internal_revenue_service number release date index number ------------------------ ---------------------------------- ---------------------------------------------------- ------------------------------- department of the treasury washington dc third party communication none date of communication not applicable_person to contact --------------------------- id no ------------- telephone number --------------------- refer reply to cc psi b01 plr-143485-11 date november legend x -------------------------------------------------- ------------------------------------------------------------------------------------------ country d -------------- ---------------------- dear ----------------- this responds to a letter dated date 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 election under sec_301_7701-3 to be treated as a disregarded_entity for federal tax purposes facts according to the information submitted x was formed under the laws of country x intended to elect be treated as a disregarded_entity for federal tax purposes effective d however x may have inadvertently failed to timely file form_8832 entity classification election to elect to be treated as a disregarded_entity for federal tax purposes law and analysis sec_301_7701-3 provides in part that a business_entity that is not classified as a corporation under sec_301_7701-2 or an eligible_entity can elect its classification for federal tax purposes an eligible_entity with at least two members can elect to be classified as either an association or 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-143485-11 sec_301_7701-3 provides guidance on the classification of a foreign eligible_entity for federal tax purposes generally a foreign eligible_entity is treated as an association if all members have limited_liability unless the entity makes an election to be treated otherwise a foreign eligible_entity with a single member having limited_liability may elect to be treated as a disregarded_entity pursuant to the rules of sec_301_7701-3 sec_301_7701-3 provides that an entity classification election must be filed on form_8832 and can be effective up to days prior to the date the form is filed or up to months after the date the form is filed sec_301_7701-3 provides that such an election must be signed by either a each member of the electing entity who is an owner at the time the election is filed or b any officer manager or member of the electing entity who is authorized under local law or the entity’s organization documents to make the election and who represents to having such authorization under penalties of perjury 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 conclusion 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 disregarded_entity for federal tax purposes effective d a copy of this letter should be attached to the form_8832 a copy is enclosed for that purpose plr-143485-11 this ruling is directed only to the taxpayer requesting it sec_6110 provides that it may not be used or cited as precedent pursuant to a power_of_attorney on file with this office a copy of this letter is being sent to x's authorized representative sincerely associate chief_counsel passthroughs special industries by david r haglund david r haglund chief branch office of associate chief_counsel passthroughs special industries enclosures copy of this letter copy of this letter for sec_6110 purposes cc


internal_revenue_service number info release date cc psi 1-cor-132462-01 date uilc we are responding to your correspondence postmarked date requesting late s_corporation relief under revproc_98_55 in order to establish date as the effective date for your s_corporation_election the information submitted indicates that you filed form_2553 in date but failed to arrange for a receipt reflecting timely mailing internal_revenue_service records reflect no record of receiving a timely election for your corporation the window for automatic relief under revproc_98_55 involving the taxable_year closed on date unextended return_due_date because your request to our office was postmarked after the window of relief had closed you are ineligible for automatic relief the only other option for automatic relief revproc_97_48 is also unavailable because notice about the underlying form_2553 deficiency was sent by the irs within six months of receiving your form_1120s for the tax_year announcement copy enclosed provides guidance on seeking relief for late s_corporation elections generally to request relief for a late or invalid s_corporation_election you must request a private_letter_ruling from the national_office the procedures for requesting a ruling are set out in revproc_2001_1 copy enclosed in addition a proper user_fee must be submitted along with your request the fee for a ruling is dollar_figure however taxpayers with gross_income of less than dollar_figure million for the last 12-month taxable_period qualify for a reduced user_fee in the amount of dollar_figure if your business qualifies for the reduced fee your request must include a statement certifying gross_income otherwise you will be billed the higher fee please format your ruling_request as shown in appendix b of revproc_2001_1 if you decide to submit a ruling_request please provide documents supporting your intention to be an s_corporation and include the proper user_fee please refer your package to our office by adding the following to the address attn cc pa t p o box ben franklin station washington dc direct to cc psi b1 room if you have computer web access you may wish to visit www irs gov smallbiz for specialized tax information products and forms relating to small businesses please keep this letter with your tax records and feel free to provide a copy of it to your authorized representative we hope that the above information proves helpful sincerely yours s dianna k miosi dianna k miosi chief branch associate chief_counsel passthroughs and special industries enclosures announcement revproc_2001_1 copy of submission


internal_revenue_service number release date index number -------------------------------- ----------------------------- ----------------------------- --------------------------------- legend legend department of the treasury washington dc third party communication none date of communication not applicable_person to contact ----------------- id no ------------- telephone number --------------------- refer reply to cc psi b01 plr-142960-07 date date x --------------------------------------------------- ----------------------------- --------------------------------------------------- ----------------------------------------------------- d year year year year state -------------- ------- ------- ------- ------- ---------------- dear ---------------- this responds to a letter dated date and subsequent correspondence submitted by x requesting relief under sec_1362 of the internal_revenue_code facts according to the information submitted x was incorporated in d under the laws of state x has not filed an election to be treated as an s_corporation for federal tax purposes x filed form_1120 c_corporation return for year and year x did not file plr-142960-07 any_tax returns for its following years until year when it filed a late form_1120s for year 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 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 treated as an s_corporation for the year in which the election is made if the election is made after the first two and one-half months of a corporation's taxable_year then the corporation will not be treated as an s_corporation until the taxable_year after the year in which the s election is made sec_1362 provides that if no election is made pursuant to sec_1362 or if made the election is made after the date prescribed for making such an election and the secretary determines there was reasonable_cause for the failure to timely make the election then the secretary may treat such election as timely made for such taxable_year and effective as of the first day of that year conclusion based solely on the information submitted and the representations made we conclude that x has not established reasonable_cause for not making a timely s election effective for d accordingly relief under sec_1362 is denied 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 plr-142960-07 this ruling is directed only to the taxpayer requesting it sec_6110 provides that it may not be used or cited as precedent sincerely dianna k miosi dianna k miosi chief branch office of the associate chief_counsel passthroughs special industries enclosures copy of this letter copy of this letter 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 br 1-plr-130594-00 date date legend x d1 this responds to your letter dated date requesting relief under sec_1362 of the internal_revenue_code facts x was incorporated on d1 and intended to make an election to be treated as an s_corporation effective on d1 but the s election was not timely filed 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 if an s election is made within the first two and one-half months of a corporation’s taxable_year then the corporation will be treated as an s_corporation for the year in which the election is made if the election is made after the first two and one-half months of a corporation’s taxable_year then the corporation will not be treated as an s_corporation until the taxable_year after the year in which the s election is made sec_1362 provides that if no election is made pursuant to sec_1362 or if made the election is made after the date prescribed for making such an election and the secretary determines there was reasonable_cause for the failure to timely make the election then the secretary may treat such an election as timely made for such taxable_year and effective as of the first day of that tax_year x did not file a timely election to be treated as an s_corporation under sec_1362 effective on d1 x has however established reasonable_cause for not making a timely s election and is entitled to relief under sec_1362 plr-130594-00 conclusion based solely on the facts submitted and representations made and provided that x otherwise qualifies as a subchapter_s_corporation we conclude that x will be recognized as an s_corporation effective on d1 within days from the date of this letter x should submit a properly executed form_2553 with a copy of this letter attached to the relevant service_center except as specifically set forth above no opinion is expressed as to the federal tax consequences of the transaction described above under any other provision of the internal_revenue_code this ruling is directed only to the taxpayer who requested it sec_6110 of the code provides that it may not be used or cited as precedent s david r haglund sincerely senior technician reviewer branch associate chief_counsel passthroughs and special industries enclosures copy of this letter copy for sec_6110 purposes


t c memo united_states tax_court ena m and brian r fleming petitioners v commissioner of internal revenue respondent docket no filed date ena m and brian r fleming pro sese christine k lane for respondent memorandum findings_of_fact and opinion wells judge respondent determined a deficiency of dollar_figure in petitioners’ federal_income_tax for tax_year after concessions by respondent we must decide whether petitioner sec_1respondent concedes that petitioners are not liable for the self-employment_tax accordingly petitioners are not entitled to the corresponding deduction for one-half of the self- continued are entitled to deduct expenses they claimed on schedule c profit and loss from business attached to their tax_return for mileage driven automobile repairs and maintenance meals and entertainment cellular telephone service advertising and franchise fees professional dues office supplies and expenses and legal and professional fees findings_of_fact some of the facts and certain exhibits have been stipulated the stipulations of fact are incorporated in this opinion by reference and are so found at the time they filed the petition petitioners resided in florida petitioners are husband and wife petitioners filed a joint federal_income_tax return for their tax_year petitioner ena m fleming ms fleming is employed as a school teacher petitioner brian r fleming mr fleming is a real_estate agent for the keyes co for their tax_year petitioners reported no gross_income on schedule c of their federal_income_tax return however petitioners claimed as deductible expenses on that schedule c continued employment_tax for their tax_year respondent also concedes that petitioners are entitled to a deduction for franchise fees of dollar_figure and advertising expenses of dollar_figure for their tax_year however respondent disputes any deduction for advertising and franchise fees above this amount mileage driven of dollar_figure automobile repairs and maintenance of dollar_figure meals and entertainment after reduction by the 50-percent limitation of sec_274 n of dollar_figure legal and professional fees of dollar_figure and cellular telephone service advertising franchise fees office expenses and supplies and professional dues in the total amount of dollar_figure on date respondent sent petitioners a notice_of_deficiency petitioners timely filed a petition in this court for redetermination of the deficiency opinion generally the commissioner’s determination_of_a_deficiency is presumed correct and the taxpayer has the burden of proving it incorrect rule a 290_us_111 deductions are a matter of legislative grace and taxpayers bear the burden of proving their entitlement to the deductions claimed sec_6001 503_us_79 sec_162 allows a deduction from income for all ordinary and necessary expenses for carrying_on_a_trade_or_business during the taxable_year however a taxpayer generally 2unless otherwise indicated all rule references are to the tax_court rules_of_practice and procedure and all section references are to the internal_revenue_code as amended 3petitioners do not contend that sec_7491 should apply to shift the burden_of_proof to respondent nor did they establish that it should apply must keep records sufficient to establish the amounts of the items reported on his federal_income_tax return sec_6001 sec_1_6001-1 e income_tax regs in the event that a taxpayer establishes that a deductible expense has been paid but is unable to substantiate the precise amount we generally may estimate the amount of the deductible expense bearing heavily against the taxpayer whose inexactitude in substantiating the amount of the expense is of his own making 39_f2d_540 2d cir we cannot estimate a deductible expense however unless the taxpayer presents evidence sufficient to provide some basis upon which an estimate may be made 85_tc_731 sec_274 supersedes the cohan doctrine for certain categories of expenses 50_tc_823 affd per curiam 412_f2d_201 2d cir a deduction is disallowed with regard to traveling expenses meals and entertainment or listed_property unless the taxpayer properly substantiates the amount of such expense the time and place of the expense the business_purpose and in the case of meals and entertainment the business relationship between the taxpayer and the persons being entertained sec_274 sec_280f includes as listed_property any passenger_automobile or cellular telephone generally expenses subject_to the strict substantiation requirements of sec_274 must be disallowed in full unless the taxpayer satisfies every element of those requirements sanford v commissioner supra larson v commissioner tcmemo_2008_187 sec_1 5t a temporary income_tax regs fed reg date in the case of listed_property that is used both personally and professionally expenses are disallowed unless a taxpayer establishes the amount of business use of the property in question kinney v commissioner tcmemo_2008_287 olsen v commissioner tcmemo_2002_42 affd 54_fedappx_479 9th cir sec_1_274-5t temporary income_tax regs fed reg date taxpayers may substantiate their deductions by either adequate_records or sufficient evidence that corroborates the taxpayer’s own statement sec_274 to satisfy the adequate_records requirement a taxpayer must maintain records and documentary_evidence that in combination are sufficient to establish each element of an expenditure or use larson v commissioner supra sec_1_274-5t temporary income_tax regs fed reg date a contemporaneous log is not required but corroborative evidence used to support a taxpayer’s reconstruction of the elements of the expenditure or use must have a high degree of probative value to elevate such statement to the level of credibility of a contemporaneous record larson v commissioner supra sec_1_274-5t temporary income_tax regs fed reg date in the absence of adequate_records a taxpayer may alternatively establish an element by his own statement whether written or oral containing specific information in detail as to such element and by other corroborative evidence sufficient to establish such element larson v commissioner supra sec_1_274-5t temporary income_tax regs fed reg date however we may not use the cohan doctrine to estimate expenses covered by sec_274 sanford v commissioner supra pincite larson v commissioner supra petitioners’ expenses can be divided into two categories those that must meet the strict substantiation requirements of sec_274 in addition to otherwise qualifying as deductible under sec_162 and those that must meet only the general substantiation requirements of sec_162 the expenses that must meet the sec_274 requirements include car and truck expenses for mileage driven automobile repairs and maintenance meals and entertainment and expenses for cellular telephone services sec_274 sec_280f expenses that are not required to meet the strict substantiation requirements of sec_274 but must meet the general substantiation requirements include advertising and franchise fees professional dues office supplies and expenses and fees for legal and professional services we first address those expenses that must meet the strict substantiation requirements of sec_274 for their tax_year petitioners claimed car and truck expenses for mileage driven of dollar_figure petitioners submitted a mileage log to substantiate those expenses the mileage log lists total miles driven for the day the log does not contain any entries regarding the business_purpose of the trips and in many instances it lists the destination as local moreover petitioners’ log is incompatible with receipts they provided accordingly we conclude that petitioners’ mileage logs are not adequate_records of their mileage expense similarly we conclude that petitioners have failed to provide other corroborative evidence sufficient to establish that they have met the requirements of sec_274 consequently we sustain respondent’s determination disallowing a deduction for car and truck expenses for mileage driven claimed on petitioners’ tax_return 4mr fleming testified that local means that he was looking at buildings and surveying neighborhoods making separate stops along the way however mr fleming failed to provide more specificity 5petitioners’ log for date indicates a beginning mileage of big_number while an invoice petitioners offered from bj’s tire service_center dated date indicates a mileage of big_number we next turn to petitioners’ expenses for repairs and maintenance on their automobiles mr fleming testified that petitioners had two automobiles and that both were used in his real_estate business petitioners claimed dollar_figure for repairs and maintenance of their automobiles in support of their claim petitioners provided an invoice for dollar_figure for the installation of a tire on one of their automobiles however petitioners failed to allocate between the business and personal_use of their personal automobiles as required under sec_274 see olsen v commissioner supra sec_1_274-5t temporary income_tax regs supra accordingly we sustain respondent’s determination disallowing a deduction for automobile repairs and maintenance claimed on petitioners’ tax_return we next consider petitioners’ meals and entertainment_expenses petitioners failed to present and we do not find any evidence of the business relationship of the persons entertained or of the business_purpose of the expenses see sec_274 accordingly we sustain respondent’s determination disallowing a deduction for meals and entertainment claimed on petitioners’ tax_return as to petitioners’ cellular telephone expenses each petitioner owned a cellular telephone and petitioners provided records for both petitioners testified that mr fleming used his cellular telephone to call ms fleming and one friend but that all other calls were for business purposes however petitioners failed to allocate between the personal and business use of mr fleming’s cellular telephone or ms fleming’s cellular telephone as required under sec_274 see kinney v commissioner tcmemo_2008_287 accordingly we sustain respondent’s determination disallowing a deduction for petitioners’ cellular telephone expenses claimed on their tax_return as to petitioners’ expenses that are not required to meet the strict substantiation requirements of sec_274 in addition to the requirements of sec_162 and sec_6001 petitioners claimed other expenses of dollar_figure and legal and professional fees of dollar_figure on their tax_return included within the dollar_figure are expenses for advertising and franchise fees professional dues office expenses and office supplies for the advertising and franchise fees petitioners have submitted monthly invoices from the keyes co mr fleming’s real_estate company for petitioners’ tax_year the monthly statements list franchise fees totaling dollar_figure and advertising fees totaling dollar_figure respondent has conceded that petitioners are entitled to franchise fees of dollar_figure and advertising fees of dollar_figure 6expenses for cellular telephone service are also included within the dollar_figure of other expenses however cellular telephones are listed_property that must meet the strict substantiation requirements of sec_274 petitioners argue but have failed to prove that all amounts billed were deductible from their income petitioners testified that amounts billed once paid were removed from later invoices however several of the keyes co invoices from petitioners’ tax_year show amounts carried over from petitioners’ tax_year in addition to the keyes co invoices petitioners provided bank records that purportedly show business_expenses mr fleming testified that he placed a checkmark next to each purported business_expense one entry shows an expense of dollar_figure for advertising in the local paper accordingly we hold that petitioners are entitled to a deduction for advertising expenses of dollar_figure in excess of respondent’s concession of dollar_figure for their tax_year as to petitioners’ professional dues petitioners provided invoices for professional dues of dollar_figure the invoices do not indicate whether the dollar_figure was paid and petitioners failed to provide any documentation such as receipts canceled checks or credit card statements to show that the professional dues were paid mr fleming testified that he paid the dollar_figure but given petitioners’ history of untimely payments and lack of documentation we find his testimony unpersuasive additionally we were unable to match payment of the professional dues to petitioners’ bank statements accordingly we conclude that petitioners have failed to prove that they paid dollar_figure for professional dues consequently we sustain respondent’s determination denying a deduction for petitioners’ professional dues claimed on their tax_return as to petitioners’ claimed deduction for office supplies and expenses in support of their claimed deduction petitioners provided personal bank statements which they allege show business_expenses by notations of checkmarks as stated above many of the checked items were for purchases at office max and the u s postal service however petitioners failed to provide any additional testimony or evidence explaining the checked items accordingly we conclude that without more petitioners’ evidence fails to provide a sufficient evidentiary basis to make a cohan estimate of costs see vanicek v commissioner t c pincite consequently we sustain respondent’s denial of petitioners’ deduction for office supplies and expenses claimed on their tax_return finally as to petitioners’ expenses for legal and professional fees petitioners failed to present any evidence or argument on legal and professional fees therefore petitioners have failed to provide an evidentiary basis to make a cohan estimate of expenses for legal and professional fees see vanicek v commissioner supra accordingly we sustain respondent’s deficiency determinations regarding the legal and professional fees claimed as a deduction on petitioners’ tax_return the court has considered all other arguments made by the parties and to the extent we have not addressed them herein we consider them moot irrelevant or without merit to reflect the foregoing and respondent’s concessions decision will be entered under rule


partment of the treasury huteoral revenue seraace ea n front st room memphis tn release number release date mar052007_ - u legend org name of organization date xx org person to contact identification_number contact telephone number in reply refer to te_ge review staff ein dear this is a final adverse determination as to your exempt status under sec_501 of the internal_revenue_code our adverse determination was made for the following reasons org failed to establish that they meet the requirement for exemption under sec_501 sec_1_501_c_4_-1 and of the treasury regulations reads in part a civic organizations in general -a civic_league_or_organization may be exempt as an organization described in sec_501 if i it is not organized or operated for profit and ii it is operated exclusively for the promotion of social welfare promotion of social welfare i in general -an organization is operated exclusively for the promotion of social welfare if it is primarily engaged in promoting in some way the common good and general welfare of the people of the community an organization embraced within this section is one which is operated primarily for the purpose of bringing about civic betterments and social improvements as a result of our recent audit of your organization's activities for the period ended december 20xx it was determined that a substantial part of your activities include the administration and enforcement of covenants for preserving the appearance of a particular area the maintenance of common property and the operation of pool and clubhouse facilities therefore we are revoking your organization's exemption from federal_income_tax under sec_501 of the internal_revenue_code effective january 20xx you are required to file form 1120-h u s income_tax return for homeowners associations these returns should be filed with the appropriate service_center for all years beginning after december 20xx form 1120-h must be filed by the day of the third month after the end of your annual_accounting_period a penalty of dollar_figure a day is charged when a return is filed late unless there is reasonable_cause for the delay however the maximum penalty charged cannot exceed dollar_figure or percent of your gross_receipts for the year whichever is less this penalty may also be charged if a return is not complete so please be sure your return is complete before you file it you are required to file form 1120-h with the appropriate internal revenue campus you have the right to contact the office_of_the_taxpayer_advocate however you should first contact the person whose name and telephone number are shown above since this person can access your tax information and can help you get answers you can call and ask for taxpayer_advocate assistance or you can contact the taxpayer_advocate from the site where the tax_deficiency was determined by calling or writing to internal_revenue_service taxpayer_advocate assistance cannot be used as a substitute for established irs procedures formal appeals processes etc the taxpayer_advocate is not able to reverse legal or technically correct_tax determinations nor extend the time fixed by law that you have to file a petition in the united_states tax_court the taxpayer_advocate can however see that a tax matter that may not have been resolved through normal channels gets prompt and proper handling if you have any questions please contact the person whose name and telephone number are shown in the heading of this letter sincerely yours marsha a ramirez director eo examinations tax_exempt_and_government_entities_division department of the treasury internal_revenue_service te_ge eo examinations town and country commons room chesterfield mo date legend org name of organization address address of org date xx org address taxpayer_identification_number form tax_year s ended 20xx12 person to contact id number contact numbers telephone fax certified mail - return receipt requested dear we have enclosed a copy of our report of examination explaining why we believe an adjustment of your organization's exempt status is necessary if you do not agree with our position you may appeal your case the enclosed publication the examination process explains how to appeal an internal_revenue_service irs decision publication also includes information on your rights as a taxpayer and the irs collection process if you request a conference we will forward your written_statement of protest to the appeals_office and they will contact you for your convenience an envelope is enclosed if you and appeals do not agree on some or all of the issues after your appeals_conference or if you do not request an appeals_conference you may file suit in united_states tax_court the united_states court of federal claims or united_states district_court after satisfying procedural and jurisdictional requirements as described in publication letter catalog number v you may also request that we refer this matter for technical_advice as explained in publication exempt_organization appeal procedures for una greed issues if a determination_letter is issued to you based on technical_advice no further administrative appeal is available to you within the irs on the issue that was the subject of the technical_advice if you accept our findings please sign and return the enclosed form_6018 consent to final letter modifying or revoking proposed adverse action we will then send you a exempt status if we do not hear from you within days from the date of this letter we will process your case on the basis of the recommendations shown in the report of examination and this letter will become final in that event you will be required to file federal_income_tax returns for the tax period s shown above file these returns with the ogden service_center within days from the date of this letter unless a request for an extension of time is granted file returns for later tax years with the appropriate service_center indicated in the instructions for those returns you have the right to contact the office_of_the_taxpayer_advocate taxpayer_advocate assistance is not a substitute for established irs procedures such as the formal appeals process the taxpayer_advocate cannot reverse a legally correct_tax determination or extend the time fixed by law that you have to file a petition in a united_states court the taxpayer_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 local taxpayer_advocate if you have any questions please call the contact person at the telephone number shown in the heading of this letter if you write please provide a telephone number and the most convenient time to call if we need to contact you letter catalog number 34801v sincerely internal revenue_agent thank you for your cooperation enclosures publication publication form_6018 report of examination envelope letter catalog number 34801v form_886 a department of the treasury- internal_revenue_service explanation of items name of taxpayer schech tle no or exhibit year period ended 20xx12 org legend org name of org date xx should the org an organization exempt under internal_revenue_code sec_501 continue to be exempt since it operates a swimming pool open only to the members of the organization fact sec_1 org was recognized on 19xx as an organization exempt under sec_501 because it was an organization described in sec_501 the organization membership is compelled to belong by fees mandated in a covenant to the membet's property title the organization owns and maintains common areas anda swimming pool the common areas and swimmi and enjoyment of the general_public the organization does not maintain a police security force or enact laws or other ordinances normally identified with a governmental subdivision or district the specific area which encompasses the otganization's homeowner's property and common ateas does not have tts own zip code pool ae restricted to the organization's members and are not for the use c of the internal_revenue_code states that civic leagues or organizations not organized for profit but operated exclusively for the promotion of social welfare will be recognized as exempt under sub sec_501 a if no part of the net_earnings of such entity inures to the benefit of any private_shareholder_or_individual sec_1 5u1i c -2 of the income_tax regulations states that an organization will be regarded as operating exclusively for the promotion of social welfare if it is primarily engaged in promoting in some way the common good and general welfare of the people of the community because it is operated primarily to bring about civic betterments and social improvements sec_1_501_c_4_-1 of the regulations provides that an organization is not operated primarily for the ptomotion of social welfare if its primary activity is operating a social_club for the benefit pleasure or recreation of its members revrul_73_306 1973_2_cb_179 provided that a nonprofit organization formed to protect the rights of tenants in one rental complex did not benefit the community in general but rather a select gtoup of individuals therefore exemption under c was denied rev-rul homeowners_association preserving appearance and maintaining common ateas revrul_74_99 1974_1_cb_131 jan a homeowners_association to qualify for exemption under sec_501 of the code must serve a community which bears a reasonable recognizable relationship to an area ordinarily identified as governmental it must not conduct activities directed to the exterior maintenance of private residences and the common areas or facilities it owns and maintains must be for the use and enjoyment of the general_public revrul_72_102 modified form 886a name of taxpayer department of the treasury- intemal revenue service explanation of items pehedile b t yeat petiod ended org 20xx12 revrul_74_99 1974_1_cb_132 clarified the definition of community as it applies to homeowners associations a mere aggregation of homeowners in a real_estate subdivision is not a community it must be a geographical unit bearing a reasonably recognizable relationship to an area otdinarily identified as a governmental subdivision or a rev-rul homeowners' associations revrul_80_63 1980_1_cb_116 j an was issued to discuss in question and answer format certain issues raised by revrul_74_99 question does revrul_74_99 contemplate that the term community for purposes of sec_501 of the code embraces a minimum atea or a certain number of homeowners answer no rey rul states that it was not possible to formulate a precise definition of the term community the ruling merely indicates what the term is generally understood to mean question may a’ homeowners_association which represents an area that is not a community qualify for exemption under the use of its tecteational facilities such as swimming pools tennis sec_501 of the code if it restricts courts and picnic areas to members of the association answer no revrul_74_99 points out that the use and enjoyment of the common areas owned and maintained by a homeowners'_association must be extended to membets of the general_public as distinguished from controlled use or access restricted to the members of the association for purposes of revrul_74_99 recreational facilities are included in the definition of common areas revrul_80_206 1980_2_cb_185 provided that a nonprofit organization formed to protect the legal rights of all the tenants in a community does qualify as a social_welfare_organization 868_f2d_108 4th cir the court concluded that a homeowners’ association that encompassed a very large area but restricted use of its facilities to its members does not qualify for exemption under sec_501 the court went on to conclude that in order to be exempt under sec_501 the organization must be a community that constitutes an active part of society rather than a private refuge for those who would live apart government's position civic leagues and organizations not organized for profit but operated exclusively for the promotion of social welfare are recognized as exempt under sec_501 of the code an organization will be regarded as operating exclusively for the promotion of social welfare if it is primarily engaged in promoting the common good and general welfare of the people in the community sec_1 c -1 a i of the regulations one crucial element for sec_501 exemption is promotion of social welfare for the people of a community the service granted exempt status to an organization that defended tenants’ rights for a whole community which is forn a department of the treasury - internal_revenue_service page -2- s qoca ‘ form name of taxpayer ex lanati of items pp schedule no or exh i bit year period ended org considered an exempt activity revrul_80_206 in comparison the organization in revrul_73_306 was denied exempt status because it only benefited the tenants in one rental complex it did not benefit the community in general but rather a select group of individuals rev_rul noted that an aggregation of homeowners in a real_estate subdivision is not a community it must also be a geographical unit bearing a reasonably recognizable relationship to an area ordinarily identified as a governmental subdivision ot district this organization is not a community as described above since it is not a recognized governmental subdivision ot district and does not possess the powers or responsibilities le police protection generally associated with such entities 20xx12 revrul_80_63 further provides that an area not considered a community cannot be exempt under c if it opetates a swimming pool for the exclusive use of its homeowner members flat t op lake association v united_states reinforces this ruling by concluding that for an area to be considered a community it must an active part of society rather than a private refuge for its members considenny all the facts and circumstances and applying the applicable law the org is not an organization described in sec_501 of the code however it may qualify as a homeowners_association under sec_528 of the code taxpayer's position ‘the organization agrees with the government's position conclusion ‘the organization's exemption under sec_501 of the code should be revoked for the petiod beginning january 20xx and for all subse went petiods if the organization elects and is eligible under sec_528 of the code it may begin filing form 1120-h otherwise it must file form_1130 for 886-a rev4- department of the treasury - internal_revenue_service page -3-


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-156871-01 date date legend x d1 this responds to your letter dated date in which you requested relief under sec_1362 of the internal_revenue_code facts x was incorporated d1 the shareholders of x intended it to be treated as an s_corporation effective d1 however the election to be treated as an s_corporation was not timely filed law and analysis sec_1362 allows a small_business_corporation to elect to be treated as an s_corporation sec_1362 provides the rules as to when such an election will become effective sec_1362 states 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 treated as an s_corporation for the year in which the election is made under sec_1362 however if an s election is made after the first two and one-half months of a corporation’s taxable_year then that corporation will not be treated as an s_corporation until the taxable_year after the year in which the s election is filed cc psi b1-plr-156871-01 sec_1362 b provides that if no election is made pursuant to sec_1362 or if the election is made after the date prescribed for making such an election and the secretary determines that there was reasonable_cause for the failure to timely make the election then the secretary may treat such an election as timely made for such taxable_year and effective as of the first day of that year x did not timely file an election to be treated as an s_corporation under sec_1362 x has however established reasonable_cause for not making a timely s election and is entitled to relief under sec_1362 conclusion based solely on the facts submitted and the representations made and provided that x otherwise qualifies as an s_corporation we conclude that x will be treated as an s_corporation effective d1 within days from the date of the letter x should submit a properly completed form_2553 with a copy of this letter attached to the relevant service_center except as expressly provided herein no opinion is expressed or implied concerning the tax consequences of any aspect of any transaction or item discussed or referenced in this letter this ruling is directed only to the taxpayer requesting it sec_6110 of the internal_revenue_code provides that it may not be used or cited as precedent in accordance with the power_of_attorney on file with this office a copy of this letter is being sent to the taxpayer s dianna k miosi sincerely dianna k miosi chief branch office of the associate chief_counsel passthroughs and special industries enclosures copy of this letter


internal_revenue_service department of the treasury number release date index number washington dc person to contact telephone number refer reply to cc psi plr-123577-03 date date company shareholders state a b dear this letter responds to a letter from company dated date as well as subsequent correspondence requesting a ruling under sec_1362 of the internal_revenue_code that company's late election under sec_1362 to be an s_corporation will be treated as timely made facts company was incorporated in state on a shareholders intended company to be an s_corporation from inception however form_2553 election by a small_business_corporation was not timely filed with the internal_revenue_service company filed form_1120s u s income_tax return for an s_corporation for its tax_year b and plr-123577-03 shareholders filed form_1040 u s individual_income_tax_return for the same year consistent with company’s intended status as an s_corporation law and analysis sec_1362 provides in general that an election by a small_business_corporation under sec_1362 to be an s_corporation may be made for any_tax year- a at any time during the preceding tax_year or b at any time during the tax_year and on or before the 15th day of the 3d month of the tax_year sec_1362 provides that if-- a a small_business_corporation makes an election under sec_1362 for any_tax year and b that election is made after the 15th day of the 3d month of the tax_year and on or before the 15th day of the 3d month of the following tax_year then that election shall be treated as made for the following tax_year sec_1362 provides that if-- a an election under sec_1362 is made for any_tax year determined without regard to sec_1362 after the date prescribed by this subsection for making the election for that tax_year or no such election is made for any_tax year and b the secretary determines that there was reasonable_cause for the failure to timely make the election the secretary may treat such election as timely made for that tax_year and sec_1362 shall not apply conclusion based on the facts submitted and representations made we conclude that there was reasonable_cause for company’s failure to make a timely s_corporation_election therefore company's late election under sec_1362 is to be treated under sec_1362 as filed timely for its tax_year beginning a this ruling is contingent on company filing plr-123577-03 form_2553 to be effective on a with the appropriate service_center no later than days from the date of this letter a copy of this letter should be attached to the form_2553 except for the specific ruling above we express or imply no opinion concerning the federal tax consequences of the facts of this case under any other provision of the code specifically we express or imply no opinion on whether company otherwise is eligible to be an s_corporation this ruling is directed only to the taxpayer who requested it according to sec_6110 this ruling may not be used or cited as precedent sincerely yours mary beth collins senior technician reviewer branch office of associate chief_counsel passthroughs and special industries enclosures copy of this letter copy for sec_6110 purposes cc


number release date id office uilc cca_2009020512070537 -------------- from ------------------- sent thursday february pm to ---------------------- cc ---------------------------------- subject re tefra question sec_1 you should have four forms 870-pt one for each year the consolidated parent should sign by itself for year sec_1 and both the sub and the parent should sign for year sec_3 and generally we should not combine years since the form 870-pt is a computer generated form issued to all partners and the identity of partners may change from one year to the next if the identity of partners does not change you could combine them sec_301_6224_c_-2 provides that the general_partner of a non-tefra partnership that is a partner in a tefra partnership may sign the form 870-pt if the partner is a tefra partnership its tmp signs if the partner is an llc it manager under state law should sign the agreement should be stamped partial agreement if there are other partnership items remaining in dispute in addition language should be added stating that this is a partial agreement and that section f applies standard language to this effect appears in the appeals section of the irm


internal_revenue_service p o box cincinnati oh number release date date date legend be name of organization ‘c geographical area x grant amounts department of the treasury employer identit person to contact - id uil dollar_figure dear ‘we have considered your request for advance approval of your geant-making program under sec_4945 g of the internal reveiue code dated date b was recognized as exempt from federal_income_tax under sec_501 of the our records indicate that_ code and that it is classified as a private_foundation as defined in sec_509 your letter indicates that b will be awarding several scholarships in the amount of x per student per year the foundation will provide copies of scholarship students will be selected from high schools located in the c the selection of recipients each year will be based on application forms to various high schools in the region the following criteria a statement demonstrating that the student is or will be a student in good standing at an accredited institution a statement demonstrating that the student maintains a grade point average minimum of on a scale an accounting of any prior grants a narrative of accomplishments letters of recommendation and in the case of a renewal application any relevant circumstances occurring since the scholarship was first granted preference will be given to need-based applicants within the c and who have suffered severe economic hardships but have nevertheless prospered academically the scholarship will be given to the students with the understanding that funds will be used for tuition books supplies room and board and other school related and living_expenses essential for the student’s attendance at an accredited university or college the selection committee consists of the foundation’s board_of directors unless the foundation's board_of direetors seeks out additional individuals for a selection committee fsuch a committee is formed it will be merely advisory in nature and the board_of directors will remain fully responsible for all final scholarship decisions members of the selection committee or their relatives are not eligible to apply for or teceive the foundation will not place restrictions on the selection of scholarship scholarships ftom the foundation awards based on race or employment status of any potential recipient or relative of the potential recipient no other restriction will limit application except that the applicant must be a student pursuing an education to his or het advantage and the student must demonstrate financial need prior to disbursing funds the grantee would provide the foundation with a copy of a letter of acceptance to the educational_institution once the grantee has enrolled for a semester or quarter the grantee would provide the foundation with a student schedule showing courses in which the grantee is enrolled and credits for each such course institution a copy of the grantee’s grade report for that period certified by the institution's registrar or similar recordkeeper the foundation in its scholarship application has informed applicants that any grantee must maintain a grade point average in order to continue to receive scholarship funding the report to be obtained would be a verified report within the meaning of treas reg c following completion of a semester or quarter the grantee would request from the educational the foundation will whenever possible make payments directly to the educational institutions much of the payment and administration process will be coordinated directly by the foundation or its agent and the respective scholarship recipient discovered all reasonable steps including litigation will be taken to recover such funds from the tecipient upon the discovery of between the foundation and the grantee who misuses the funds will be terminated immediately and any such funds still payable under the terms of the grant shall be retained by the foundation the organization agrees to maintain records which include the following a misuse of funds the relationship if a misuse of funds is a b c information used to evaluate the qualification of potential grantees identification of the grantees including any relationship of any grantee to the private_foundation the amount and purpose of each grant and all grantee reports and other follow-up data obtained in administering the private foundation’s grant program sec_4945 and b of the cade impose certain excise_taxes on taxable_expenditures made by a private_foundation sec_4945 of the code provides that the term taxable_expenditure means any amount_paid or incurred by a private_foundation as a grant to an individual for travel study or other similar purposes by such individual unless such geant satisfies the requirements of subsection g sec_4945 of the code provides that sec_4945 d shal not apply to individeal grants awarded on an objective and nondiscriminatory basis pursuant to a procedure approved in advance if it is demonstrated that the grant constitutes a scholarship or fellowship_grant which is subject_to the provisions of sec_117 and is to be used for smdy at an educational ‘organization described in sec_170 ax i the grant constitutes a prize or award which is subject_to the provisions of sec_74 if the recipient of such prize or award is selected from the general_public or the purpose of the grant is to achieve a specific objective produce a report or similar product or improve or enhance a teaching or other similar capacity skill or talent of the grantee literary artistic musical scientific sec_53_4945-4 c demonstrate that of the regulations provides that to secure approval a private_foundation must i ii its grant procedure includes an objective and nondiseriminatory selection process such procedure is reasonably calculated to result in performance by grantees of the activities that the ‘grants are intended to finance and ii _the foundation plans to obtain reports to determine whether the grantees performed activities that the grants are intended to finance based on the information submitted and assuming your scholarship program will be conducted as proposed with objectivity and nondiscrimination in awarding grants we determined that your procedures in awarding scholarship grants comply with the requirements of sec_4945 of the code end that scholarships granted according to these procedures will not be taxable_expenditures within the meaning of sec_4945 g3 in addition we have determined that awards made under your procedures are exeludable from the gross_income of the recipients subject o the limitations provided by sec_117 of the code this determination is conditioned on the understanding that there will be no material_change in the facts upon which it is based t is further conditioned on the premise that no grants will be awarded to foundation managers or members of the selection committee or for a purpose that is inconsistent with the purpose described in sec_170 c b of the code the approval of your grant-making procedures is a one-time approval of your system standards and procedures that will result in grants which meet the requirements of sec_4945 of the code this determination only covers the grant programs described above thus approval shall apply to succeeding grant programs only as long as the standards and procedures under which they are conducted do not differ materially from those described in your request any funds you distribute to individuals must be made on a true charitable basis in furtherance of the purposes for which you are organized all grant distributions can be substantiated upon request by the internal_revenue_service this determination is directed only to the organi that it may not be used or cited as a precedent ‘you must report any future changes in your grant making procedures please keep a copy of this letter in your permanent records we have sent a copy of this letter to your representative as indicated in your power_of_attorney if you have any questions please contact the person whose name and telephone number are shown above therefore you should maintain adequate_records and case histories so that any or n that requested it sec_61 of the code provides sincerely yours robert choi director of exempt_organizations rulings and agreements