department of the treasury internal_revenue_service washington d c uniform issue list taxpayer a legend ae date kkk se tep ra tz financial_institution a financial_institution b financial_institution c ira x financial advisor g individual h amount account y date date ee ee wee wee ila wee wee wae ee wee date kkk page dear this letter is in response to your request dated date submitted on your behalf by your authorized representative as supplemented by written correspondence dated date date and date 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 years old represents that he received a distribution from ira x at taxpayer a financial_institution a on date totaling amount with the intent to rollover amount into a newly established ira at financial_institution b and that his failure to accomplish a rollover within the 60-day period prescribed by sec_408 of the code was due to an error made by financial_institution c through its registered_representative financial advisor g taxpayer a also represents that amount has not been used for any other purpose taxpayer a represents that on date he received a distribution of amount from ira x in the form of a check taxpayer a asserts that he held onto the check and did not redeem it until date on date taxpayer a provided financial advisor g an employee of financial_institution c with information showing that amount was distributed from ira x and requested that financial advisor g rollover amount into another ira at financial_institution b according to taxpayer a financial advisor g failed to realize that ira x was an ira account and instead of establishing another ira gave taxpayer a an application_for a non-qualified account taxpayer a asserts that financial advisor g erroneously opened a non-qualified account account y and on date transferred amount into account y when taxpayer a had intended to open a qualified ira rollover account taxpayer a represents that he believed that amount was successfully rolled over into an ira taxpayer a was unaware of the error until date when he received a tax_assessment notice from the irs taxpayer a then contacted financial_institution c regarding account y taxpayer a submitted a sworn affidavit from individual h the executive vice-president of financial_institution c stating financial_institution c received qualified funds from financial_institution a on behalf of taxpayer a prior to the expiration of the 60-day rollover period taxpayer a followed all procedures indicated as required by financial_institution c for deposits of such funds into what taxpayer a believed to be an ira within the 60-day roll-over period including giving instructions to deposit the funds into an ira and solely due to an error on the part of financial_institution c through its registered_representative amount was not deposited into an ira within the 60-day roll-over period rk page based on the facts and representations you request a ruling that the internal_revenue_service waive the 60-day rollover requirement contained in sec_408 of the code with respect to the distribution of amount from ira x 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 60th day after the day on which the individual receives the payment or distribution or ii the entire amount received including money and any other_property is paid into an eligible_retirement_plan other than an ira for the benefit of such individual not later than the 60th day after the date on which the payment or distribution is received except that the maximum amount which may be paid into such plan may not exceed the portion of the amount received which is includible in gross_income determined without regard to sec_408 sec_408 of the code provides that sec_408 does not apply to any amount described in sec_408 received by an individual from an ira if at any time during the 1-year period ending on the day of such receipt such individual received any other amount described in sec_408 from an ira which was not includible in gross_income because of the application of sec_408 sec_408 of the code provides a similar 60-day rollover period for partial rollovers sec_408 of the code provides that the secretary may waive the 60-day requirement under 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 rk page sec_408 of the code the service will consider all relevant facts and circumstances including errors committed by a financial_institution inability to complete a rollover due to death disability hospitalization incarceration restrictions imposed by a foreign_country or postal error the use of the amount distributed for example in the case of payment by check whether the check was cashed and the time elapsed since the distribution occurred the information presented and documentation submitted by taxpayer a including a sworn affidavit by individual h stating that the failure of amount to be rolled over to an ira within the 60-day rollover period was due solely to error by financial_institution c through its registered_representative is consistent with his assertion that his failure to accomplish a timely rollover was caused by an error made by financial advisor g which resulted in amount being deposited into account y 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 x taxpayer a is granted a period of days from the issuance of this ruling letter to contribute amount into a rollover ira provided all other requirements of sec_408 of the code except the 60-day requirement are met with respect to such contribution amount will be considered a rollover_contribution within the meaning of sec_408 of the code no opinion is expressed as to the tax treatment of the transaction described herein under the provisions of any other section of either the code or regulations which may be applicable thereto this letter is directed only to the taxpayer who requested it sec_6110 of the code provides that it may not be used or cited as precedent a copy of this letter is being sent to your authorized representative pursuant to a power_of_attorney on file in this office if you wish to inquire about this ruling contact address all correspondence to se t ep ra t2 at - please donzell littlejohn manager employee_plans technical group sincerely yours deleted copy of ruling letter notice of intention to disclose enclosures cc kee rk kk rk


t c memo united_states tax_court roy eliason and margaret eliason petitioners v commissioner of internal revenue respondent docket no 12748-o0ol filed date roy eliason and margaret eliason pro sese james a kutten for respondent memorandum findings_of_fact and opinion swift judge this matter is before us on petitioners’ petition for review under sec_6330 of respondent’s appeals_office determination to proceed with collection by way of levy unless otherwise indicated all section references are to the internal_revenue_code as applicable to the years in issue hereinafter references to petitioner in the singular are to petitioner roy eliason findings_of_fact some of the facts have been stipulated and are so found at the time the petition was filed petitioners resided in o'fallon missouri petitioners’ undisputed and unpaid federal_income_tax liabilities including penalties and interest as of date total dollar_figure for and dollar_figure for on date respondent mailed to petitioners a notice_of_intent_to_levy and a notice of petitioners’ right to a collection hearing with respondent’s appeals_office relating to petitioners’ income_tax liabilities for and on date respondent received from petitioners a request for a collection hearing with respondent’s appeals_office on date in connection with the above request by petitioners for a collection hearing petitioners submitted to respondent’s appeals_office a financial statement showing with respect to petitioners’ monthly income and expenses a net_income of dollar_figure after adjustments were made by respondent’s appeals_office increasing the amount of petitioners’ monthly expenses respondent’s appeals_office reduced petitioners’ net_income to dollar_figure or dollar_figure less than that reflected on petitioners’ financial statement that was submitted to respondent petitioners’ financial statement and respondent’s appeals_office adjustments reflected petitioners’ total monthly income and expenses as follows monthly amounts as reflected as adjusted by petitioners by respondent income salaries - roy eliason sdollar_figure sdollar_figure salaries - margaret eliason big_number big_number pension - roy eliason big_number big_number pension - margaret eliason total income dollar_figure dollar_figure expenses national standard expenses sdollar_figure sdollar_figure housing and utilities big_number big_number transportation health care taxes income and fica big_number life_insurance total expenses dollar_figure dollar_figure net_income dollar_figure sec_912 on date in connection with petitioners’ collection hearing petitioner participated in a telephone conference with respondent’s appeals_office during the telephone conference based on the dollar_figure difference between petitioners’ monthly income and expenses as reflected in the above calculations as adjusted by respondent respondent’s appeals_office proposed that petitioners make monthly payments to respondent of dollar_figure q4e- in a letter of date respondent’s appeals_office confirmed to petitioners the proposed payment plan of dollar_figure per month and requested that petitioners respond before date with any additional financial information that may differ from the information already provided petitioners did not provide to respondent’s appeals_office any additional financial information petitioners did not offer to respondent’s appeals_office any alternatives to collection other than an indefinite postponement for the due dates of the proposed installment payments and petitioners did not accept the above proposed payment plan of dollar_figure per month on date respondent’s appeals_office issued to petitioners separate notices of determination sustaining respondent’s proposed levy collection action during and before respondent’s appeals_office issued to petitioners the above notices of determination petitioners received dollar_figure in insurance proceeds relating to an automobile accident and petitioners used the dollar_figure as a downpayment on a new home petitioners did not use any portion of the dollar_figure to make a payment on their and federal_income_tax liabilities herein petitioners assert that it was an abuse_of_discretion for respondent’s representative to propose that petitioners agree to a payment plan of dollar_figure per month to - - fail to take into consideration additional medical_expenses that were not disclosed to respondent’s appeals_office in connection with petitioners’ collection hearing and the possibility of a future reduction in petitioners’ income and to proceed with collection by way of levy based on the above stated reasons in an amended petition petitioners ask this court for a reduction in past due taxes opinion under sec_6330 where a taxpayer’s underlying tax_liability is not at issue we generally review a determination of respondent’s appeals_office concerning collection for an abuse_of_discretion 114_tc_604 under that standard of review we generally consider only matters that were raised by the taxpayer or otherwise brought to the attention of respondent’s appeals_office at or in connection with the appeals_office hearing 118_tc_488 based on the limited information available to respondent’s appeals_office the payment plan of dollar_figure per month proposed by respondent’s appeals_office to petitioners in connection with petitioners’ collection hearing did not constitute an abuse_of_discretion the proposed payment plan of dollar_figure per month was based on a financial analysis performed by respondent’s appeals -- - office of petitioners’ monthly income and expenses using among other things the financial information provided by petitioners moreover based on the dollar_figure in insurance proceeds that petitioners received in before respondent’s appeals_office made its determination petitioners had the ability to pay a significant portion of their outstanding income_tax liabilities for and a total of dollar_figure including interest to date with regard to alleged financial hardship raised by petitioners for the first time in an amended petition namely additional medical_expenses and the possibility of a future reduction in income because petitioners did not raise such matter until the filing of their amended petition in january of it did not constitute an abuse_of_discretion for respondent’s appeals_office to fail to consider such matter in making the determination to proceed with collection see magana v commissioner supra generally consideration by respondent of matters not presented to respondent’s appeals_office until after a collection hearing and after the issuance by respondent’s appeals_office of its notice_of_determination would be within respondent’s discretion under sec_6330 and would not be reviewable by this court sec_6330 d h conf rept pincite 1998_3_cb_1020 sec_301_6330-1 q a-h1 and h2 proced admin regs - j- we hold that respondent’s appeals_office did not abuse its discretion and respondent may proceed with the proposed collection by way of levy decision will be entered for respondent


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-118310-15 date date legend decedent ------------------------------------------------------- ------------------------------ spouse date date --------------------------------------------------------- -------------------- -------------------------- dear ------------------- this letter responds to your personal 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 portability election 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 plr-118310-15 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 form_706 to make the portability election the estate discovered its failure to elect portability after the due_date for making the election spouse as executor of decedent’s estate represents that the value of decedent’s gross_estate is less than the basic exclusion amount in the year of the decedent’s death and that during her lifetime decedent made no taxable_gifts as executor spouse requests 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 plr-118310-15 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 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 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_30 b iii provides that a taxpayer is deemed to have acted reasonably and in good_faith if the taxpayer failed to make the election because after exercising reasonable diligence taking into account the taxpayer’s experience and the complexity of the return or issue the taxpayer was unaware of the necessity for the election plr-118310-15 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 and sec_6018 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 as executor spouse represents 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-118310-15 this ruling is directed only to the taxpayer requesting it sec_6110 provides that it may not be used or cited as precedent in accordance with the power_of_attorney on file with this office a copy of this letter is being sent to your authorized representative sincerely leslie h finlow senior technician reviewer office of the associate chief_counsel passthroughs special industries enclosures copy of this letter copy for sec_6110 purposes


internal_revenue_service number release date index number ---------------------------------- ------------------------------- ------------------------------ in re ------------------------------------ department of the treasury washington dc third party communication none date of communication not applicable_person to contact ------------------------------------------------- telephone number --------------------- refer reply to cc psi b04 plr-146137-04 date march legend date date date trust gst exempt trust non-exempt trust trust wife husband trustee previous trustee state a sister brother-in-law charity county court cite cite cite cite ------------------ --------------------------- ------------------------- ------------------------------------ ------------------------------------------------------------------------------- ---------------- ------------------------------------------------------------------------------- ---------------------- ----------------------------------------------------------- ------------------------ ---------------------------- ---------------------- ------------------------ -------------------- ----------- -------------------------- ------------------------ ------------------------------- ------------------------------------------------------------------------------- -------------------------------------------------------------- ------------------------------------------------------------------------------- --------------- ------------------------------------------------------------------------------- ---------- ------------------------------------------------------------------------------- ----------------- ------------------------------------------------------------------------------- --------- dear -------------- this is in response to your date letter and other correspondence the facts submitted are as follows on date after date wife and husband executed trust an article ii section a of trust provides that upon creation of trust the trustees requesting a ruling concerning the generation-skipping_transfer_tax consequences of the proposed reformation of the gst exempt trust and the non-exempt trust irrevocable_trust for the primary benefit of their children and the issue of their children are to divide trust into two shares the gst exempt trust is to be funded with the value of property equal to the gst_exemption available to husband and wife at the time of the transfer the non-exempt trust is to be funded with the balance of the trust property article ii section b provides that in each calendar_year in which a gift of property is made to trust each descendant of wife and husband living at the time of each gift is to have the right by written request to withdraw property from the trust to which the property was so allocated the amount that each descendant may withdraw is that amount that is equal to the value on the date of the gift of the property so given divided by the number of donees then living the donor of any gift may as to each gift limit such withdrawal rights as to any one or more of the donees in amount or negate the withdrawal right entirely each donee’s right to withdraw is non-cumulative and to the extent not exercised will lapse days after the date of the receipt of the written notice of the gift or december of the calendar_year when the gift is received whichever is earlier the right to withdraw is not to exceed the greater of dollar_figure or of the total value of trusts subject_to the right to withdraw much of the income and principal of trust as they deem advisable by making payments directly to or by applying payments for any one or more of the descendants of wife and husband at such time or times and in such amounts proportions and manner as the trustees deem appropriate husband or earlier if the trustees determine that it is desirable to divide the property the trustees are to divide the property then remaining in trust into as many equal shares as there are children of wife and husband then living and children then deceased leaving issue then living article ii section c provides that the trustees are to have discretion to use so article ii section d provides that upon the death of the survivor of wife and plr-146137-04 article ii section d provides as follows until the distribution date as defined in article iii below our trustees shall continue to hold manage invest and reinvest each share set apart for a child of ours then living and each share set apart for the issue of a then deceased child of ours as a separate trust and shall distribute to the child and the child’s issue in the case of the share for each child and the issue of a then deceased child and such issue’s further issue in the case of the share for the issue of a then deceased child in each such case the beneficiaries are referred to as descendants as much of the net_income and principal of the respective shares including the whole thereof as they shall in their direction deem advisable for the benefit of our descendants by making payments directly to or by applying the same for any one or more of them at such time or times and in such amounts proportions and manner as our trustees deem appropriate with full power to accumulate any amounts of income not so paid or applied and to hold the same for future use or to add the same in whole or in part to principal article ii section g provides that if at any time there shall be no person or estate eligible to take in accordance with the provisions of trust and there are children or further issue of sister and brother-in-law who are then living a the trustees are to pay the remaining property of the gst exempt trust and the non-exempt trust to the trustee of trust a_trust executed by sister and brother-in-law for the benefit of their descendants to be held in accordance with the terms of trust or b if trust is not in existence at that time the trustees are to pay the remaining property in equal shares to the children of sister in the event that no children or further issue of sister and brother-in-law are living at the time that property is to be paid the trustees are to pay the remaining property of the gst exempt trust and the non-exempt trust to charity article iii provides that each trust unless sooner terminated in accordance with its terms is to terminate in all events upon years after the death of the last to die of any of the descendants of the parents of wife or the mother of husband who were living on date upon termination the trustees are to pay the then remaining principal and undistributed_income of each separate trust then existing free of all trusts to the living descendants who are beneficiaries under the relevant trust per stirpes husband and wife each transferred property to trust on date in accordance with the terms of the trust the trustee divided the trust into two separate trusts the gst exempt trust and the non-exempt trust on timely filed federal gift_tax returns form_709 husband and wife each allocated gst_exemption to the gst exempt trust trust was to provide for the issue of wife and husband accordingly it was their intent that trust corpus was to be distributed to trust only in the event that there are no issue of wife and husband then living however under article ii section g as currently drafted after the establishment of the separate_share_trusts in article ii the trustee represents that the primary intention of wife and husband in creating plr-146137-04 section d if a child of wife and husband were to die leaving no issue or if the child and all of the child’s issue were to die there would be no remaining current beneficiaries of that particular share trust pursuant to the provisions of article ii section g the property held in such share trust would then be distributed to trust rather than be divided among any other share trusts then in existence under trust the trustee also represents that trust as currently drafted contains an ambiguity that could cause the property held in a particular share trust to continue to be held in that share trust even if there were no beneficiaries eligible to receive income or principal from such share trust county court to reform the provisions of trust that is the gst exempt trust and the non-exempt trust on date county court reformed article ii section d by removing the phrase u ntil the distribution date as defined in article iii below and by adding the following language in order to correct this scrivener’s error the trustee has brought an action in at such time as there are no living beneficiaries of a separate share trust such trust shall terminate and any remaining property in such trust shall be divided into as many equal shares as there are children of ours then living and children of ours then deceased leaving issue then living with the share for a then living child to be held and disposed of as part of the separate share trust established for such child under this paragraph d and with the share for a then deceased child with then living issue to be held and disposed of as part of the separate share trust established for such deceased child or such deceased child‘s issue as the case may be under this paragraph d or if such separate share trust is for any reason not then in existence our trustees shall establish a separate share trust for such then living child or the then living issue of such deceased child in accordance with the provisions of this paragraph d at such time as there are no living issue of ours any remaining trust property shall be disposed of pursuant to the provisions of paragraph g of this article ii sec_2601 imposes a tax on every generation-skipping_transfer under you have requested a ruling that the proposed reformation of the gst exempt trust and the non-exempt trust will not alter the inclusion_ratio of the gst exempt trust under sec_2642 of the internal_revenue_code law and analysis section a of the tax_reform_act_of_1986 act the gst tax is generally applicable to generation-skipping transfers made after date however under section b a of the act and sec_26_2601-1 of the generation-skipping_transfer_tax regulations the tax does not apply to any generation- skipping transfer from a_trust if the trust was irrevocable on date and no addition actual or constructive was made to the trust after that date under sec_26_2601-1 any trust in existence on date will be considered irrevocable unless the settlor had a power that would have caused inclusion of the trust in his or her gross under sec_2602 the amount of tax imposed under sec_2601 is sec_26_2601-1 provides rules for determining when a modification under sec_2631 every individual is allowed a gst_exemption amount which plr-146137-04 estate under sec_2038 or sec_2042 if the settlor had died on date determined by multiplying the taxable_amount the amount_involved in the gst transfer by the applicable_rate under sec_2641 the term applicable_rate means the product of the maximum_federal_estate_tax_rate in the year that the generation-skipping_transfer occurs and the inclusion_ratio under sec_2642 the inclusion_ratio with respect to any property transferred in a generation-skipping_transfer i sec_1 minus the applicable_fraction under sec_2642 in general the numerator of the applicable_fraction is the amount of gst_exemption allocated to the property transferred and the denominator is the value of the property transferred may be allocated by the individual or the individual's executor to any property with respect to which the individual is the transferor judicial construction settlement agreement or trustee action with respect to a_trust that is exempt from the gst tax by reason of section b a of the act will not cause the trust to lose its exempt status instrument to resolve an ambiguity in the terms of the instrument or to correct a scrivener's error will not cause an exempt trust to be subject_to the provisions of chapter if the judicial action involves a bona_fide issue and the construction is consistent with applicable state law that would be applied by the highest court of the state respect to a_trust whenever additional exemption is allocated to the trust or when certain changes occur with respect to the principal of the trust trusts that are exempt from gst tax because sufficient gst_exemption was allocated to the trust to result in an inclusion_ratio of zero at a minimum a change that would not affect the gst status of a grandfathered trust should similarly not affect the exempt status of such a_trust settlor’s intent cite cite cite to ascertain the settlor’s intent the state courts look to the trust instrument as a whole and the circumstances known to the settler on execution cite quoting cite in addition the courts have accepted extrinsic evidence such as the attorney’s affidavit that demonstrates that there has been a mistake cite under applicable state law a_trust instrument may be reformed to conform to the sec_26_2601-1 provides that a judicial construction of a governing no guidance has been issued concerning changes that may affect the status of sec_26_2642-4 provides rules for determining the applicable_fraction with in 387_us_456 the court considered plr-146137-04 whether a state trial court’s characterization of property rights conclusively binds a federal court or agency in a federal estate_tax controversy the court concluded that the decision of a state trial_court as to an underlying issue of state law should not be controlling when applied to a federal statute rather the highest court of the state is the best authority on the underlying substantive rule_of state law to be applied in the federal matter if there is no decision by that court then the federal authority must apply what it finds to be state law after giving proper regard to the state trial court’s determination and to relevant rulings of other courts of the state in this respect the federal_agency may be said in effect to be sitting as a state court of the parties indicate that husband and wife intended that trust corpus and income would be distributed from trust to trust only in the event there was no longer any issue of husband and wife living that could receive trust distributions accordingly we conclude that the reformation of trust the gst exempt trust and the non-exempt trust is consistent with applicable state law that would be applied in the highest court of state accordingly based on the facts presented and the representations made the reformation of the gst exempt trust and the non-exempt trust as proposed will not alter the inclusion_ratio of the gst exempt trust under sec_2642 in this case an examination of the relevant trust instruments and representations in accordance with the power_of_attorney on file with this office copies of this except as expressly provided herein no opinion is expressed or implied the rulings contained in this letter are based upon information and letter are being sent to your authorized representatives concerning the tax consequences of any aspect of any transaction or item discussed or referenced in this letter 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 plr-146137-04 provides that it may not be used or cited as precedent this ruling is directed only to the taxpayer s requesting it sec_6110 sincerely _________________________ george l masnik chief branch office of the associate chief_counsel passthroughs and special industries enclosure copy of letter for sec_6110 purposes


department of the treasury internal_revenue_service washington d c date number release date cc tege eb ec frev-103194-00 uilc internal_revenue_service national_office field_service_advice memorandum for district_counsel north central district from acting assistant chief_counsel employee_benefits subject earned_income_credit and social_security numbers this chief_counsel_advice responds to your memorandum dated date requesting advice on the availability of the earned_income_credit eic for a taxable_year in cases where the taxpayer does not receive a social_security_number ssn until after the close of the taxable_year chief_counsel_advice is not binding on examination or appeals and is not a final case determination this document is not to be cited as precedent issue may a taxpayer who is an eligible_individual as defined in sec_32 of the internal_revenue_code for a taxable_year and who otherwise meets the requirements of sec_32 of the code but who does not have an ssn that meets the requirements of sec_32 during the taxable_year claim the eic for the taxable_year if the taxpayer is issued an ssn that meets the requirements of sec_32 after the close of the taxable_year conclusion a taxpayer who is an eligible_individual for a taxable_year and who meets the other requirements of sec_32 except that the taxpayer does not have an ssn that meets the requirements of sec_32 may claim the eic for the taxable_year if the taxpayer is issued an ssn that meets the requirements of sec_32 after the close of the year the taxpayer may claim the eic for the taxable_year at any time within the statute_of_limitations on claims for credit or refund of an overpayment under sec_6511 the same result occurs if it is the taxpayer’s spouse or qualifying_child who is issued an ssn that meets the requirements of sec_32 after the close of the taxable_year facts frev-103194-00 situation x is a single nonresident_alien during year x is not authorized to work in the united_states does not have an ssn that meets the requirements of sec_32 and works illegally x met all the requirements for the eic for year when he filed his return for year except that he did not have an ssn that met the requirements of sec_32 in year x becomes a united_states citizen and receives an ssn that meets the requirements of sec_32 situation x and y a married couple have a child who is a qualifying_child under sec_32 at the end of year they do not apply for or receive an ssn for their child until the middle of year x and y met all the requirements for the eic for year when they filed their return for year except that their qualifying_child did not have an ssn law and analysis sec_32 of the code allows the eic in the case of an eligible_individual an eligible_individual is defined in sec_32 under sec_32 an eligible_individual means any individual who has a qualifying_child for the taxable_year sec_32 of the code sets forth the requirements of a qualifying_child under sec_32 an eligible_individual need not have a qualifying_child if the individual meets other requirements sec_32 provides that no credit shall be allowed under sec_32 to an eligible_individual who does not include on his or her income_tax return for the taxable_year the individual’s taxpayer_identification_number tin and if the individual is married within the meaning of sec_7703 the spouse’s tin sec_32 provides in pertinent part that a qualifying_child is not taken into account unless the taxpayer includes the name age and tin of the qualifying_child on the taxpayer’s return for the taxable_year sec_32 provides that solely for purposes of sec_32 and sec_32 a tin means a social_security_number issued to an individual by the social_security administration other than a social_security_number issued pursuant to clause ii or that portion of clause of iii that relates to clause ii of section c b i of the social_security act section c concerns wage and self-employment records section c b i applies to the assigning of ssns clause i pertains to aliens lawfully frev-103194-00 the internal_revenue_service restructuring and reform act of p l amended sec_32 and sec_32 to clarify that the identification requirement is a requirement for claiming the eic rather than an element of the definition of eligible_individual or qualifying_child see s rep no 105th cong 2nd sess thus a taxpayer can be an eligible_individual without having been issued an ssn that meets the requirements of sec_32 the plain language of sec_32 and sec_32 requires only that the ssn as defined in sec_32 of the taxpayer taxpayer’s spouse and qualifying_child be on the return there is no requirement that the taxpayer taxpayer’s spouse or qualifying_child have an ssn as defined in sec_32 before the close of the taxable_year there is also no requirement that the return on which the ssn is reported and the eic is claimed be an original timely filed return however a return claiming the eic is subject_to the statute_of_limitations on claims for credit or refund of an overpayment under sec_6511 situation in year x worked even though he did not have an ssn that permitted him to work when x filed his year tax_return x was unable to claim the eic since he did not have an ssn that met the requirements of sec_32 once x receives an ssn that meets the requirements of sec_32 x may claim the eic for any taxable_year for which x met the requirements of sec_32 other than having an ssn that meets the requirements of sec_32 provided that the statute_of_limitations has not expired situation when x and y filed their year tax_return by the due_date of the return their qualifying_child did not have an ssn that met the requirements of sec_32 therefore they were unable to claim the eic on the basis of that child when the child receives an ssn that meets the requirements of sec_32 x and y can file an amended_return for year and claim the eic on the basis of that child alternatively x and y could have requested an extension of time to file their year admitted to the united_states and entitled to engage in employment in the united_states clause ii pertains to individuals who apply for or receive benefits fully or partially funded with federal funds including children on whose behalf benefits are claimed by another person clause iii pertains to individuals when it appears that the individual could have been but was not assigned a number under clause i or ii frev-103194-00 tax_return if they believed they would receive the ssn by the extended due_date of the return if you have any further questions please call mary oppenheimer acting assistant chief_counsel employee_benefits by mark schwimmer senior technician reviewer cc tege eb


- legend legend date taxpayer trust trust trust trust trust 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 b09 plr-159698-04 date may ---------------------- ----------------------------------------------------------------------------------------- ------------------------ ----------------------------------------------------------------------------------------- ----------------------- ----------------------------------------------------------------------------------------- ----------------------- ----------------------------------------------------------------------------------------- ----------------------- ----------------------------------------------------------------------------------------- ----------------------- ----------------------------------------------------------------------------------------- ----------------------- --------------------------- -------- --------------------------- ----- ----------- -------- taxpayer x corporation y z accounting firm year year dear --------------------------- ------- ------ this is in response to your authorized representative’s letter dated date and subsequent correspondence requesting an extension of time under sec_2642 of the internal_revenue_code and sec_301_9100-1 and sec_301_9100-3 of the procedure and administration regulations to make allocations of generation- skipping transfer gst_exemption plr-159698-04 on date taxpayer and taxpayer contributed their interest in community taxpayer and taxpayer retained the services of accounting firm to prepare the facts and representations submitted are summarized as follows on date taxpayer established trust trust trust trust and trust irrevocable trusts each with gst potential property consisting of x shares of corporation stock to trust sec_1 through trust y shares to each trust it is represented that the value of the y shares transferred to each trust was dollar_figurez and file year form sec_709 united_states gift and generation-skipping_transfer_tax return gift_tax returns reporting the transfers to trust sec_1 through trust accounting firm inadvertently failed to advise taxpayer and taxpayer to allocate their respective gst exemptions to the transfers to trust sec_1 through trust on their year gift_tax returns as a result none of taxpayer 1’s or taxpayer 2’s gst_exemption was allocated taxpayer 1’s and taxpayer 2’s year gift_tax returns accounting firm discovered that no gst_exemption had been allocated for the year transfers sec_2642 and sec_301_9100-1 and sec_301_9100-3 to make allocations of taxpayer 1’s and taxpayer 2’s respective gst exemptions with respect to the year transfers to trust sec_1 through trust in year taxpayer and taxpayer made additional taxable_gifts in preparing taxpayer and taxpayer have requested an extension of time under sec_2601 imposes a tax on every gst a gst is defined under sec_2611 as a taxable_distribution a taxable_termination and a direct_skip sec_2602 provides that the amount of the tax is the taxable_amount multiplied by the applicable_rate sec_2641 defines applicable_rate as the product of the maximum_federal_estate_tax_rate and the inclusion_ratio with respect to the transfer sec_2631 in effect at the time of the transfer provides that for purposes of determining the inclusion_ratio every individual shall be allowed a gst_exemption of dollar_figure that may be allocated by such individual or his executor to any property with respect to which such individual is the transferor sec_2632 provides that any allocation by an individual of his or her gst_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 sec_26_2632-1 of the generation-skipping_transfer_tax regulations provides in part that an allocation of gst_exemption to property transferred during the plr-159698-04 transferor’s lifetime other than in a direct_skip is made on form_709 an allocation of gst_exemption to a_trust is void to the extent the amount allocated exceeds the amount necessary to obtain an inclusion_ratio of zero with respect to the trust sec_2642 provides that except as provided in sec_2642 if the allocation of the gst_exemption to any transfers of property is made on a gift_tax_return filed on or before the date prescribed by sec_6075 for such transfer or is deemed to be made under sec_2632 or c the value of such property for purposes of sec_2642 shall be its value as finally determined for purposes of chapter within the meaning of sec_2001 or in the case of an allocation deemed to have been made at the close of an estate_tax_inclusion_period its value at the time of the close of the estate_tax_inclusion_period and such allocation shall be effective on and after the date of such transfer or in the case of an allocation deemed to have been made at the close of an estate_tax_inclusion_period on and after the close of such estate_tax_inclusion_period sec_2642 provides generally that the secretary shall by regulation prescribe such circumstances and procedures under which extensions of time will be granted to make an allocation of gst_exemption described in sec_2642 or and an election under sec_2632 or c such regulations shall include procedures for requesting comparable relief with respect to transfers made before the date of the enactment of sec_2642 which was enacted into law on date this paragraph the secretary shall take into account all relevant circumstances including evidence of intent contained in the trust instrument or instrument of transfer and such other factors as the secretary deems relevant for purposes of determining whether to grant relief under this paragraph the time for making the allocation or election shall be treated as if not expressly prescribed by statute sec_2642 provides that in determining whether to grant relief under notice_2001_50 2001_2_cb_189 provides that under sec_2642 the time for allocating the gst_exemption to lifetime transfers and transfers at death the time for electing out of the automatic allocation rules and the time for electing to treat any trust as a generation-skipping_trust are to be treated as if not expressly prescribed by statute the notice further provides that taxpayers may seek an extension of time to make an allocation described in sec_2642 or b or an election described in sec_2632 or c under the provisions of sec_301_9100-3 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 months except in the case of a taxpayer who is abroad under all subtitles of the internal_revenue_code except subtitles e g h and i sec_301_9100-3 provides the standards used to determine whether to grant an extension of time to make an election whose due_date is prescribed by a regulation plr-159698-04 and not expressly provided by statute under sec_301_9100-1 a regulatory election includes an election whose due_date is prescribed by a notice published in the internal_revenue_bulletin in accordance with sec_2642 and notice_2001_50 taxpayers may seek an extension of time to make an allocation described in sec_2642 or b or an election described in sec_2632 or c under the provisions of sec_301_9100-3 requests for relief under 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 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 based on the facts submitted and the representations made we conclude that the requirements of sec_301_9100-3 have been satisfied therefore taxpayer and taxpayer are granted an extension of time of days from the date of this letter to make allocations of taxpayer 1’s and taxpayer 2’s respective available gst exemptions with respect to the year transfers to trust sec_1 through trust the allocations will be effective as of date and the gift_tax value of the transfers to trust sec_1 through trust will be used in determining the amount of gst_exemption to be allocated to the trusts these allocations should be made on supplemental form sec_709 united_states gift and generation-skipping_transfer_tax return and filed with the internal_revenue_service center cincinnati oh a copy of this letter should be attached to the supplemental form sec_709 copies are enclosed for this purpose the rulings contained in this letter are based upon information and except as specifically ruled herein we express or imply no opinion on the federal 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 tax consequences of the transaction under the cited provisions or under any other provisions of the code in addition we express or imply no opinion regarding the value of the property transferred to trust sec_1 through trust provides that it may not be used or cited as precedent this ruling is directed only to the taxpayer requesting it sec_6110 plr-159698-04 in accordance with the power_of_attorney on file with this office a copy of this letter is being sent to your authorized representative sincerely heather c maloy associate chief_counsel passthroughs special industries enclosures copy for sec_6110 purposes copies of letter


internal_revenue_service number info release date feb dear cc psi 1-genin-109104-03 uilc we are responding to your correspondence requesting information about the late s_corporation relief process announcement copy enclosed provides guidance on seeking relief for late s_corporation elections generally to request relief for a late s_corporation_election you must request a private_letter_ruling from the national_office the procedures for requesting a private_letter_ruling are set forth in revproc_2003_1 copy enclosed in addition taxpayers must submit a user_fee along with their ruling_request the standard user_fee for a private_letter_ruling is dollar_figure however taxpayers with gross_income of less than dollar_figure million on their tax_return for the most recent 12-month taxable_year may qualify for a reduced fee in the amount of dollar_figure in addition to the general_rule described above there are two exceptions that provide for automatic relief the first is revproc_98_55 which provides up to a month extension on the form_2553 due_date but in no event later than the return’s unextended due_date the second provision is found in revproc_97_48 which provides taxpayers automatic relief if they meet certain requirements a copy of each revenue_procedure is enclosed if you decide to submit a formal request for a private_letter_ruling please follow the sample format provided in appendix b of revproc_2003_1 your request should include all required procedural statements a check for the user_fee and any documents that substantiate your intent to be an s_corporation from inception please refer your request 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 room in addition the irs has developed two new cd-roms to help educate small_business owners on their tax responsibilities introduction to federal taxes for small_business self-employed and a virtual small_business workshop these two cd- roms are free and can be ordered by calling the irs also provides a special website www irs gov smallbiz which is dedicated to providing information to small_business taxpayers 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_2003_1 rev_proc revproc_98_55


internal kevenue service vepartment or tne treasury index number washington dc person to contact telephone number refer reply to cc dom p si date plr-103579-99 jun - company subsidiary a subsidiary b subsidiary c dear this letter responds to a letter dated date as b and c by your authorized representative well as subsequent correspondence submitted on behalf of company and subsidiaries a requesting various rulings relating to a proposed corporate_reorganization and the subsequent election by subsidiaries a and c to be s_corporations was advised the service declines under sec_4 of revproc_99_3 1999_1_irb_103 reorganization as your authorized representative to rule on the plan of b in accordance with sec_15 e of revproc_99_1 1999_1_irb_6 subsidiary b's user_fee of dollar_figure we have submitted a request for the refund of plr-103579-99 in accordance with the power_of_attorney on file with this office we are sending a copy of this letter to your authorized representative sincerely kop yon lo donna m young senior technician reviewer branch office of the assistant chief_counsel passthroughs and special industries bse


id office uilc cca_2009052710334420 ------------- number release date from ------------------- sent wednesday date am to ---------------------- cc ------------------ subject re mt sitlp mou proposed priority language ------------ after reviewing the mt statutes my reviewer and i found that the statute does not mandate the offset for certain types of debts before the sitlp levy the language in states that t he department shall when appropriate offset any amount due an agency from a person or entity against any amount including refunds of taxes owing the person or entity by an agency emphasis added because the statute uses the language shall when appropriate it follows that there are situations when it may not be appropriate to offset the statute allows the possibility to have other debts such as a federal tax_liability paid before a debt to a state_agency when it is appropriate or not will be part of the negotiations between the service and montana in entering into a sitlp agreement and those negotiations will impact any agreement the state would like to enter into with respect to federal refunds -- -------------------------------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------------------------------------- --------------------------- please let me know if you have any questions or if you would like to discuss this further thanks --------


internal_revenue_service number release date index number --------------------------- ---------------- ---------------------------- ------------------------------- - department of the treasury washington dc person to contact ------------------------- id no ------------- telephone number --------------------- refer reply to cc psi b04 - plr-114704-05 date date -------------------------------------------------------------------------------------- re ------------------------------------------- ---------------------------- ---------------- legend ------------------------------------------------------ grantor ------------------------------------------- spouse trust -------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------- trust ---------------------------------------------------------------------------------------------------------------- ----------------------------------------------------- trust ----------------------------------------------------- accountant date date date date child child child dollar_figurex dollar_figurey year -------------------------- --------------------------- -------------------- --------------------------- --------------------------- ------------------------- ------------------------ ------------------- ----------- ------------- ------- --------------------------------------------------------------------------- plr-114704-05 ------- this is in response to correspondence requesting an extension of time under year dear ------------------------- sec_301 of the procedure and administration regulations to make an election under sec_2632 to elect out of the generation-skipping_transfer gst tax exemption automatic allocation rules facts on date grantor established trust an irrevocable_trust for the benefit of child and her descendants on date grantor and spouse established trust and trust for the benefit of child and his descendants and child and his descendants respectively the dispositive provisions of the three trusts are identical except for the designation of the primary beneficiary under the terms of each trust the net_income of the trust is to be accumulated or distributed in the trustees’ discretion to or on behalf of the primary beneficiary child child or child as the case may be his or her children and the children of any deceased child for the beneficiary’s support maintenance education business and professional ventures medical_expenses and general welfare the trustees are also authorized in their discretion to distribute trust principal to the beneficiaries in the event the income distributions are insufficient for the stated purposes on the death of the primary beneficiary the trust is be divided per stripes into separate shares for the primary beneficiaries issue and held in further trust in year after date grantor and spouse each transferred stock valued at dollar_figurex to each of trust trust and trust in year grantor and spouse each transferred stock valued at dollar_figurey to each of trust trust and trust it is represented that these transfers were reported on timely filed form sec_709 united_states gift and generation-skipping_transfer_tax returns filed by grantor and spouse for year and year it is represented that grantor and spouse intended that their respective available gst_exemption was not to be allocated to the year and year transfers to trust sec_1 trust and trust on the form sec_709 filed for year and year grantor and spouse did not affirmatively allocate any gst_exemption with respect to the year and year transfers to trust sec_1 and however the returns as filed did not signify the election under sec_2632 to have the automatic allocation rules of sec_2632 not apply to the year and year transfers to trust sec_1 and they relied on accounting firm to properly prepare the returns grantor and spouse request an extension of time as authorized under sec_2642 and sec_301_9100-1 and sec_301_9100-3 to make the election under sec_2632 to have the automatic allocation rules contained in section plr-114704-05 c not apply to grantor and spouse's year and year transfers to trust sec_1 and sec_2601 imposes a tax on every generation-skipping_transfer gst made by a transferor to a skip_person sec_2602 provides that the amount of the tax is the taxable_amount multiplied by the applicable_rate sec_2641 defines applicable_rate as the product of the maximum_federal_estate_tax_rate and the inclusion_ratio with respect to the transfer under sec_2642 the inclusion_ratio with respect to any property transferred in a generation-skipping_transfer is defined as the excess of over the applicable_fraction the applicable_fraction as defined in sec_2642 is a fraction the numerator of which is the amount of gst_exemption allocated to the trust or to property transferred in a direct_skip and the denominator of which is the value of the property transferred to the trust or involved in the direct_skip reduced by the sum of certain federal estate_tax or state death_tax and charitable deductions under sec_2631 as in effect for the tax years at issue in the present case for purposes of determining the inclusion_ratio every individual is allowed a gst_exemption of dollar_figure adjusted for inflation under sec_2631 that may be allocated by such individual or his executor to any property with respect to which such individual is the transferor sec_2631 provides that any allocation under sec_2631 once made shall be irrevocable sec_2632 provides that if any individual makes an indirect_skip during such individual's lifetime any unused portion of such individual's gst_exemption shall be allocated to the property transferred to the extent necessary to make the inclusion_ratio for such property zero if the amount of the indirect_skip exceeds such unused portion the entire unused portion shall be allocated to the property transferred sec_2632 provides that the term indirect_skip means any transfer of property other than a direct_skip subject_to the tax imposed by chapter made to a gst_trust as defined in sec_2632 under sec_2632 and ii an individual may elect to have the automatic allocation rule contained sec_2632 not apply to an indirect_skip or to any or all transfers made by such individual to a particular trust sec_2632 provides that an election under sec_2632 may be made on a timely filed gift_tax_return for the calendar_year for which the election is to become effective under sec_26 b iii b of the generation-skipping_transfer_tax regulations in general to elect out the transferor must attach a statement election out statement to a timely filed form_709 the election out statement must identify the trust and specifically must provide that the transferor is electing out of the automatic allocation of gst_exemption with respect to the described transfer or transfers sec_2642 provides generally that the secretary shall by regulation prescribe such circumstances and procedures under which extensions of time will be granted to make an allocation of gst_exemption described in sec_2642 or and an election under sec_2632 or c sec_2642 provides that plr-114704-05 in determining whether to grant relief the secretary shall take into account all relevant circumstances including evidence of intent contained in the trust instrument or instrument of transfer and such other factors as the secretary deems relevant for purposes of determining whether to grant relief the time for making the allocation or election shall be treated as if not expressly prescribed by statute notice_2001_50 2001_2_cb_189 provides that under sec_2642 the time for allocating the gst_exemption to lifetime transfers and transfers at death the time for electing out of the automatic allocation rules and the time for electing to treat any trust as a gst_trust are to be treated as if not expressly prescribed by statute the notice further provides that taxpayers may seek an extension of time to make an allocation described in sec_2642 or b or an election described in sec_2632 or c under the provisions of sec_301_9100-3 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 months except in the case of a taxpayer who is abroad under all subtitles of the internal_revenue_code except subtitles e g h and i sec_301_9100-3 provides the standards used 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 under sec_301_9100-1 a regulatory election includes an election whose due_date is prescribed by a notice published in the internal_revenue_bulletin in accordance with sec_2642 and notice_2001_50 taxpayers may seek an extension of time to make an allocation described in sec_2642 or b or an election described in sec_2632 or c under the provisions of sec_301_9100-3 requests for relief under 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 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 based upon the facts submitted and the representations made trust sec_1 and are gst trusts for purposes of sec_2632 further we conclude that the requirements of sec_301_9100-3 have been satisfied therefore grantor and spouse are granted an extension of time of days from the date of this letter to make the election under sec_2632 that the automatic allocation rules not apply to the transfers to trust sec_1 and in year sec_1 and the elections should be made in the manner described in sec_26 b iii b on supplemental form sec_709 filed with the internal_revenue_service plr-114704-05 center cincinnati ohio a copy of this letter should be attached to the form sec_709 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 in this regard we note that on the year and year form_709 filed by grantor and spouse grantor and spouse reported several transfers in trust that constituted direct skips for purposes of sec_2612 the returns report that no gst_exemption has been allocated to these transfers however these transfers did not constitute nontaxable gifts under sec_2642 accordingly we are specifically not ruling or commenting on the amount of unused gst_exemption available to grantor and spouse this ruling is directed only to the taxpayer requesting it sec_6110 provides that it may not be used or cited as precedent in accordance with the power_of_attorney on file with this office a copy of this letter is being sent to your authorized representative 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 enclosures sincerely william p o’shea associate chief_counsel passthroughs and special industries copy for sec_6110 purposes copy of this letter 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 - plr-147880-01 date date x a d1 year dear this letter responds to a letter dated september submitted on behalf of x by a x’s president requesting a ruling under sec_1362 of the internal_revenue_code the information submitted states that x was incorporated on d1 of year a is x’s president and sole shareholder a represents that a always intended for x to be an s_corporation documents created during the incorporation process also indicate a’s intent for x to be an s_corporation however a timely form_2553 election by a small_business_corporation was not filed sec_1362 of the code provides that if -- a an election under sec_1362 is made for any taxable_year after the date prescribed by sec_1362 for making such election for such taxable_year or no such election is made for any taxable_year and b the secretary determines that there was reasonable_cause for the failure to timely make such election the secretary may treat such an election as timely made for such taxable_year based solely on the facts and the representations submitted we conclude that x has established reasonable_cause for failing to make a timely election to be an s_corporation for x's first taxable_year accordingly provided that x makes an election to be an s_corporation by filing a completed form_2553 with the appropriate service_center effective for its year taxable_year within days following the date of this letter then such election will be treated as timely made for x's year taxable_year a copy of this letter should be attached to the form_2553 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 including whether x was or is a small_business_corporation under sec_1361 of the 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 sincerely yours matthew lay senior technician reviewer branch office of the associate chief_counsel passthroughs and special industries enclosures copy of this letter copy for sec_6110 purposes


_ uniform issue list nos department of the treasury internal_revenue_service washington d c government entities division aug ptf batt attn legend state department b plan x group c employees statute d acte code f manual g program h community officers number j k corporations dear this is in response to correspondence dated date as supplemented by additional correspondence dated date date date date date date date date and date from your authorized representative in which you request a ruling on whether the status of plan x as a governmental_plan under sec_414 of the internal_revenue_code the code will be adversely affected by the inclusion of community officers the following facts and representations have been submitted pursuant to statute d the state created plan x also referred to herein as the system in as a defined benefit pension and retirement_system to provide retirement and other_benefits for group c employees plan x is intended to meet the qualification requirements of code sec_401 to the extent that section applies to a governmental_plan within the meaning of sec_414 of the code effective date all participating employees are required to contribute a percentage of their compensation to plan x no option to receive this amount in cash has ever been permitted statute d also allows the state to pick up and pay the mandatory_contributions to plan x pursuant to sec_414 of the code as of date the state has treated the employee contributions in a manner consistent with sec_414 in the state established program h within department b pursuant to state statute program h was established to assist local governments and villages in protecting life and property in rural areas of the state and to provide probation and parole supervision services program h however was not designed to be a- village or community police force under program h the role of a community officer is more than just law enforcement and the vast majority of requests for the services of a community officer are for non-criminal matters the community officer provides support in the rendering of emergency medical services search and rescue support fire safety and prevention support water and boating safety and minor law enforcement service to a community primarily the handling of misdemeanor infractions of the state’s criminal code community officers are not obligated to respond to or participate in any type of armed conflict in accordance with code f community officers are prohibited under the state funding grants from carrying firearms in the regular course of their duties except in an emergency community officers are employed by certain k corporations established pursuant to act e all k corporations which may be nonprofit or for profit employing community officers intended to be covered by this ruling are organized under state law as nonprofit_corporations and have been in existence prior to the establishment of program h under act e native indians of the state own the stock in the k corporations the state including department b does not participate in the selection of the board_of directors for the k corporations the involvement of k corporations in program h is separable from the other activities and functions of the k corporations program h is funded through grants issued by department b department b and the k corporations enter into a written grant agreement detailing the program responsibilities and duties program h sets forth detailed policies and procedures that must be followed in order for a grant to be approved and maintained in addition several key personnel positions are required by the program h enabling legislation to ensure that program h operates as intended and in accordance with state statutes the written_agreement between department b and a k corporation must also name the k corporation as the employer for all purposes of a community officer state troopers are department b employees a state trooper is responsible for making periodic visits to a village or community in which a community officer has been assigned acting as a mentor and as a liaison between the department and the community or community officer providing on-the-job training to the community officer reviewing the community officer’s log book monitoring the community officer for compliance with applicable rules and providing the k corporation with an evaluation of the community officer’s performance state troopers however do not supervise the daily activities of community officers the state trooper is responsible for providing state law enforcement services to a village or community to which a community officer is assigned the community officer is not a police officer and ultimate responsibility for criminal_law enforcement lies with the state trooper particularly in regard to crimes more serious in nature than mere misdemeanor violations state trooper superiors participate in the review of certain program h documentation required to be provided by the k corporation to department b the program h coordinator is a department b position that has responsibility for overseeing the overall operation of the program the k corporation coordinator is an employee of the k corporation who has responsibility for evaluating the performance of community officers as well as allocating and distributing the funds supplied by a grant the k corporation may not use grant money to employ a community officer for a particular village unless the village through its governing body enters into a written_agreement with the k corporation according to relevant provisions of code f the village or community in its agreement with the k corporation sets out the job description for the community officer specifying duties that the community expects the officer to perform the community also names a local supervisor to assume the daily control of the community officer's work and to act as a liaison between the community officer and the community the party responsible for supervision of the daily activities of a community officer is identified in code f as the governing body of the village or community the governing body means the elected city council traditional council or elders council that the state recognizes as having governmental functions and that the k corporation accepts as appropriate to supervise the daily activities of a community officer all non-criminal activity the majority of the work conducted by the community officer is at the direction and priority of the village councils currently there are approximately the number j of villages or communities to which a community officer has been assigned the written_agreement between the k corporation and the village or community recognizes that the community officer is an employee of the k corporation in the resolution of any dispute arising under the agreement including the removal of a community officer from the position and the position from the village or community the president of the k corporation or his or her designee has final and conclusive authority to resolve the dispute the state represents that department b has control_over program h by virtue of the fact the k corporations and the community officers are subject_to regulations policies and procedures that are found in the program h authorizing legislation the grant agreement code f and manual g the state maintains that these rules policies and procedures that the k corporations and community officers must adhere to are enforceable by department b by controlling the grant of authority and funding monitoring of community officers by the state trooper and the requirement by authorizing legislation of a state trooper k corporation coordinator and a program h coordinator to ensure that the program operates as intended the state proposes to permit the k corporations to adopt the system as the retirement benefit plan for persons employed as community officers based on the foregoing facts and representations you requested the following rulings that the adoption of the system by certain k corporations with respect to community officer employees only will not adversely affect the system's status as a governmental_plan within the meaning of code sec_414 that the mandatory employee contributions paid to the system by the state on behalf of the community officer employees will qualify as picked-up contributions within the meaning of sec_414 of the code sec_414 of the code provides that in the case of any plan established by the government of any state or political_subdivision thereof or by any agency_or_instrumentality of any of the foregoing where the contributions of employing units are designated as employee contributions but where any employing unit picks up the contributions the contributions so picked up will be treated as employer contributions sec_414 of the code provides that a governmental_plan means a plan established and maintained for its employees by the government of the united_states by the government of any state or political_subdivision thereof or by any agency_or_instrumentality of any of the foregoing revrul_89_49 1989_1_cb_117 provides that a plan will not be considered a governmental_plan merely because the sponsoring_organization has a relationship with a governmental_unit or some quasi-governmental power it holds that one of the most important factors to be considered in determining whether an organization is an agency_or_instrumentality of the united_states or any state or political_subdivision thereof is the degree of control that the federal or state government has over the organization's everyday operations other factors listed in revrul_89_49 include whether there is specific_legislation creating the organization the source of funds for the organization the manner in which the organization's trustees or operating board are selected and whether the applicable governmental_unit considers the employees of the organization to be employees of the applicable governmental_unit although all of the above factors are considered in determining whether an organization is an agency of a government the mere satisfaction of one or all of the factors is not necessarily determinative in the instant case applying the principles set forth in revrul_89_49 we find the degree of control exercised by the state over the daily operations of the community officers to be minimal with control in the hands of the k corporation and the village or community to which a community officer is assigned as represented a community officer is subject_to monitoring by a state trooper an employee of department b the state trooper's superior participates in the review of certain program h documentation that must be provided by the k corporation to department b the program h coordinator is a department b position that has responsibility for overseeing the overall operation of the program the state has not demonstrated that the aforementioned departmental positions control or supervise the daily activities of community officers the monitoring provided by the state trooper consists of periodic visits with community officers mentoring and other administrative duties there has been no representation that the program h coordinator is involved with the daily activities of a community officer in addition manual g a department b field manual for community officers states that the k corporation coordinator an employee of the k corporation is responsible for evaluating the performance of community officers the manual further provides that in completing the evaluation the community representative responsible for the community officer’s supervision the individual community officer and the assigned state trooper are contacted for comment further the k corporation may not employ a community officer for a particular village unless the village through its governing body enters into a written_agreement with the k corporation setting forth the duties that the village or community expects the community officer to perform in code f the term village is defined to mean a community with a population of less than big_number individuals the community representative responsible for supervision of the daily activities of a community officer is identified in code f as the governing body of the village or community the governing body means the elected city council traditional council or elders council that the state recognizes as having governmental functions and that the k corporation accepts as appropriate to supervise the daily activities of a community officer considering the other factors set forth in revrul_89_49 the enabling legislation for program h did not establish the k corporations or specify that the k corporations would be the vehicle or medium to implement program h the k corporations were already in place throughout the state when program h was established funding for program h is provided entirely by department b through grants to the k corporations the state maintains that it controls the k corporations due to the fact that department b in its discretion may terminate a grant if the k corporation or a participating village or community is not complying with all the program policies and procedures however the state’s argument that it controls the k corporations and the program through funding is diminished by the fact that the k corporation coordinator a k corporation employee has responsibility for the allocation and distribution of funds supplied by the state grant the k corporations formally employ the community officers enter into contracts specifying the terms of program h and pay officers’ salaries with the funds granted by the state although program h is supported by state funds we do not find this factor to be determinative of agency_or_instrumentality status in this case because the k corporations possess the authority to allocate the funds no funded community officer position can be assigned to a requesting village or community unless the k corporation not the state enters into a written_agreement with the village or community the state including department b does not participate in the selection of the board_of directors for the k corporations pursuant to act e the management of the k corporation is vested in a board_of directors all of whom shall be stockholders over the age of eighteen the stockholders of the k corporations are native indians of the state due to the fact that the state does not participate in the selection process the board_of directors is not controlled by the state thus the state does not possess the requisite degree of control_over the k corporation decision-making process in the day to day implementation of program h ie through lack of control_over key personnel such as the k corporation coordinator finally community officers are not employees of the state or a political_subdivision thereof state statute requires that department b and the k corporation enter into an agreement in which among other requirements there must be a provision that names the k corporation as the employer for all purposes of a community officer the k corporation may not use grant money to employ a community officer to serve in a particular village or community unless the village or community through its governing body enters into a written_agreement with the k corporation the written_agreement between the k corporation and the village or community recognizes that the community officer is an employee of the k corporation and that in the resolution of any dispute arising under the agreement including the removal of a community officer from the position the president of the k corporation or his or her designee has final and conclusive authority to resolve the dispute the state has represented that the villages or communities to which a community officer has been assigned as incorporated municipalities or unincorporated villages are political subdivisions of the state although we find that the village or community may exert a significant degree of supervision over the daily activities of a community officer we must conclude that the community officer is an employee of the k corporation and that the k corporation exerts the ultimate degree of control_over a community officer's employment thus we conclude that the k corporation s is not an agency_or_instrumentality of the state or a political_subdivision thereof accordingly as for the first ruling requested we find that the inclusion in plan x of community officers who are employees of a k corporation which does not qualify as an agency_or_instrumentality of the state or a political_subdivision of the state will adversely affect the status of plan x as a governmental_plan under sec_414 of the code similarly because we have determined in accordance with revrul_89_49 that a k corporation does not qualify as an agency_or_instrumentality of the state or a political_subdivision thereof it is concluded with respect to ruling_request two that the applicability of the provisions of sec_414 of the code to plan x will be adversely affected by including as members therein the community officer employees of the k corporations and that the mandatory_contributions of such employees to plan x which may be assumed and paid_by the state will not qualify as picked-up contributions within the meaning of sec_414 of the code this ruling is directed only to the taxpayer that requested it sec_6110 of the code provides that it may not be used or cited by others as precedent a copy of this ruling is being sent to your authorized representative pursuant to a power_of_attorney on file in this office should you have any questions pertaining to this ruling you may contact of this office at sincerely yours donzéll h littlejohn acting manager employee_plans technical group


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 genin-110351-10 uil ------------------ -------------------- --------------------------------- dear -------------- this letter responds to your inquiry dated date regarding the homebuyer tax_credits you ask whether you can take a credit for your purchase of a condominium in --------- that you live in for five months of the year the remainder of the year you live in a cooperative apartment in new york that you have owned since ------- generally sec_36 of the internal_revenue_code provides a refundable_credit for a first-time_homebuyer of a principal_residence a first-time_homebuyer is defined as any individual and if married the individual’s spouse 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 for purposes of sec_36 the term principal_residence is defined by sec_121 sec_36 the regulations under sec_121 provide that the term principal_residence includes a house or apartment that a taxpayer is entitled to occupy as a tenant-stockholder in a cooperative_housing_corporation sec_1_121-1 of the income_tax regulations because you previously owned a principal_residence you do not qualify for the first-time_homebuyer credit sec_36 provides a refundable_credit for certain individuals who bought a new principal_residence after date and who owned a principal_residence in the recent past these long-term homeowners generally qualify for the credit if on the purchase date of the new home the individual and if married the individual’s spouse has owned and used the same principal_residence for a consecutive five-year period during the eight years preceding the purchase of the new home a taxpayer does not have to sell the old principal_residence to qualify for the long-term homeowner credit but the new home must be the taxpayer’s principal_residence which of two properties a taxpayer uses as a residence is the taxpayer’s principal_residence depends on all the facts and circumstances however the property the taxpayer uses the majority of the time generally is the taxpayer’s principal_residence sec_1_121-1 of the income_tax regulations genin-110351-10 i hope this information is helpful if you have any further questions please contact ---------------- identification_number ------------ at -------------------- sincerely amy j pfalzgraf senior counsel office of associate chief_counsel income_tax accounting