tax_exempt_and_government_entities_division department of the treasury internal_revenue_service washington d c apr l seite aaet uniform issue list hhi rriiakrirereiarr ere kkkkkee hakkar hhkhiaiaaaiake iaa reaeeerer legend taxpayer a taxpayer b custodian m ira x rakhi eeeeriarere keke reekrereeeer er eer rears akaike irae akeeireeeeeere me eek iii iiit iii iii iie rahi el ee lee ee dear roth_ira y rii ire iai iir iari er er eee see hakkar hear raikrrkeeererrererer hai kiii re aaiiiae rai aire esi riaa rea this is in response to your letter dated date as supplemented by additional correspondence dated date in which you request relief under sec_301_9100-3 of the procedure and administration regulations regulations the following facts and representations support your ruling_request taxpayer a is married to taxpayer b taxpayer a maintained a traditional individual_retirement_arrangement ira x with custodian m inl after consultations with custodian m concerning her eligibility for such a transaction taxpayer a converted ira x to roth_ira y with custodian m taxpayers a and b filed their llllincome tax returns on i and paid interest and penalties for late filing in conversion because their combined adjusted_gross_income for calendar_year hl taxpayers a and b first learned that they were ineligible for the above exceeded the limit found at sec_408a of the internal_revenue_code code since the time for recharacterization had passed taxpayers a and b after consultations with custodian m believed there was no solution to the failed conversion in after consultations with a representative of the internal_revenue_service service and after conducting their own research taxpayers a and b learned that could request a ruling from the service regarding the failed conversion on they filed an amended joint federal_income_tax taxpayers a and b thus calendar ys an open year’ with respect to taxpayers return for j a and b since the ge conversion the assets transferred from ira x to roth_ira y have been combined with a contributory roth_ira of taxpayer a as of the date of this request to the best of taxpayer a’s and b’s knowledge the service has not discovered taxpayer a's failure to make the election to recharacterize roth_ira y to a traditional_ira based on the above facts and representations you request an extension of days from the date of this ruling letter to recharacterize the transferred assets from ira x in roth_ira y to a traditional_ira pursuant to sec_301 of the regulations with respect to your request for relief under sec_301_9100-3 of the regulations sec_408a of the code and sec_1_408a-5 of the income_tax regulations l t regs provide that except as otherwise provided by the secretary a taxpayer may elect to recharacterize an ira contribution made to one type of ira as having been made to another type of ira by making a trustee-to-trustee transfer of the ira contribution plus earnings to the other type of ira ina recharacterization the ira contribution is treated as having been made to the transferee ira and not to the transferor ira under sec_408a and sec_1_408a-5 this recharacterization election generally must occur on or before the date prescribed by law including extensions for filing the taxpayer's federal_income_tax return for the year of contribution sec_1_408a-5 question and answer of the t regs describes how a taxpayer makes the election to recharacterize the ira contribution to recharacterize an amount that previously has been converted from a traditional_ira to a roth_ira taxpayer must notify the roth_ira trustee of the taxpayer's intent to recharacterize the amount the taxpayer must provide the trustee and the transferee trustee if different from the transferor trustee with specific information that is sufficient to effect the recharacterization and the trustee must make the transfer code sec_408a provides in relevant part that an individual with adjusted_gross_income in excess of dollar_figure for a taxable_year is not permitted to make a qualified_rollover_contribution to a roth_ira from an individual_retirement_arrangement other than a roth_ira during that taxable_year the sec_1_408a-4 q a-2 of the i t regs provides in summary that an individual with modified_adjusted_gross_income agi in excess of dollar_figure for a taxable_year is q a-2 not permitted to convert an amount to a roth_ira during that taxable_year also provides that a married individual is permitted to convert a traditional_ira to a roth_ira only if that individual and his her spouse file a joint federal_income_tax return furthermore the modified agi is the modified agi derived from the joint_return using the couple's combined income sec_301_9100-1 sec_301_9100-2 and sec_301_9100-3 of the regulations in general provide guidance concerning requests for relief submitted to the service on or after date sec_301 c provides that the commissioner of the internal_revenue_service in his discretion may grant a reasonable extension of time fixed by a regulation a revenue_ruling a revenue_procedure a notice or an announcement published in the internal_revenue_bulletin for making of an election or application_for relief in respect of tax under among others subtitle a of the code sec_301_9100-2 of the regulations lists certain elections for which automatic extensions of time to file are granted sec_301_9100-3 generally provides guidance with respect to the granting of relief with respect to those elections not referenced in the relief requested in this case was not referenced in section sec_301_9100-3 of the regulations provides that the application_for relief that falls within sec_301_9100-3 will be granted when the taxpayer provides sufficient evidence including affidavits described in sec_301_9100-3 to establish that the taxpayer acted reasonably and in good_faith and granting relief would not prejudice the interests of the government sec_301_9100-3 of the regulations provides that a taxpayer will be deemed to if its request for sec_301_9100-1 relief is have acted reasonably and in good_faith i if the filed before the failure to make a timely election is discovered by the service ii taxpayer inadvertently failed to make the election because of intervening events beyond if the taxpayer failed to make the election because after the taxpayer's control iii exercising reasonable diligence the taxpayer was unaware of the necessity for the election iv the taxpayer relied upon the written advice of the service or v the taxpayer reasonably relied on a qualified_tax professional including a tax professional employed by the taxpayer and the tax professional failed to make or advise the taxpayer to make the election sec_301_9100-3 of the regulations provides that ordinarily the interests of the government will be treated as prejudiced and that ordinarily the service will not grant relief when tax years that would have been affected by the election had it been timely made are closed by the statute_of_limitations before the taxpayer's receipt of a ruling granting relief under this section in this case taxpayer a was ineligible to convert her traditional_ira x to roth_ira y djusted gross_income of taxpayer a and her spouse taxpayer b since the join even though taxpayer a converted ira x to roth_ira y neither exceeded taxpayer a nor b was aware of the requirements of sec_1_408a-5 of the i t regs their joint taxpayers a and b filed this request for sec_301 -9100 relief after filing is nota ee federal_income_tax return with respect to taxpayers a and b finally the service did not discover taxpayer a’s ineligibility to closed tax_year convert ira x to roth_ira y prior to taxpayers a and b filing this request for relief under sec_301_9100-1 and sec_301 of the regulations with respect to the request for relief we believe that based on the information submitted and representations contained therein the requirements of sec_301_9100-1 and sec_301_9100-3 of the regulations have been met and taxpayer a acted good_faith with respect to requesting an extension of time in order to reasonably and in transferred assets from ira x in roth_ira y to a traditional recharacterize th specifically the service has concluded that taxpayer a met the requirements of ira iii and v of sec_301_9100-3 of the regulations therefore clauses i taxpayer a is granted a period of days from the date of this ruling letter to recharacterize thelij transferred assets in roth_ira y ruling does not apply to any assets of roth_ira y that do not represent the transferred assets from ira x in hii in order to effectuate this ruling letter taxpayers a and b should file a copy with the internal_revenue_service center in seaseteaeet to be associated with the amended be joint income_tax return form 1040x currently on file 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 ruling is based on the assumption that ira x and roth_ira y meet the requirements of code sec_408 and sec_408a where applicable respectively at all relevant times this ruling is directed only to the taxpayers who have requested it sec_61 k of the code provides that it may not be used or cited by others as precedent to a traditional_ira this lf you have any questions please contact raia raat iiia tr iai i ares irr hakkar pitta soon please address all correspondence to the attention of se t te ra t1 sincerely nlite a jabw carlton a watkins manager employee_plans technical group enclosures deleted copy of this letter notice of intention to disclose notice


internal_revenue_service number release date index numbers ------------------------------ --------------------------------------------------------------- ------------------------- ------------------------ --------------------------------- ------------------------------------- -------------------------------- department of the treasury washington dc third party communication none date of communication not applicable_person to contact ----------------- id no ------------- telephone number --------------------- refer reply to cc psi plr-122205-09 date date legend x ------------------------------------------------------------------------------------------------------------ --------------------------------------------------- ----------------------------------------------------------------------------------------- d country ------------------ --------- dear -------------- this is in response to a letter dated date submitted on behalf of x requesting an extension of time under sec_301_9100-3 of the procedure and administration regulations to file an election under sec_301_7701-3 to be treated as a disregarded_entity for federal tax purposes facts according to the information submitted x was formed on d under the laws of country x intended to be treated as a disregarded_entity for federal tax purposes effective d however x inadvertently failed to timely file form_8832 entity classification election to be treated as a disregarded_entity for federal tax purposes effective d plr-122205-09 law and analysis sec_301_7701-3 provides that a business_entity that is not classified as a corporation under sec_301_7701-2 or an eligible_entity can elect its classification for federal tax purposes an eligible_entity with a single owner can elect to be classified as an association or to be disregarded as an entity separate from its owner sec_301_7701-3 provides guidance on the classification of a foreign eligible_entity for federal tax purposes generally a foreign eligible_entity is treated as an association if all members have limited_liability unless the entity makes an election to be treated otherwise a foreign eligible_entity with a single owner having limited_liability may elect to be treated as a disregarded_entity pursuant to the rules of sec_301_7701-3 sec_301_7701-3 and iii provides that an entity classification election must be filed on form_8832 and can be effective up to days prior to the date the form is filed or up to months after the date the form is filed sec_301_7701-3 provides that an election under sec_301_7701-3 must be signed by - a each member of the electing entity who is an owner at the time the election is filed or b any officer manager or member of the electing entity who is authorized under local law or the entity’s organizational documents to make the election and who represents to having such authorization under penalties of perjury sec_301_7701-3 provides that if a purchasing_corporation makes an election under sec_338 regarding an acquired subsidiary an election under sec_301 c i for the acquired subsidiary can be effective no earlier than the day after the acquisition_date within the meaning of sec_338 under sec_301_9100-1 the commissioner may grant a reasonable extension of time to make a regulatory election or a statutory election but no more than six months except in the case of a taxpayer who is abroad under all subtitles of the internal_revenue_code except subtitles e g h and i section b defines the term regulatory election as including an election whose due_date is prescribed by a regulation published in the federal_register sec_301_9100-1 through provide the standards that the commissioner will use to determine whether to grant an extension of time to make an election sec_301_9100-1 plr-122205-09 sec_301_9100-2 provides automatic extensions of time for making certain elections sec_301_9100-3 provides rules for requesting extensions of time for regulatory elections that do not meet the requirements of sec_301_9100-2 requests for relief under sec_301_9100-3 will be granted when the taxpayer provides evidence to establish that the taxpayer acted reasonably and in good_faith and that granting relief will not prejudice the interests of the government conclusion based solely on the facts submitted and the representations made we conclude that the requirements of sec_301_9100-3 have been satisfied as a result x is granted an extension of time of days from the date of this letter to file a properly executed form_8832 effective d with the appropriate service_center to elect to be classified as a disregarded_entity a copy of this letter should be attached to the form_8832 except as expressly provided herein no opinion is expressed or implied concerning the tax consequences of any aspect of any transaction or item discussed or referenced in this letter this ruling is directed only to the taxpayer requesting it sec_6110 provides that it may not be used or cited as precedent in accordance with the power_of_attorney on file with this office a copy of this letter is being sent to your authorized representative sincerely curt g wilson curt g wilson associate chief_counsel passthroughs special industries enclosures copy of this letter copy for sec_6110 purposes cc


torani peveume serv ice quvwhel1v08y9 y uniform issue list se tev -la t legend taxpayer a amount d company m plan x oear a this is in response to your letter dated 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 taxpayer a age represents that she received a distribution from plan x a simple taxpayer a asserts that her failure ira plan totaling amount d on october to accomplish a rollover within the 60-day period prescribed by sec_408 was due to a severe winter storm which delayed her timely express mailing of her rollover_contribution check past the 60-day rollover period taxpayer a further represents that amount d has not been used for any other purpose taxpayer a attempted to roll over amount d into plan x within days by a certified check in amount d to company m and on december za taxpayer a mailed the check by way of express mail with guaranteed next day delivery however due to a severe winter storm the postal processing center was shutdown and the check was delayed for an additional days until december based on the facts and representations you request that the internal_revenue_service waive the 60-day rollover requirement with respect to the distribution of amount d because the failure to waive such requirement would be a hardship and against equity or good conscience 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 - the entire amount received including money and any other_property is paid into i 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 the entire amount received including money and any other_property is paid into ii 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 code sec_408 provides in general that rules similar to the rules of sec_401 shall apply to the distribution of the entire_interest of an individual for whose benefit the trust is maintained code sec_408 provides that paragraph d shall not apply to any amount to the extent such amount is required to be distributed under subsection a sec_408 of the code provides that the secretary may waive the 60-day requirement under sec_408 and sec_408 of the code where the failure to waive such requirement would be against equity or good conscience including casualty disaster or other events beyond the reasonable control of the individual subject_to such requirement only distributions that occurred after date4 are eligible for the waiver under sec_408 of the code revproc_2003_16 2003_4_irb_359 date provides that in determining whether to grant a waiver of the 60-day rollover requirement pursuant to sec_408 the service will consider all relevant facts and circumstances including errors committed by a financial_institution inability to complete a rollover due to death disability hospitalization incarceration restrictions imposed by a foreign_country or postal error the use of the amount distributed for example in the case of payment by check whether the check was cashed and the time elapsed since the distribution occurred the information provided on behalf of taxpayer a demonstrates a failure on her part to timely accomplish a rollover of amount d due to events beyond her control taxpayer a timely issued a certified check and used express next day mail to insure the delivery of her rollover deposit to company m within the day period taxpayer a documented her representations with an express mail receipt dated date however a severe winter storm caused her check to be delayed in the mail past the 60-day period thus based on the above pursuant to code sec_408 the service hereby waives the 60-day rollover requirement with respect to the withdrawal of amount d pursuant to this ruling letter the service will treat taxpayer a's date rollover_contribution of amount d into plan x as a valid rollover within the meaning of code sec_408 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 has been sent to your authorized representative in accordance with a power_of_attorney on file in this office if you wish to inquire about this ruling please contact i d se t ep ra t3 at please address all correspondence to sincerely yours ow rances v sloan manager echnical group _ employee_plans enclosures deleted copy of letter_ruling notice of intention to disclose


department of the treasury employer_identification_number contact person - id number contact telephone number vil internal_revenue_service p o box cincinnati oh release number release date date date legend individual corporation program state newspaper corporation number dollar amount dollar amount dear you asked tor advance approval of your scholarship grant procedures under internal_revenue_code sec_4945 this approval is required because you are a private_foundation that is exempt from federal_income_tax you requested approval of your scholarship program to fund the education of certain qualifying students our determination we approved your procedures for awarding scholarships based on the information you submitted and assuming you will conduct your program as proposed we determined that your procedures for awarding scholarships meet the requirements of code sec_4945 as a result expenditures you make under these procedures won't be taxable also awards made under these procedures are scholarship or fellowship grants and are not taxavie to the recipients if they use them for qualified_tuition_and_related_expenses subject_to the limitations provide in code sec_117 description of your request you will operate a scholarship program called w to provide grants and scholarships to residents of x w is comprised of two parts letter catalog number 58263t the first part of the program provides scholarship of d dollars to high school seniors who wish to enter a technical or trade school as well as enrolling in a two-year or four-year institution of higher learning one senior in each of the counties of x will be selected the closing date for the annual nomination process is generally established as the end of september of each year and operates on a yearly basis the purpose of the program is to honor students who are dedicated to their schools and their communities the student must also have been nominated through w a student may nominate himself or herself for a scholarship award as well as being nominated by a third party the criteria used to determine eligibility for these awards are three-fold first a student must be a high school senior enrolled in a public or private school or alternatively the student may be the equivalent of a senior in a home school setting second the pool of students seeking a scholarship are separated by county in order to ensure that there is one winner from each county in x third a student must have at least a b average in order to be eligible to win each of the judges on the selection committee receives the documentation submitted for a scholarship applicant there will be c grants each year of the d dollar awards so long as candidates apply from each of x’ counties it is anticipated that only one award per year will be made to a senior from each x county in the event for example that no student from five different x counties would apply for an award in a given year then five less awards would be given there are no conditions to maintain the d dollar awards because those awards are one- time grants there is no supervision or monitoring these awards other than to verify that the recipient is a senior in the county that was represented on the nomination form and has the minimum b average under part two of the program you will provide three residents of x with renewable scholarships of up to g dollars per year for up to four years the purpose of these awards is to help defray the costs of higher education you require that an applicant fill out a nomination form or have a nomination form filled out on the student’s behalf and have two completed narratives in order to be eligible the first narrative may cover one or more of the following topics civic volunteer involvement work entrepreneurship sports academic achievement leadership position held youth groups scouts church involvement extra-curricular activities clubs other awards received and other special talents interests the nominator or the student if different may submit this first narrative a second narrative must also be submitted the second narrative must be completed by the student and must answer the following question what comes next for me after high school the students must be working on and maintaining a degree in one of the following majors computer science or information_technology engineering petroleum civil or chemical energy or land management environmental science geology or safety science letter catalog number 58263t the criteria you use to determine eligibility for the larger awards are that the student must i initially’ submit an application_for a scholarship as a senior in accordance with the procedure and with the eligibility criteria described immediately above and ii must be pursuing a degree in one of the six majors indicated above the larger scholarships you award will be used to pay for the students expenses of attending an accredited college or university in the united_states which maintains a regular faculty and curriculum and is otherwise described in sec_170 of the code in order to receive a renewal of one of these larger awards you require that the student must continue to be enrolled and maintain at least a grade point average a b average a scholarship award must be used for tuition fees lodging books and supplies tuition fees and books will be paid directly to the college or university the cost of lodging will also be paid directly to the school where applicable you monitor the awarding of the larger scholarships but you do not select the scholarship recipients a selection committee sends the contact information of the winners to you each winner must provide you with the tuition invoices for the college or university they attend and provide his or her grades to demonstrate that he or she is maintaining at least a b average in order for the scholarship to be renewed the student must also provide a letter from the school indicating that the required major is being pursued if the terms and conditions of these awards are not satisfied the scholarship is ended you ask the educational_institution to acknowledge in writing that the scholarship award can be used only for tuition fees books or supplies the written acknowledgement required to be returned to you must be attested to by an appropriate_official of the educational_institution additionally within one semester of the use of the scholarship funds all scholarship recipients will be required to account to you and describe the manner in which the grant was expended by the recipient upon reviewing the acknowledgements of the educational institutions and the accountings from the scholarship recipients you will seek recovery_of any misused funds in the event there are variances from the intended usage any recovered monies will be utilized for future scholarship grants both programs are publicized on your and y’s website and in an announcement in y a search on either website will direct you to the pertinent application information additionally each year information is disseminated about the scholarship programs by y to every high school guidance counselor in x each year y appoints seven judges to determine the scholarship winners more specifically the individual judges are appointed by h who is the president and chief_executive_officer of z which owns y when determining which individuals should be appointed as judges h solicits input from various general managers of y in each market and discusses with the general managers potential appointees h also talks to various people in the x department of education in an effort to have a broad cross section of judges make the determination of which students should be entitled to a scholarship catalog number 58263t letter there is no relationship between the judges your organization or the students being considered for scholarship the judges are employees of sec_501 organizations representing a broad cross section of industry in x the seven judges serve as the selection committee which will determine the scholarship winners none of the judges has any affiliation or relationship to you j or y the judges individually review all of the students before meeting as a committee the committee discusses each applicant and determines by majority vote the winner from each county as well as the three large scholarships the winner is based on the applicant's academic performance service to the community and letter of recommendation if any your president maintains the historic records of recipients of scholarships including the names addresses purposes of the awards amount manner of selection none of the scholarship recipients may be related to an officer or director of your organization with respect to any award you provide there are no limitations or restrictions in the selection process based upon race creed color religion or national heritage children of employees of j are eligible for awards as well as the children of non- employees however your officers employees and directors may not derive either directly or indirectly any personal benefit from grants you award accordingly scholarships shall not be given to an applicant who is a disqualified_person with respect to your organization as defined in sec_4946 of the internal_revenue_code basis for our determination the law imposes certain excise_taxes on the taxable_expenditures of private_foundations code sec_4945 a taxable_expenditure is any amount a private_foundation pays as a grant to an individual for travel study or other similar purposes however a grant that meets all of the following requirements of code sec_4945 is not a taxable_expenditure e e the foundation awards the grant on an objective and nondiscriminatory basis the irs approves in advance the procedure for awarding the grant the grant is a scholarship or fellowship subject_to the provisions of code sec_117 the grant is to be used for study at an educational_organization described in code sec_170 other conditions that apply to this determination e this determination only covers the grant program described above this approval will apply to succeeding grant programs only if their standards and procedures don’t differ significantly from those described in your original request e this determination applies only to you it may not be cited as a precedent letter catalog number 58263t e e e e you cannot rely on the conclusions in this letter if the facts you provided have changed substantially you must report any significant changes to your program to the cincinnati office of exempt_organizations at internal_revenue_service exempt_organizations determinations p o box cincinnati oh you cannot award grants to your creators officers directors trustees foundation managers or members of selection committees or their relatives all funds distributed to individuals must be made on a charitable basis and further the purposes of your organization you cannot award grants for a purpose that is inconsistent with code sec_170 you should keep adequate_records and case histories so that you can substantiate your grant distributions with the irs if necessary please keep a copy of this letter in your records if you have questions please contact the person listed at the top of this letter sincerely director exempt_organizations letter catalog number 58263t


internal_revenue_service department of the treasury number release date index number washington dc person to contact telephone number refer reply to cc tege eb ec-plr-117842-00 date date company a company b country c stock exchange stock exchange date x form y this is in response to a letter dated date submitted by your authorized representative requesting a ruling under sec_162 of the internal_revenue_code specifically a ruling is requested that the deduction limitation of sec_162 of the code does not apply to company a and its affiliates company a is a subsidiary of company b a country c_corporation company a is the united_states parent of numerous united_states businesses and is the highest employer in company b’s united_states corporate chain each of company b’s united_states subsidiaries is a member of corporation b’s affiliated_group as defined in sec_1504 of the code without regard to sec_1504 company a and its united_states subsidiaries pay united_states federal income taxes and deduct compensation paid to various individuals who are its employees including the chief_executive_officer of company a it has been represented that neither company a nor any of its united_states subsidiaries is a publicly_held_corporation under sec_162 of the code company b’s common_stock is traded primarily on stock exchange and stock exchange on date x company b filed form y with the united_states securities_and_exchange_commission sec company b is a foreign private issuer under c f_r plr-117842-00 section 3b-4 c because it is incorporated under the laws of country c and does not fit the following description more than percent of its outstanding voting_securities are held of record either directly or through voting_trust_certificates or depository receipts by united_states residents and any of the following apply i the majority of its executive officers or directors are united_states citizens or residents ii more than percent of its assets are located in the united_states or iii its business is administered principally in the united_states the summary compensation table requirement under item of regulation s-k under the securities exchange act of exchange act does not apply to company b accordingly neither the form y filed by company b nor any other document contains a summary compensation table that is described in or required by item b of regulation s-k under the exchange act however pursuant to country c laws company b is required to prepare a summary compensation table listing the compensation of the highest paid officers of company b and its subsidiaries such table has included the chief_executive_officer of company a company b included the summary compensation table in its most recent proxy statement delivered to its shareholders and filed with country c authorities company b included the proxy statement with its most recent form y filing sec_162 of the code allows a deduction for all of the ordinary and necessary expenses paid_or_incurred during the taxable_year in carrying on any trade_or_business including a reasonable allowance for salaries or other compensation_for_personal_services actually rendered sec_162 provides that for any publicly_held_corporation no deduction shall be allowed for applicable_employee_remuneration with respect to any covered_employee to the extent that the amount of such remuneration for the taxable_year exceeds dollar_figure sec_162 defines publicly_held_corporation as any corporation issuing any class of common equity securities required to be registered under sec_12 of the exchange act under sec_1_162-27 of the income_tax regulations a publicly_held_corporation includes an affiliated_group_of_corporations as defined in sec_1504 determined without regard to sec_1504 plr-117842-00 sec_162 defines covered_employee as any employee of the corporation if as of the close of the taxable_year such employee is the chief_executive_officer of the taxpayer or is an individual acting in such capacity or the total compensation of such employee for the taxable_year is required to be reported to shareholders under the exchange act by reason of such employee being among the four highest compensated officers for the taxable_year other than the chief_executive_officer under sec_1_162-27 of the regulations whether an individual is the chief_executive_officer or an officer is determined pursuant to the executive compensation disclosure rules under the exchange act in the notice of proposed rulemaking containing the proposed_regulations under sec_162 the preamble contains the following language concerning the identification of covered_employee the regulations clarify which employees are covered employees for purposes of sec_162 the legislative_history to sec_162 provides that covered employees are defined by reference to the sec rules governing executive compensation disclosure under the exchange act under the regulations an individual is generally a covered_employee if the individual’s compensation is reported on the summary compensation table under the sec’s executive compensation disclosure rules as set forth in item of regulations s-k c f_r under the exchange act however the regulations specifically provide that in order to be a covered_employee for sec_162 purpose an individual must be employed as an executive officer on the last of the taxable_year thus only those employees who appear on the summary compensation table and who are also employed on the last day of the taxable_year are covered employees therefore based on the facts outlined above and assuming no summary compensation table under item of regulation s-k under the exchange act is required to be filed by company a or company b with the securities_and_exchange_commission no employees of company b’s affiliated_group are covered employees under sec_162 because their compensation is not required to be reported to shareholders under the exchange act therefore company a and its united_states subsidiaries are not subject_to the disallowance rule_of sec_162 of the code this ruling is directed only to the taxpayer requesting it sec_6110 of the code provides that it may not be used or cited as precedent the taxpayer should attach a copy of this ruling to any income_tax return to which it is relevant in accordance with the power_of_attorney on file with this office a copy of this letter is being sent to your authorized representative plr-117842-00 sincerely yours robert b misner assistant chief executive compensation branch office of the division counsel associate chief_counsel tax exempt and government entities enclosure copy for purposes


internal_revenue_service department of the treasury index number washington dc number release date person to contact telephone number refer reply to cc intl 1-plr-111926-99 date date ty do a date b country c date d year e dear this is in response your letter dated date as amended by letters dated date date date and date requesting a ruling under sec_877 of the internal_revenue_code_of_1986 code that a’s loss of long-term_resident status did not have for one of its principal purposes the avoidance of u s taxes under subtitle a or subtitle b of the code the information submitted for consideration is substantially as set forth below the ruling contained in this letter is based upon information and representations submitted by the taxpayer and accompanied by penalty of perjury statements executed by the taxpayer 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 a a former long-term_resident of the united_states within the meaning of sec_877 relinquished his u s lawful permanent resident status expatriated on date b a has been a citizen of country c all of his life by reason of his birth on date d in country c a's parents were also born in country c a became a permanent resident of the u s and obtained his green card in year e on the date of a’s expatriation his net_worth exceeded the applicable_threshold in sec_877 of the code sec_877 generally provides that a citizen who loses u s citizenship or a u s long- term resident who ceases to be taxed as a lawful permanent resident individuals who expatriate within the 10-year period immediately preceding the close of the taxable_year will be taxed under sec_877 and the special rules of sec_877 for such taxable_year unless such loss did not have for one of its principal purposes the avoidance of u s taxes sec_2107 and sec_2501 provide special estate and gift_tax regimes respectively for individuals who expatriate with a principal purpose to avoid u s taxes a former citizen or former long-term_resident will be treated as having expatriated with a principal purpose to avoid u s taxes for purposes of sec_877 sec_2107 and sec_2501 if the individual’s average income_tax_liability or the individual’s net_worth on the date of expatriation exceeds certain thresholds see sec_877 sec_2107 and sec_2501 a former u s citizen whose net_worth or average tax_liability exceeds these thresholds however will not be presumed to have a principal purpose of tax_avoidance if that former citizen is described within certain statutory categories and submits a request for a ruling within one year of the date of loss of u s citizenship for the secretary’s determination as to whether such loss had for one of its principal purposes the avoidance of u s taxes see sec_877 sec_2107 and sec_2501 under notice_98_34 1998_27_irb_30 a former long-term_resident whose net_worth or average tax_liability exceeds the applicable thresholds will also not be presumed to have a principal purpose of tax_avoidance if that former long-term_resident is described within certain categories and submits a complete and good_faith request for a ruling as to whether such loss had for one of its principal purposes the avoidance of u s taxes notice_98_34 requires that certain information be submitted with a request for a ruling that an individual’s expatriation did not have for one of its principal purposes the avoidance of u s taxes a is eligible to request a ruling pursuant to notice_98_34 because he is described in two categories of individuals eligible to submit ruling requests first on the date of a’s expatriation a was and continues to be a resident fully liable to income_tax in country c the country in which a was born second a is eligible to submit a request because on the date of a’s expatriation a was and continues to be a resident fully liable to tax in country c the country in which his parents were born a submitted all the information required by notice_98_34 including any additional information requested by the service after review of the submission accordingly based solely on the information submitted and the representations made it is held that a has made a complete and good_faith submission in accordance with sec_877 and notice_98_34 and therefore a will not be presumed to have expatriated with a principal purposes of tax_avoidance however because the information submitted does not clearly establish the existence or lack of a principal purpose to avoid taxes under subtitle a or b of the code no opinion is expressed as to whether a’s expatriation had for one of its principal purposes the avoidance of such taxes while this ruling rebuts the presumption of tax_avoidance under sec_877 it is not conclusive as to whether a subsequently may be found to have a principal purpose of tax_avoidance under sec_877 sec_2107 and sec_2501 based on all the facts and circumstances see sec_877 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 addition no opinion is expressed as to a’s u s tax_liability for taxable periods prior to his loss of permanent resident status or for taxable periods after his loss of permanent resident status under sections of the code other than sec_877 sec_2107 and sec_2501 a copy of this letter must be attached to a’s u s income_tax return for the year in which a obtained the ruling whether or not a is otherwise required to file a return and any other income_tax return to which it is relevant this ruling is directed only to the taxpayer requesting it sec_6110 of the code provides that it may not be used or cited as precedent sincerely ed williams senior technical reviewer branch no associate chief_counsel international assistant_commissioner international international district operations op in d chief examination_division cc


department of the treasury internal_revenue_service washington d c u u may uniform issue list t ep a t attention legend plan x state b employer c dear this is in response to correspondence dated date as supplemented by correspondence dated date submitted on your behalf by your authorized representatives concerning the taxability of certain distributions from plan x the following facts and representations have been made on your behalf plan x is a governmental_plan qualified under sec_401 and described in sec_414 of the internal_revenue_code code plan x is a defined benefit pension_plan created and maintained by state b statutes to provide retirement benefits to civilian non-law enforcement employees of employer c benefits are funded by a combination of employer and mandatory employee contributions plan x’s normal_retirement_benefit is a lifetime annuity for a retired employee based upon the participant’s age and years of credited service and payable in monthly installments upon the participant’s retirement with a continuing lifetime annuity for surviving spouses however various options are available for the settlement of benefits among these options an employee may elect upon retirement or separation_from_service to withdraw the employee’s accumulated_contributions to plan x such option to withdraw employee contributions upon separation_from_service was available on date to all plan x participants uu30 page effective date plan x was amended to include a partial lump-sum_distribution among the options available to a participant retiring or separating from service under this option a participant who is eligible to retire and receive a retirement allowance and who meets certain service requirements may elect instead to receive a portion of the benefit in a lump-sum payment by notification to plan x when applying for retirement benefits fora participant making this election the base pension which the participant would otherwise have received is reduced on an actuarially equivalent basis to reflect the lump-sum payment the lump-sum payment is paid before or with the participant's first regular annuity_payment plan x does not accept after-tax employee contributions from non-state retirement plans that may be attributable to employee contributions made prior to or from state plans that did not have a withdrawal feature on date based upon the facts and representations stated above the following rulings are requested alump-sum payment from plan x is eligible for the special tax treatment under sec_72 of the code as modified by sec_1011a b of the technical_and_miscellaneous_revenue_act_of_1988 tamra’ alump-sum payment paid before or with the first annuity_payment under plan x will be treated as having been received before the annuity_starting_date and will be taxable only to the extent such payment exceeds the participant’s investment_in_the_contract as of date any portion of a plan x lump-sum payment received in excess of the pre-1987 investment_in_the_contract will be taxable pursuant to the pro-rata basis recovery rule_of sec_72 of the code sec_402 of the code provides that any amount actually distributed to any distributee by any employees’ trust described in sec_401 which is exempt from tax under sec_501 shall be taxable to the distributee in the taxable_year of the distributee in which distributed under sec_72 relating to annuities sec_72 of the code provides that in general gross_income includes any amount_received_as_an_annuity whether for a period certain or during one or more lives under an annuity endowment or life_insurance_contract sec_72 of the code provides a special rule where a lump sum is paid in connection with the commencement of annuity payments in general in connection with the commencement of annuity payments under any qualified_employer_retirement_plan if the taxpayer receives a lump-sum payment such payment shall be taxable under sec_72 as if received before the annuity_starting_date and the investment_in_the_contract for purposes of this section shall be determined as if such payment had been so received this does not apply in any case where the primary_annuitant has attained age on the annuity_starting_date unless there are fewer than years of guaranteed payments under the annuity in addition there is a necessary adjustment if annuity payments are not made on a monthly basis page sec_72 of the code-generally applies to amounts received under an annuity_contract which are considered to be amounts_not_received_as_an_annuity sec_72 of the code provides the general_rule that if any amount distributed from an annuity_contract is received on or after the annuity_starting_date such amount will be included in gross_income sec_72 of the code provides the general_rule that if any amount distributed from an annuity_contract is received before the annuity_starting_date such amount will be included in gross_income to the extent allocable to income_on_the_contract and will not be included in gross_income to the extent allocable to the investment_in_the_contract sec_72 of the code provides for an extension of sec_72 to qualified_plans sec_72 provides in pertinent part that in the case of any amount received before the annuity_starting_date from a_trust described in sec_401 which is exempt from tax under sec_501 or from a contract purchased by such a_trust sec_72 shall apply to such amounts sec_72 of the code provides that for purposes of sec_72 the amount allocated to the investment_in_the_contract shail be the portion of the amount described in sec_72 which bears the same ratio to such amount as the investment_in_the_contract bears to the account balance the determination under the preceding sentence shall be made as of the time of the distribution or at such other time as the secretary may prescribe sec_72 of the code provides that in the case of a plan which on date permitted withdrawal of any employee contributions before separation_from_service sec_72 shall apply only to the extent that amounts received before the annuity_starting_date when increased by amounts previously received under the contract after date exceed the investment_in_the_contract as of date sec_1011a b of tamra created a special rule for state plans in the case of a plan maintained by a state which on date permitted withdrawal by the employee of employee contributions other than as an annuity sec_72 of the code shall be applied without regard to the phrase before separation_from_service in sec_72 and by treating any amount received other than as an annuity before or with the first annuity_payment as having been received before the annuity_starting_date with respect to the requested rulings sec_72 of the code provides that in the case of a_trust or contract that is part of a plan that on date permitted a participant to receive a distribution of any portion of such participant’s employee contributions under the trust or contract before such participant’s separation_from_service the rules of sec_72 and b shall apply in determining the portion of any nonannuity distribution after date that is allocable to such participant’s investment in the trust or contract only to the extent that the amount of the nonannuity distribution is greater than the remaining amount of the participant’s total investment in the trust or contract on date ie the participant’s investment in the trust or contract on date reduced by nonannuity distributions made after date and before page the date of the nonannuity distribution in question that are not included in gross_income on account of sec_72 in the case of a nonannuity distribution that is greater than such remaining amount of the participant's investment in the trust or contract on date the portion of the distribution that is allocable to such remaining amount is to be disregarded in applying the rules of sec_72 and b to the portion of the distribution that is greater than such remaining amount in this case plan x is maintained by state b and permitted the withdrawal of employee contributions upon retirement or separation_from_service this option was available to all plan x participants on date effective date plan x was amended to include a partial lump-sum_distribution among the options available to a participant retiring or separating from service the lump-sum payment is paid before or with the participant's first regular annuity_payment accordingly with respect to your ruling requests we conclude the following alump-sum payment from plan x is eligible for the tax treatment under sec_72 of the code as modified by sec_1011a b of the technical_and_miscellaneous_revenue_act_of_1988 tamra alump-sum payment paid before or with the first annuity_payment under plan x will be treated as having been received before the annuity_starting_date and will be taxable only to the extent such payment exceeds the participant’s investment_in_the_contract as of date any portion of a plan x lump-sum payment received in excess of the pre-1987 investment_in_the_contract will be taxable pursuant to the pro-rata basis recovery rule_of sec_72 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 ruling expresses no opinion with respect to whether plan x satisfies the requirements for qualification under sec_401 of the code 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 page pursuant to a power_of_attorney on file with this office a copy of this letter_ruling is being sent to your authorized representatives should you have any concerns regarding this ‘letter please contact id at ' sincerely yours j ge employee_plans technical group tax_exempt_and_government_entities_division enclosures deleted copy of letter_ruling notice of intention to disclose


internal_revenue_service number release date index number -------------------- --------------------- ------------------------------------------- ----------------------------- -------------- ----------------------------- department of the treasury washington dc third party communication none date of communication not applicable_person to contact --------------- id no ------------------ telephone number ---------------------- refer reply to cc fip b01 plr-107047-18 date date legend taxpayer sponsor firm partnership ------------------------------------------------------------------------ ---------------------------------------------------------------------------------------------- ---------------------------------------------------- --------------------------- ---------------------------------------------------- corporations ------------------------------------------------------------------------ ------------------------------------------------------------------------ ------------------------------------------- date date date date date ------------------- --------------------------- ------------------ ---------------------------- ----------------- plr-107047-18 dear ---------------- this ruling responds to a letter dated date submitted on behalf of taxpayer taxpayer requests an extension of time under sec_301_9100-1 and sec_301_9100-3 of the procedure and administration regulations the regulations to make an election under sec_856 of the internal_revenue_code the code to treat corporations as taxable reit subsidiaries trs of taxpayer effective as of date facts taxpayer represents that it made an election to be treated as a real_estate_investment_trust reit under sec_856 of the code commencing with its taxable_year that ended on date taxpayer indirectly owns and leases land cellular towers distributed antenna systems and interests in corporations taxpayer is sponsored by sponsor on date taxpayer through a disregarded_entity acquired an interest in partnership partnership owns and leases land cellular towers distributed antenna systems and interests in corporations on date sponsor engaged firm to conduct tax due diligence in connection with and prior to taxpayer’s acquisition of its interest in partnership firm prepared and delivered a due diligence report to taxpayer that noted partnership’s ownership_interest in corporations the tax due diligence report stated that corporations did not appear to hold material assets or conduct material operations but did not discuss the reit qualification issues that may arise due to the ownership of corporations in particular although the tax due diligence report discussed tax compliance steps to be taken following the acquisition of the interest in partnership it did not discuss trs elections in connection with taxpayer’s reit qualification sponsor on behalf of taxpayer engaged firm to provide reit tax compliance services for the taxpayer year ending date in connection with the review of taxpayer’s returns for the year ending date sponsor’s counsel discovered taxpayer’s failure to timely file trs elections for corporations sponsor’s counsel discussed the matter with a partner at firm with responsibility for taxpayer’s reit tax compliance services including the possibility that the interests in corporations could potentially result in taxpayer failing its reit-qualifying asset test under sec_856 for a relevant quarter in which a trs election was not in effect upon discovery of this risk and upon advice from firm taxpayer promptly filed forms taxable_reit_subsidiary election on date to make a joint trs election with corporations retroactive to date the earliest date on which the trs election could be effective without the relief sought in this letter_ruling plr-107047-18 after further consultation with outside legal counsel taxpayer determined that it would be appropriate and prudent to request relief to treat corporations as trss as of date the date on which taxpayer was formed and the interest in partnership was acquired taxpayer makes the following additional representations in connection with this ruling_request the request for relief was filed before the failure to make the regulatory election was discovered by the service granting the relief requested will not result in taxpayer or corporations having a lower u s federal tax_liability in the aggregate for all years to which the election applies than they would have had if the election had been timely made taking into account the time_value_of_money taxpayer did not seek to alter a return position for which an accuracy-related_penalty has been or could have been imposed under sec_6662 of the code at the time they requested relief and the new position requires or permits a regulatory election for which relief is requested being fully informed of the required regulatory election and related tax consequences taxpayer did not choose to not file the election taxpayer and corporations are not using hindsight in making the decision to seek the relief requested no specific facts have changed since the due_date for making the election that make the election advantageous to taxpayer or corporations the period of limitations on assessment under sec_6501 has not expired for taxpayer or corporations for the taxable_year in which the election should have been filed nor for any taxable_year s that would have been affected by the election had it been timely filed in addition affidavits on behalf of taxpayer and corporations have been provided as required by sec_301_9100-3 of the regulations law and analysis sec_856 of the code provides that a reit and a corporation other than a reit may jointly elect to treat such corporation as a trs to be eligible for treatment as a trs sec_856 provides that the reit must directly or indirectly own stock in the corporation and the reit and the corporation must jointly elect such treatment the election is irrevocable once made unless both the reit and the subsidiary consent plr-107047-18 to its revocation in addition sec_856 specifically provides that the election and any revocation thereof may be made without the consent of the secretary in announcement 2001_1_cb_716 the service announced the availability of new form_8875 taxable_reit_subsidiary election according to the announcement this form is to be used for taxable years beginning after for eligible entities to elect treatment as a trs the instructions to form_8875 provide that the subsidiary and the reit can make the election at any time during the taxable_year however the effective date of the election depends on when the form_8875 is filed the instructions further provide that the effective date cannot be more than months and days prior to the date of filing the election or more than months after the date of filing the election if no date is specified on the form the election is effective on the date the form is filed with the service sec_301_9100-1 of the regulations provides that the commissioner has discretion to grant a reasonable extension of time to make a regulatory election or a statutory election but no more than months except in the case of a taxpayer who is abroad under all subtitles of the code except subtitles e g h and i sec_301_9100-1 defines a regulatory election as an election whose due_date is prescribed by regulations or by a revenue_ruling a revenue_procedure a notice or an announcement published in the internal_revenue_bulletin sec_301_9100-3 through c sets forth rules that the service generally will use to determine whether under the particular facts and circumstances of each situation the commissioner will grant an extension of time for regulatory elections that do not meet the requirements of sec_301_9100-2 sec_301_9100-3 provides that requests for relief subject_to this section will be granted when the taxpayer provides the evidence including affidavits described in sec_301_9100-3 to establish to the satisfaction of the commissioner that the taxpayer acted reasonably and in good_faith and the grant of relief will not prejudice the interests of the government sec_301_9100-3 provides that a taxpayer is deemed to have acted reasonably and in good_faith if the taxpayer i requests relief under this section before the failure to make the regulatory election is discovered by the service ii failed to make the election because of intervening events beyond the taxpayer’s control iii 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 iv reasonably relied on the written advice of the service or v 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 a taxpayer will be deemed to have not acted reasonably and in good_faith if the taxpayer i seeks to alter a return position for which an accuracy-related_penalty has been or could be imposed under section plr-107047-18 at the time the taxpayer requests relief and the new position requires or permits a regulatory election for which relief is requested ii was informed in all material respects of the required election and related tax consequences but chose not to file the election or iii uses hindsight in requesting relief sec_301_9100-3 provides that a reasonable extension of time to make a regulatory election will be granted only when the interests of the government will not be prejudiced by the granting of relief sec_301_9100-3 provides that the interests of the government are prejudiced if granting relief would result in the taxpayer having a lower tax_liability in the aggregate for all taxable years affected by the election than the taxpayer would have had if the election had been timely made taking into account the time_value_of_money sec_301_9100-3 provides that the interests of the government are ordinarily prejudiced if the taxable_year in which the regulatory election should have been made or any taxable years that would have been affected by the election had it been timely made are closed by the period of limitations on assessment under sec_6501 before the taxpayer’s receipt of a ruling granting relief under this section conclusion based on the information submitted and the representations made we conclude that taxpayer has satisfied the requirements for granting a reasonable extension of time to elect under sec_856 to treat corporations as trss of taxpayer effective date accordingly taxpayers may treat corporations as trss of taxpayer effective date this ruling is limited to the timeliness of the filing of form_8875 this ruling’s application is limited to the facts representations and code and regulation sections cited herein except as 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 particular no opinion is expressed as to whether taxpayer qualifies as a reit or whether corporations otherwise qualify as trss of taxpayer under part ii of subchapter_m of the code no opinion is expressed with regard to whether the tax_liability of taxpayer or corporations is not lower in the aggregate for all years to which the election applies than such tax_liability would have been if the election had been timely made taking into account the time_value_of_money upon audit of the u s federal_income_tax returns involved the director’s office will determine such tax_liability for the years involved if the director’s office determines that such tax_liability is lower that office will determine the u s federal_income_tax effect plr-107047-18 the ruling contained in this letter is based upon information and representations submitted by taxpayer and corporations and accompanied by penalty of perjury statements executed by the appropriate parties 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 this ruling is directed only to the taxpayers that requested it sec_6110 of the code provides that it may not be used or cited as precedent in accordance with the terms of a power_of_attorney on file in this office copies of this letter are being sent to your authorized representatives sincerely ______________________ robert martin senior technician reviewer branch office of the associate chief_counsel financial institutions products enclosure copy of this for sec_6110 purposes


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-116095-04 date may internal_revenue_service number release date index number ---------------------------------- ------------------------------------------ ----------------------------------------------- ------------------------------------ in re --------------------------- ------------------------- ----------------------------------- legend taxpayer taxpayer date trust ------------------------ ----------------------- ----------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------- ------------------------- ------------------------ ----------------------------------------------------------------------------------------------- child trust year a b year c d year year e year f g year h i year j year k year year ----------------- ----------------------------------------------------------------------------------------------- ----------------------- ------- --------- --------- ------- --------- --------- ------- ------- -------- ------- ------------- ------------- ------- ------------- ------------- ------- ------------- ------- --------- ------- ------- plr-116095-04 l year m n year o p a b c d e f g h i j k l dear ------------------ ------------- ------- --------- ------------ ------- --------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------- ------------ ------------- this is in response to your letter dated date and subsequent correspondence on behalf of taxpayer and taxpayer 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 the facts and representations submitted are summarized as follows on date taxpayer and taxpayer established trust an irrevocable_trust with gst potential also on date taxpayer established trust an irrevocable_trust with gst potential in year taxpayer transferred property worth dollar_figurea to trust and taxpayer transferred property worth dollar_figureb to trust in year taxpayer transferred property worth dollar_figurec to trust and taxpayer transferred property worth dollar_figured to trust in year taxpayer transferred property worth dollar_figurec to trust and taxpayer transferred property worth dollar_figured to trust in year taxpayer transferred dollar_figuree to trust in year taxpayer transferred property worth dollar_figuref to trust and taxpayer transferred property worth dollar_figureg to trust in year taxpayer transferred property worth dollar_figureh to trust and taxpayer transferred property worth dollar_figurei to trust in year taxpayer transferred property worth dollar_figureh to trust and taxpayer transferred property worth dollar_figurej to trust in year taxpayer transferred property worth dollar_figureh to trust and taxpayer transferred property worth dollar_figurek to trust in year taxpayer transferred property worth dollar_figureh to trust and taxpayer transferred property worth dollar_figurek to trust in year taxpayer transferred property worth dollar_figurel to trust in year taxpayer transferred property worth dollar_figurem to trust and taxpayer transferred property worth dollar_figuren plr-116095-04 to trust in year taxpayer transferred property worth dollar_figureo to trust and taxpayer transferred property worth dollar_figurep to trust taxpayer and taxpayer relied on their long-time accountant to prepare and file form sec_709 united_states gift and generation-skipping_transfer_tax return gift_tax returns for year through year on each of the gift_tax returns filed taxpayer and taxpayer each elected under sec_2513 to treat the gifts made by them to third parties during the respective calendar_year as made one-half by each of them taxpayer 1’s and taxpayer 2’s transfers to trust and trust were reported on the gift_tax returns however the accountant did not properly allocate any of their respective gst exemptions to the transfers made to trust and trust in year taxpayer and taxpayer retained the services of an attorney to prepare and file their year gift_tax returns upon review of taxpayer 1’s and taxpayer 2’s gift_tax returns filed for prior years the attorney discovered that the prior returns failed to make proper allocations of the taxpayers’ respective gst exemptions taxpayer and taxpayer have requested an extension of time under sec_2642 and sec_301_9100-1 and sec_301_9100-3 to make allocations of their respective gst exemptions with respect to the transfers made in year sec_1 through year to trust and trust 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 aapplicable 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_2513 provides generally that a gift made by one spouse to any person other than his spouse shall for the purposes of chapter be considered as made one-half by him and one-half by his spouse but only if at the time of the gift each spouse is a citizen or resident_of_the_united_states spouse transferred property in part to his spouse and in part to third parties the consent is effective with respect to the interest transferred to third parties only insofar as such interest is ascertainable at the time of the gift and hence severable from the interest transferred to his spouse sec_25_2513-1 of the gift_tax regulations provides in part that if one sec_2652 provides that if under sec_2513 one-half of a gift is treated as plr-116095-04 made by an individual and one-half of such gift is treated as made by the spouse of such individual such gift shall be so treated for purposes of chapter provides in part that in the case of a transfer with respect to which the donor’s spouse makes an election under sec_2513 to treat the gift as made one-half by the spouse the electing spouse is treated as the transferor of one-half of the entire value of the property transferred by the donor regardless of the interest the electing spouse is actually deemed to have transferred under sec_2513 the donor is treated as the transferor of one-half of the value of the entire property sec_26_2652-1 of the generation-skipping_transfer_tax regulations 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 provides in part that an allocation of gst_exemption to property transferred during the 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 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 sec_2642 provides generally that the secretary shall by regulation sec_2642 provides that in determining whether to grant relief under plr-116095-04 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 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 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 sec_301_9100-3 provides that a taxpayer is deemed to have acted 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 reasonably and in good_faith if the taxpayer reasonably relied on a qualified_tax professional including a tax professional employed by the taxpayer and the tax professional failed to make or advise the taxpayer to make the election the requirements of sec_301_9100-3 have been satisfied therefore taxpayer and taxpayer are each granted an extension of time of days from the date of this letter to make allocations of their respective available gst exemptions with respect to the transfers made in year through year to trust and trust as follows dollar_figurea to the year transfer to trust and dollar_figureb to the year transfer to trust dollar_figurec to the year transfer to trust and dollar_figured to the year transfer to trust dollar_figurec to the year transfer to trust and dollar_figured to the year transfer to trust dollar_figuree to the year transfer to trust dollar_figuref to the year transfer to trust and dollar_figureg to the year transfer to based on the facts submitted and the representations made we conclude that plr-116095-04 trust dollar_figureh to the year transfer to trust and dollar_figurei to the year transfer to trust dollar_figureh to the year transfer to trust and dollar_figurej to the year transfer to trust dollar_figureh to the year transfer to trust and dollar_figurek to the year transfer to trust dollar_figureh to the year transfer to trust and dollar_figurek to the year transfer to trust and dollar_figurel to the year transfer to trust the allocations will be effective as of the date of the respective transfers to the trusts and the gift_tax value of the transfers to trust and trust will be used in determining the amount of gst_exemption to be allocated to trust and trust these allocations described above 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 a copy is enclosed for this purpose to trust and trust because taxpayer 1’s and taxpayer 2’s respective gst exemptions have already been allocated to those transfers pursuant to the automatic allocation rules set forth in sec_2632 no extension of time is granted with respect to the year and year transfers 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 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 and trust except as specifically ruled herein we express or imply no opinion on the federal in accordance with the power_of_attorney on file with this office a copy of this letter is being sent to taxpayer and taxpayer sincerely heather c maloy associate chief_counsel passthroughs special industries enclosures copy for sec_6110 purposes copy of letter


internal_revenue_service number release date index number -------------------------------- ------------------------ ------------------------------------------------- ------------------------------- department of the treasury washington dc third party communication none date of communication not applicable_person to contact --------------------- id no ------------- telephone number --------------------- refer reply to cc corp b04 plr-105525-12 date date legend legend parent date date date x ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- ----------------------- --------------------------- --------------------------- ----------------------- -- company official ---------------------------------------------------------------------- ---------------------------------------------------------------------- ------------------------- tax professional ---------------------------------------------------------------------- ------------------------ tax professional ---------------------------------------------------------------------- ---------------------------------------------------------------------- --------------------------------------------------------------------- plr-105525-12 dear -------------------- this letter responds to a letter dated date submitted on behalf of parent requesting an extension of time under sec_301_9100-3 of the procedure and administration regulations to file an election in particular parent is requesting an extension of time for the consolidated_group of which parent is the common parent to elect an extended carryback period the election for a consolidated_net_operating_loss cnol additional information was submitted in a letter dated date the material information submitted for consideration is summarized below parent is the common parent of a consolidated_group the parent group parent group incurred a cnol in the taxable_year ending date the year cnol parent seeks to carry back the year cnol x years to its taxable_year ending on date under sec_172 parent was required to file the election in order to carry back the year cnol to its taxable_year ending on date and to obtain the benefit of sec_56 the election was due on date but for various reasons a valid election was not filed after the due_date for the election it was discovered that the election had not been filed subsequently this request was submitted under sec_301_9100-3 for an extension of time to file the election the period of limitations on assessment under sec_6501 has not expired for the parent group's consolidated_income_tax_return for the taxable_year in which the year cnol was incurred or any subsequent taxable_year parent has represented that it is not seeking to alter a return position for which an accuracy related penalty has been or could be imposed under sec_6662 sec_172 of the internal_revenue_code generally permits a taxpayer to carry back a net_operating_loss to each of the taxable years preceding the taxable_year of the nol sec_172 of the internal_revenue_code permits a taxpayer to elect to carry back an applicable net_operating_loss to each of the or taxable years preceding the taxable_year of the applicable nol in lieu of the 2-year period provided by sec_172 sec_172 provides that the term applicable net_operating_loss applicable nol means the taxpayer's net_operating_loss for a taxable_year ending after date and beginning before date sec_172 provides that the election under sec_172 shall be made by the due_date including extension of time for filing the return for the taxpayer's last taxable_year beginning in the election is irrevocable and in general may be made only with respect to one taxable_year plr-105525-12 sec_1502 provides that the secretary shall prescribe such regulations as he may deem necessary in order that the tax_liability of any affiliated_group_of_corporations making a consolidated_return and of each corporation in the group both during and after the period of affiliation may be returned determined computed assessed collected and adjusted in such manner as clearly to reflect the income_tax_liability and the various factors necessary for the determination of such liability and in order to prevent avoidance of such tax_liability in carrying out the preceding sentence the secretary may prescribe rules that are different from the provisions of chapter that would apply if such corporations filed separate returns sec_1_1502-21 provides that losses taken into account in determining a cnol may be carried to other taxable years whether consolidated or separate only under paragraph b of sec_1_1502-21 sec_1_1502-21 provides that net_operating_loss_carryovers_and_carrybacks to a taxable_year are determined under the principles of sec_172 and sec_1_1502-21 sec_1_1502-21t provides that a consolidated_group can elect an extended carryback period pursuant to sec_172 with regard to a cnol arising in a taxable_year ending after date and beginning before date revproc_2009_52 2009_49_irb_744 provides when and how a taxpayer may make an election under sec_172 sec_4 of revproc_2009_52 provides that the common parent of a consolidated_group makes the election for the group sec_4 and of revproc_2009_52 permit the election to be made for consolidated taxpayers by attaching a statement to the original or amended consolidated_return for the taxable_year of the applicable cnol by attaching a statement to the taxpayer's amended consolidated_return applying the applicable cnol to the carryback_year or by attaching a statement to a claim for a tentative_carryback_adjustment on form_1139 sec_4 b and b of revproc_2009_52 require the election regardless of the manner in which made to be filed no later than the due_date including extensions for filing the return for the taxpayer's last taxable_year beginning in under sec_301_9100-1 the commissioner has discretion to grant a reasonable extension of time to make a regulatory election or a statutory election but no more than six months except in the case of a taxpayer who is abroad under all subtitles of the internal_revenue_code except subtitles e g h and i sec_301_9100-1 through provide the standards the commissioner will use to determine whether to grant an extension of time to make a regulatory election sec_301_9100-1 requests 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 plr-105525-12 taxpayer acted reasonably and in good_faith and that granting relief will not prejudice the interests of the government sec_301_9100-3 the election by a consolidated_group to extend the carryback period under sec_172 for a cnol is a regulatory election therefore the commissioner has discretionary authority under sec_301_9100-3 to grant an extension of time for parent to file the election provided parent establishes to the satisfaction of the commissioner that it acted reasonably and in good_faith the requirements of sec_301_9100-1 and sec_301_9100-3 are satisfied and granting relief will not prejudice the interests of the government information affidavits and representations submitted by parent company official tax professional and tax professional explain the circumstances that resulted in the failure to timely file a valid election the information establishes that parent reasonably relied on a qualified_tax professional who failed to make or advise parent to make the election and that the request for relief was filed before the failure to make the election was discovered by the internal_revenue_service see sec_301_9100-3 and v based on the facts and information submitted including the affidavits submitted and the representations made we conclude that parent has shown it acted reasonably and in good_faith the requirements of sec_301_9100-1 and sec_301_9100-3 are satisfied and granting relief will not prejudice the interests of the government accordingly provided the parent group qualifies substantively to file the election we grant an extension of time under sec_301_9100-3 until sixty days from the date on this letter for parent to file the election parent shall file the election under sec_172 to carry back the year cnol to its taxable_year ending on date on form 1120x amended u s_corporation income_tax return for the tax_year ending on date according to the procedures set forth in revproc_2009_52 a copy of this letter must be attached to the form 1120x if parent files form 1120x electronically parent may satisfy the requirement of attaching a copy of this letter by attaching a statement to the parent group's amended_return that provides the date and control number plr-105525-12 of this letter_ruling the above extension of time is conditioned on the parent group’s tax_liability if any not being lower in the aggregate for all years to which the election applies than it would have been if the election had been timely made taking into account the time_value_of_money we express no opinion as to the parent group’s tax_liability for the years involved a determination thereof will be made by the director’s office upon audit of the income_tax returns involved except as expressly provided herein no opinion is expressed or implied concerning the tax consequences of any item discussed or referenced in this letter in particular we express no opinion with respect to whether parent qualifies substantively to make the plr-105525-12 election in addition we express no opinion as to the tax effects or consequences of filing the election late under the provisions of any other section of the internal_revenue_code or regulations or as to the tax treatment of any conditions existing at the time of or resulting from filing the election late that are not specifically set forth in this letter for purposes of granting relief under sec_301_9100-3 we relied on certain statements and representations made under penalty of perjury by parent company official tax professional and tax professional the director however should verify all essential facts in addition notwithstanding that an extension is granted under sec_301_9100-3 to file the election any penalties and interest that would otherwise be applicable continue to apply this letter_ruling is directed only to the taxpayer who requested it sec_6110 provides that it may not be used or cited as precedent pursuant to the power_of_attorney on file in this office a copy of this letter is being sent to your authorized representative sincerely ____________________________________ ken cohen senior technician reviewer branch associate chief_counsel corporate cc