internal_revenue_service number release date index number ---------------------------- ------------------------- -------------------------------------------- --------------------------------------------- department of the treasury washington dc third party communication none date of communication not applicable_person to contact ------------------------- id no ------------------ ----------------------------------------------------- telephone number ---------------------- refer reply to cc psi b03 plr-136247-16 plr-136248-16 plr-136249-16 plr-136250-16 date date legend ---------------------------------- x ------------------------------------------- ------------------------------------------------- y1 ------------------------------------------- y2 ------------------------ ------------------------------------------- y3 ------------------------------------------- ----------------------------------------------- y4 ------------------------------------------- ----------------------------------------- state -------------- date1 -------------------- date2 -------------------- date3 ---------------------- date4 ---------------------- plr-136247-16 dear --------------- this responds to a letter dated date submitted on behalf of x by its authorized representative requesting extensions of time under sec_301_9100-3 to make late elections on behalf of y1 y2 y3 and y4 to be qualified subchapter_s subsidiaries qsubs under sec_1361 of the internal_revenue_code code and sec_1 of the income_tax regulations the information submitted states that x was formed under the laws of state on date1 and filed an election to be an s_corporation effective date1 on date2 all of the ownership interests in y1 y2 y3 and y4 were transferred to x x had intended to elect to treat y1 y2 y3 and y4 as qsubs effective as of date2 however due to inadvertence x failed to timely file forms qualified_subchapter_s_subsidiary election on behalf of y1 y2 y3 and y4 to be effective date2 after discovering this failure on date3 x filed forms on behalf of y1 y2 y3 and y4 to elect to be treated as qsubs effective as of date4 x now seeks relief to make late qsub elections on behalf of y1 y2 y3 and y4 to be effective as of date2 x represents that x and y1 y2 y3 and y4 have filed tax returns for all of the relevant tax years consistent with the income_tax treatment of y1 y2 y3 and y4 as qsubs from date1 sec_1361 of the internal_revenue_code code provides that a qsub shall not be treated as a separate corporation and all assets liabilities and items of income deduction and credit of a qsub shall be treated as assets liabilities and such items as the case may be of the s_corporation sec_1361 defines a qsub as a domestic_corporation which is not an ineligible_corporation if percent of the stock of the corporation is owned by the s_corporation and the s_corporation elects to treat the corporation as a qsub sec_1_1361-3 of the income_tax regulations prescribes the time and manner for making an election to be classified as a qsub sec_1_1361-3 provides that an election to treat an eligible subsidiary as a qsub may be effective up to two months and days prior to the date the election is filed or not more than months after the election is filed the proper form for making the election is form_8869 sec_1_1361-3 provides that an extension of time to make a qsub election may be available under procedures applicable under sec_301_9100-1 and sec_301_9100-3 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 months except in the case of a taxpayer who is abroad under all subtitles of the plr-136247-16 code except subtitles e g h and i sec_301_9100-1 defines the term 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_9100-2 provides the rules governing automatic extensions of time for making certain elections sec_301_9100-3 provides the standards the commissioner will use to determine whether to grant an extension of time for regulatory elections that do not meet the requirements of sec_301_9100-2 under sec_301_9100-3 a request for relief 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 that the grant of relief will not prejudice the interests of the government based solely upon the information submitted and the representations made we conclude that the requirements of sec_301 have been satisfied accordingly x is granted an extension of time of days from the date of this letter to file forms qualified_subchapter_s_subsidiary election with the appropriate service_center on behalf of y1 y2 y3 and y4 effective date2 a copy of this letter should be attached to each form_8869 copies are enclosed for that purpose except for the specific rulings above we express or imply no opinion concerning the federal_income_tax consequences of the facts of this case under any other provision of the internal_revenue_code specifically we express no opinion regarding whether y1 y2 y3 and y4 meet the definition of a qsub under sec_1361 the ruling contained in this letter is based upon information and representations submitted by the taxpayer and accompanied by a penalty of perjury statement executed by an appropriate party while this office has not verified any of the material submitted in support of the ruling_request it is subject_to verification on examination this ruling is directed only to the taxpayer requesting it sec_6110 provides that it may not be used or cited as precedent plr-136247-16 in accordance with the power_of_attorney on file with this office we are sending copies of this letter to x’s authorized representatives sincerely bradford r poston senior counsel branch office of associate chief_counsel passthroughs special industries enclosures copies 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 b01 plr-104705-08 date date legend x --------------------------------------------------- --------------------------------------------------- a ----------------------------------------------------- ------------------------------------ b ----------------------------------------------------- -------------------------------- state trust ------ ---------------------------------------------------------------- --------------------------- --------------------------------------------------- trust ------------------------------------------------------------------------------------------------------------- --------------------------------------------------- ----------------------------------------------------------------------------------------- trust ------------------------------------------------------------------------------------------------------------- --------------------------------------------------- ----------------------------------------------------------------------------------------- trust 3a ----------------------------------------------------- --------------------------------------------------- ------------------------------------------------------------------------------- plr-104705-08 trust 3b --------------------------------------------------------------- --------------------------------------------------- ------------------------------------------------------------------------------- trust 3c ------------------------------------------------------- --------------------------------------------------- ------------------------------------------------------------------------------- trust 3d ------------------------------------------------ --------------------------------------------------- ------------------------------------------------------------------------------- date date date date date date year year ----------------- --------------------------- ----------------------- ----------------------- ----------------------- ------------------- ------- ------- dear ---------------------- this responds to a letter dated date and subsequent correspondence submitted on behalf of x requesting a ruling under sec_1362 of the internal_revenue_code facts the information submitted states that x was incorporated under the laws of state on date and elected to be treated as an s_corporation effective date on date a transferred all of the stock of x to trust a grantor_trust that was treated under subpart e of part of subchapter_j of chapter as entirely owned by a on date a died and trust ceased to be a grantor_trust nevertheless trust continued to qualify as a permissible s_corporation shareholder under sec_1361 for the 2-year period beginning on the day of the deemed owner’s plr-104705-08 death and ending on date trust 1’s trust agreement provided that upon a’s death the x stock held by trust shall be transferred to trust and trust trust 1’s trust agreement further provided that trust consists of four subtrusts trust 3a trust 3b trust 3c and trust 3d on date trust became an ineligible shareholder of x and x’s election to be an s_corporation terminated on date after the 2-year period described in sec_1361 had expired trust transferred x stock to trust and to the four subtrusts of trust but for the termination of x’s s_corporation_election on date trust would have qualified as a qualified_subchapter_s_trust qsst under sec_1361 on date trust filed a qsst election effective date x represents that each of the subtrusts of trust would also have qualified as a qsst under sec_1361 except for the fact that the sole beneficiaries of each of those subtrusts failed to make the election under sec_1361 on date b purchased the x stock held by trust 3b trust 3c and trust 3d in year x’s accountant discovered the failure of the beneficiaries of the subtrusts of trust to file the respective qsst elections and notified x that its s_corporation_election had terminated x represents that all income has been reported on all affected returns consistent with the treatment of x as an s_corporation for year and for all subsequent years x represents that the circumstances resulting in the termination of x’s s_corporation_election were inadvertent and were not motivated by tax_avoidance or retroactive tax planning x and its shareholders have agreed to make any adjustments that the commissioner may require consistent with the treatment of x as an s_corporation law and analysis sec_1362 provides that except as provided in sec_1362 a small_business_corporation may elect in accordance with the provisions of sec_1362 to be an s_corporation sec_1361 provides that the term s_corporation means with respect to any taxable_year a small_business_corporation for which an election under sec_1362 is in effect for such year sec_1361 provides that for purposes of subchapter_s the term small_business_corporation means a domestic_corporation which is not an ineligible_corporation and which does not have as a shareholder a person other than an estate a plr-104705-08 trust described in sec_1361 or an organization described in sec_1361 who is not an individual sec_1361 provides that for the purposes of sec_1362 a_trust all of which is treated under title_26 subtitle a chapter subchapter_j part i subpart e of the united_states_code as owned by an individual who is a citizen or resident_of_the_united_states may be a shareholder of an s_corporation sec_1361 and sec_1_1361-1 of the income_tax regulations provide that for purposes of sec_1361 a_trust that is described in sec_1361 immediately before the death of the deemed owner and that continues in existence after such death is a permitted shareholder but only for the two-year period beginning on the day of the deemed shareholder's death sec_1_1361-1 provides that if stock is held by a_trust described in sec_1_1361-1 the estate of the deemed owner is generally treated as the shareholder as of the day of the deemed owner’s death sec_1361 provides that in the case of a qualified_subchapter_s_trust with respect to which a beneficiary makes an election under sec_1361 a such trust will be treated as a_trust described in sec_1361 and b for purposes of sec_678 the beneficiary of such trust shall be treated as the owner of that portion of the trust which consists of stock in an s_corporation with respect to which the election under sec_1361 is made sec_1361 provides that a beneficiary of a qsst or his legal_representative may elect to have sec_1361 apply sec_1361 provides that an election under sec_1362 shall be effective up to days and months before the date of the election sec_1361 provides that the term qualified_subchapter_s_trust means a_trust a the terms of which require that i during the life of the current income_beneficiary there shall be only income_beneficiary of the trust ii any corpus distributed during the life of the current income_beneficiary may be distributed only to such beneficiary iii the income_interest of the current income_beneficiary in the trust shall terminate on the earlier of such beneficiary's death or the termination of the trust and iv upon termination of the trust during the life of the current income_beneficiary the trust shall distribute all of its assets to such beneficiary and b all of the income within the meaning of sec_643 of which is distributed or required to be distributed currently to individual who is a citizen or resident_of_the_united_states sec_1_1361-1 provides that for purposes of sec_1361 and sec_1361 a substantially separate and independent share of a_trust within the meaning of sec_663 and the regulations thereunder is treated as a separate trust for a separate share which holds s_corporation stock to qualify as a qsst the terms of the trust applicable plr-104705-08 to that separate share must meet the qsst requirements stated in sec_1_1361-1 and ii sec_1_1361-1 provides that if s_corporation stock is transferred to a_trust the qsst election must be made within the 16-day-and-2-month period beginning on the day that the stock is transferred to the trust sec_1_1361-1 provides that if a_trust ceases to be a qualified_subpart_e_trust satisfies the requirements of a qsst and intends to become a qsst the qsst election must be filed within the 16-day-and-2-month period beginning on the date on which the trust ceases to be a qualified_subpart_e_trust if the estate of the deemed owner of the trust is treated as the shareholder under sec_1_1361-1 the qsst election may be filed at any time but no later than the end of the 16-day-and-2- month period beginning on the date on which the estate of the deemed owner ceases to be treated as a shareholder sec_1_1361-1 provides that the income_beneficiary who makes the qsst election and is treated for purposes of sec_678 as the owner of that portion of the trust that consists of s_corporation stock is treated as the shareholder for purposes of sec_1361 sec_1366 sec_1367 and sec_1368 sec_1362 provides that an election under sec_1362 shall be terminated whenever at any time on or after the first day of the first taxable_year for which the corporation is an s_corporation such corporation ceases to be a small_business_corporation the termination is effective on and after the day of the termination sec_1362 provides that if an election under sec_1362 by any corporation was not effective for the taxable_year for which made determined without regard to sec_1362 by reason of a failure to meet the requirements of sec_1361 or to obtain shareholder consents the secretary determines that the circumstances resulting in such ineffectiveness were inadvertent no later than a reasonable period of time after discovery of the circumstances resulting in such ineffectiveness steps were taken so that the corporation for which the election was made is a small_business_corporation or to acquire the required shareholder consents and the corporation for which the election was made and each person who was a shareholder in such corporation at any time during the period specified pursuant to sec_1362 agrees to make such adjustments consistent with the treatment of such corporation as an s_corporation as may be required by the secretary with respect to such period then notwithstanding the circumstances resulting in such ineffectiveness such corporation shall be treated as an s_corporation during the period specified by the secretary conclusion based solely on the information submitted and the representations made we conclude that x's s_corporation_election was terminated on date when trust plr-104705-08 became an ineligible shareholder we further conclude that the termination of x’s s_corporation_election was an inadvertent termination within the meaning of sec_1362 accordingly pursuant to the provisions of sec_1362 x will be treated as an s_corporation from date and thereafter provided that x's s_corporation_election was otherwise valid and except for the failures of the beneficiaries of the subtrusts of trust to file qsst elections as described above has not otherwise terminated under sec_1362 this ruling is contingent on the beneficiary of trust 3a filing a qsst election effective date within days of the date of this letter a copy of this letter should be attached to the qsst election a copy is provided for that purpose the shareholders of x must include their pro-rata share of the separately_stated and nonseparately computed items of x as provided in sec_1366 make adjustments to basis as provided in sec_1367 and take into account any distributions made by x as provided in sec_1368 if x or its shareholders fail to treat themselves as described above this ruling is null and void except as specifically ruled above we express or imply no opinion concerning the federal tax consequences of the transactions described above under any other provision of the code specifically we express or imply no opinion regarding whether x is otherwise eligible to be an s_corporation this ruling is directed only to the taxpayer requesting it sec_6110 provides that it may not be used or cited as precedent in accordance with a power_of_attorney on file with this office a copy of this letter is being sent to x's authorized representative sincerely audrey w ellis audrey w ellis senior counsel branch office of the associate chief_counsel passthroughs special industries enclosures copy of this letter copy for sec_6110 purposes cc


department of the treasury i n t e r n a l r e v e n u e s e r v i c e w a s h i n g t o n d c o f f i c e o f t h e c h i e f c o u n s e l date number release date conex-108142-18 index honorable gurbir s grewal attorney_general office of the attorney_general department of law and public safety po box trenton nj dear attorney_general grewal thank you for your letter dated date about the date advisory issued by the irs concerning the deductibility of prepaid state or local real_property_taxes specifically you request clarification on whether cash-basis new jersey residents who paid local property taxes in are entitled to a deduction in for federal_income_tax purposes the tax cuts and jobs_act of tcja generally limits the deduction for state or local real_property_taxes and certain other taxes in to dollar_figure in light of this new limitation new jersey governor chris christie issued executive_order on date essentially requiring municipalities to accept payments for property taxes in calendar_year and to credit payments postmarked on or before date as received in calendar_year nj order the state_agency charged with implementing the nj order issued a similar requirement in local finance notice_2017_28 the nj order cites existing new jersey law that permit taxes to be received and credited prior to the dates otherwise fixed for payment n j rev stat sec_54 e and f provide that taxes may be received and credited as payments at any time even prior to the dates hereinbefore fixed for payment from the property owners their agents or lien holders conex-108142-18 prior to passage of the tcja the irs has consistently taken the position during examinations that the deduction for state and local real_property_taxes is allowable as long as the tax is both paid and imposed or assessed in the tax_year taxpayers have generally accepted this position on the rare occasions this position has been challenged courts have upheld the irs’s interpretation for example in 8_fedappx_262 4th cir the u s court_of_appeals for the fourth circuit upheld a u s tax_court decision disallowing the deduction for a prepayment of property taxes because the tax had not yet been assessed in response to numerous requests for immediate guidance following enactment of the tcja we issued an advisory ir-2017-20 on date and explained that a deduction is allowable if the tax was assessed in state or local law controls the imposition and assessment of real_property_taxes the tcja did not change sec_164 of the internal_revenue_code relating to property_tax prepayment as such the irs’s longstanding position remains the same and is reflected in the advisory thus if a state or local taxing jurisdiction imposed tax on real_property by the end of the amounts paid in are deductible on a taxpayer’s tax_return if the tax was not imposed by a state or local taxing jurisdiction by the end of the requirements for the deduction under sec_164 are not satisfied in that year and the deduction is therefore not allowable in i hope this information is helpful please call ------------------------- if you have questions --------------- at ---------------------- or me at sincerely scott k dinwiddie associate chief_counsel income_tax and accounting


department of the treasury internal_revenue_service tax_exempt_and_government_entities_division washington d c apr uniform issue list gc cb tt ep rat legend taxpayer a taxpayer b ira c ira d irae ira f financial_institution g financial_institution h company amount amount dear this is in response to your request dated date as supplemented by correspondence dated date in which you request a waiver of the day rollover requirement contained in sec_408 of the internal_revenue_code the code the following facts and representations have been submitted under penalty of perjury in support of the ruling requested taxpayer a represents that he received a distribution equal to amount from ira c which was maintained by financial_institution g taxpayer a asserts that his failure to accomplish a rollover within the 60-day period prescribed by sec_408 of the code was due to loss of memory and cognitive function following major surgery taxpayer b taxpayer a’s spouse represents that she received a distribution equal to amount from ira d which was maintained by financial_institution g taxpayer b asserts that her failure to accomplish a rollover within the 60-day period was because she believed taxpayer a had rolled over her ira distribution in june taxpayer a age had coronary bypass surgery in october taxpayer a and taxpayer b met with their financial advisor with company to discuss their investments the investment_advisor indicated that since the level of their assets had fallen below a minimum level company could no longer manage their assets and they should look at annuities and other similar investments for their assets on date taxpayer a withdrew amount from ira c and amount from ira d with financial_institution g taxpayer a deposited amount sec_1 and into taxpayer a’s and taxpayer b's joint checking account intending to hold the distributions there for four to six weeks while he explored other investment options however taxpayer a has suffered ongoing memory loss and cognitive issues as a result of the major surgery in june of consequently taxpayer a forgot about the distributions in june of the son of taxpayer a and taxpayer b discovered the error when on reviewing the taxpayers’ finances he noticed amount and amount in the taxpayers’ checking account and learned they were ira_distributions the taxpayers’ son advised taxpayer a to complete the rollovers to iras with financial_institution h and guided the taxpayers in completing the rollovers on date taxpayer a rolled over amount into ira e with financial_institution h on date taxpayer b rolled over amount into ira f which was also maintained by financial_institution h taxpayer a and taxpayer b represent that amount and amount have not been used for any other purpose taxpayer a and taxpayer b have submitted documentation in support of the above representations based on the above facts and representations taxpayer a requests a waiver of the 60-day rollover requirement with respect to the distribution of amount from ira c based on the above facts and representations taxpayer b requests a waiver of the 60-day rollover requirement with respect to the distribution of amount from ira d sec_408 of the code defines an ira to mean a_trust created or organized in the united_states and requires that the trustee be a bank or an approved non- bank trustee 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 disiributee as the case may be in the manner provided under sec_72 sec_408 of the code provides the rules applicable to ira_rollovers sec_408 of the code provides that sec_408 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 or any other_property is paid into an ira for the benefit of such individual not later than the 60th 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 60th 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 rollover provisions of sec_408 do not apply to any amount required to be distributed under sec_408 sec_408 of the code provides that the secretary_of_the_treasury may waive the 60-day requirement under sec_408 and sec_408 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 revproc_2003_16 r b provides that the service will issue a ruling waiving the 60-day rollover requirement in cases 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 taxpayer in determining whether to grant a waiver of the 60-day rollover requirement pursuant to sec_408 of the code the service will consider all relevant facts and circumstances including errors committed by a financial_institution inability to complete a rollover due to death disability hospitalization incarceration restrictions imposed by a foreign_country or postal error the use of the amount distributed for example in the case of payment by check whether the check was cashed and the time elapsed since the distribution occurred the information and documentation submitted are consistent with taxpayer a’s assertion that the failure to accomplish a rollover within the 60-day period prescribed by d a of the code was due to loss of memory and cognitive function after major surgery the information and documentation submitted are consistent with taxpayer b’s assertion that the failure to accomplish a rollover within the 60-day period was because she believed taxpayer a had rolled over her ira distribution therefore pursuant to sec_408 of the code the service waives the day rollover requirement with respect to the distribution equal to amount and amount provided all other requirements of sec_408 of the code except the 60-day requirement were met with respect to the contribution of amount to ira e and amount to ira f such contributions are considered a rollover_contribution within the meaning of sec_408 this ruling does not authorize the rollover of amounts that are required to be distributed by sec_408 of the code no opinion is expressed as to the tax treatment of the transaction described herein under the provisions of any other section of either the code or regulations which may be applicable thereto this letter is directed only to the taxpayer who requested it sec_6110 of the code provides that it may not be used or cited as precedent if you wish to inquire about this ruling please contact at please address all correspondence to se t ep ra t1 sincerely yours wattle carlton a watkins manager employee_plans technical group enclosures notice of intention to disclose deleted copy of this letter


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 fip b05 plr-144638-14 date april legend issuer --------------------------------------------------------------------- ----------------------------------------------------------- bonds date date date date date date date ----------------------------------------------------------- ------------------------------------------------------------------------ ------------------------------------------------------------------------ ------------------------------------------------------------------------ ------------------------------------------------------------------------ ------------------------------------------------------------------------ ------------------------------------------------------------------------ ------------------------------------------------------------------------ ------------------------------------------------------------------------ ------------------------------------------------------------------------ ------------------------------------------------------------------------ ---------------------------------------- -------------------------- ------------------- ------------------ --------------------- ---------------- -------------------- ------------------ plr-144638-14 dear ----------------- this is in response to your request for a ruling that issuer’s proposed actions to cease status as a qualified_scholarship funding corporation under sec_150 of the internal_revenue_code the code will not cause interest on the bonds to fail to be excludable from gross_income under sec_103 facts and representations issuer represents that it has been a corporation described in sec_150 since date and received a determination_letter on date from the internal_revenue_service stating that it is an organization described in sec_501 and exempt from federal_income_tax under sec_501 both dates being prior to the issuance of the bonds issuer issued the bonds on date sec_3 and and remained the obligor on the bonds for the duration of time the bonds were outstanding using cash from both student_loan payments and student_loan sales issuer fully redeemed the bonds by date following retirement of the bonds issuer had no outstanding tax-exempt_bonds issuer proposes to amend its articles of incorporation and bylaws to expand its charitable purposes as a sec_501 organization to include offering scholarships and grants to deserving students issuer also represents that it will not issue any tax- exempt bonds in the future law and analysis sec_103 provides with exceptions that gross_income does not include interest on any state_or_local_bond sec_150 provides that a qualified_scholarship_funding_bond is treated as a state_or_local_bond sec_150 provides that the term qualified_scholarship_funding_bond means a bond issued by a corporation which - a is a corporation not for profit established and operated exclusively for the purpose of acquiring student_loan notes incurred under the higher education act of and b is organized at the request of the state or or more political subdivisions thereof or is requested to exercise such power by or more political subdivisions and required by its corporate charter and bylaws or required by state law to devote any plr-144638-14 income after payment of expenses debt service and the creation of reserves for the same to the purchase of additional student_loan notes or to pay over any income to the united_states sec_150 provides that any qualified_scholarship_funding_bond and qualified_student_loan_bond outstanding on the date of the issuer’s election under that section and any bond or series of bonds issued to refund such a bond shall not fail to be a tax-exempt_bond solely because the issuer ceases to be a corporation described in sec_150 if the issuer meets the requirements of subparagraphs b and c of that section the requirements of sec_150 are met by an issuer if - i all of the student_loan notes of the issuer and other assets pledged to secure the repayment of qualified_scholarship_funding_bond indebtedness of the issuer are transferred to another corporation within a reasonable period after the election is made ii such transferee corporation assumes or otherwise provides for the payment of all of the qualified_scholarship_funding_bond indebtedness of the issuer within a reasonable period after the election is made iii to the extent permitted by law such transferee corporation assumes all of the responsibilities and succeeds to all of the rights of the issuer under the issuer’s agreements with the secretary of education in respect of student loans iv immediately after such transfer the issuer together with any other issuer which has made an election under sec_150 in respect of such transferee hold all of the senior_stock in such transferee corporation and v such transferee corporation is not exempt from tax under that chapter the requirements of sec_150 are met by an issuer if within a reasonable period after the transfer referred to in sec_150 - i the issuer is described in sec_501 and exempt from tax under sec_501 ii the issuer no longer is described in sec_150 and b and iii at least percent of the members of the board_of directors of the issuer are independent members when an issuer has outstanding tax-exempt_bonds it may make an election to cease status as a qualified_scholarship funding corporation under sec_150 in which case it must follow the requirements described in sec_150 the purpose of sec_150 is to plr-144638-14 preserve the tax-exempt status of an issuer’s qualified_scholarship_funding_bonds and qualified student_loan bonds outstanding on the date of an issuer’s election and any bond or series of bonds issued to refund such bonds despite the loss of an issuer’s status as a qualified_scholarship funding corporation however sec_150 is not applicable in this case because issuer has redeemed all its bonds regardless of the inapplicability of sec_150 in this case issuer’s proposed actions will result in its ceasing to operate as a qualified_scholarship funding corporation described under sec_150 because issuer represents it was a corporation described under sec_150 at the time the bonds were issued it was a corporation described under sec_150 for the entire time the bonds were outstanding and it remained the obligor on the bonds the entire time they were outstanding issuer’s proposed actions will not cause interest on the bonds to fail to be excludable from gross_income under sec_103 conclusion based on the information submitted and representations made we conclude that issuer’s proposed actions will not cause the interest on the bonds to fail to be excludable from gross_income under sec_103 the ruling contained in this letter is based upon information and representations submitted by issuer and accompanied by a penalty of perjury statement executed by an appropriate party while this office has not verified any of the materials submitted in support of the request for a ruling it is subject_to verification upon examination except as expressly provided herein no opinion is expressed or implied concerning the tax consequences of any transaction or item discussed or referenced in this letter this 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 a power_of_attorney on file with this office a copy of this letter is being sent to issuer’s authorized representative sincerely associate chief_counsel financial institutions products by _________ s ________________ james polfer chief branch


internal_revenue_service number release date index number - ---------------------------------------- ----------------------------------------- ----------- ---------------------------- ------------------------- - department of the treasury washington dc third party communication none date of communication not applicable_person to contact ----------------------- id no ------------- telephone number --------------------- refer reply to cc tege eoeg teb presp-143400-06 date date dear --------------- this letter is in response to your application_for an allocation of authority to issue dollar_figure------- ----------------in clean renewable energy bonds crebs under sec_54 of the internal_revenue_code the code sec_54 of the code imposes a limitation of dollar_figure on the amount of crebs which may be issued to finance qualified projects the limitation sec_54 provides that the limitation is to be allocated by the secretary of treasury in such manner as the secretary deems appropriate except that no more than dollar_figure of the limitation may be allocated to finance qualified projects of qualified borrowers which are governmental bodies section of notice_2005_98 2005_52_irb_1211 provides that the limitation will be allocated among qualified projects for which a share of such limitation has been requested beginning with the project s requesting the smallest share in dollar amount and continuing with the project s requesting the next-smallest share until the total limitation has been exhausted however in the event that dollar_figure has been allocated to qualified projects of qualified borrowers that are governmental bodies the remaining shares of the limitation will be allocated under the methodology described in the previous sentence only to qualified projects of qualified borrowers that are not governmental bodies for purposes of allocating the limitation among projects all qualified projects located at the same site and owned by the same qualified_borrower are treated as a single project and each project is treated as requesting a single allocation an allocation of shares of the limitation cannot be made with respect to the project owned by the borrower listed in appendix a because such borrower is a governmental presp-143400-06 body and dollar_figure has already been allocated to applications requesting a smaller share of the limitation to finance qualified projects owned by qualified borrowers that are governmental bodies we appreciate your submission of the application_for our consideration and encourage you to continue to pursue your plans for constructing a clean renewable energy project sincerely assistant chief_counsel exempt_organizations employment_tax government entities tax exempt government entities by timothy l jones senior counsel tax-exempt_bonds branch presp-143400-06 borrower name appendix a project type project location ------------------------------- wind facility -------------------- -------------------------------- -------------------------------- -------------------------------- amount requested dollar_figure-------------


internal_revenue_service number release date index numbers ---------------------------------- --------------------------- -------------------------------------- ------------------------------ department of the treasury washington dc third party communication none date of communication not applicable_person to contact -------------- id no ----------------- telephone number --------------------- refer reply to cc psi b01 plr-126059-17 date date legend x ---------------------------------------------------- -------------------------------- a d year state --------------------- ----------------------- ------ ---------- dear ------------- this is in response to a letter dated date and subsequent correspondence submitted on behalf of x requesting an extension of time under sec_301_9100-3 of the procedure and administration regulations to file an election under sec_301_7701-3 to be treated as a disregarded_entity for federal tax purposes facts according to the information submitted x was formed on d under the laws of state x intended to be treated as a disregarded_entity for federal tax purposes effective d however x inadvertently failed to timely file form_8832 entity classification election to be treated as a disregarded_entity for federal tax purposes in year a joined x plr-126059-17 x represents that it has always intended to treat x as a disregarded_entity and after year as a partnership and represents that it and its members have filed their returns consistently with x being treated as a disregarded_entity and after year as a partnership x represents that it acted reasonably and in good_faith and that the interests of the government will not be prejudiced by granting relief x further represents that no hindsight is involved in seeking the relief requested law and analysis sec_301_7701-3 provides that a business_entity that is not classified as a corporation under sec_301_7701-2 or an eligible_entity can elect its classification for federal tax purposes an eligible_entity with a single owner can elect to be classified as an association or to be disregarded as an entity separate from its owner an eligible_entity with at least two members can elect to be treated as either an association and thus a corporation under sec_301_7701-2 or a partnership under sec_301_9100-1 the commissioner may grant a reasonable extension of time to make a regulatory election or a statutory election but no more than six months except in the case of a taxpayer who is abroad under all subtitles of the internal_revenue_code except subtitles e g h and i section b defines the term regulatory election as including an election whose due_date is prescribed by a regulation published in the federal_register sec_301_9100-1 through provide the standards that the commissioner will use to determine whether to grant an extension of time to make an election sec_301_9100-1 sec_301_9100-2 provides automatic extensions of time for making certain elections sec_301_9100-3 provides rules for requesting extensions of time for regulatory elections that do not meet the requirements of sec_301_9100-2 requests for relief under sec_301_9100-3 will be granted when the taxpayer provides evidence to establish that the taxpayer acted reasonably and in good_faith and that granting relief will not prejudice the interests of the government conclusion based solely on the facts submitted and the representations made we conclude that the requirements of sec_301_9100-3 have been satisfied as a result x is granted an extension of time of days from the date of this letter to make an election to be treated as a disregarded_entity for federal tax purposes effective d x should make the election by filing a properly executed form_8832 with the appropriate service_center a copy of this letter should be attached to the form plr-126059-17 this ruling is contingent on x and its owners filing any required federal_income_tax and informational returns including amended returns consistent with the requested relief granted in this letter a copy of this letter should be attached to any such return except as expressly provided herein no opinion is expressed or implied concerning the tax consequences of any aspect of any transaction or item discussed or referenced in this letter this ruling is directed only to the taxpayer requesting it sec_6110 provides that it may not be used or cited as precedent in accordance with the power_of_attorney on file with this office a copy of this letter is being sent to your authorized representatives sincerely associate chief_counsel passthroughs special industries wendy l kribell by _____________________________ wendy l kribell assistant to the branch chief branch office of the associate chief_counsel passthroughs special industries enclosures copy of this letter copy for sec_6110 purposes


internal_revenue_service department of the treasury significant index number washington dc contact person telephone number in reference to t ep ra t1 date dmarck- lb00 attn legend employer a state b plan x dear this is in response to a ruling_request dated date concerning the pick up of certain employee contributions to plan x under sec_414 of the internal_revenue_code the following facts and representations have been submitted employer a a political_subdivision of state b sponsors plan x a governmental_plan under code sec_414 for the benefit of its employees plan x requires mandatory employee contributions and is qualified under code sec_401 plan x provides that when a participant terminates employment the participant may receive a refund of contributions previously made to plan x upon receipt of these refunded contributions the participant’s contributory service credits are forfeited former participant is subsequently rehired within two years such participant may elect to redeposit an amount equal to any contributions that have been previously been refunded if the plus interest in addition a member can purchase additional credited service if the participant was previously employed as a policeman or fireman was covered under another retirement_system transfers to the plan x employees’ savings fund the amount that he or she previously contributed to the other retirement_system and the interest credited thereon and is not entitled to a benefit under that other system under conditions specified in state b statutes plan x and policy as proposed to be revised proposed policy participants may elect to purchase additional service_credit for example a participant may purchase credit for time spent on leave for a period of up to five years of military service provided that the member is reemployed by employer a within one year of the termination of such military service and he or she repays to the employees’ savings fund any accumulated_contributions he or she previously withdrew plus interest thereon in addition participants may purchase additional service_credit if prior to date the participant had been a full-time temporary employee or in certain positions of employment that were excluded from plan x because they were less that full-time if the participant has made contributions to or been a non-contributory member of another public_retirement_system and is not receiving or eligible to receive a retirement benefit from another public_retirement_system for the same credited service and if the participant began employment prior to date and waived participation in plan x for the first six months of employment pursuant to the provisions of plan x then in effect statutes in state b also provide that a contributing member of a state retirement_system may elect to transfer service credits to plan x if the retirement boards for the plans agree to transfer and neither system incurs unfunded liabilities as a result of the transfer under the uniformed_services employment and reemployment_rights act of certain employees of employer a who are reemployed after a period of uniformed service may be entitled to credited service under plan x for the period of their absence under u s c employer a can require that any such individual pay to plan x an amount equal to the employee contributions that the individual would have had to make during the period of absence based on projected pay proposed policy dollar_figure further provides that if a member elects to purchase additional service_credit the member's decision to purchase the credited service and the decision to do so by payroll reduction is irrevocable payroll deduction will only be ended when all the required_payments have been made or the member either terminates employment or becomes totally and permanently disabled in addition if a member's compensation is reduced to an amount that is insufficient to provide for the agreed amount of payroll reduction the obligation to purchase the credited service continues and the plan x retirement board will adjust the amount of the payroll reduction the member must sign a payroll reduction authorization form for the credited service to be purchased based on the foregoing facts and representations you have requested the following rulings pursuant to code sec_414 amounts picked up by employer a under the provisions of plan x proposed policy dollar_figure and the employee’s agreement relating thereto even though designated as member contributions will be treated as employer contributions pursuant to code sec_414 and sec_402 amounts picked up by employer a under the provisions of plan x proposed policy dollar_figure and the empioyee’s agreement relating thereto are excluded from the gross_income of the employee at the time they are paid to plan x by employer a and will be included in gross_income in accordance with code sec_402 pursuant to code sec_3401 amounts picked up by employer a under the provisions of plan x proposed policy dollar_figure and the employee’s agreement relating thereto will not constitute wages for federal income taxwithholding purposes code sec_414 provides that contributions otherwise designated as employee contributions shall be treated as employer contributions if such contributions are made to a plan described in code sec_401 established by a state government or a political_subdivision thereof or any agency_or_instrumentality of any one of the foregoing and are picked up by the employing unit the federal_income_tax treatment to be accorded contributions which are picked up by the employer within the meaning of code sec_414 is specified in revrul_77_462 1977_2_cb_358 in that revenue_ruling the employer school district agreed to assume and pay the amounts employees were required by state law to contribute to a state pension_plan revrul_77_462 concluded that the school district's picked up contributions to the plan are excluded from the employees’ gross_income until such time as they are distributed to the employees the revenue_ruling held further that under the provisions of code sec_3401 the school district's contributions to the plan are excluded from wages for purposes of the collection of income_tax at source on wages therefore no withholding is required from the employees’ salaries with respect to such picked up contributions the issue of whether contributions have been picked up by an employer within the meaning of code sec_414 is addressed in revrul_81_35 1981_1_cb_255 and revrul_81_36 1981_1_cb_255 these revenue rulings established that the following two criteria must be met the employer must specify that the contributions although designated as employee contributions are being paid_by the employer in lieu of contributions by the employee and the employee must not be given the option of choosing to receive the contributed amounts directly instead of having them paid_by the employer to the pension_plan furthermore it is immaterial for p46 purposes of the applicability of code sec_414 whether an employer picks up contributions through a reduction in salary an offset against future salary increases or a combination of both in revrul_87_10 1987_1_cb_136 the internal_revenue_service considered whether contributions designated as employee contributions to a governmental_plan are excludable from the gross_income of the employee the service concluded that to satisfy the criteria set forth in revenue rulings and with respect to particular contributions the required specification of designated employee contributions must be completed before the period to which such contributions relate proposed policy dollar_figure provides the following that a member may purchase additional service_credit under plan x pursuant to a binding irrevocable payroll reduction agreement these contributions will be picked up by employer a although they are designated as employee contributions members will not have the option to receive the amounts under the agreement directly instead of having them contributed to plan x accordingly we conclude that the contributions picked up by employer a pursuant to proposed policy dollar_figure and the payroll reduction agreements satisfy the requirements of code sec_414 these amounts picked up by employer a for employees shall be treated as employer contributions and will not be includable in employees’ gross_income for the taxable_year in which such amounts are contributed because we have determined that the picked up amounts are to be treated as employer contributions they are excepted from wages as defined in code sec_3401 for federal_income_tax withholding purposes therefore no withholding of federal_income_tax is required from employees’ salaries with respect to such picked up amounts the effective date for the commencement of the proposed pick up as specified in proposed policy dollar_figure cannot be any earlier than the later of the date the proposed policy is signed or put into effect for purposes of the application of code sec_414 it is immaterial whether an employer picks up contributions through a reduction in salary an offset against future salary increases or a combination of both this ruling is based on the assumption that plan x will be qualified under code sec_401 at the time of the proposed contributions no opinion is expressed as to whether the amounts in question are subject_to tax under the federal_insurance_contributions_act no opinion is expressed as the whether the amounts in question are paid pursuant to a salary reduction agreement within the meaning of code sec_312 v b this ruling is directed only to the taxpayer who requested it code sec_6110 provides that it may not be used or cited by others as precedent a copy of this ruling has been sent to your authorized representative pursuant to a power_of_attorney on file in this office sincerely yours ohran aw tea john swieca manager employee_plans technical group tax_exempt_and_government_entities_division enclosures deleted copy of the ruling notice ce 2h


t c memo united_states tax_court shawn darren allen petitioner v commissioner of internal revenue respondent docket no 21632-15l filed date shawn darren allen pro_se deborah aloof for respondent memorandum opinion lauber judge in this collection_due_process cdp case petitioner seeks review pursuant to sec_6330 of the determination by the internal reve- 1all statutory references are to the internal_revenue_code in effect at all relevant times and all rule references are to the tax_court rules_of_practice and procedure we round all monetary amounts to the nearest dollar nue service irs or respondent to uphold a notice_of_intent_to_levy respondent has moved for summary_judgment under rule contending that there are no disputed issues of material fact and that his action in sustaining the proposed levy was proper as a matter of law we agree and accordingly will grant the motion background the following facts are based on the parties’ pleadings and motion papers including the attached affidavits and exhibits see rule b petitioner resided in maryland when he filed his petition during petitioner was self-employed as an investigator for law firms he filed a delinquent federal_income_tax return for but did not pay the tax shown as due on that return on date the irs assessed dollar_figure against petitioner for representing his unpaid tax_liability for that year plus additions to tax under sec_6651 for failure_to_file and timely pay and sec_6654 for failure to pay estimated_tax along with interest the irs had previously made assessments of unpaid tax_liabilities for through peti- tioner’s total outstanding tax_liabilities for through exceeded dollar_figure in an effort to collect petitioner’s unpaid liability for the irs on date issued him a letter final notice_of_intent_to_levy and notice of your right to a hearing petitioner timely submitted form request for a collection_due_process or equivalent_hearing he checked the following boxes on that form installment_agreement offer_in_compromise and i cannot pay balance adding that he was unable to pay because of his cur- rent financial situation he did not indicate any intention to dispute his under- lying income_tax_liability for in date a settlement officer so from the irs appeals_office in- formed petitioner that if he wished to have a face-to-face conference he had to submit complete copies of his tax returns for and the so fur- ther explained that if petitioner wished to be considered for a collection alterna- tive he had to furnish bank statements for the six-month period ending date business profit and loss statements for the same period and proof that he had made all required estimated_tax payments the so noted that while past-due estimated_tax payments may be included in an installment_agreement an offer- in-compromise can’t be accepted unless estimated_tax payments are paid in full 2although the notice_of_levy concerned only petitioner in his cdp hearing request indicated a desire to seek relief for tax years through and the installment_agreement ultimately proposed addressed his liabilities for all open years including through after securing several postponements petitioner attended a face-to-face cdp hearing on date at the hearing he submitted signed copies of his returns and copies of his bank statements the so explained to peti- tioner that he was not currently in compliance with his tax obligations because he had failed to make an estimated_tax payment for the first quarter of for that reason he would be ineligible for an offer-in-compromise but could still be consi- dered for an installment_agreement petitioner initially proposed an installment_agreement of dollar_figure per month after reviewing petitioner’s bank statements and business records the so determined that petitioner had estimated monthly income of dollar_figure and monthly living_expenses of dollar_figure yielding monthly disposable income of dollar_figure the so determined that petitioner thus qualified for an installment_agreement under which he would pay dollar_figure per month over the balance of the collections period because petitioner’s total outstanding tax_liabilities for through by then exceeded dollar_figure monthly payments of dollar_figure would not enable him to discharge those liabilities in full before the expiration of the collections period the so thus treated petitioner as having requested a partial-pay installment_agreement ppia after consulting the internal_revenue_manual irm the so concluded that petitioner under a ppia would not be eligible to have his past-due estimated_tax obligation for the first quarter of rolled into the monthly installments rather the so informed him that he would need to make an upfront payment of dollar_figure representing that past-due obligation as a precondition for en- tering into the ppia on date petitioner told the so that he would agree to an install- ment agreement of dollar_figure per month and would make the required upfront payment of dollar_figure the next day the so sent petitioner a form 433-d installment agree- ment setting forth these terms the so gave petitioner until june to make the upfront payment the so later extended that deadline to june on june petitioner advised the so that he could not make the dollar_figure payment the so re- plied that he would then close the case on date the irs issued a notice_of_determination upholding the proposed levy and petitioner timely petitioned this court in his petition he as- signed error to the so’s requirement that he pay dollar_figure toward his delinquent estimated_tax obligation in order to enter into the proposed ppia as well as to the so’s alleged failure to consider his current financial situation on octo- ber respondent moved for summary_judgment and petitioner timely ob- jected to that motion discussion i summary_judgment standard and standard of review the purpose of summary_judgment is to expedite litigation and avoid un- necessary and time-consuming trials fla peach corp v commissioner 90_tc_678 the court may grant summary_judgment when there is no genu- ine dispute as to any material fact and a decision may be rendered as a matter of law rule b 98_tc_518 aff’d 17_f3d_965 7th cir the burden of proving this rests on the moving party 100_tc_32 but where the moving party makes and properly supports a motion for summary_judgment an adverse_party may not rest upon the mere allegations or denials of such party’s pleading rule d instead he must set forth specific facts by affidavit or otherwise showing that there is a genuine dispute for trial ibid in objecting to respondent’s motion for summary_judgment petitioner as- serts that there is a genuine issue of material fact surrounding the so’s final_determination but petitioner does not point to any specific facts in dispute rath- er he contends that requiring him to pay his unpaid estimated_taxes as a condi- tion precedent to being allowed to enter into an installment_agreement was arbitrary and capricious in light of the nature of this objection we conclude that this case may be adjudicated summarily on the basis of the parties’ filings including supporting affidavits petitioner has not contested at any stage of this case his underlying tax lia- bility for or for any other year that being so we review the irs’ determi- nation for abuse_of_discretion only see 114_tc_176 abuse_of_discretion exists when a determination is arbitrary capricious or without sound basis in fact or law see 125_tc_301 aff’d 469_f3d_27 1st cir ii analysis in deciding whether the so abused his discretion in sustaining the proposed levy we consider whether he properly verified that the requirements of any applicable law or administrative procedure have been met considered any rele- vant issues petitioner raised and determined whether any proposed collection action balances the need for the efficient collection_of_taxes with the legitimate concern of petitioner that any collection action be no more intrusive than necessary see sec_6330 the so analyzed the transcript of petitioner’s account and verified that the liabilities in issue had been properly assessed and that all other requirements of applicable law and administrative procedure had been met the principal argument petitioner advances is that the so abused his discretion in determining that in order to be eligible for a ppia petitioner would first have to pay dollar_figure in estimated_tax payments for the first quarter of according to petitioner that decision violates the second and third prongs of the three-pronged test of sec_6330 in reviewing the so’s determination we do not make an independent evalu- ation of what would be an acceptable collection alternative see 140_tc_173 murphy t c pincite lipson v commissioner tcmemo_2012_252 104_tcm_3383 rather our review is limited to determining whether the so abused his discretion that is whether his decision to reject the taxpayer’s proposal was arbitrary capricious or without sound basis in fact or law see thompson t c pincite murphy t c pincite sec_6751 provides that n o penalty under this title shall be assessed unless the initial determination of such assessment receives written supervisory approval this provision does not apply to any addition_to_tax under sec_6651 sec_6654 or sec_6655 sec_6751 accordingly the so was not required to verify that the additions to tax assessed against petitioner under sec_6651 and sec_6654 had been approved by a supervisor sec_6159 authorizes the commissioner to enter into an installment_agreement if he determines that it will facilitate full or partial collection of a tax- payer’s unpaid liability see thompson t c pincite subject_to exceptions not relevant here the decision to accept or reject an installment_agreement lies within the commissioner’s discretion see sec_301_6159-1 c i proced admin regs see also rebuck v commissioner tcmemo_2016_3 kuretski v commissioner tcmemo_2012_262 aff’d 755_f3d_929 d c cir the type of agreement that petitioner proposed and that the so was willing to accept was a ppia the commissioner has created guidelines set out in the irm for settlement officers to follow in determining the terms of a ppia for a taxpayer who can pay some but not all of his outstanding tax_liability see thompson t c pincite in such situations a prerequisite for preparing a ppia for approval and processing is that the taxpayer be in compliance with filing withholding federal_tax_deposit and estimated_tax payment requirements irm pt date we have previously ruled that a settlement officer properly exercises his discretion by adhering to irm provisions governing acceptance of collection alter- natives see veneziano v commissioner tcmemo_2011_160 102_tcm_22 etkin v commissioner tcmemo_2005_245 t c m cch schulman v commissioner tcmemo_2002_129 83_tcm_1738 we have accordingly held that an appeals officer does not abuse his discretion in declining to enter into an installment_agreement where the taxpayer is unwilling or unable to comply with his on-going estimated_tax obligations see 129_tc_107 boulware v commissioner tcmemo_2014_80 107_tcm_1419 rejecting argument that a settlement officer abuses his discretion by requiring the taxpayer to be current with his estimated_tax payments before the settlement officer would accept his proposed installment_agreement aff’d 816_f3d_133 d c cir the taxpayer argued in boulware that the settlement officer would have acted within his discretion if he had agreed to roll the delinquent estimated_tax payment into the installment_agreement instead of requiring that it be paid up front we nevertheless concluded that although the settlement officer could accept an installment_agreement that included petitioner’s current estimated_tax liabilities she acted within her discretion in declining to do so boulware t c m cch pincite emphasis in original we reach the same conclusion here the so did not abuse his discretion when he insisted consistently with the irm that petitioner make an upfront payment of dollar_figure to discharge his estimated tax_liability for the first quarter of as a condition of executing the ppia petitioner also contends that he wasn’t afforded the opportunity to provide current financial information and that the so did not sufficiently explore changes to his financial condition but the burden of updating the so about changes in the taxpayer’s financial situation rests on the taxpayer see epitome sys inc v commissioner tcmemo_2015_108 109_tcm_1556 noting that it is incumbent on the taxpayer to provide relevant financial information to the settlement officer cavazos v commissioner tcmemo_2008_257 prater v commissioner tcmemo_2007_241 nothing in the record suggests that the so was unreceptive to communications from petitioner on this subject indeed the so regularly asked petitioner to supply relevant financial documentation and rea- dily accommodated all of his requests to extend deadlines and postpone meetings we find that petitioner had ample opportunity to furnish the so with any infor- 4petitioner focuses on the wording of the so’s date letter which stated that past-due estimated_tax payments may be included in an install- ment agreement but the letter by its terms did not promise this treatment after consulting the irm the so reasonably determined that an upfront payment of petitioner’s delinquent estimated_tax payment should be required because he was offering only a ppia petitioner states that when he proposed incorporating the dollar_figure amount into the installment_agreement the so got upset and stated that the rules don’t allow that as noted in the text the relevant irm provisions clearly afforded the so the discretion to insist that the dollar_figure be paid up front mation petitioner thought relevant and we decline to impose on settlement officers an affirmative obligation to ferret out how a taxpayer’s financial situation might have changed before formulating a collection alternative on the record before us we find that the so in upholding the proposed levy properly balanced the need for efficient collection_of_taxes with petitioner’s legiti- mate concern that the collection action be no more intrusive than necessary peti- tioner and the so reached agreement on a ppia and petitioner stated that he would make the dollar_figure upfront payment required by that agreement when petitioner did not carry through on this pledge the so acted reasonably in rejecting a collection alternative and closing the case finding no abuse_of_discretion in this or any other respect we will grant summary_judgment for respondent and sustain the pro- posed levy to reflect the foregoing an appropriate order and decision will be entered


significant index number department of the treasury internal_revenue_service washington d c tax exempt and senes heese sevens oct 290t tep ta aa re plan no ein plan 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 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 this extension applies to the eligible amortization charge bases established as of a copy of the list of amortization bases to be extended under this ruling with a total outstanding balance of following table is shown in the as of amort amount before remaining period date outstanding balance type of base established extension before ext the extension of the amortization periods of the unfunded liabilities of the plan has been 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 zuit5 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 in granting this ruling it is expected that the plan's assumptions and methods will be reviewed and updated as appropriate so that each prescribed assumption was applied in accordance with applicable law and regulations and each other assumption is reasonable taking into account the experience of the plan and reasonable expectations and such other assumptions in combination offer the best estimate of anticipated experience under the plan in addition we are not expressing any opinion as to the accuracy of any material submitted with your request in granting this ruling it is expected that i the plan's assumptions and methods will be reviewed and updated as appropriate so that each prescribed assumption is applied in accordance with applicable law and regulations ii each other assumption is reasonable taking into account the experience of the plan and reasonable expectations and such other assumptions in combination offer the best estimate of anticipated experience under the plan and iii the plan_sponsor obtained the appropriate approvals for any changes in assumptions or funding methods whether through an individual private_letter_ruling or by qualifying for automatic approvals available in the code treasury regulations or other generally applicable guidance furthermore we are not expressing any opinion as to the accuracy of any material submitted with your request your attention is called to sec_412 of the code and sec_302 of erisa which describe the consequences that would result in the event the plan is amended to increase benefits change the rate in the accrual_of_benefits or to change the rate of vesting while the amortization extension remains in place please note that any amendment that increases liabilities for a profit sharing plan or any other retirement plans whether qualified or unqualified maintained by the trustees of the plan and covering participants of the plan to which this ruling applies would be considered an amendment for purposes of sec_412 of the code and sec_302 of erisa we have sent a copy of this letter to the manager ep classification in baltimore maryland and to the manager ep compliance unit in chicago illinois 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 id at sincerely yours david m ziegler manager ep actuarial group cc