tax_exempt_and_government_entities_division release number release date uil code department of the treasury internal_revenue_service te_ge eo examinations commerce street dallas tx date taxpayer_identification_number person to contact employee identification_number employee telephone number phone fax certified mail - return receipt requested dear a final adverse determination_letter as this is to your exempt status under sec_501 of the internal_revenue_code your exemption from federal_income_tax under sec_501 of the code is hereby revoked effective january 20xx our adverse determination was made for the following reasons organizations described in sec_501 and exempt under sec_501 a must be both organized and operated exclusively for exempt purposes you have not demonstrated that you are operated exclusively for charitable educational or other exempt purposes within the meaning of sec_501 an organizations will not be so regarded if more than an insubstantial part of its activities is not in furtherance of an exempt_purpose you have not established that you have operated exclusively for an exempt_purpose contributions to your organization are no longer deductible under sec_170 of the internal_revenue_code you are required to file federal_income_tax returns on form_1120 if you have not already filed these returns and the agent has not provided you instructions for converting your previously filed form_990 to form_1120 you should file these income_tax returns with the appropriate service_center for the tax_year ending december 20xx and for all tax years thereafter in accordance with the instructions of the return processing of income_tax returns and assessments of any taxes due will not be delayed should a petition for declaratory_judgment be filed under sec_7428 of the internal_revenue_code if you decide to contest this determination you may file an action for declaratory_judgment under the provisions of sec_7428 of the code in one of the following three venues united_states tax_court the united_states court of federal claims or the united_states district_court for the district of columbia a petition or complaint in one of these three courts must be filed before the 91st day after the date this determination was mailed to you if you wish to seek review of our determination please contact the clerk of the respective court for rules and the appropriate forms regarding filing petitions for declaratory_judgment by referring to the enclosed publication please note that the united_states tax_court is the only one of these courts where a declaratory_judgment action can be pursued without the services of a lawyer you may write to the courts at the following addresses united_states tax_court second street nw washington dc us court of federal claims madison place nw washington dc u s district_court for the district of columbia constitution ave n w washington dc you also have the right to contact the office_of_the_taxpayer_advocate taxpayer_advocate assistance is not a substitute for established irs procedures such as the formal appeals process the taxpayer_advocate cannot reverse a legally correct_tax determination or extend the time fixed by law that you have to file a petition in a united_states court the taxpayer_advocate can however see that a tax matter that may not have been resolved through normal channels gets prompt and proper handling you may call toll-free and ask for taxpayer_advocate assistance if you prefer you may contact your local taxpayer_advocate at if you have any questions please contact the person whose name and telephone number are shown in the heading of this letter sincerely yours margaret von lienen director eo examinations enclosutes publication department of the treasury internal_revenue_service irs commerce street mc dal dallas tx date date taxpayer_identification_number form_990 tax_year s ended december 20xx-20xx person to contact id number contact numbers phone number fax number manager's name id number manager’s contact number phone number response due_date certified mail - return receipt requested dear why you are receiving this letter we propose to revoke your status as an organization described in sec_501 of the internal_revenue_code code enclosed is our report of examination explaining the proposed action what you need to do if you agree if you agree with our proposal please sign the enclosed form_6018 consent to proposed action - sec_7428 and return it to the contact person at the address listed above unless you have already provided us a signed form we'll issue a final revocation letter determining that you aren't an organization described in sec_501 after we issue the final revocation letter we’ll announce that your organization is no longer eligible for contributions deductible under sec_170 of the code if we don't hear from you if you don't respond to this proposal within calendar days from the date of this letter we'll issue a final revocation letter failing to respond to this proposal will adversely impact your legal standing to seek a declaratory_judgment because you failed to exhaust your administrative remedies effect of revocation status if you receive a final revocation letter you'll be required to file federal_income_tax returns for the tax_year s shown above as well as for subsequent tax years what you need to do if you disagree with the proposed revocation if you disagree with our proposed revocation you may request a meeting or telephone conference with the supervisor of the irs contact identified in the heading of this letter you also may file a protest with the letter rev catalog number 34809f ‘irs appeals_office by submitting a written request to the contact person at the address listed above within calendar days from the date of this letter the appeals_office is independent of the exempt_organizations division and resolves most disputes informally for your protest to be valid it must contain certain specific information including a statement of the facts the applicable law and arguments in support of your position for specific information needed for a valid protest please refer to page one of the enclosed publication how to appeal an irs decision on tax-exempt status and page six of the enclosed publication the examination process publication also includes information on your rights as a taxpayer and the irs collection process please note that fast track mediation referred to in publication generally doesn’t apply after we issue this letter you also may request that we refer this matter for technical_advice as explained in publication please contact the individual identified on the first page of this letter if you are considering requesting technical_advice if we issue a determination_letter to you based on a technical_advice_memorandum issued by the exempt_organizations rulings and agreements office no further irs administrative appeal will be available to you contacting the taxpayer_advocate office is a taxpayer right you have the right to contact the office_of_the_taxpayer_advocate their assistance isn’t a substitute for established irs procedures such as the formal appeals process the taxpayer_advocate can't reverse a legally correct_tax determination or extend the time you have fixed by law to file a petition in a united_states court they can however see that a tax matter that hasn't been resolved through normal channels gets prompt and proper handling you may call toll-free and ask for taxpayer_advocate assistance if you prefer you may contact your local taxpayer_advocate at internal_revenue_service office_of_the_taxpayer_advocate for additional information if you have any questions please call the contact person at the telephone number shown in the heading of this letter if you write please provide a telephone number and the most convenient time to call if we need to contact you thank you for your cooperation sincerely margaret von lienen director eo examinations enclosures report of examination form_6018 publication publication letter rev catalog number 34809f form_886 a department of the treasury - internal_revenue_service schedule no year period ended explanation of items december 20xx-20xx revocation of sec_501 tax-exemption issue whether the sec_501 tax exempt status of revoked because it is no longer operated exclusively for tax exempt purposes should be facts as a non-profit organization on march 19xx _ was incorporated under the laws of the state of was originally formed as an educational_organization focusing on drug and alcohol prevention their mission statement mentions developing other programs to address areas of need on 19xx an amendment to the articles indicated that the name of the organization was amended to include fa acquired a certificate of authority to do business in the state of in 19xx of authority to operate in _ states that the purpose which it proposes to pursue in conducting its affairs in are to develop gang and drug free living environments and to teach drug free and gang free living on 19xx the charter was amended to include the purpose of providing quality affordable gang-free drug-free housing living and educational environments and opportunities that same year year -_ purchased a unit apartment complex in property operated under the name of the units would be rented to low income tenants for a period of forty years acquired an apartment complex the next this as part of the acquisition application_for certificate guaranteed that percent from the except for the fact that it paid no income_tax operated in a way that was indistinguishable from a multi-unit housing complex that is operated as a for-profit business the unrelated management company included the proper percentage of qualifying low- income these tenants paid market rent either from their own pockets or with the assistance of rent subsidies received from government programs overseeing the complex took measures to ensure that the tenants the former cfo of apartment complex nor did the organization as operated by the former cfo offer any anti-drug programs on the premises the complex was able to generate approximately dollar_figure in rents and cash surpluses approaching dollar_figure did not employ any special measures to deter the use of illegal drugs by residents of the a year in addition the property valued at approximately in 19xx was used as collateral to obtain loans of and in 20xx and 20xx respectively in 20xx the former cfo purchased a truck racing team through at first the team was called the team but later operated as cash surpluses were used to provide operating funds to the race team and race team expenses were deducted as program service expenses on the form_990 the former cfo claimed that the team was used to publicize logos and publicity appearances by a former driver for the team at least dollar_figure operating funds was obtained by the refinancing of the complex thus significantly depleting anti-drug message however this effort was limited to of the cash used to provide team assets in 20xx the former cfo transferred dollar_figure called from the production company was to his personal account to finance the production of a film and the former cfo was the executive producer in 20xx the former cfo began a campaign for political office he claimed to have loaned his campaign dollar_figure but at least dollar_figure reported that it raise only dollar_figure of the funds were transferred froma _ bank account to his personal account his campaign in campaign contributions during that period form 886-a crev department of the treasury - internal_revenue_service page -1- born 886a year period ended department of the treasury - internal_revenue_service explanation of items schedule no december 20xx-20xx the former cfo was removed from office in 20xx the control of the organization was eventually turned over to the present director who transferred the main remaining asset organization a property located in the lienholder which had been used for the nascar team was seized by in approximately 20xx consequently since 20xx to an unrelated c has no remaining assets for the tax years december 20xx 20xx 20xx 20xx and 20xx the organization engaged in no exempt_activities and had no revenue the organization’s status as a non-profit in the state of exhibit has been suspended and has not been re-instated on october 20xx articles of dissolution were sent to the state of corporation the state of organization may be dissolved with the state the organization’s intension is to proceed with these actions requires that delinquent state_income_tax returns be filed and processed before the in an attempt to dissolve the law internal_revenue_code sec_501 provides for tax exemption to organizations operated exclusively sec_1_501_c_3_-1 provides that an organization will be regarded as for charitable purposes operated exclusively for one or more exempt purposes only if it engages primarily in activities which accomplish one or more of such exempt purposes specified in sec_501 an organization will not be so regarded if more than an insubstantial part of its activities is not in furtherance of an exempt_purpose sec_1_501_c_3_-1 provides that an organization is not organized or operated exclusively for one or more exempt purposes unless it serves a public rather than a private interest thus to meet the requirement of this subdivision it is necessary for an organization to establish that it is not organized or operated for the benefit of private interests such as the creator or his family shareholders of the organization or persons controlled directly or indirectly by such private interests effective date of revocation an organization may ordinarily rely on a favorable determination_letter received from the internal_revenue_service sec_1_501_a_-1 an organization may not rely on a favorable determination_letter however if the organization omitted or misstated a material fact in its application or in supporting documents in addition an organization may not rely on a favorable determination if there is a material_change inconsistent with exemption in the organization’s character purposes or methods of operation after the determination_letter is issued sec_601_201 revproc_2008_9 sec_12 the commissioner may revoke a favorable determination_letter for good cause sec_1_501_a_-1 revocation of a determination_letter may be retroactive if the organization omitted or misstated a material fact or operated in a manner materially different from that originally represented sec_601_201 revproc_2008_9 sec_12 government’s position as stated the organization _ performed limited activities for exempt_purpose prior to 20xx and since 20xx no activities for exempt purposes or otherwise have been performed form 886-a ev department of the treasury p by - internal_revenue_service page -2- schedule no form 886a department of the treasury - internal_revenue_service explanation of items year period ended december 20xx-20xx sec_501 requires that the exempt_organization be organized and operated exclusively for religious charitable etc purposes based on the forgoing analysis the government holds that _is no longer operating for exempt purposes taxpayer’s position the taxpayer has expressed an interest in terminating the organization and has attempted to do so with the state of administrative procedures have not allowed the termination to be finalized this report is being forwarded to the organization to allow them to agree to revoke their status as an exempt_organization for federal tax purposes conclusion the organization is no longer exempt under sec_501 effective 20xx effective for the tax_year ending december 20xx and all subsequent years until corporate dissolution the organization should file form_1120 corporate_income_tax returns for any year during which it meets form_1120 filing_requirements records show that for the tax_year 20xx 20xx and 20xx the organization has no income expenses or assets it is recommended that that exempt status of this organization be revoked as of january 20xx form 886-a rev department of the treasury - internal_revenue_service page -3-


internal_revenue_service number info release date index number date kekekkeeekrkekreeeereer krekekeekekekekreereereeerrerereerereerer kekkkeeekrekreeerereeerererereee krekkkeekre kekkkeeekeekreekeereeere dear mr kkkekeke this letter responds to your inquiry dated date concerning the filing_requirements of organizations that claim exempt status your inquiry concerns an organization that claims exemption under sec_501 c of the internal_revenue_code the code but has not filed a form_1024 the organization filed a form_990 information_return the internal_revenue_service irs responded by requesting the organization confirm its exempt status file the form_1024 or file a form_1120 or form_1041 as appropriate you question the irs’s response an organization that believes it is described in sec_501 of the code but has not sought recognition of exemption from the irs must file the form_990 annually as provided under sec_6033 however neither sec_6033 of the code nor the implementing regulations requires the irs to accept such filing currently the irs does not accept returns filed by organizations that have not filed the form_1024 or the form_1023 in the case of organizations claiming they are charitable organizations any questions on this matter may be directed to identification_number niaeiiaiaaa at arrrrr ea sincerely joseph j urban acting chief projects branch exempt_organizations


internal_revenue_service number release date index number -------------------- --------------------- --------------------------------- ------------ --------------------------- department of the treasury washington dc third party communication date of communication month dd yyyy person to contact ---------------------- id no ----------- telephone number -------------------- refer reply to cc psi b06 plr-109849-15 date june legend taxpayer company a company b company c company d company e company f company g company h company i business a utility a utility b licensor state a state b state c state d state e state f plant a plant b date date date date --------------------- ---------------------- ---------------------------------- ------------------------------------ ---------------------------- ----------------------------- --------------- -------------------------- ---------------------------- ------------------------------ ------------------- -------------------------------------------------- --------------------------------- ------------------------------ ---------------------- ------------ --------- ------------- --------- ------------ ------------ --------------------------------------- -------------------------- ------ ------------------- ------------ -------------------- ---------------------- ------------------------ ------------------------ --------------------------- -------------------- ---------------------- ------------------------------------------------------------------------------------------ --------- ------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------ -------------- ------ ------ ------ ------ ------------------ -------------------------- plr-109849-15 date date date date additive additive center test rep a b c d source region a source region b dear --------------- this is in response to your request for rulings dated date and amended dated date submitted by your authorized representative concerning the federal_income_tax consequences of the transaction described below background taxpayer a state a limited_liability_company is a fiscal_year taxpayer and employs the accrual_method of accounting for both book and tax purposes the members of taxpayer are company a a state a limited_liability_company and company b a state b limited_liability_company company b is wholly owned by company c a state c limited_liability_company which in turn is wholly owned by company d a publicly traded state a corporation that is the holding_company for a diverse group of subsidiaries engaged in business a company a is wholly owned by company e a state a limited_liability_company that is classified as a partnership for united_states federal tax purposes taxpayer owns a facility for the production of refined_coal that was first placed_in_service by company e at a site adjacent to plant a in state d on or about date and produced and sold refined_coal with the expectation that it would be burned to produce steam because utility a the owner of plant a decided to shut down plant a company e did not continue producing refined_coal in the facility at that location after date and contracted with company f to dismantle the facility and temporarily place it into storage plr-109849-15 subsequently in date company e contributed the facility to company a which in turn contributed the facility to the taxpayer immediately following that contribution company a owned all of the interests in the taxpayer such that the taxpayer was disregarded as a separate_entity from company a for u s federal tax purposes on date the taxpayer entered into contracts with utility b to locate the facility on a site adjacent to plant b in state c and to sell refined_coal produced in the facility to utility b thereafter in date taxpayer contracted with company g to relocate and reassemble the facility at the site adjacent to plant b in connection with the relocation of the facility to state c all essential components of the facility were relocated and retained the facility resumed production of refined_coal at the state c location on date on date company b acquired all of the class b membership interests in taxpayer from company a in a transaction treated as a taxable sale_or_exchange of a proportionate share of all of the taxpayer’s assets followed by a contribution of such assets to a newly formed partnership pursuant to sec_721 and revrul_99_5 1999_1_cb_434 the limited_liability agreement of the taxpayer sets forth the members’ agreement regarding the respective rights and obligations of the members in the taxpayer the management and related decision-making of the taxpayer and certain related matters company i a state a limited_liability_company and affiliate of company e is the non-member manager of the taxpayer pursuant to its agreements with utility b the taxpayer purchases coal feedstock from utility b the coal supply agreement does not prohibit the taxpayer from purchasing coal feedstock from third parties the feedstock coal purchased by the taxpayer typically is coal that utility b itself purchased from third party vendors consistent with its coal specifications the taxpayer uses the process as described below to produce refined_coal that it sells to utility b pursuant to a refined_coal sales agreement the taxpayer at any given time produces refined_coal from one or more coal source regions or ranks presently expected to be bituminous coal obtained from various mines in coal source region a and subbituminous coal obtained from various mines in coal source region b however it is possible that in the future the taxpayer will obtain feedstock coal from other coal source regions or ranks which may be sourced from other mines the refined_coal is sold to utility b which then feeds it to the boilers at plant b currently utility b expects to burn a blend of refined_coal at power plant b consisting of approximately a from source region a and approximately b from source region b but it is possible that for some short term operations the blend ratios could vary from c source region a and d source region b up to b source region a and a source region b all of the refined_coal produced in the facility is expected to be used as a fuel at plant b to produce steam for the generation of electricity however any refined_coal not purchased by utility b can be sold to one or more third parties plr-109849-15 the taxpayer has no employees rather it entered into an operations and maintenance agreement with company g a state a limited_liability_company and affiliate of company a pursuant to that agreement company g will operate repair and maintain the facility in accordance with an agreed operating plan will make arrangements to coordinate delivery of spare parts and supplies will coordinate deliveries of coal feedstock purchases and sales of refined_coal and will perform certain administrative functions in support thereof description of the process the process at issue for production of refined_coal currently employed at the facility involves the mixing of proprietary chemicals additives with feedstock coal prior to combustion the process the patent for the process is licensed by licensor to taxpayer licensor is entitled to certain per ton royalties based on production for_the_use_of its technology test results have shown that when mixed with coal the proprietary additives result in reduced nox so2 and mercury emissions during combustion different chemicals are targeted at specific pollutants based on the characteristics of the feedstock coal burned at plant b taxpayer has chosen a combination of additives that target the reduction of nox and mercury in the case of nox taxpayer understands that additive is believed to cause a portion of the nox to adhere to or react with the additive so that it can be captured and is not emitted in the case of mercury taxpayer understands that additive is believed to react with the elemental mercury in the feedstock coal so that it is converted into a chemical species of mercury mercury oxide that can be effectively captured by particulate control devices emissions reduction testing for purposes of determining emissions reductions under sec_45 taxpayer will arrange for pilot-scale combustion testing and laboratory analysis for redetermination purposes and will not rely on any continuous emissions monitoring system or other field testing taxpayer engaged the research center of a prominent university the center to conduct tests on behalf of the taxpayer at its circulating fluidized-bed combustor cfbc to determine the emission reductions associated with burning the refined_coal compared to the feedstock coal the center report described below states the cfbc has been extensively used to investigate sox nox and mercury emissions and potential bed material agglomeration the cfbc is capable of producing gas and particulate samples that are representative of those produced in industrial- and full-scale circulating fluidized-bed cfb boilers the cfbc is capable of producing gas and particulate samples that are representative of those produced in industrial and full-scale cfb boilers a baghouse is used for particulate control for purposes of qualifying the refined_coal produced at the facility plr-109849-15 center conducted pilot-scale combustion tests at its cfbc on date on feedstock coals of the type typically burned at plant b test rep explains that combustion gas analysis is provided by continuous emissions monitors at two locations the baghouse outlet and the convective pass outlet in addition a continuous mercury monitor was installed at the outlet of the baghouse during each test center conducted a series of tests on the feedstocks and refined coals measuring the emissions with these devices at the completion of each feedstock and refined_coal test period fuel and fly ash samples were collected and submitted for analysis test rep states that for each of the coals tested application of the additives at rates specified in the report achieved the required reductions in both nox and total mercury emissions both determined on a lb btu basis to satisfy the requirements of at least nox reduction and at least mercury reduction further test rep also states that when applying the highest required additive rate any one of or blend of coal from the two coal source regions tested would be expected to achieve the required emissions reduction when used to produce refined_coal at full scale tested coal plant b currently burns coal obtained from various mines located in state c state e and state f the taxpayer produces refined_coal using this coal and sells that refined_coal to plant b which burns it to generate electricity from steam the rank of the coal from source region a is classified by the american society of testing materials astm as high volatile bituminous coal which is expected to have a gross calorific value of big_number to big_number btu lb and the rank of the coal from source region b is classified by astm as subbituminous coal which is expected to have a gross calorific value of big_number to big_number btu lb on date taxpayer requested that center test each of the coals that it expects to use to produce refined_coal that will be sold for consumption in plant b the report issued by center with respect to these tests states that the emission reduction requirements outlined in sec_45 for nox and mercury were satisfied when comparing the results of burning the endpoint fuels to the results of burning the feedstock coals further test rep concludes that any one of or blend of coal from the two coal source regions tested would be expected to satisfy the requirements of at least a percent nitrogen oxide reduction and at least a percent mercury reduction using the highest additive levels described in the report the taxpayer currently expects to continue to operate with feedstock coals from the same source regions and of the same rank as those discussed in test rep samples will be taken for redetermination testing within six months after the last emissions test satisfying the qualified_emission_reduction requirement to redetermine the approved application rates defined below thereafter within six months after plr-109849-15 such date another set of samples will be taken for redetermination testing in each case samples will be collected and prepared in accordance with sampling and testing procedures set forth in the taxpayer’s operating protocols although testing and preliminary reporting is done timely occasionally the center is not able to issue the final report until after the six-month period for purposes of this ruling letter the term tested coal refers to the most recently tested samples tested by center with respect to which center has advised the taxpayer of the application rates for the liquid and powder additives that achieved at least a percent reduction in mercury emissions and at least a percent reduction in nitrogen oxide emissions the approved application rates although the taxpayer does not currently anticipate making changes to its coal feedstock or additive levels or using other coal sources or ranks additional testing will be conducted prior to acquiring coal feedstock from a different coal source region or of a different rank than reflected in the tested coal used in the then applicable test report if the tested coal is a blend of coal the approved application rates will be such that the center considers any one of or blend of coal from the coal source regions in the tested coal would be expected to satisfy the qualified emissions reduction test requirements in the case of a change in the additive levels tests will also be run at the new minimum levels of additive as the qualified expert advises is necessary to conclude that a qualified emissions reduction will be expected for the new levels of additive rulings requested based on the foregoing you have requested that we rule as follows the refined_coal produced by using the process constitutes refined_coal within the meaning of sec_45 of the code provided that such refined_coal is produced from feedstock coal that is the same source or rank as the tested coal and provided further that the refined_coal satisfies the qualified_emission_reduction test stated in sec_45 of the code provided that the feedstock coals used to produce refined_coal during any determination or redetermination period are from one of the coal source regions represented in the tested coal or any blend thereof and of the same rank as such tested coal all such feedstock coal shall be treated as feedstock coal of the same source and rank for purposes of section dollar_figure of notice_2010_54 regardless of the mines from which such feedstock coal is purchased testing by center for qualified emissions reduction as set forth in its test reports including interim reports satisfies the requirements of notice_2010_54 the taxpayer may rely on the pilot scale testing conducted at center or a similar pilot-scale combustion testing facility under notice_2010_54 and subsequent permitted laboratory testing as required for a redetermination described in section a or b of notice to satisfy the qualified_emission_reduction test of sec_45 of the code plr-109849-15 pursuant to section b of notice_2010_54 the taxpayer may satisfy the redetermination requirement of section dollar_figure of notice_2010_54 by laboratory analysis establishing that the sulfur and mercury content of both the feedstock coal and the refined_coal on average do not vary by more than ten percent below the bottom of nor more than ten percent above the top of the range of sulfur content and the range of mercury content of the feedstock coal and the refined_coal used in the most recent determination that meets the requirements of section dollar_figure of notice_2010_54 the taxpayer may rely upon the results set forth by the center in a redetermination test report for production after the date of the testing even if the report is not received until after the six month period specified in section i of notice_2010_54 the transfers of the facility by company e to company a and then by company a to the taxpayer subsequent to its placed-in-service date will not affect the placed-in-service date of the facility for purposes of sec_45 provided the facility was placed_in_service prior to date within the meaning of sec_45 relocation of the facility to a different location after date will not result in a new placed-in-service date for the facility for purposes of sec_45 provided the fair_market_value of the used_property is more than twenty percent of the facility’s total value the cost of the new property plus the value of the used_property at the time of relocation or replacement law and rationale sec_45 of the code generally provides a credit against federal_income_tax for_the_use_of renewable or alternative resources to produce electricity or fuel for the generation of steam sec_45 of the code provides that in the case of a producer of refined_coal the credit available under sec_45 of the code for any taxable_year shall be increased by an amount equal to dollar_figure5 per ton of qualified refined_coal i produced_by_the_taxpayer at a refined_coal_production_facility during the 10-year period beginning on the date that the facility was originally placed_in_service and which is ii sold by the taxpayer to an unrelated_person during such 10-year period and such taxable_year for purposes of sec_45 of the code section dollar_figure of notice_2010_54 provides that the term refined_coal means a fuel which - i is a liquid gaseous or solid fuel including feedstock coal mixed with an additive or additives produced from coal including lignite or high carbon fly ash including such fuel used as a feedstock ii is sold by the taxpayer with the reasonable expectation that it will be used for the purpose of producing steam and iii is certified by the taxpayer as resulting when used in the production of steam in a qualified_emission_reduction section dollar_figure of the notice provides that the term qualified_emission_reduction means in the case of refined_coal produced at a facility placed_in_service after date a reduction of at least plr-109849-15 twenty percent of the emissions of nitrogen oxide and at least forty percent of the emissions of either sulfur dioxide or mercury released when burning the refined_coal excluding any dilution caused by materials combined or added during the production process as compared to the emissions released when burning the feedstock coal or comparable coal predominantly available in the marketplace as of date sec_45 of the code generally provides that the term refined_coal_production_facility means a facility which is placed_in_service after date and before date section dollar_figure of notice_2010_54 generally provides that a qualified emissions reduction does not include any reduction attributable to mining processes or processes that would be treated as mining as defined in sec_613 a c or i if performed by the mine owner or operator accordingly in determining whether a qualified_emission_reduction has been achieved the emissions released when burning the refined_coal must be compared to the emissions that would be released when burning the feedstock coal feedstock coal is the product resulting from processes that are treated as mining and are actually applied by a taxpayer in any part of the taxpayer’s process of producing refined_coal from coal sec_613 of the code describes treatment processes that are not considered as mining unless they are provided for in sec_613 or are necessary or incidental to a process provided for in sec_613 any cleaning process such as a process that uses ash separation dewatering scrubbing through a centrifugal pump spiral concentration gravity concentration flotation application of liquid hydrocarbons or alcohol to the surface of the fuel particles or to the feed slurry provided such cleaning does not change the physical or chemical structure of the coal and drying to remove free water provided such drying does not change the physical or chemical identity of the coal will be considered as mining section of the notice provides in part that emissions reduction may be determined using continuous emission monitoring system cems field testing section a provides in part that cems field testing is testing that meets all the following requirements i the boiler used to conduct the test is coal-fired and steam-producing and is of a size and type commonly used in commercial operations ii emissions are measured using a cems iii if epa has promulgated a performance standard that applies at the time of the test to the pollutant emission being measured the cems must conform to that standard iv emissions for both the feedstock coal and the refined_coal are measured at the same operating conditions and over a period of at least hours during which the boiler is operating at a steady state at least percent of full load and v a qualified_individual verifies the test results in a manner that satisfies the requirement of section b plr-109849-15 section of the notice provides that methods other than cems field testing may be used to determine the emission reduction the permissible methods include a testing using a demonstration pilot-scale combustion furnace if it establishes that the method accurately measures the emission reduction that would be achieved in a boiler described in section a i and a qualified_individual verifies the test results in a manner that satisfies the requirements of section c i ii v and vi of the notice and b a laboratory analysis of the feedstock coal and the refined_coal that complies with a currently applicable epa or astm standard and is permitted under section b i or ii section of the notice provides that a taxpayer may establish that a qualified_emission_reduction determined under section dollar_figure applies to production from a facility by a determination or redetermination that is valid at the time the production occurs a determination or redetermination is valid for the period beginning on the date of the determination or redetermination and ending with the occurrence of the earliest of the following events i the lapse of six months from the date of such determination or redetermination ii a change in the source or rank of the feedstock coal that occurs after the date of such determination or redetermination or iii a change in the process of producing refined_coal from the feedstock coal that occurs after the date of such determination or redetermination section of the notice provides that in the case of a redetermination required because of a change in the process of producing refined_coal from the feedstock coal the redetermination required under section dollar_figure must use a method that meets the requirements of section in any other case the redetermination requirement may be satisfied by laboratory analysis establishing that - a the sulfur s or mercury content of the amount of refined_coal necessary to produce an amount of useful energy has been reduced by at least percent percent in the case of facilities placed_in_service after date in comparison to the s or mercury content of the amount of feedstock coal necessary to produce the same amount of useful energy excluding any dilution caused by materials combined or added during the production process b the s or mercury content of both the feedstock coal and the refined_coal do not vary by more than percent from the s and mercury content of the feedstock coal and refined_coal used in the most recent determination that meets the requirements of the notice section dollar_figure of the notice provides that the certification requirement of sec_3 c of the notice is satisfied with respect to fuel for which the refined_coal credit is claimed only if the taxpayer attaches to its tax_return on which the credit is claimed a certification that contains the following a statement that the fuel will result in a qualified emissions reduction when used in the production of steam a statement indicating whether cems field testing was used to determine the emissions reduction if cems field testing was not used to determine the emissions reduction a description of the method used a statement that the emissions reduction was determined or redetermined within the six months preceding the production of the fuel plr-109849-15 and that there have been no changes in the source or rank of the feedstock coal used in the process of producing refined_coal from feedstock coal since the emissions reduction was most recently determined or redetermined and a declaration signed by the taxpayer in the following form under penalties of perjury i declare that i have examined this certification and to the best of my knowledge and belief it is true correct and complete finally sec_45 of the code provides that a refined_coal_production_facility must be placed_in_service within certain timeframes for purposes of the refined_coal credit allowable with respect to refined_coal other than steel_industry_fuel the facility must be placed_in_service after date and before date section dollar_figure of notice_2010_54 provides that the year in which property is placed_in_service is determined under the principles of sec_1_46-3 of the regulations ie when the property is placed in a condition or state of readiness and availability for a specifically assigned function section dollar_figure of notice_2010_54 provides that a refined_coal_production_facility will not be treated a placed_in_service after date if more than percent of the facility’s total value the cost of the new property plus the value of the used_property is attributable to property placed_in_service on or before date notice_2010_54 also states that the irs will not issue private letter rulings relating to when a refined_coal_production_facility has been placed_in_service with respect to the first issue the process starts with several chemical additives being added to the feedstock coal prior to its combustion in a furnace the additives provide the chemical structure that results in the reduction of emissions of nitrogen oxide and mercury during combustion section dollar_figure of the notice provides generally that a qualified emissions reduction does not include any reduction attributable to mining processes or processes that would be treated as mining if performed by the mine owner or operator in the instant case the process is not a mining process further section dollar_figure of the notice clarifies sec_45 of the code and specifically provides that refined_coal includes feedstock coal mixed with additives thus additive processes that mix certain chemicals or other additives with the coal in order to achieve emissions reductions may qualify for the refined_coal production_tax_credit additionally section dollar_figure defines comparable coal as coal that is of the same rank as the feedstock coal and that has an emissions profile comparable to the emissions profile of the feedstock coal accordingly we conclude that the coal produced by using the process constitutes a refined_coal within the meaning of sec_45 of the code provided that the refined_coal i is produced_by_the_taxpayer from feedstock coal that is the same source or rank as the tested coal and ii satisfies the qualified_emission_reduction test stated in sec_45 of the code with respect to the second issue the emissions profile of the refined_coal product is compared to the emissions profile of either the feedstock coal or a comparable coal predominantly available in the marketplace as of date section dollar_figure of the notice provides that a comparable coal is defined as coal that is of the same rank as the feedstock coal and that has an emissions profile comparable to the emissions profile plr-109849-15 of the feedstock coal section dollar_figure of provides that a determination or redetermination of a qualified emissions reduction is valid until the occurrence of the earliest of the following events i the lapse of six months from the date of such determination or redetermination ii a change in the source or rank of the feedstock coal that occurs after the date of such determination or redetermination or iii a change in the process of producing refined_coal from the feedstock coal that occurs after the date of such determination or redetermination accordingly we conclude that provided that the feedstock coals used to produce refined_coal during any determination or redetermination period are from the one of the coal source regions represented in the tested coal or any blend thereof and of the same rank as the tested coal all such feedstock coal shall be treated as feedstock coal of the same source and rank for purposes of section dollar_figure of notice_2010_54 regardless of the mines from which such feedstock coal is purchased with respect to the third issue section of the notice provides that any permissible testing method provided for in the notice can be used in emission testing for any pollutant that is a taxpayer can use different testing methods for each of nitrogen oxide sulfur dioxide or mercury provided the method used for any pollutant is a permissible method section provides that an emission test establishing a qualified_emission_reduction qualifies the refined_coal for a six-month period provided there is no change in the process for producing the refined_coal or in the source or rank of the feedstock coal therefore a taxpayer must redetermine the emission reductions to qualify for the succeeding six-month period using one or more approved methods in the instant case the taxpayer will arrange for pilot-scale combustion testing and will not rely on any continuous emissions monitoring system or other field testing which is permitted under section dollar_figure of the notice specifically the taxpayer will arrange with the center to conduct testing including redetermination testing at its cfbc to determine the emissions reductions associated with burning the refined_coal product compared to the feedstock for purposes of qualifying the refined_coal produced at the facilities the center has conducted pilot-scale combustion tests at its cfbc as documented in the test rep in conducting such tests the center conducted tests on the feedstock from each coal source regions and then mixed separate samples of each feedstock with the additives so that it could conduct tests on the refined_coal product in its report the center reported that the test results indicated that the blend of coal and additives achieved the required emissions reductions in addition test rep concluded that that any blend of coal from the two coal source regions included in the tested coal would be expected to achieve the required emissions reduction when used to produce refined_coal at full scale using the highest additive levels tested based on the foregoing we conclude that testing by the center for qualified emissions reductions as set forth in its test reports including interim reports satisfies the requirements of notice_2010_54 qualified emissions reduction through testing by the center at its combustion research facility or similar pilot-scale combustion testing facilities under notice_2010_54 may be relied upon plr-109849-15 with respect to the fourth issue section of notice_2010_54 provides in part that in the case of a redetermination required because of a change in the process of producing refined_coal from the feedstock coal the redetermination required under section dollar_figure must use a method that meets the requirements of section in any other case the redetermination requirement may be satisfied by laboratory analysis establishing that the sulfur and mercury content of both the feedstock coal and the refined_coal do not vary by more than percent from the sulfur and mercury content of the feedstock coal and refined_coal used in the most recent redetermination that meets the requirements of the notice accordingly we conclude that taxpayer may satisfy the redetermination requirement of section dollar_figure of notice_2010_54 by laboratory analysis establishing that the sulfur and mercury content of both the feedstock coal and the refined_coal on average do not vary by more than ten percent below the bottom of nor more than ten percent above the top of the range of sulfur content and the range of mercury content of the feedstock coal and the refined_coal used in the most recent determination that meets the requirements of section dollar_figure of notice_2010_54 with respect to the fifth issue it is intended that the taxpayer will engage in redetermination testing every six months or more frequently if required pursuant to notice_2010_54 however the center is not always able to issue the written report required by section a of notice_2010_54 within the six month period thus although redetermination testing is completed within the six month period the report may be received after the six month period nevertheless the delay by the center in issuing its report cannot be indefinite accordingly we conclude that the results set forth by the center in a redetermination test report may be relied upon for production after the date of testing even if the report is not received until after the six-month period specified in section i of notice_2010_54 so long as the taxpayer receives the written report within days from the date of testing however the redetermination of qualified emissions reduction must occur during the earliest of the events described in section dollar_figure of notice_2010_54 with respect to the sixth issue the placed-in-service language in sec_45 focuses on the facility and does not by its terms require the facility to have been placed_in_service by the taxpayer claiming the credit accordingly we conclude that the transfers of the facility by company e to company a and then by company a to the taxpayer subsequent to its placed-in-service date will not affect the placed-in-service date of the facility for purposes of sec_45 with respect to the seventh issue the facility was relocated from state d to state c and in connection with that relocation it has been represented that all essential components of the facility were relocated and retained in the event of relocation of the facility there should be no change in the placed-in-service date of the facility as long as the test described in section dollar_figure of notice_2010_54 has been met based on the foregoing we conclude that provided the facility was placed_in_service prior to date within the meaning of sec_45 relocation of the facility to a different location after date will not result in a new placed_in_service_date for the facility for plr-109849-15 purposes of sec_45 provided the fair_market_value of the used_property is more than twenty percent of the facility’s total value the cost of the new property plus the value of the used_property at the time of relocation or replacement this ruling expresses no opinion regarding any issue not specifically addressed in this ruling letter including whether any person has sold refined_coal to an unrelated_person or when the facility was placed_in_service in particular we express or imply no opinion that the taxpayer has sufficient risk or rewards of the production activity to qualify as the producer of the refined_coal the service may challenge an attempt to transfer the credit to a taxpayer who does not qualify as a producer including transfers structured as partnerships sales or leases that do not also transfer sufficient risks and rewards of the production activity in accordance with the power_of_attorney on file with this office we are sending a copy of this letter to your authorized representatives a copy of this ruling must be attached to any income_tax return to which it is relevant alternatively taxpayers filing their returns electronically may satisfy this requirement by attaching a statement to their return that provides the date and control number of the letter_ruling this ruling is directed only to the taxpayer who requested it sec_6110 k of the code provides that it may not be used or cited as precedent we are sending a copy of this letter_ruling to the industry director sincerely peter c friedman senior technician reviewer branch office of associate chief_counsel passthroughs special industries


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 b06 plr-132739-11 date date legend parent taxpayer date state a date year date year year ------------------------------------ ------------------------ ------------------------------------ ------------------------ -------------------------- ------------- ----------------------- ------- ----------------------- ------- ------- dear --------------- this ruling responds to a letter submitted by parent’s authorized representatives on behalf of taxpayer requesting an extension of time under sec_301_9100-1 and sec_301_9100-3 of the procedure and administration regulations to file form sec_970 application to use lifo inventory_method for the taxable_year ended date plr-132739-11 facts parent is the parent_corporation of an affiliated_group of entities that files consolidated federal_income_tax returns on the basis of a week ending on the saturday closest to december included in these returns is taxpayer taxpayer is a corporation organized under the laws of state a on date in year parent acquired taxpayer in a stock acquisition and taxpayer became a wholly-owned subsidiary of parent as a result of the acquisition taxpayer became a member of the parent consolidated_group the year form_1120 u s_corporation income_tax return filed for the parent consolidated_group included taxpayer for the period date through date in year parent and taxpayer merged in a statutory merger with parent as the surviving corporation taxpayer represents that the provisions of sec_381 applied to the merger prior to its acquisition by parent taxpayer valued its inventories using the first-in first- out fifo method after the acquisition taxpayer began using the last-in_first-out lifo_method for its tax and financial statement purposes upon filing the year consolidated_return however parent did not attach form_970 on behalf of taxpayer to allow taxpayer to elect to use the lifo inventory_method taxpayer has continued to impermissibly use the lifo inventory_method for tax and financial purposes in year while auditing parent’s financial statements an accounting firm inquired about the parent consolidated group’s treatment of inventories parent’s tax department determined that taxpayer’s inventory was improperly being reported on the lifo_method for tax purposes because parent had failed to timely file form_970 for the year taxable_year on behalf of taxpayer taxpayer represents that the lifo conformity requirement of sec_1_472-2 of the income_tax regulations is satisfied as taxpayer’s inventory has continually been valued using the lifo inventory_method for financial reporting purposes since taxpayer began using lifo for tax purposes for the year ended date law and analysis sec_472 of the internal_revenue_code provides that a taxpayer may use the lifo_method in inventorying goods specified in an application to use such method filed at such time and in such manner as the secretary may prescribe sec_1_472-3 provides that the lifo inventory_method may be adopted and used only if the taxpayer files with its income_tax return for the taxable_year as of the close of which the method is first to be used a statement of its election to use such inventory_method the statement shall be made on form_970 plr-132739-11 under sec_301_9100-1 the commissioner has discretion to grant a reasonable extension of the time to make a regulatory election under all subtitles of the code except subtitles e g h and i provided that the taxpayer acted reasonably and in good_faith and granting relief will not prejudice the interests of the government 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 also defines an election to include an application_for relief in respect to tax or a request to adopt change or retain an accounting_method or accounting_period sec_301_9100-2 sets forth rules governing automatic extensions for regulatory elections if the provisions of sec_301_9100-2 do not apply to a taxpayer’s situation the provisions of sec_301_9100-3 may apply sec_301_9100-3 sets forth the standards that the commissioner will use in determining whether to grant an extension of time to make a regulatory election that does not meet the standards of sec_301_9100-2 it also sets forth information and representations that the taxpayer must furnish to enable the internal_revenue_service to determine whether the taxpayer has satisfied these standards the applicable standards are whether the taxpayer acted reasonably and in good_faith and whether granting relief would prejudice the interests of the government under sec_301_9100-3 a taxpayer that applies for relief for failure to make an election before the failure is discovered by the service ordinarily will be deemed to have acted reasonably and in good_faith however the taxpayer will not be considered to have acted reasonably and in good_faith if the taxpayer seeks to alter a return position for which an accuracy-related_penalty has been or could be imposed under sec_6662 at the time the taxpayer requests relief and the new position requires or permits a regulatory election for which relief is requested additionally if the taxpayer was informed in all material respects of the required election and related tax consequences but chose not to file the election or uses hindsight in requesting relief the taxpayer ordinarily will not be considered to have acted reasonably and in good_faith sec_301_9100-3 sec_301_9100-3 provides that the interests of the government are prejudiced if granting relief would result in a taxpayer having a lower tax_liability in the aggregate for all taxable years affected by the regulatory election than the taxpayer would have had if the election had been timely made taking into account the time_value_of_money likewise when the tax consequences of more than one taxpayer are affected by the election the government’s interests are prejudiced if extending the time for making an election may result in the affected taxpayers in the aggregate having a lower tax_liability than if the election had been timely made further the interests of the government are ordinarily prejudiced if the taxable_year in which the regulatory election should have been made or any taxable years that would plr-132739-11 have been affected by the election had it been timely made are closed by the period of limitations on assessment under sec_6501 before the taxpayer’s receipt of a ruling granting relief under sec_301_9100-3 sec_301_9100-3 conclusion the information and representations submitted by parent and accompanied by a penalty of perjury statement executed by an appropriate party establish that it and taxpayer have acted reasonably and in good_faith in this request furthermore granting an extension will not prejudice the interests of the government accordingly an extension of time is hereby granted for parent to file the necessary form_970 this extension shall be for a period of days from the date of this ruling please attach a copy of this ruling to the form_970 when it is filed except as expressly provided herein no opinion is expressed or implied concerning the tax consequences of any aspect of any transaction or item discussed or referenced in this letter specifically we express no opinion as to the inventory methods used by either parent or taxpayer furthermore we express no opinion as to whether sec_381 was properly applied in parent’s year merger between itself and taxpayer 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 parent’s authorized representatives the ruling contained in this letter is based upon information and representations submitted by parent 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_ruling it is subject_to verification on examination sincerely roy a hirschhorn chief branch office of associate chief_counsel income_tax accounting enclosure copy of letter for sec_6110 purposes cc


internal_revenue_service number release date index number ------------------------------ -------------------------------- -------------------------------------- ---------------------------------- department of the treasury washington dc person to contact ------------------------ id no ------------- telephone number --------------------- refer reply to cc psi b1-plr-137393-03 date jan legend x --------------------------------------------------- date dear ----------------- ----------------- ------------- this responds to a letter dated date submitted on behalf of x requesting relief under ' b of the internal_revenue_code facts x was incorporated on date the shareholders of x desired that x elect s_corporation treatment effective on date but the election to be treated as an s_corporation was not timely filed accordingly x requests a ruling that it will be treated as an s_corporation effective date law and analysis sec_1362 provides that a small_business_corporation may elect to be an s_corporation sec_1362 provides the rule on when an s election will be effective sec_1362 provides in relevant part that if an s election is made within the first two and one-half months of a corporation's taxable_year then the corporation will be plr-137393-03 treated as an s_corporation for the year in which the election is made under ' b however if an s election is made after the first two and one-half months of a corporation's taxable_year then that corporation will not be treated as an s_corporation until the taxable_year after the year in which the s election is filed sec_1362 provides that if no ' a 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 ' b shall not apply x did not timely file an election to be treated as an s_corporation under ' a x has however established reasonable_cause for not making a timely s election and is entitled to relief under ' b conclusion based solely on the facts submitted and the representations made and provided that x otherwise qualifies as an s_corporation we conclude that x will be treated as an s_corporation effective date within days from the date of this letter x should submit a properly completed form_2553 effective date with a copy of this letter attached to the relevant service_center except as specifically set forth above no opinion is expressed or implied as to the federal_income_tax consequences of the transaction described above under any other provision of the code specifically no opinion is expressed concerning whether x is in fact an s_corporation for federal tax purposes the code provides that it may not be used or cited as precedent this ruling is directed only to the taxpayer s requesting it sec_6110 of sincerely s dianna k miosi dianna k miosi chief branch office of the associate chief_counsel passthroughs and special industries


department of the treasury internal_revenue_service washington d c tax_exempt_and_government_entities_division dec se r ep t3 u i l xxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxx legend taxpayer a xxxxxxxxxxxxxx individual m xxxxxxxxxxxxxx ira x xxxxxxxxxxxxxx bank b banke xxxxxxxxxxxxxx xxxxxxxxxxxxxx amount c xxxxxxxxxxxxxx amount d xxxxxxxxxxxxxx amount f xxxxxxxxxxxxxx account g xxxxxxxxxxxxxx iray xxxxxxxxxxxxx date date date xxxxxxxxxxxxx xxxxxxxxxxxxx xxxxxxxxxxxxxx date4 date date date xxxxxxxxxxxxxx xxxxxxxxxxxxxx xxxxxxxxxxxxxx xxxxxxxxxxxxxx dear xxxxxxxxxx this is in response to your letter dated date as supplemented by correspondence dated date and date submitted on your behalf by your authorized representative in which you request a waiver of the 60-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 your request taxpayer a represents that he received a distribution from ira x totaling amount d taxpayer a asserts that his failure to accomplish a rollover within the 60-day period prescribed by sec_408 was due to his extreme emotional distress caused by the death of his father wife and mother taxpayer a represents that on date his wife individual m passed away taxpayer a further represents that following the death of his wife he attended the funeral of his father who passed away on date three days prior to date on date taxpayer a received and deposited a distribution from individual m's ira x totaling amount d into a non- interest bearing account with bank b six days after the distribution taxpayer a's mother passed away on date on date taxpayer a issued a check from bank b totaling amount c payable to himself and deposited it into his checking account with bank e taxpayer a represents that funds remained with bank e until date at which time amount f was transferred to account g with bank e subsequently on date taxpayer a deposited amount d into ira y during and following the 60-day period taxpayer a's full attention was to managing the estates of his wife and father and the medical_care for his mother prior to her death which occurred within the 60-day rollover period based on the facts and representations taxpayer a requests that the internal_revenue_service the service waive the 60-day rollover requirement with respect to amount d sec_408 of the code provides that except as otherwise provided in sec_408 any amount_paid or distributed out of an ira shall be included in gross_income by the payee or distributee as the case may be in the manner provided under sec_72 of the code sec_408 of the code defines and provides the rules applicable to ira roll overs sec_408 of the code provides that sec_408 of the code does not apply to any amount_paid or distributed out of an ira to the individual for whose benefit the ira is maintained if- i ii the entire amount received including money and any other_property is paid into an ira for the benefit of such individual not later than the 60th day after the day on which the individual received the payment or distribution or 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 60t day after the date on which the payment or distribution is received except that the maximum amount which may be paid into such plan may not exceed the portion of the amount received which is includible in gross_income determined without regard to sec_408 sec_408 of the code provides that sec_408 does not apply to any amount described in sec_408 received by an individual from an ira if at any time during the 1-year period ending on the day of such receipt such individual received any other amount described in sec_408 from an ira which was not included in gross_income because of the application of sec_408 sec_408 of the code provides a similar 60-day rollover period for partial rollovers sec_408 of the code provides that the rollover provisions of sec_408 do not apply to any amount required to be distributed under sec_408 sec_408 of the code provides that the secretary may waive the day requirement under sec_408 and sec_408 of the code where the failure to waive such requirement would be against equity and good conscience including casualty disaster or other events beyond the reasonable control of the individual subject_to such requirement only distributions that occur after date are eligible for the waiver under sec_408 of the code revproc_2003_16 i r b provides that in determining whether to grant a waiver of the 60-day rollover requirement pursuant to sec_408 the service will consider all relevant facts and circumstances including errors committed by a financial_institution inability to complete a rollover due to death disability or hospitalization incarceration restrictions imposed by a foreign_country or postal error the use of the amount distributed for example in the case of payment by check whether the check was cashed and the time elapsed since the distribution occurred the information presented and documentation submitted by taxpayer a is consistent with his assertion that his failure to accomplish a timely rollover was due to his extreme emotional distress caused by the death of his father wife and mother therefore pursuant to code sec_408 the service hereby waives the 60-day rollover requirement with respect to the distribution of amount d from ira x provided all other requirements of sec_408 of the code except the 60-day requirement were met with respect to such contribution the contribution of amount d into ira y will be considered a rollover_contribution within the meaning of sec_408 of the code this ruling does not authorize the rollover of amounts that are required to be distributed by sec_401 a 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 that requested it sec_611 o k of the code provides that it may not be used or cited as precedent a copy of this letter is being sent to your authorized representative pursuant to a power_of_attorney on file with this office if you have any questions regarding this letter please contact xxxxxxxxxx at xxxxxxxxxxxxx all correspondence should be addressed to se t ep ra t sincerely yours laura b warshawsky manager employee_plans technical group enclosures deleted copy of letter_ruling notice of intention to disclose cc xxxxxxxxxxxxxxxx