t c summary opinion united_states tax_court lawrence robert gamer petitioner v commissioner of internal revenue respondent docket no 19013-02s filed date lawrence robert gamer pro_se laura a mckenna for respondent armen special_trial_judge this case was heard pursuant to the provisions of sec_7463 of the internal_revenue_code in effect at the time that the petition was filed the decision to be entered is not reviewable by any other court and this opinion should not be cited as authority unless otherwise indicated all subsequent section references are to the internal_revenue_code in effect for the taxable_year in issue and all rule references are to the tax_court rules_of_practice and procedure respondent determined a deficiency in petitioner’s federal_income_tax for in the amount of dollar_figure the sole issue for decision is whether a payment of dollar_figure made by petitioner to his former wife in is deductible as alimony under sec_215 we hold that it is not an adjustment to the amount of petitioner’s itemized_deductions is a purely mechanical matter the resolution of which is dependent on our disposition of the disputed issue background some of the facts have been stipulated and they are so found petitioner resided in loxahatchee florida at the time that his petition was filed with the court at or about the time they were married in date petitioner and his then wife deborah gamer ms gamer jointly purchased a residence in which they lived during their marriage the residence was titled in the couple’s joint names as tenants by the entireties petitioner and ms gamer were divorced in date on or about date petitioner and ms gamer entered into a marital settlement agreement settlement agreement the settlement agreement provided in part as follows alimony each party does hereby waive alimony and does hereby totally irrevocably and completely relieve the other party of all matters and charges whatsoever excepting as set forth in this instrument each releasing the other of and from all claims and demands for anything whatsoever in the future including but not limited to alimony and separate_maintenance regardless of the future income of the husband and wife parties bound this settlement agreement shall be binding upon the heirs legatees devisees administrators and personal_representatives of the parties hereto and in the event of the death of either of the parties of this settlement agreement while said settlement agreement is in force and effect the estate of said deceased party shall be obligated and responsible for the performance of the obligations and conditions of this settlement agreement marital residence the parties jointly own as tenants by the entireties a certain single_family_residence within ten days of the execution of this agreement the husband shall pay to the wife in current cash funds the sum of dollar_figure representing the wife’s interest in this residence contemporaneous with the transfer of these funds the wife shall execute a quit-claim deed conveying to the husband all of her right title and interest in this property the provisions of the settlement agreement were incorporated into a final judgment of dissolution of marriage on date petitioner issued a check payable to ms gamer in the amount of dollar_figure petitioner wrote settlement on the memo section of the check petitioner filed form_1040 u s individual_income_tax_return for the taxable_year on his return petitioner claimed a deduction in the amount of dollar_figure for alimony paid to ms gamer on date respondent issued a notice_of_deficiency to petitioner determining a dollar_figure deficiency in his income_tax for the taxable_year in the notice respondent disallowed the dollar_figure deduction for alimony claimed by petitioner on the ground that lump-sum cash paid as a property settlement is not deductible as alimony discussion2 generally a property settlement incident to a divorce is not a taxable_event and does not give rise to a deduction sec_1041 112_tc_317 affd without published opinion sub nom schutter v commissioner 242_f3d_390 10th cir however sec_215 allows a deduction for the payment of alimony during a taxable_year sec_215 defines alimony as payment which is includable in the gross_income of the recipient under sec_71 sec_71 provides a four-step inquiry for determining whether a cash payment is alimony sec_71 provides sec_71 alimony or separate_maintenance payments defined --for purposes of this section-- in general --the term alimony_or_separate_maintenance_payment means any payment in cash if-- a such payment is received by or on we decide the issue in this case without regard to the burden_of_proof see sec_7491 rule a 116_tc_438 behalf of a spouse under_a_divorce_or_separation_instrument b the divorce_or_separation_instrument does not designate such payment as a payment which is not includible in gross_income under this section and not allowable as a deduction under sec_215 c in the case of an individual legally_separated from his spouse under a decree of divorce or of separate_maintenance the payee spouse and the payor spouse are not members of the same household at the time such payment is made and d there is no liability to make any such payment for any period after the death of the payee spouse and there is no liability to make any payment in cash or property as a substitute for such payments after the death of the payee spouse accordingly if the payment made by petitioner fails to meet any one of the four enumerated criteria that payment is not alimony and is not deductible by petitioner the parties agree that petitioner’s dollar_figure payment to ms gamer satisfies the requirements set forth in sec_71 b and c on the other hand the parties dispute whether the requirements of sec_71 have been satisfied the history of sec_71 establishes that it was enacted to distinguish alimony deductible by the payor and includable in the payee’s gross_income from payments in the nature of property_settlements which are nondeductible by the payor and excludable from the payee’s gross_income in congress revised sec_71 in an attempt to minimize the differences in federal tax consequences created by differences in state laws and to establish an objective and uniform federal standard as to what constitutes alimony see sec_422 of the deficit_reduction_act_of_1984 dra publaw_98_369 98_stat_795 see also h rept part wherein the house ways_and_means_committee articulated the purpose of the amendment as follows the committee bill attempts to define alimony in a way that would conform to general notions of what type of payments constitute alimony as distinguished from property_settlements and to prevent the deduction of large one-time lump-sum property_settlements emphasis added in order to prevent the deduction of amounts which are in effect transfers of property unrelated to the support needs of the recipient the bill provides that a payment qualifies as alimony only if the payor has no liability to make any such payment for any period following the death of the payee spouse for payments to constitute alimony sec_71 as originally enacted by dra required the divorce_or_separation_instrument to state that there was no liability on the payor spouse to make the payments after the death of the payee spouse however under the statutory law of most states as amended by the deficit_reduction_act_of_1984 pub l continued alimony terminates at the death of the payee spouse unless the separation agreement or the divorce decree provides to the contrary therefore in congress struck from sec_71 the parenthetical providing for alimony treatment only if the divorce_or_separation_instrument stated that there was no liability on behalf of the payor spouse to make the payments after the death of the payee spouse see sec b of the tax_reform_act_of_1986 publaw_99_514 100_stat_2853 but even after the amendment whether an obligation to make payments survives the death of the payee spouse may be determined by the terms of the applicable instrument or if the instrument is silent on the matter by looking to state law kean v commissioner tcmemo_2003_163 the issue before us is whether the dollar_figure payment petitioner made to ms gamer pursuant to the settlement agreement was for her support thus constituting alimony or in the nature of a property settlement and therefore not deductible from his gross_income specifically we must decide whether under the continued 98_stat_795 sec_71 provided as follows d there is no liability to make any such payment for any period after the death of the payee spouse and there is no liability to make any payment in cash or property as a substitute for such payments after the death of the payee spouse and the divorce_or_separation_instrument states that there is no such liability terms of the settlement agreement petitioner would have been liable for the dollar_figure payment in the event of ms gamer’s prior death respondent contends that petitioner was obligated under the terms of the settlement agreement to make the dollar_figure payment to ms gamer in the event of her prior death petitioner primarily argues that because the dollar_figure payment was required to be made almost simultaneously with the execution of the settlement agreement ie within days of the date of the settlement agreement there arose no liability that would not have terminated at ms gamer’s death we hold that the dollar_figure payment petitioner made to ms gamer in was a property settlement and not deductible_alimony in reaching our conclusion we apply the language of the settlement agreement itself paragraph of the settlement agreement provides that both petitioner and ms gamer waive alimony paragraph of the settlement agreement however provides that petitioner shall pay ms gamer the sum of dollar_figure in exchange for ms gamer’s interest in the marital residence the terms of the settlement agreement do not state that petitioner’s liability to make the dollar_figure payment would cease upon the prior death of ms gamer additionally paragraph of the settlement agreement provides that petitioner and ms gamer remain bound to all obligations of the settlement agreement in the event of the death of either individual petitioner also admitted at trial that he understood that under the terms of the settlement agreement in the event of ms gamer’s prior death he would still be obligated to make the dollar_figure payment to ms gamer’s estate and ms gamer’s estate would still be obligated to transfer her interest in the marital residence to him the fact that petitioner was required to make the dollar_figure payment within days of the execution of the settlement agreement is irrelevant in webb v commissioner tcmemo_1990_540 the separation agreement provided in part that the husband shall pay simultaneously with the execution of this agreement to the wife the sum of dollar_figure we held that the fact that the separation agreement provided that the husband shall pay was sufficient to create a liability that would have been enforceable by the ex-wife’s estate had she died after the execution of the separation agreement but before payment by the husband in webb it was of no consequence that the husband’s payment was made simultaneously with the execution of the separation agreement we find that the terms of the settlement agreement provide that petitioner would still be required to make the dollar_figure payment in the event of ms gamer’s prior death accordingly the dollar_figure payment from petitioner to ms gamer fails to satisfy the requirements of sec_71 and therefore does not qualify as deductible_alimony in view of the foregoing we sustain respondent’s determination we have considered all of the other arguments made by petitioner and to the extent that we have not specifically addressed them we find them to be without merit reviewed and adopted as the report of the small_tax_case division to reflect the foregoing decision will be entered for respondent


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 cc tege conex-110892-15 number release date uil ----------------------- ---------------------------------------------------------- ----------------------- ---------------------------------------------------- ----------------------------- dear thank you for your letter dated date asking the irs to update form_8935 airline payments report form 8935-t transmittal of airline payments reports and their respective instructions in light of public law p l which amended the faa modernization and reform act of faa act to allow traditional_ira rollover treatment for certain distributions of airline payment amounts received in airline carrier bankruptcies among other things p l changed the definition of airline payment amount in the faa act to include payments made under the authority of a federal bankruptcy court in a case filed on date the information reporting requirement that is met by filing forms and 8935-t comes from sec_125 of the worker retiree and employer recovery act of wrera wrera requires a commercial passenger airline making one or more airline payment amounts as defined in wrera to report such payments to the irs and to the qualified airline employees within days of the payment or if later within days of enactment of wrera although p l expanded the definition of airline payment amount in the faa act it did not amend the definition of airline payment amount for purposes of sec_125 of wrera accordingly we recently published announcement enclosed for your reference which explains that there is no information reporting requirement for taxpayers paying out the additional airline payment amounts added to the faa act by p l therefore forms and 8935-t and their respective instructions do not need to be amended to encompass the statutory changes conex-110892-15 i hope this information is helpful if you have any questions please contact me at ---- ------------ victoria a judson associate chief_counsel tax exempt and government entities sincerely enclosure


o f f i c e o f t h e c h i e f c o u n s e l 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 date number info release date conex-108303-10 uil the honorable joseph r pitts member u s house of representatives p o box unionville pa dear congressman pitts this letter responds to your inquiry dated date on behalf of your constituents ----------------- ----------------- -------------------------asked about the three-year period requirement for the first-time_homebuyer credit qualifying first-time homebuyers can take a refundable_credit for the purchase of a principal_residence sec_36 of the internal_revenue_code the code the law defines a first-time_homebuyer as an individual who has not had an ownership_interest in a principal_residence at any time during the three-year period before the date of the purchase of the home if married both spouses must be first-time homebuyers as of the date of the purchase sec_36 of the code documentation received with your inquiry shows that the irs has reviewed or is reviewing -------------------------- claim for a first-time_homebuyer credit please note that we are not addressing that administrative action in this letter this letter provides only a general explanation of the requirements of sec_36 of the code i hope this information is helpful if you have any questions please contact ---------------- ---------------------at --------------------- sincerely william a jackson chief branch office of associate chief_counsel income_tax accounting


internal_revenue_service department of the treasury sec_4 wy 1taqds ’ a index no washington dc sone4 contact person telephone number in reference to egend date t ep ra t1 jul taxpayer annee secsccscsessssessecscsssassareseesessessesseenes taxpayer boao cccesessessessessesseesssseesessestesesssecsnesses dear this is in response to a letter dated date as supplemented by correspondence dated date and date submitted by your authorized representative in which you request relief under sec_301_9100-3 of the procedure and administration regulations the regulations the following facts and representations were submitted in connection with your request taxpayer a maintained ira x and ira y individual_retirement_arrangements described in sec_408 of the internal_revenue_code the code with company m taxpayer a’s spouse taxpayer b maintained ira z an individual_retirement_arrangement described in sec_408 with company m in taxpayers a and b converted iras x y and z respectively to roth iras with company m the amounts in iras x y and z were sum n sum o and sum p respectively taxpayers a and b jointly and timely filed their calendar_year -2- federal_income_tax return with respect to calendar_year taxpayer a’s and taxpayer b’s adjusted_gross_income exceeded the limit found in sec_408a taxpayers a and b were unaware that they were ineli gible to establish roth iras until preparing their income_tax return in early the funds remained in the roth_ira accounts until may of when iras x y and z were recharacterized as traditional iras by trustee-to-trustee transfers to traditional iras with company m this request for section relief was submitted prior to the service’s discovering taxpayer a’s or taxpayer b’s ineligibility to convert their traditional iras into roth iras and prior to discovering that the recharacterization back to traditional iras was not made within the time limits found in announcement lr b date and announcement lr b date based on your submission and the above facts and representations you request rulings that pursuant to sec_301_9100-3 of the regulations the recharacterization of taxpayer a’s and taxpayer b’s iras x y and z in may of which was after the dates prescribed by announcements and back to traditional iras was timely and the ten percent additional income_tax under code sec_72 for early_withdrawals does not apply to the recharacterizations of may of with respect to ruling_request code sec_408a and sec_1_408a-5 of the federal_income_tax regulations the regulations provide that except as otherwise provided by the secretary a taxpayer may elect to recharacterize an ira contribution made to one type of ira as having originally been made to another type of ira by making a trustee-to-trustee transfer of the ira contribution plus earnings to the other type of ira in a recharacterization the ira contribution is treated as having been made to the transferee ira and not the transferor ira under sec_408a and sec_1_408a-5 this recharacterization election generally must occur on or before the date prescribed by law including extensions for filing the taxpayer’s federal_income_tax returns for the year of contributions sec_1_408a-5 q a-6 of the regulations describes how a taxpayer makes the election to recharacterize the ira contribution to recharacterize an amount that has been converted from a traditional_ira to a roth_ira the taxpayer must notify the roth_ira trustee of the taxpayer’s intent to recharacterize the amount the taxpayer must provide the trustee and the transferee trustee if different from the transferor trustee with specified information that is sufficient to effect the recharacterization and the trustee must make the transfer code sec_408a provides that an individual with an adjusted_gross_income in excess of dollar_figure for a taxable_year is not permitted to make a qualified_rollover_contribution to a roth_ira from an individual_retirement_plan other than a roth_ira during that taxable_year sec_1_408a-4 q a-2 of the regulations provides that an individual with modified_adjusted_gross_income in excess of dollar_figure big_number for a taxable_year is not permitted to convert an 23y amount to a roth_ira during that taxable_year sec_1_408a-4 q a-2 further provides that an individual and his spouse must file a joint federal tax_return to convert a traditional_ira to a roth_ira and that the modified_adjusted_gross_income subject_to the dollar_figure limit for a taxable_year is the modified agi derived from the joint retum using the couple's combined income sec_301_9100-1 sec_301_9100-2 sec_301_9100-3 of the regulations provide guidance conceming requests for relief submitted to the service on or after december sec_301_9100-1 provides that the commissioner of the service in his discretion may grant a reasonable extension of the time fixed by a regulation a revenue_ruling a revenue_procedure a notice or an announcement published in the internal_revenue_bulletin for the making of an election or application_for relief in respect of tax under among others subtitle a of the code sec_301_9100-2 of the regulations lists certain elections for which automatic extensions of time to file are granted sec_301_9100-3 generally provides guidance with respect to the granting of relief with respect to those elections not referenced in sec_301 the relief requested in this case is not referenced in sec_301_9100-2 sec_301_9100-3 of the regulations provides that applications for relief that fall within sec_301_9100-3 will be granted when the taxpayer provides sufficient evidence including affidavits described in section dollar_figure e to establish that the taxpayer acted reasonably and in good_faith and granting relief would not prejudice the interests of the government sec_301_9100-3 of the regulations provides that a taxpayer will be deemed to have acted reasonably and in good_faith i if its request for sec_301_9100-1 relief is filed before the failure to make a timely election is discovered by the internal_revenue_service the service ii if the taxpayer inadvertently failed to make the election because of intervening events beyond the taxpayer’s control iii if the taxpayer failed to make the election because after exercising reasonable diligence the taxpayer was unaware of the necessity for the election iv the taxpayer reasonably relied upon the written advice of the service or v the taxpayer reasonably relied on a qualified_tax professional including a tax professional employed by the taxpayer and the tax professional failed to make or advise the taxpayer to make the election sec_301_9100-3 of the regulations provides that ordinarily the interests of the government will be treated as prejudiced and that ordinarily the service will not grant relief when tax years that would have been affected by the election had it been timely made are closed by the statute_of_limitations before the taxpayer’s receipt of a ruling granting relief under this section announcement provided that a taxpayer who timely filed his or her federal_income_tax return would have until date to recharacterize an amount that had been converted from a traditional_ira to a roth_ira announcement provided that a taxpayer who timely filed his or her federal_income_tax retum would have until december to recharacterize an amount that had been converted from a traditional_ira to a roth_ira in this case taxpayers a and b were not eligible to convert their iras to roth iras since their combined adjusted_gross_income exceeded dollar_figure taxpayers a and b timely filed their joint federal_income_tax return thus they were eligible for relief under announcements and however they missed the deadlines provided under these announcements therefore it is necessary to determine whether they are eligible for relief under the provisions of sec_301_9100-3 of the regulations taxpayers a and b were not aware of their ineligibility to convert their traditional iras into roth iras until the beginning of calendar_year when they were preparing their return upon realizing their mistake the taxpayers requested trustee-to-trustee transfers to recharacterize iras x y and z as traditional iras the transfers were effected by company m in may of the taxable_year is not closed under the statute_of_limitations taxpayers a and b requested relief from the service before the service discovered their failure to make a timely election to recharacterize their roth iras back to traditional iras pursuant to announcements and thus the taxpayers satisfy the requirements of clause i and clause iii of sec_301_9100-3 of the regulations accordingly we rule with respect to ruling_request that pursuant to sec_301_9100-3 of the regulations the recharacterization of taxpayer a’s and taxpayer b’s iras back to traditional iras which occurred in may of calendar_year and which was after the dates prescribed by announcements and was timely with respect to your second ruling_request in order to effectuate the grant of relief under sec_301_9100-3 of the regulations made in response to your first ruling_request taxpayers a and b must file an amended calendar_year federal_income_tax retum prior to the expiration of the statute_of_limitations applicable to the year which will reflect the recharacterizations made during assuming taxpayers a and b timely file an amended retum this second ruling_request is moot this letter is directed only to the taxpayer who requested it code sec_6110 provides that it may not be used or cited as precedent pursuant to a power of attomey on file with this office a copy of this ruling letter is being sent to your authorized representative sincerely yours bigued joba swett john swieca manager employee_plans technical group tax_exempt_and_government_entities_division ce 2u


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-106452-07 date january internal_revenue_service number release date index number ------------------------- -------------------------- -------------------------------------------- company state date members dear ------------- legend ------------- ----------------------- ---------------- ---------------------- ------------------------- ------------------------- --------------------- ------------------------- ----------------- ------------------------- this letter responds to the letter dated date and subsequent correspondence submitted on behalf of company requesting an extension of time under sec_301_9100-1 and sec_301_9100-3 of the procedure and administration regulations to file an election to be classified as an association_taxable_as_a_corporation for federal tax purposes facts plr-106452-07 company was formed as a limited_liability_company in state on date the members of company intended that company be treated as an association_taxable_as_a_corporation for federal tax purposes effective date however due to inadvertence form_8832 entity classification election was not timely filed 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 as provided in sec_301_7701-3 sec_301_7701-3 provides that except as provided in sec_301 b unless the entity elects otherwise a domestic eligible_entity is i a partnership if it has two or more members or ii disregarded as an entity separate from its owner if it has a single owner sec_301_7701-3 provides that an eligible_entity may elect to be classified other than as provided under sec_301_7701-3 or to change its classification by filing form_8832 with the service_center designated on form_8832 sec_301_7701-3 provides that an election made under sec_301 c i will be effective on the date specified by the entity on form_8832 or on the date filed if no such date is specified on the election form the effective date specified on form_8832 can not be more than days prior to the date on which the election is filed and can not be more than months after the date on which the election is filed sec_301_9100-1 provides that the commissioner has discretion to grant a reasonable extension of time under the rules set forth in sec_301_9100-2 and sec_301_9100-3 to make a regulatory election or a statutory election but no more than six months except in the case of a taxpayer who is abroad under all subtitles of the code except subtitles e g h and i sec_301_9100-2 provides the rules governing automatic extensions of time for making certain elections sec_301_9100-3 sets forth 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 sec_301_9100-3 provides that requests for relief subject_to sec_301_9100-3 will be granted when the taxpayer provides the evidence including affidavits described in sec_301_9100-3 to establish to the satisfaction of the commissioner that the taxpayer acted reasonably and in good_faith and the grant of relief will not prejudice the interests of the government conclusion plr-106452-07 based on the facts submitted and the representations made we conclude that company has satisfied the requirements of sec_301_9100-1 and sec_301_9100-3 as a result company is granted an extension of time of days from the date of this letter to file form_8832 with the appropriate service_center and to elect to be classified as an association_taxable_as_a_corporation for federal tax purposes effective date a copy of this letter should be attached to the form_8832 a copy is enclosed for that purpose except as expressly set forth above no opinion is expressed or implied concerning the federal tax consequences of the facts discussed above under any other provision of the code this ruling is directed only to the taxpayer requesting it sec_6110 provides that it may not be used or cited as precedent sincerely s william p o'shea associate chief_counsel passthroughs special industries enclosures copy of this letter copy for sec_6110 purposes cc


internal_revenue_service department of the treasury number release date index number washington dc person to contact telephone number refer reply to cc psi b1-plr-143789-02 date nov legend x a_trust date date date date dear this responds to the letter dated date together with subsequent correspondence submitted on behalf of x requesting relief under sec_1362 of the internal_revenue_code facts you have represented that the facts are as follows x is a corporation which made an s_corporation_election effective date a a shareholder in x died on date upon the death of a the shares in x were transferred to trust trust continued to hold the x stock after the 2-year period described in sec_1361 taxpayer became aware that retaining the x stock for a period exceeding 2-years was not permitted by sec_1361 and that therefore x's subchapter_s_election terminated on date on date trust transferred its shares in x to an eligible shareholder plr-143789-02 x has represented that the terminating event was not the result of any_tax avoidance or retroactive tax planning on the part of x or any of its shareholders at no time did x or its shareholders wish to terminate or express an interest in terminating x's s_corporation status in addition x and its shareholders have agreed to make adjustments consistent with the treatment of x as an s_corporation as may be required by the secretary law and analysis sec_1361 defines an s_corporation as a small_business_corporation for which an election under sec_1362 is in effect sec_1361 defines small_business_corporation as a domestic_corporation that is not an ineligible_corporation and that does not a have more than shareholders b have as a shareholder a person other than an estate and other than a_trust described in sec_1361 who is not an individual c have a nonresident_alien as a shareholder and d have more than one class of stock sec_1361 allows as a shareholder of an s_corporation a_trust with respect to stock transferred to it pursuant to the terms of a will but only for the 2-year period beginning on the day on which the stock is transferred to it sec_1362 provides that an election to be treated as a subchapter_s_corporation is terminated whenever at any time on or after the first day of the first taxable_year for which the corporation is an s_corporation the corporation ceases to be a small_business_corporation the termination is effective on and after the date the s_corporation ceases to meet the requirements of a small_business_corporation because trust continued to hold x stock after the 2-year period set forth in sec_1361 trust was not an allowable s_corporation shareholder therefore x ceased to be a small_business_corporation and its election of s_corporation status terminated on date sec_1362 provides that if an election under sec_1362 by any corporation was terminated under sec_1362 or the secretary determines that the termination was inadvertent no later than a reasonable period of time after discovery of the event resulting in the termination steps were taken so that the corporation is once more a small_business_corporation and the corporation and each person who was a shareholder of the corporation at any time during the period specified pursuant to sec_1362 agrees to make any adjustments consistent with the treatment of the corporation as an s_corporation required by the secretary with respect to the period then notwithstanding the terminating event the corporation shall be treated as continuing to be an s_corporation during the period specified by the secretary plr-143789-02 the committee reports accompanying the subchapter_s_revision_act_of_1982 explain sec_1362 as follows if the internal_revenue_service determines that a corporation's subchapter_s_election is inadvertently terminated the service can waive the effect of the terminating event for any period if the corporation timely corrects the event and if the corporation and the shareholders agree to be treated as if the election had been in effect for such period the committee intends that the internal_revenue_service be reasonable in granting waivers so that corporations whose subchapter_s eligibility requirements have been inadvertently violated do not suffer the tax consequences of a termination if no tax_avoidance would result from the continued subchapter_s treatment in granting a waiver it is hoped that taxpayers and the government will work out agreements that protect the revenues without undue_hardship to taxpayers it is expected that the waiver may be made retroactive for all years or retroactive for the period in which the corporation again became eligible for subchapter_s treatment depending on the facts s rep no 97th cong 2d sess 1982_2_cb_718 h_r rep no 97th cong 2d sess 1982_2_cb_730 conclusion based solely on the facts submitted and the representations made we conclude that the termination of x's subchapter_s_election on date was inadvertent within the meaning of sec_1362 pursuant to the provisions of sec_1362 x will be treated as continuing to be an s_corporation during the period beginning on date and thereafter unless x's election is not otherwise terminated under sec_1362 except as specifically set forth above no opinion is expressed concerning the federal_income_tax consequences of the above-described facts in particular no opinion is expressed as to whether the election to be treated as an s_corporation made by x on date was a valid election under sec_1362 this ruling is directed only to the taxpayer who requested it sec_6110 provides that it may not be used or cited as precedent plr-143789-02 pursuant to the power_of_attorney on file with this office a copy of this letter is being sent to the taxpayer s david r haglund sincerely david r haglund senior technician reviewer branch office of the associate chief_counsel passthroughs and special industries enclosures copy of this letter copy for sec_6110 purposes


internal_revenue_service department of the treasury number release date index number washington dc person to contact telephone number refer reply to cc intl 4-plr-160952-01 date date taxpayer_identification_number legend x y z f date date date date year dear this ruling is directed only to the taxpayer s requesting it sec_6110 of the code provides that it may not be used or cited as precedent this letter is in response to your request dated date for a private_letter_ruling that sec_1504 remains applicable to f a canadian banking subsidiary until date under notice_2000_7 2000_4_irb_419 the notice the ruling contained in this letter is predicated upon facts and representations submitted by the taxpayer and accompanied by a penalty of perjury statement executed by an appropriate party this office has not verified any of the material submitted in support of the ruling_request verification of the information representations and other data may be required as part of the audit process x was a domestic financial_institution that engaged in all aspects of commercial banking x formed f a canadian corporation to conduct banking activities in canada upon the incorporation of f x made an election under sec_1504 to treat f as a domestic_corporation for all purposes of subtitle a of the code including the consolidated_return provisions x has included f in x’s consolidated federal_income_tax return for each year of f’s existence x based its election for f under sec_1504 on the canadian bank act bank act which prohibits foreign banks from operating in canada through an entity not organized under the corporate laws of canada sec_1504 of the code allows in certain circumstances a domestic_corporation owning or controlling directly or indirectly percent of the capital stock of a mexican or canadian corporation to elect to treat such corporation as a domestic_corporation for all purposes of subtitle a of the code among other requirements such an election may be made only if the sole purpose for maintaining such corporation is to comply with canadian or mexican law regulating the title and operation of property effective date canada amended the bank act amended bank act under the amended bank act organizations not incorporated in canada may apply for an order from the canadian minister of finance and the office of the superintendent of financial institutions permitting the foreign organization to conduct certain aspects of the banking business including those activities conducted by f through a canadian branch in addition on date the canadian government announced its intention to enact legislation that would allow an indefinite deferral of the canadian tax imposed upon the liquidation of a canadian banking subsidiary as part of its conversion to branch form original relief legislation department of finance release date under the original relief legislation relief would have been available only if the canadian banking subsidiary formally applied for regulatory approval to convert to branch form on or before date in addition the canadian banking subsidiary must have completed its conversion to branch form on or before the earlier of i the day that is six months after the day that the superintendent of financial institutions makes an order in respect of the foreign bank under sub sec_534 of the amended act or ii date a department of finance release dated date release extended the date deadline to apply for regulatory approval to convert to branch form to date the original relief legislation was approved in slightly different form on date as the combined relief legislation and branch_tax legislation in sec_142 of the tax act amended relief legislation under the amended relief legislation in order to receive the tax_deferral upon liquidation canadian banking subsidiaries must still apply to the superintendent of financial institutions by date for an order to convert to a branch however sec_142 of the amended relief legislation allows the subsidiary a longer period of time than was granted in the original relief legislation to convert to branch form after approval of the conversion is received while still receiving the indefinite deferral of canadian tax normally imposed upon a liquidation into branch form under the amended relief legislation tax relief will be available to a canadian subsidiary that completes its conversion to branch form by the later of the earlier of - i the date one year after permission is granted in f’s case date or the date three years after the effective date of the amended relief legislation ie date or ii the date one year after the effective date of the amended relief legislation ie date the ministry of finance explanatory notes to the legislation explain that condition was added to ensure that even if an entrant bank receives an order to carry on business as a branch prior to the effective date of the amended relief legislation the deadline will not be earlier than one year after the effective date of the amended relief legislation f requested permission from canada to convert to branch form in year and approval was granted on date prior to the effective date of the amended relief legislation under the original relief legislation f would have been entitled to deferral of canadian tax on conversion only if it completed the conversion by date the earlier of the date six months after permission was granted and date as of date however the relief legislation had not even been formally introduced in the canadian parliament under the amended relief legislation f will be entitled to canadian tax relief if it completes its conversion by date the later of date and date in the notice the service noted that an election under sec_1504 is normally terminated on the date of the repeal of the canadian or mexican law regulating the title and operation of property on which law the sec_1504 election depends however the service determined that a foreign_corporation could continue to be viewed as maintained solely for the purpose of complying with canadian or mexican law for a short_period of time following the repeal of that foreign law if the taxpayer takes reasonable and expeditious measures to respond to the change in foreign law and for good reason is unable to complete such measures by the effective date of the repeal the service noted that canada had determined that the period described in the original relief legislation would be a reasonable period for taxpayers to take the steps necessary to convert to branch form therefore if a canadian banking subsidiary did not apply for permission to convert to a branch by date its election under d would terminate on that day if a canadian banking subsidiary requested permission to convert to branch form by date it would be considered for u s tax purposes to be maintained solely for the purpose of complying with the bank act and thus for purposes of complying with sec_1504 until the earlier of i the day that is six months after the day that the superintendent of financial institutions makes a formal determination whether the canadian banking subsidiary qualifies to operate in branch form or ii date using the deadlines set forth in the original relief legislation and incorporated into the notice f would be considered maintained for purposes of complying with the bank act within the meaning of sec_1504 only until date the notice reflects the timing rules in the proposed original relief legislation the timing rule in the final amended relief legislation differs however because the amended relief legislation was not enacted until two years after the proposal of the original relief legislation the purpose of the notice was to apply sec_1504 to reflect the canadian rules under the final relief legislation the relief period set out in the amended relief legislation represents a reasonable period for taxpayers to take the steps necessary to convert to branch form under the notice based solely on the information submitted and the representations made f will be considered maintained for purposes of complying with canadian law within the meaning of sec_1504 until date no opinion is expressed whether f is or was maintained solely for such purpose or whether f satisfies the other requirements of sec_1504 except as expressly provided herein no opinion is expressed or implied concerning the tax consequences of any aspect of any transaction or item discussed or referenced in this letter this ruling is directed only to the taxpayer requesting it sec_6110 of the code provides that it may not be used or cited as precedent in accordance with the power_of_attorney on file with this office a copy of this letter is being sent to your authorized representative a copy of this letter must be attached to any income_tax return to which it is relevant sincerely charles p besecky chief branch office of associate chief_counsel international cc


internal_revenue_service number release date index number ---------------------------------------------- ------------------------------ ------------------------ --------------------------------------------------- ----------- department of the treasury washington dc third party communication none date of communication not applicable_person to contact --------------- id no ------------- telephone number --------------------- refer reply to cc psi plr-121516-06 date january --------------------------------------------------------------- ------------------ -------------------------------- ----------------------------- --------------------------------------------------------------------------------- legend legend decedent spouse daughter grandson trust ------------------------------------------------------------------------------------------------------------ a date date date attorney x dear ------------------- ------------------ --------------------- ---------------------- ------------------------ ---------------------------- ----------- this is in response to the date letter and prior correspondence requesting an extension of time under sec_301_9100-3 of the procedure and administration regulations to sever a_trust into an exempt and nonexempt trust under sec_26_2654-1 of the generation-skipping_transfer gst tax regulations and to make a reverse qualified_terminable_interest_property qtip_election under sec_2652 of the internal_revenue_code with respect to the exempt trust the facts and representations submitted are summarized as follows on date decedent created trust a revocable_trust under the terms of trust upon decedent’s death the principal of trust shall be divided into a marital trust and a credit_shelter_trust plr-121516-06 decedent died testate on date survived by spouse daughter and grandson the executrix of decedent’s estate is daughter the current trustee of trust is daughter and a article iii of trust provides that marital trust is to be divided into an exempt part marital trust and a non-exempt part marital trust the exempt part marital trust is to be funded with an amount equal to decedent’s available gst_exemption the balance or all of the marital trust shall be allocated to the non-exempt part marital trust upon spouse’s death any accrued or undistributed_income of the marital trust is to be distributed to her estate pursuant to the terms of trust spouse also has a special testamentary_power_of_appointment to appoint the remaining principal of marital trust to or for the benefit of any one or more of decedent’s issue any unappointed principal of the exempt part marital trust that is wholly exempt from gst tax by reason of the allocation of decedent’s gst_exemption shall fund the exempt trust for the benefit of grandson grandson’s trust pursuant to the terms of trust the balance of the principal of the exempt part marital trust and any remaining unappointed principal of the non-exempt part marital trust shall be divided into a gst exempt share and a gst non-exempt share the gst exempt share shall consist of that fraction of the portion of trust principal disposed of under paragraph b which is includable in spouse’s gross_estate and with respect to which she is treated as the transferor for gst tax purposes the numerator of which is spouse’s available gst_exemption and the denominator of which is the value of such portion as finally determined for federal estate_tax purposes in spouse’s estate the balance or all of the principal shall be the gst non-exempt share the gst exempt share shall fund the grandson’s trust article iii further provides that the executor is authorized to elect any part or all of marital trust created under trust to be treated as qtip under sec_2056 the executor is also authorized to make the reverse_qtip_election under sec_2652 with respect to the exempt part marital trust and to allocate decedent’s remaining available gst_exemption to the property constituting the exempt part marital trust decedent’s attorney attorney prepared the united state estate and generation-skipping_transfer_tax return form_706 on schedule m bequests etc to surviving_spouse a qtip_election under sec_2056 was made with respect to marital trust on schedule r generation-skipping_transfer_tax dollar_figurex of decedent’s available gst_exemption was allocated to grandson’s trust attorney did not advise decedent’s estate to sever marital trust into an exempt trust and nonexempt trust or to make the reverse_qtip_election spouse died on date without exercising the special_power_of_appointment granted to her the errors were discovered upon review of spouse’s estate you have requested an extension of time under sec_301_9100-1 and sec_301_9100-3 of days to sever marital trust into the exempt part marital trust and the non-exempt sec_2631 provided that for purposes of determining the inclusion_ratio plr-121516-06 part marital trust pursuant to sec_26_2654-1 and to make a reverse_qtip_election under sec_2652 for the exempt part marital trust sec_2601 imposes a tax on every generation-skipping_transfer sec_2611 provides that the term generation-skipping_transfer means a taxable_distribution a taxable_termination and a direct_skip every individual shall be allowed a gst_exemption of dollar_figure adjusted for inflation under sec_2631 which may be allocated by the individual or his executor to any property with respect to which the individual is the transferor sec_2631 provides that any allocation once made shall be irrevocable exemption under sec_2631 may be made at any time on or before the date prescribed for filing the estate_tax_return for such individual's estate determined with regard to extensions regardless of whether such a return is required to be filed unused gst_exemption by the executor of the decedent's_estate is made on the appropriate united_states estate and generation-skipping_transfer_tax return form_706 or form 706na filed on or before the date prescribed for filing the return by sec_6075 including any extensions actually granted the due_date an allocation of gst_exemption to a_trust whether or not funded at the time the form_706 or form 706na is filed is effective if the notice of allocation clearly identifies the trust and the amount of the decedent's gst_exemption allocated to the trust sec_26_2632-1 provides in part that an allocation of a decedent's sec_2632 provides that any allocation by an individual of his gst sec_2632 provides that any portion of such individual's gst_exemption which has not been allocated within the time prescribed by sec_2632 shall be deemed to be allocated as follows -- a first to property which is the subject of a direct_skip occurring at such individual's death and b second to trusts with respect to which such individual is the transferor and from which a taxable_distribution or taxable_termination might occur at or after such individual's death sec_2652 provides in part that for purposes of chapter the term sec_2652 provides in part that in the case of -- a any trust with transferor means -- a in the case of any property subject_to the tax imposed by chapter the decedent an individual shall be treated as transferring any property with respect to which such individual is the transferor respect to which a deduction is allowed to the decedent under sec_2056 the estate of the decedent may elect to treat all of the property in such trust for purposes of chapter as if the election to be treated as qualified_terminable_interest_property had not been made reverse_qtip_election sec_26_2654-1 provides in part that the severance of a_trust that is under sec_301_9100-1 the commissioner may grant a reasonable extension of sec_26_2652-2 provides that an election under sec_2652 is made on the plr-121516-06 return on which the qtip_election is made included in the transferor's gross_estate into two or more trusts is recognized for purposes of chapter if the trust is severed pursuant to a direction in the governing instrument providing that the trust is to be divided upon the death of the transferor time under the rules set forth in sec_301_9100-2 and sec_301_9100-3 to make a regulatory election or a statutory election but no more than months except in the case of a taxpayer who is abroad under all subtitles of the code except subtitles e g h and i sec_301_9100-3 provides in part that requests for extensions of time for regulatory elections that do not meet the requirements of sec_301_9100-2 must be made under the rules of sec_301_9100-3 requests for relief subject_to sec_301_9100-3 will be granted when the taxpayer provides the evidence to establish to the satisfaction of the commissioner that the taxpayer acted reasonably and in good_faith and the grant of relief will not prejudice the interests of the government b i through iii a taxpayer is deemed to have acted reasonably and in good_faith if the taxpayer reasonably relied on a qualified_tax professional including a tax professional employed by the taxpayer and the tax professional failed to make or advise the taxpayer to make the election sec_301_9100-3 provides in part that the commissioner will grant a reasonable extension of time to make a regulatory election only when the interests of the government will not be prejudiced by the granting of relief as a result of the qtip_election made on the form_706 spouse is considered the transferor of the property for gst tax purposes therefore decedent's remaining gst_exemption may not be allocated to marital trust however if marital trust is severed into the exempt part marital trust and the non-exempt part marital trust and a reverse_qtip_election under sec_2652 is made with respect to the exempt part marital trust decedent will be treated as the transferor of the exempt part marital trust assets based on the facts submitted and the representations made we conclude that the requirements of sec_301_9100-3 have been satisfied accordingly an extension of time of days from the date of this letter is granted to sever marital trust into a exempt part marital trust and a non-exempt part marital trust and to file a supplemental form_706 making the reverse_qtip_election with respect to the exempt part marital trust as a result of the severance of marital trust and the reverse qtip sec_301_9100-3 provides in part except as provided in sec_301 plr-121516-06 election with respect to the exempt part marital trust decedent's remaining gst_exemption will be allocated in accordance with the rules provided in sec_2632 the supplemental form_706 should be filed with the internal_revenue_service center cincinnati ohio a copy of this letter should be attached to the form a copy is enclosed for this purpose 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 taxpayers requesting it sec_6110 provides that it may not be used or cited as precedent the rulings contained in this letter are based upon information and representations submitted by the taxpayer and accompanied by a penalty of perjury statement executed by an appropriate party while this office has not verified any of the material submitted in support of the request for rulings it is subject_to verification on examination 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 william p o'shea associate chief_counsel passthroughs special industries enclosures copy for sec_6110 purposes copy of this letter


department of the treasury washington d c tax_exempt_and_government_entities_division mar uniform issue list ep et legend taxpayer a ira b bank c bank d bank e account f account g amount amount amount dear this letter is in response to your request dated date as supplemented by correspondence dated date from 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 the ruling requested taxpayer a represents that she received a distribution from ira b totaling amount taxpayer a asserts that her failure to accomplish a rollover of amount within the day period prescribed by sec_408 was due to a mistake by bank e in failing to deposit amount into a rollover ira cd taxpayer a also represents that amount has not been used for any other purpose and remains in a non-ira account taxpayer a represents that she owned ira b which was maintained by bank c when bank c was acquired by bank d taxpayer a decided to move all of her accounts into bank e onmay 20_ she withdrew via a cashier's check amount she had previously closed at bank d a savings cd for amount and a savings account for amount her intent was to move amount into an ira cd with bank e and amount and amount into a savings account in bank e taxpayer a met with a representative of bank e and requested an ira on june cd for amount and a savings account for amount and amount instead the representative of bank e deposited all the funds into a money-market account the ‘when taxpayer a received a notice from the mistake was discovered in august internal_revenue_service informing her of an adjustment to her form_1040 for withdrawing ira funds taxpayer a then withdrew the total amount from the taxpayer a contacted bank e about the error but was told nothing could be done to fix the error on august money-market account in bank e receiving a cashier's check which was never cashed after unsuccessful attempts by taxpayer a’s attorney to have bank e correct the error the attorney instructed her to return the cashier's check to bank e to be deposited in segregated accounts on october’ bank e did redeposit the amounts into segregated accounts account f for amount and account g for amount and amount earnings on the total amount were allocated between account e and account f based on the facts and representations a ruling has been requested that the internal_revenue_service waive the day rollover requirement contained in sec_408 of the code with respect to the distribution of amount sec_408 of the code provides that except as otherwise provided in sec_408 any amount_paid or distributed out of an ira shall be included in gross_income by the payee or distributee as the case may be in the manner provided under sec_72 of the code sec_408 of the code defines and provides the rules applicable to ira_rollovers sec_408 of the code provides that sec_408 of the code does not apply to any amount_paid or distributed out of an ira to the individual for whose benefit the ira is maintained if i the entire amount received including money and any other_property is paid into an ira for the benefit of such individual not later than the day after the day on which the individual receives the payment or distribution or ii the entire amount received including money and any other_property is paid into an eligible_retirement_plan other than an ira for the benefit of such individual not later than the day after the date on which the payment or distribution is received except that the maximum amount which may be paid into such plan may not exceed the portion of the amount received which is includible in gross_income determined without regard to sec_408 sec_408 of the code provides that sec_408 does not apply to any amount described in sec_408 received by an individual from an ira if at any time during the 1-year period ending on the day of such receipt such individual received any other amount described in sec_408 from an ira which was not includible in gross_income because of the application of sec_408 sec_408 of the code provides a similar 60-day rollover period for partial rollovers sec_408 of the code provides that the 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 60-day requirement under sec_408 and sec_408 of the code where the failure to waive such requirement would be against equity or good conscience including casualty disaster or other events beyond the reasonable control of the individual subject_to such requirement only distributions that occurred after date are eligible for the waiver under sec_408 of the code revproc_2003_16 2003_4_irb_359 date provides that in determining whether to grant a waiver of the 60-day rollover requirement pursuant to sec_408 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 presented and documentation submitted by taxpayer a is consistent with her assertion that her failure to accomplish a timely rollover was due to a mistake by bank e which resulted in amount being deposited into a non-ira account therefore pursuant to sec_408 of the code the service hereby waives the 60-day rollover requirement with respect to the distribution of amount from ira b taxpayer a is granted a period of days from the issuance of this letter_ruling to contribute no more than amount into a rollover ira provided all other requirements of sec_408 except the 60-day rollover requirement are met with respect to such contribution the contribution will be considered a rollover_contribution within the meaning of sec_408 co this ruling does not authorize the rollover of any amounts that are required to be distributed by sec_401 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 a copy of this letter_ruling has been sent to your authorized representative pursuant to a power_of_attorney on file in this office contact d at please address all correspondence to se t ep ra t1 if you wish to inquire about this ruling please sincerely ‘on biz jt her carlton watkins manager employee_plans technical group enclosures deleted copy of ruling letter notice of intention to disclose cc


internal_revenue_service number release date index number ----------------------- ------------- ---------------------- -------------------------------- ---------------------------------------------- re ------------------------------------- department of the treasury washington dc third party communication none date of communication not applicable_person to contact ---------------- id no ------------------ telephone number ---------------------- refer reply to cc psi plr-137273-16 date date --------------------------------- ------------------ --------------------- ------------------------------------ ------------------ -------------------------- legend decedent date spouse date dear ----- -------- this letter responds to your authorized representative’s letter of date requesting an extension of time pursuant to sec_301_9100-3 of the procedure and administration regulations to make the election under sec_2010 of the internal_revenue_code code to allow a decedent’s surviving_spouse to take into account that decedent’s deceased spousal unused exclusion dsue amount the facts and representations submitted are as follows decedent died on date survived by spouse date is a date after the effective date of the amendment to sec_2010 which provides for portability of a dsue amount to a surviving_spouse to obtain the benefit of portability of decedent’s dsue amount to spouse decedent’s estate was required to file form_706 united_states estate and generation-skipping_transfer_tax return on or before the date that is nine months after decedent’s date of death or the last day of the period covered by an extension decedent’s form_706 was due on date but the estate did not file a timely form_706 plr-137273-16 to make the portability election the estate discovered its failure to elect portability after the due_date for making the election it is represented that the value of decedent’s gross_estate is less than the basic exclusion amount in the year of decedent’s death including any taxable_gifts made during his lifetime you request an extension of time pursuant to sec_301_9100-3 to elect portability of decedent’s dsue amount pursuant to sec_2010 law and analysis sec_2001 imposes a tax on the transfer of the taxable_estate of every decedent who is a citizen or resident_of_the_united_states sec_2010 provides that a credit of the applicable credit_amount shall be allowed to the estate of every decedent against the tax imposed by sec_2001 sec_2010 provides that the applicable credit_amount is the amount of the tentative_tax that would be determined under sec_2001 if the amount with respect to which such tentative_tax is to be computed were equal to the applicable_exclusion_amount on date congress amended sec_2010 effective for estates of decedents dying and gifts made after date to allow portability of a decedent’s unused applicable_exclusion_amount between spouses tax relief unemployment insurance reauthorization and job creation act of pub_l_no sec_303 124_stat_3296 sec_2010 provides that the applicable_exclusion_amount is the sum of the basic exclusion amount and in the case of a surviving_spouse the dsue amount sec_2010 generally provides that the basic exclusion amount is dollar_figure to be adjusted for inflation annually after calendar_year sec_2010 defines the dsue amount to mean the lesser_of a the basic exclusion amount or b the excess of -- i the applicable_exclusion_amount of the last deceased spouse of the surviving_spouse over ii the amount with respect to which the tentative_tax is determined under sec_2001 on the estate of such deceased spouse sec_2010 provides that a dsue amount may not be taken into account by a surviving_spouse under sec_2010 unless the executor of the estate of the deceased spouse files an estate_tax_return on which such amount is computed and makes an election on such return that such amount may be so taken into account the election plr-137273-16 once made shall be irrevocable no election may be made if such return is filed after the time prescribed by law including extensions for filing such return sec_2010 provides that the secretary shall prescribe regulations as may be necessary or appropriate to implement sec_2010 sec_20_2010-2t a of the estate_tax regulations as in effect on date provides that to allow a decedent’s surviving_spouse to take into account that decedent’s dsue amount the executor of the decedent’s estate must elect portability of the dsue amount on a timely filed form_706 under sec_20_2010-2t a the due_date of an estate_tax_return required to elect portability is nine months after the decedent’s date of death or the last day of the period covered by an extension if an extension of time for filing has been granted under sec_20_2010-2t a the portability election is made by timely filing a complete and properly prepared estate_tax_return unless the executor satisfies the requirements for the election not to apply in sec_20_2010-2t a i sec_301_9100-1 provides that the commissioner may grant a reasonable extension of time under the rules set forth in sec_301_9100-2 and sec_301_9100-3 to make a regulatory election or a statutory election but no more than six months except in the case of a taxpayer who is abroad under all subtitles of the code except subtitles e g h and i sec_301_9100-1 provides that the term statutory election means an election whose due_date is prescribed by statute the term regulatory election means 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_9100-3 provides the standards the commissioner will use to determine whether to grant an extension of time to make an election whose due_date is prescribed by a regulation and not expressly provided by statute a request for relief under sec_301_9100-3 will be granted when the taxpayer provides evidence to establish to the satisfaction of the commissioner that the taxpayer acted reasonably and in good_faith and that granting relief will not prejudice the interests of the government sec_301_9100-3 provides that a taxpayer is deemed to have acted reasonably and in good_faith if the taxpayer reasonably relied on a qualified_tax professional including a tax professional employed by the taxpayer and the tax professional failed to make or advise the taxpayer to make the election the due_date for the portability election is prescribed by statute in the case of an estate required to file an estate_tax_return under sec_6018 see sec_2010 sec_6075 plr-137273-16 and a in the case of an estate that is not required to file an estate_tax_return under sec_6018 the due_date is prescribed by regulation see sec_20_2010-2t a see also sec_20_2010-2 and revproc_2014_18 2014_7_irb_513 sec_2 accordingly in the latter case a taxpayer may seek an extension of time to elect portability under the provisions of sec_301_9100-3 sec_6018 requires the filing of an estate_tax_return in all cases where the gross_estate exceeds the basic exclusion amount in effect under sec_2010 for the calendar_year which includes the date of death for purposes of this determination under sec_6018 the basic exclusion amount is reduced but not below zero by the sum of -- a the amount of the adjusted_taxable_gifts within the meaning of sec_2001 made by the decedent after date plus b the aggregate amount allowed as a specific exemption under sec_2521 as in effect before its repeal by the tax reform act of with respect to gifts made by the decedent after date it is represented that based on the value of the gross_estate and taking into account any taxable_gifts decedent’s estate is not required to file an estate_tax_return under sec_6018 under these facts the commissioner has discretionary authority under sec_301_9100-3 to grant to decedent’s estate an extension of time to elect portability based on the facts submitted and the representations made we conclude that the requirements of sec_301_9100-3 have been satisfied accordingly we grant an extension of time of days from the date of this letter in which to elect portability under sec_2010 the election should be made by filing a complete and properly prepared form_706 and a copy of this letter within days from the date of this letter to the cincinnati service_center at the following address internal_revenue_service cincinnati service_center stop cincinnati oh for purposes of electing portability a form_706 filed by decedent’s estate within days from the date of this letter will be considered to be timely filed the rulings contained in this letter are based upon information and representations submitted by the taxpayer and accompanied by a penalty of perjury statement executed by an appropriate party while this office has not verified any of the material submitted in support of the request for rulings it is subject_to verification on examination if it is later determined that based on the value of the gross_estate and taking into account any taxable_gifts decedent’s estate is required to file an estate_tax_return pursuant to sec_6018 the commissioner is without authority under sec_301_9100-3 to grant to decedent’s estate an extension of time to elect portability and the grant of the extension referred to in this letter is deemed null and void plr-137273-16 this ruling is directed only to the taxpayer requesting it sec_6110 provides that it may not be used or cited as precedent sincerely associate chief_counsel passthroughs special industries karlene m lesho by ______________________________ karlene m lesho senior technician reviewer branch passthroughs special industries enclosures copy for sec_6110 purposes copy of this letter cc


department of the treasury internal_revenue_service washington d c nov number release date cc tege eoeg et1 - genin-146016-01 uilc memorandum for director internal_revenue_service center kansas city mo attn entity control from subject office of division counsel associate chief_counsel tax exempt and government entities cc tege eoeg et1 - genin-146016-01 railroad retirement act tax status in accordance with the coordination procedure established between the service and the railroad retirement board rrb the rrb has provided us with its opinion that the following business became an employer under the railroad retirement act and the railroad unemployment insurance act effective date we have reviewed the opinion of the rrb and based upon the information submitted to the rrb we also conclude that became an employer under the railroad_retirement_tax_act effective date please take the appropriate action regarding this business will e mcleod cc


internal_revenue_service number release date index number ----------------------------- -------------------------------------- ------------------------------------------- ------------------------------ department of the treasury washington dc third party communication none date of communication not applicable_person to contact -------------------- id no ------------- telephone number --------------------- refer reply to cc psi b02 plr-142097-08 date date legend x ------------------------------------------ -------------------------------------- state d1 ----------- ----------------------- dear ---------------- this responds to a letter dated date and subsequent correspondence submitted on behalf of x requesting that the service grant x an extension of time under sec_301_9100-3 of the procedure and administration regulations to file an entity classification election the information submitted states that x was formed as a state entity on d1 eligible to be treated as a partnership for federal tax purposes however form_8832 entity classification election electing to be treated as a partnership was not filed for x sec_301_7701-2 generally provides that a business_entity is any entity recognized for federal tax purposes that is not properly classified as a_trust under sec_301_7701-4 or otherwise subject_to special treatment under the internal_revenue_code sec_301_7701-3 provides that an eligible_entity with at least two members may elect to be classified as either an association and thus a corporation under sec_301_7701-2 or as a partnership and an eligible_entity with a single owner can elect to be classified as an association or to be disregarded as an entity separate from its owner plr-142097-08 sec_301_7701-3 further provides that so long as a business_entity is not classified as a corporation under sec_301_7701-2 or an eligible_entity it may elect its classification for federal tax purposes sec_301_7701-3 provides that an entity classification election must be filed on form_8832 and can be effective up to seventy-five days prior to the date the form is filed or up to twelve months after the date on which the form is filed 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 internal_revenue_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_9100-1 through provide the standards the commissioner will use to determine whether to grant an extension of time to make the election 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 evidence to establish to the satisfaction of the commissioner that the taxpayer acted reasonably and in good_faith and granting relief will not prejudice the interests of the government based solely on the information submitted and the representations made we conclude that the requirements of sec_301_9100-3 have been satisfied as a result x is granted an extension of time of days from the date of this letter to file a form_8832 with the appropriate service_center to elect to be treated as a partnership for u s income_tax purposes effective d1 a copy of this letter should be attached to the form_8832 a copy is enclosed for that purpose except as specifically set forth above no opinion is expressed concerning the federal tax consequences of the facts described above under any other provision of the code this ruling is directed only to the taxpayer requesting it sec_6110 provides that it may not be used or cited as precedent plr-142097-08 pursuant to a power_of_attorney on file with this office a copy of this letter is being sent to x’s authorized representative sincerely curt g wilson associate chief_counsel passthroughs and special industries enclosures copy of this letter copy for sec_6110 purposes cc