sincerely associate chief_counsel passthroughs and special industries by frank boland chief branch enclosures copy of this letter copy for sec_6110 purposes cc


internal_revenue_service number release date index number ----------------------- -------------------------------- --------------------------- attn -------------------- --------------------------- 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 ita b07 plr-100539-11 date april taxpayer ----------------------- ------------------------------------------- firm date date date ---------------- --------------------------- --------------------------- --------------------------- dear ----------------- this ruling responds to a letter dated date submitted by taxpayer requesting an extension of time pursuant to sec_301_9100-1 and sec_301_9100-3 of the procedure and administration regulations to file a duplicate copy with signature of a form_3115 application_for change in accounting_method with the internal_revenue_service irs national_office facts taxpayer a limited_liability_company taxed as a partnership timely filed its federal tax_return for the taxable_year ending date along with the original of a form_3115 to change its method_of_accounting for depreciation of certain property under the automatic procedures of revproc_2008_52 2008_2_cb_587 as amplified clarified and modified by revproc_2009_39 2009_2_cb_371 however taxpayer failed to file a signed duplicate copy of the form_3115 with the irs national_office as required by section a of rev_proc firm assisted taxpayer in the preparation of the form_3115 firm advised taxpayer to attach the original form_3115 to taxpayer’s federal tax_return and to file the federal tax_return before date the due_date of the plr-100539-11 return for the taxable_year ending date firm advised taxpayer either to send the duplicate copy of the form_3115 back to firm so that firm could hand deliver the duplicate copy to the irs national_office before date or to mail the duplicate copy of the form_3115 directly to the irs national_office at the address provided in revproc_2008_52 via certified mail postmarked no later than date because of a miscommunication between taxpayer and firm taxpayer mailed the duplicate copy of the form_3115 to firm on date with the understanding that firm would file the duplicate copy with the irs national_office firm received the duplicate copy on date which precluded it from filing the duplicate copy with the irs national_office on or before the date of taxpayer’s timely filed tax_return upon learning that the duplicate copy of the form_3115 was not timely filed with the irs national_office taxpayer submitted this request for relief under sec_301_9100-1 and sec_301_9100-3 law and analysis revproc_2008_52 provides the procedures by which a taxpayer may obtain automatic consent to change certain methods_of_accounting a taxpayer complying with all the applicable provisions of this revenue_procedure has obtained the consent of the commissioner of internal revenue to change the taxpayer’s method_of_accounting under sec_446 of the internal_revenue_code and the income_tax regulations thereunder section a of revproc_2008_52 provides that a taxpayer changing a method_of_accounting pursuant to revproc_2008_52 must complete and file a form_3115 in duplicate the original must be attached to the taxpayer’s timely filed including extensions original federal_income_tax return for the year_of_change and a copy with signature of the form_3115 must be filed with the irs national_office no earlier than the first day of the year_of_change and no later than when the original is filed with the federal_income_tax return for the year_of_change under sec_301_9100-1 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 sec_301_9100-1 defines a regulatory election as an election whose due_date is prescribed by a regulation published in the federal_register or a revenue_ruling revenue_procedure notice or announcement published in the internal_revenue_bulletin sec_301_9100-1 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-100539-11 sec_301_9100-3 provides that requests for relief under sec_301_9100-3 will be granted when the taxpayer provides 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 conclusions based solely on the facts and the representations submitted we conclude that the requirements of sec_301_9100-1 and sec_301_9100-3 have been met accordingly taxpayer is granted calendar days from the date of this letter to file the required duplicate copy of the form_3115 with signature with the irs national_office for the taxable_year ended date please attach this ruling letter to the copy except as specifically set forth above we express no opinion concerning the federal_income_tax consequences of the facts described above under any other provisions of the code specifically no opinion is expressed or implied concerning whether taxpayer is qualified to file the form_3115 for the change in method_of_accounting for depreciation of certain property under revproc_2008_52 or whether taxpayer otherwise meets the requirements of revproc_2008_52 the ruling contained in this letter is based upon information and representations submitted by taxpayer and accompanied by a penalty of perjury statement executed by an appropriate party while this office has not verified any of the material submitted in support of the request for a ruling it is subject_to verification on examination 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 taxpayer’s authorized representatives sincerely willie e armstrong jr senior technician reviewer branch income_tax accounting enclosure copy for sec_6110 purposes cc


t c summary opinion united_states tax_court douglas k and gayle l barrett petitioners v commissioner of internal revenue respondent docket no 7917-07s filed date douglas k barrett pro_se brooke s laurie for respondent goeke judge this case was heard pursuant to the provisions of sec_7463 of the internal_revenue_code in effect when the petition was filed pursuant to sec_7463 the decision to be entered is not reviewable by any other court and 1unless otherwise indicated all section references are to the internal_revenue_code and all rule references are to the tax_court rules_of_practice and procedure this opinion shall not be treated as precedent for any other case this case arises from a petition filed in response to a notice_of_deficiency respondent determined that petitioners failed to report income of dollar_figure on schedule c profit or loss from business of their joint federal_income_tax return respondent further disallowed petitioners’ deductions claimed on schedule a itemized_deductions and business_expense deductions claimed on schedule c respondent conceded the issue of schedule c unreported income therefore we must decide whether petitioners are entitled to the claimed schedule a deductions petitioners are entitled to the claimed schedule c deductions and respondent’s determination of an accuracy-related_penalty under sec_6662 was appropriate background at the time the petition was filed petitioners were residents of california petitioners claimed schedule a deductions of dollar_figure a dollar_figure adjustment for cost_of_goods_sold and schedule c deductions of dollar_figure which included car and truck expense deductions for a chevrolet truck reportedly used in conjunction with mr barrett’s contracting business purchases of small tools and various other expenses respondent disallowed these deductions in the notice_of_deficiency respondent also determined an accuracy-related_penalty pursuant to sec_6662 discussion generally taxpayers bear the burden of proving the commissioner’s determinations are erroneous rule a 290_us_111 sec_162 allows deductions for ordinary and necessary expenses of carrying_on_a_trade_or_business sec_7491 regarding the burden_of_proof is not applicable in this case because petitioners have failed to meet the requirements of sec_7491 and these deductions are strictly a matter of legislative grace and taxpayers bear the burden of proving they are entitled to any claimed deductions 503_us_79 292_us_435 sec_6001 requires taxpayers to maintain adequate books_and_records sufficient to substantiate all costs of goods sold and all deductions claimed on tax returns petitioners have not provided any documentation to substantiate the cost_of_goods_sold reported on their tax_return respondent’s examination agent allowed petitioners a portion of their claimed cost_of_goods_sold in view of petitioners’ lack of any substantiating documentation we find petitioners are not entitled to a greater amount than that which respondent has already allowed sec_274 requires taxpayers to substantiate any claimed deductions of listed_property by adequate_records or sufficient evidence and bars any deduction for an expenditure governed by sec_274 on the basis of unsupported testimony of the taxpayers or on the basis of the taxpayers’ approximation sec_1_274-5t temporary income_tax regs fed reg date we have held that where taxpayers’ testimony is general conclusory or uncorroborated the court is not required to accept such testimony as sustaining taxpayers’ burden_of_proof see lerch v commissioner tcmemo_1987_295 affd 877_f2d_624 7th cir geiger v commissioner tcmemo_1969_159 affd 440_f2d_688 9th cir at his meeting with respondent’s examination agent mr barrett submitted only a purchase agreement for the chevrolet truck and one vehicle insurance invoice to substantiate the depreciation and vehicle expenses and he provided no documents to substantiate his claim that the truck had been used for business purposes 2pursuant to sec_280f listed_property includes a passenger_automobile a computer_or_peripheral_equipment and any cellular telephone or other similar telecommunications equipment mr barrett produced no documentation to substantiate the other claimed schedule a or c deductions his testimony on the matters was brief and conclusory offering only statements that respondent had not produced adequate_records to demonstrate his deficiency and that the claimed business_expenses were not unusual or alarming for a small_business in addition he called no witnesses to corroborate his testimony accordingly we find petitioners have failed to establish entitlement to the cost_of_goods_sold and deductions claimed on their schedules a and c respondent determined petitioners are liable for an accuracy-related_penalty under sec_6662 sec_6662 and b imposes a 20-percent penalty on the portion of an underpayment attributable to negligence negligence includes any failure to keep adequate books_and_records or to substantiate items properly sec_1_6662-3 income_tax regs the commissioner has the burden of production with respect to accuracy-related_penalties sec_7491 to meet that burden the commissioner must produce sufficient evidence indicating that it is appropriate to impose the penalty see 116_tc_438 once the commissioner meets his burden of production the taxpayer must come forward with persuasive evidence that the commissioner’s determination is incorrect rule a higbee v commissioner supra pincite the taxpayer may meet this burden by proving that he or she acted with reasonable_cause and in good_faith see sec_6664 sec_1_6664-4 and b income_tax regs we conclude that respondent has met his burden of production under sec_7491 the record shows that petitioners failed to keep adequate books_and_records or to substantiate the claimed cost_of_goods_sold and deductions properly as discussed above mr barrett offered no testimony or documentation to establish reasonable_cause for failing to substantiate petitioners’ claimed cost_of_goods_sold and deductions on the basis of our examination of the entire record before us we find petitioners have failed to carry their burden of establishing that they are not liable for the accuracy-related_penalty under sec_6662 to reflect the foregoing decision will be entered under rule


department of the treasury internal_revenue_service washington d c jan number release date cc tege eoeg et1 - genin-156828-01 uilc memorandum for director internal_revenue_service center kansas city mo attn entity control from subject office of division counsel associate chief_counsel tax exempt and government entities cc tege eoeg et1 - genin-156828-01 railroad retirement act tax status in accordance with the coordination procedure established between the service and the railroad retirement board rrb the rrb has provided us with its opinion that the following business became an employer under the railroad retirement act and the railroad unemployment insurance act effective date we have reviewed the opinion of the rrb and based upon the information submitted to the rrb we also conclude that became an employer under the railroad_retirement_tax_act effective date please take the appropriate action regarding this business will e mcleod cc