internal_revenue_service number release date index number ------------------------------ ------------------------------------------- -------------------------------------- ------------------------------------------- department of the treasury washington dc third party communication none date of communication not applicable_person to contact ------------------- id no ------------- telephone number --------------------- refer reply to cc psi plr-129737-08 date date ---------------------------------------------- x -------------------------------------------------- country date ------------------------------- dear --------------- -------------- ---------------------- this responds to a letter dated date submitted on behalf of x requesting that the service grant x an extension of time under sec_301_9100-3 of the procedure and administration regulations to make an entity classification election the information submitted states that x was formed under the laws of country x represents that x is a foreign_entity eligible to be treated as a disregarded_entity however no timely election was made to elect to treat x as a disregarded_entity effective date 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 a business_entity is any entity recognized for federal tax purposes that is not properly classified as a_trust under sec_301_7701-4 or otherwise subject_to special treatment under the internal_revenue_code sec_301_7701-3 provides guidance on the classification of a foreign_entity for federal_income_tax purposes generally a foreign eligible_entity is treated as an association_taxable_as_a_corporation if all members have limited_liability unless the entity makes an election to be treated otherwise if the foreign eligible_entity has only one owner it may elect to be treated as a disregarded_entity pursuant to the rules in sec_301_7701-3 plr-129737-08 sec_301_7701-3 provides that to elect to be classified other than as provided in sec_301_7701-3 an eligible_entity must file form_8832 with the designated service_center and that an entity classification election must be filed on form_8832 and can be effective up to seventy-five days prior to the date the form is filed or up to twelve months after the date on which the form is filed sec_301_9100-1 provides that the commissioner may grant a reasonable extension of time to make a regulatory election or a statutory election but no more than months except in the case of a taxpayer who is abroad under all subtitles of the internal_revenue_code except subtitles e g h and i sec_301_9100-1 defines the term regulatory election as an election whose due_date is prescribed by a regulation published in the federal_register or a revenue_ruling revenue_procedure notice or announcement published in the internal_revenue_bulletin sec_301_9100-1 through provide the standards the commissioner will use to determine whether to grant an extension of time to make the election sec_301_9100-2 provides the rules governing automatic extensions of time for making certain elections sec_301_9100-3 provides the standards the commissioner will use to determine whether to grant an extension of time for regulatory elections that do not meet the requirements of sec_301_9100-2 under sec_301_9100-3 a request for relief will be granted when the taxpayer provides evidence to establish to the satisfaction of the commissioner that the taxpayer acted reasonably and in good_faith and granting relief will not prejudice the interests of the government based solely on the information submitted and representations made we conclude that the requirements of sec_301_9100-3 have been satisfied as a result x is granted an extension of time of days from the date of this letter to file a form_8832 with the appropriate service_center and elect to be treated as a disregarded_entity effective date a copy of this letter should be attached to the form_8832 a copy is enclosed for that purpose except as expressly provided herein we express or imply no opinion concerning the federal tax consequences of any aspect of any transaction or item discussed or referenced in this letter this ruling is directed only to the taxpayer requesting it sec_6110 of the code provides that it may not be used or cited as precedent plr-129737-08 in accordance with a power_of_attorney on file with this office a copy of this letter is being sent to x’s authorized representatives sincerely curt g wilson associate chief_counsel office of associate chief_counsel passthroughs and special industries enclosures copy of this letter copy for sec_6110 purposes


internal_revenue_service department of the treasury number release date index numbers 1015-dollar_figure washington dc person to contact telephone number refer reply to cc psi 4-plr-105823-00 date date re legend decedent child a child b child c trust a grandchild grandchild grandchild grandchild date date date dear this is in response to your letter dated date submitted by your authorized representatives requesting income_tax and generation-skipping_transfer_tax rulings concerning the partition of trust a decedent died on date survived by three children child a child b and child c under decedent’s will executed on date decedent bequeathed the balance of his residuary_estate to three testamentary trusts with each separate trust for the primary benefit of one child this ruling concerns trust a created for the benefit of child a under the terms of trust a the net_income is to be paid to child a for life and upon child a’s death net_income is to be paid to child a’s issue per stirpes trust a will terminate twenty-one years after the death of the survivor of child a child b and child c or twenty-one years after the death of the last grandchild of decedent living at the date of his death upon termination the assets of trust a will be distributed outright to the income beneficiaries according to their respective rights in such income if child a is not survived by issue the assets of trust a are to be distributed equally to the trusts for child b and child c the terms of trust a also authorize the trustee to divide one trust estate into several sub-trust estates plr-105823-00 child a died on date survived by four children grandchild grandchild grandchild and grandchild the trustee proposes to petition the appropriate state court to divide trust a into four separate and equal successor trusts with one successor trust for each of child a’s children and their issue the trustee purposes that no new trust instrument will be created rather the terms of the will shall govern the trusts with respect to income and principal distribution termination distribution of assets and the other terms and conditions for purposes of partitioning trust a the assets of trust a will be divided on a fractional basis and the successor trusts will not terminate until the expiration of the applicable perpetuities periods the trustee has represented that there have been no additions to trust a constructive or otherwise after date the trustee has requested the following rulings the resulting successor trusts are not subject_to the generation-skipping_transfer_tax imposed under sec_2601 of the internal_revenue_code the proposed reformation will not constitute an addition to trust a or a change in the substance of trust a that will cause it to lose its exempt status under b a of the tax_reform_act_of_1986 after the division of trust a into four separate equal trusts the resulting successor trusts will not lose their exempt status and shall continue to be exempt from the generation-skipping_transfer_tax imposed under sec_2601 provided there are no additions to the trusts after date neither the partition of trust a nor the distributions of the assets to the newly created successor trusts on a fractional share basis will require the recognition of gain_or_loss for federal_income_tax purposes law and analysis issues sec_2601 imposes a tax on every generation-skipping_transfer gst made after date under b a of the tax_reform_act_of_1986 act and sec_26 b i of the generation-skipping_transfer_tax regulations the gst tax provisions do not apply to any generation-skipping_transfer under a_trust as defined in sec_2652 that was irrevocable on date however this exemption does not apply to additions actual or constructive that are made to the trust after date plr-105823-00 sec_26_2601-1 provides that except as provided in sec_26_2601-1 or c any trust as defined in sec_2652 in existence on date is considered an irrevocable_trust sec_26_2601-1 provides rules for determining when a modification judicial construction settlement agreement or trustee action with respect to a_trust that is exempt from the generation-skipping_transfer_tax will not cause the trust to lose its exempt status sec_26_2601-1 provides that a modification will not cause an exempt trust to be subject_to the provisions of chapter if the modification does not shift a beneficial_interest in the trust to any beneficiary who occupies a lower generation as defined in sec_2651 than the person or persons who held the beneficial_interest prior to the modification and the modification does not extend the time for vesting of any beneficial_interest in the trust beyond the period provided for in the original trust a modification of an exempt trust will result in a shift in beneficial_interest to a lower generation beneficiary if the modification can result in either an increase in the amount of a gst transfer or the creation of a new gst transfer in this case trust a was irrevocable on date and no additions have been made to the trust after that date the trustee proposes to divide trust a into four separate and equal successor trusts with one trust for each of child a’s children and their respective issue the trustee also proposes that no new trust instrument will be created instead the terms of trust a as provided for in decedent’s will shall govern each of the successor trusts furthermore the assets of trust a will be divided on a fractional basis and the successor trusts will not terminate until the expiration of the applicable perpetuities periods the proposed partition of trust a will not result in a shift of any beneficial_interest in the trust to any beneficiary who occupies a generation lower than the persons holding the beneficial interests prior to the renunciation and release in addition the proposed partition of trust a will not extend the time for vesting of any beneficial_interest in the trust beyond the period provided for in the original trust based on the information submitted and representations made we conclude that the partition as proposed will not subject trust a or any successor trust created under the partition to the generation-skipping_transfer_tax further the proposed reformation will not constitute an addition to trust a or a change in the substance of trust a that will cause it to lose its exempt status under b a of the tax_reform_act_of_1986 finally after the division of trust a into four separate equal trusts the resulting successor trusts will not lose their exempt status and shall continue to be exempt from the generation-skipping_transfer_tax imposed under sec_2601 provided there are no additions to the trusts after date law and analysis issue sec_4 plr-105823-00 sec_1001 provides that the gain from the sale_or_other_disposition of property shall be the excess of the amount_realized therefrom over the adjusted_basis provided in sec_1001 for determining loss over the amount_realized sec_1_1001-1 of the income_tax regulations provides that except as otherwise provided in subtitle a of the code the gain_or_loss realized from the conversion of property into cash or from the exchange of property for other_property differing materially either in_kind or extent is treated as income or loss sustained revrul_56_437 1956_2_cb_507 held that the severance of a joint_tenancy in stock under a partition action provided for by state law to compel the issuance of separate stock certificates is not a sale_or_exchange likewise the conversion of a joint_tenancy in stock into a tenancy_in_common is a nontaxable_transaction under applicable state law the right of the owner of the property to pursue such a result is an inherent ownership right each had in the property involved 499_us_554 concerns the issue of when a sale_or_exchange has taken place that results in realization of gain_or_loss under sec_1001 in cottage savings a financial_institution exchanged its interests in one group of residential mortgage loans for another group of residential mortgage loans the two groups of mortgage loans were considered substantially identical by the agency that regulated the financial_institution in cottage saving pincite u s pincite the supreme court concluded that sec_1_1001-1 reasonably interprets sec_1001 and stated that an exchange of property gives rise to a realization event under sec_1001 if the properties exchanged are materially different in defining what constitutes a material difference for purposes of sec_1001 the supreme court stated that properties are different in a sense that is material to the code so long as their respective possessors enjoy legal entitlements that are different in_kind or extent cottage savings u s pincite the supreme court held that mortgage loans made to different obligors and secured_by different homes embodied distinct legal entitlements and that the taxpayer realized losses when it exchanged the loans cottage savings u s pincite thus in order for a transaction to result in a sec_1001 taxable_event the transaction must be a sale exchange or other_disposition and if an exchange the exchange must result in the receipt of property that is materially different as defined in cottage savings from the property that was given up in this case the first element will not be present because the beneficiaries of trust a do not acquire their interest in the successor trusts as a result of an exchange of their interests in plr-105823-00 trust a but rather by reason of the authority granted the trustee of the trust by decedent at the time trust a was first created there is no exchange of property here instead the trustee is merely exercising a right to divide trust a and create the successor trusts in this the transaction is similar to revrul_56_437 in which the joint owners of property exercised a right inherent in their ownership rights of the property to partition the property if the trustee of trust a had not had the right to partition the trust the beneficiaries would have had to exchange their interests in the old trust for interests in the new trust thereby fulfilling the exchange requirement for a sec_1001 transaction further trust a establishes that each of the successor trust’s trustee’s will be required to continue to exercise the same standard of fiduciary responsibility as the trustee previously exercised with respect to trust a therefore trust a and the four successor trusts and the beneficiaries of any of these trusts will not realize gain_or_loss under sec_1001 except as specifically ruled above we express no opinion about the federal tax consequences of the transaction described above under any other provisions of the code this ruling is directed only to the taxpayers requesting it sec_6110 of the code provides that it may not be used or cited as precedent sincerely yours associate chief_counsel passthroughs and special industries by james hogan assistant to the branch chief enclosure copy for purposes


id office uilc cca-913844-10 ---------- number release date from ------------------- sent mon am to ------------------ cc --------------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------------------------- ----------------- subject re convert tefra investor you are correct that the one year date under section f during which the partner's sec_6501 statute will not expire started on that date a receiver was appointed since that year has already expired you will have to rely on the taxpayer's underlying sec_6501 period for all affected years all taxable years ending before that date the receiver was appointed have now converted and are thus now subject_to deficiency procedures


date form tax_year s ended person to contact id number taxpayer_identification_number contact numbers telephone fax uil number release date te_ge eo a name and address certified mail - return receipt requested dear ---- this is our final adverse determination_letter as to your exempt status under sec_501 of the internal_revenue_code our adverse determination was made because for the year s of the examination you were not operated as an insurance_company within the meaning of sec_501 of the internal_revenue_code we have enclosed a copy of our report of examination further explaining why we believe an adjustment of your organization’s exempt status is necessary we have also enclosed publication exempt_organization appeal procedures for unagreed issues and publication the examination process these publications include information on your rights as a taxpayer they explain appeal rights and the procedure for obtaining technical_advice both technical_advice and appeals procedures require a minimum of days remaining on the statute_of_limitations in order to take advantage of appeal rights or technical_advice procedures a taxpayer might be asked to execute a consent to extend the statute_of_limitations to permit appeals consideration or submission of a request for technical_advice that was the situation in this case internal revenue agents discussed with you the possible referral of this matter for technical_advice you declined that option internal revenue agents also requested statute extensions you elected not to extend the applicable statutes as you are aware the time remaining on the statutes does not allow for usual appeal procedures or submission of the case for technical_advice because this case involves exemption under sec_501 you cannot contest the adverse determination in a declaratory_judgment action under sec_7428 you can however contest the final adverse determination of exempt status in the context of any related deficiency case involving adjustments that flow from the loss of exemption thus you may file suit in united_states tax_court the united_states court of federal claims or united_states district_court from any deficiency_notice issued in this case or a related case after satisfying procedural and jurisdictional requirements as described in publications and you are required to file federal_income_tax returns for the tax period s shown above for all years still open under the statute_of_limitations and for all later years file the federal tax_return for the tax period s shown above with the ogden service_center within days from the date of this letter unless a request for an extension of time is granted file returns for later tax years with the appropriate service_center indicated in the instructions for those returns you have the right to contact the office_of_the_taxpayer_advocate taxpayer_advocate assistance is not a substitute for established irs procedures such as the formal appeals process the taxpayer_advocate cannot reverse a legally correct_tax determination or extend the time fixed by law that you have to file a petition in a united_states court the taxpayer_advocate can however see that a tax matter that may not have been resolved through normal channels gets prompt and proper handling you may call toll-free and ask for taxpayer_advocate assistance if you prefer you may contact your local taxpayer_advocate at if you have any questions please call the contact person at the telephone number shown in the heading of this letter if you write please provide a telephone number and the most convenient time to call if we need to contact you thank you for your cooperation enclosures publication publication report of examination r c johnson director eo examinations sincerely


internal_revenue_service department of the treasury index number washington dc number release date person to contact telephone number refer reply to cc dom p si 2-plr-110734-99 date date x a date date date year year year dear this letter responds to a date letter and subsequent correspondence submitted on behalf of x by x’s authorized representative requesting relief under sec_1362 of the internal_revenue_code the information submitted states that x incorporated on date of year but was dormant until date of year an affidavit from x’s attorney indicates that a the president and sole shareholder of x verbally instructed x’s attorney to prepare and file the papers necessary to make a valid s_corporation_election for year a having no familiarity with the actual mechanics of an s election assumed that x’s attorney had executed his instructions in date of year x’s accountant requested a copy of form_2553 election by a small_business_corporation at that point the parties discovered that x’s attorney had failed to file form_2553 a date of year request for relief to make a late s_corporation_election under revproc_98_55 1998_46_irb_27 was denied sec_1362 of the code provides that if-- a an election under sec_1362 for any taxable_year after the date prescribed by sec_1362 for making such election for such taxable_year or no such election is made for any taxable_year and b the secretary determines that there was reasonable_cause for the failure to timely make such election the secretary may treat such an election as timely made for such taxable_year based solely on the facts and the representations submitted we conclude that x has established reasonable_cause for failing to make a timely election to be an s_corporation for x’s year taxable_year accordingly provided that x makes an election to be an s_corporation by filing a completed form_2553 with the appropriate service_center effective for year within days following the date of this letter then such election will be treated as timely made for x’s year taxable_year a copy of this letter should be attached to the form_2553 except as specifically set forth above we express no opinion concerning the federal tax consequences of the facts described above under any other provision of the code including whether x was or is a small_business_corporation under sec_1361 of the code this ruling is directed only to the taxpayer who requested it sec_6110 of the code provides that it may not be used or cited as precedent pursuant to the power_of_attorney on file a copy of this letter is being sent to x and one of x’s authorized representative sincerely yours j thomas hines senior technician reviewer branch office of the assistant chief_counsel passthroughs and special industries enclosures copy of this letter copy for sec_6110 purposes


tax_exempt_and_government_entities_division u i l department of the treasury internal_revenue_service washington d c q u o q q oct se-t ep le t rekkekreerereree keeeekrereereree legend taxpayer a ira x company b amount d amount e company c account k individual m state r state s - rrkrkkkrre a hoes a ae hone a hore rrr ere eee ene hodneeiee eee dear kreeekekekrerereereeree this is in response to your letter dated date as supplemented by correspondence dated date and date submitted on your behalf by your authorized representative in which you request a waiver of the day rollover requirement contained in sec_408 of the internal_revenue_code the code’ hakikarrrereere q u o q the following facts and representations have been submitted under penalties of perjury in support of your request taxpayer a an year old individual maintained an individual_retirement_arrangement ira x with company b while she resided in state r november in anticipation of moving to state s taxpayer a withdrew the balance from ira x and deposited that amount into her checking account documentation submitted with this request shows that company b issued a check dated november the gross amount of ira x at the time of the withdrawal was amount d on december account k with described individual m as her state s financial advisor company c with the assistance of individual m taxpayer a taxpayer a states that she deposited amount e into to taxpayer a in the net amount of amount e in taxpayer a states that in march ge individual m informed her that amount e had not been rolled over into an ira ina letter dated september jto taxpayer a from individual m in support of taxpayer a’s request for a waiver of the 60-day rollover requirement individual m acknowledged the receipt and deposit of the ira x funds in addition to other_amounts into account k on date individual m states that the failure to establish an ira was due to a miscommunication between himself and taxpayer a account statements submitted by taxpayer a shows that the ira funds continue to he held in account k based upon the foregoing facts and representations you request that the service waive the day rollover requirement with respect to the distribution of amount d from ira x sec_408 of the code provides that except as otherwise provided in sec_408 any amount_paid or distributed out of an ira shall be included in gross_income by the payee or distributee as the case may be in the manner provided under sec_72 of the code sec_408 of the code defines and provides the rules applicable to ira_rollovers sec_408 of the code provides that sec_408 of the code does not apply to any amount_paid or distributed out of an ira to the individual for whose benefit the ira is maintained if- i the entire amount received including money and any other_property is paid into an ira for the benefit of such individual not later than the day after the day on which the individual received the payment or distribution or krerereeerrerreere zwyuvovzuo2 ii the entire amount received including money and any other_property is paid into an eligible_retirement_plan other than an ira for the benefit of such individual not later than the day after the date on which the payment or distribution is received except that the maximum amount which may be paid into such plan may not exceed the portion of the amount received which is includible in gross_income determined without regard to sec_408 sec_408 of the code provides that sec_408 does not apply to any amount described in sec_408 received by an individual from an ira if at the time during the 1-year period ending in the day of such receipt such individual received any other amount described in sec_408 from an ira which was not included in gross_income because of the application of sec_408 sec_408 of the code provides a similar 60-day rollover period for partial rollovers sec_408 of the code provides that the secretary may waive the day requirement under sec_408 and sec_408 of the code where the failure to waive such requirement would be against equity and good conscience including casualty disaster or other events beyond the reasonable control of the individual subject_to such requirement only distributions that occur after date are eligible for the waiver under sec_408 of the code revproc_2003_16 i r b provides that in determining whether to grant a waiver of the 60-day rollover requirement pursuant to sec_408 the service will consider all relevant facts and circumstances including errors committed by a financial_institution inability to complete a rollover due to death disability or hospitalization incarceration restrictions imposed by a foreign_country or postal error the use of amount distributed for example in the case of payment by check whether the check was cashed and the time elapsed since the distribution occurred the information presented and documentation submitted by taxpayer a is consistent with her assertion that she failed to complete a rollover to an ira within the 60-day rollover period due to a miscommunication between taxpayer a and individual m in opening account k and the failure to property ascertain that a portion of the funds deposited into account k represented ira assets therefore pursuant to sec_408 of the code the service hereby waives the 60-day rollover requirement with respect to the distribution of amount d less amounts necessary to satisfy code sec_401 from ira x taxpayer a is granted a period of days from the date of this ruling to contribute amount d less required distributions to an ira provided all other errkeekeerekrerere requirements of sec_408 of the code except the 60-day requirement are met with respect to such contribution amount d less required distributions will be considered a rollover_contribution within the meaning of sec_408 of the code wsyyvousvae taxpayer a is over and therefore has attained her required_beginning_date for purposes of code sec_401 in this regard this ruling does not authorize the rollover of any portion of amount d that may be required to be distributed to taxpayer a by code sec_401 no opinion is expressed as to the tax treatment of the transactions described herein under the provisions of any other section of either the code or regulations which may be applicable thereto this ruling is directed only to the taxpayer that requested it sec_6110 of the code provides that it may not be used or cited by others as precedent if you have any questions concerning this ruling please contact hraki rarer rr arrer ahir iari hiir eee se et fd ras td sincerely yours signed joyor b floyd joyce e floyd manager employee_plans technical group enclosures deleted copy of letter_ruling notice


department of the treasury internal_revenue_service washington d c date number release date cc pa apjp b3 postn-116437-02 uilc internal_revenue_service chief_counsel_advice memorandum for margaret black w cas am ppg ata acting chief adjustments telephone analysis section from peter k reilly special counsel tax practice procedure administrative provisions judicial procedure cc pa apjp br3 subject math error authority procedures and previously denied earned_income_tax_credit eic claims this chief_counsel_advice responds to your memorandum dated date seeking our views concerning the processing of returns claiming eic during a ban year in accordance with sec_6110 this chief_counsel_advice should not be cited as precedent issue sec_1 must math error procedures be used in addressing a current_year eic claim when the math error was the result of a previous eic disallowance through statutory deficiency procedures if not may the csr response to the taxpayer advising that eic cannot be claimed for any_tax year ending prior to the 2-year ban conclusion sec_1 math error procedures are not mandatory furthermore math error procedures cannot be used to disallow an eic claim made during the two-year period set out in sec_32 instead the service should issue a notice_of_deficiency to disallow eic during a ban year the service may advise the taxpayer by letter that the eic cannot be claimed for a tax_year subject_to the two-year ban however to disallow such a claim the service must issue a notice_of_deficiency facts a taxpayer who was denied eic in a prior year through statutory deficiency procedures may file a form_1040 requesting eic during the two-year period under sec_32 for which the taxpayer is banned from claiming eic the return is identified as being subject the two-year ban set out in sec_32 and sent rejects where a letter is sent to the taxpayer advising that since eic was disallowed for prior year examination due to reckless or intentional disregard of the eic rules and regulations the law does not allow the taxpayer to claim eic for the next two years in some instances the taxpayer responds to this letter by providing an amended_return attaching a form_8862 information to claim earned_income_credit after disallowance believing this to be sufficient to substantiate the entitlement to the credit in other instances the taxpayer responds by calling the internal_revenue_service service demanding eic customer service representatives csrs of accounts management are instructed to follow unsubstantiated math error procedures that is they allow the credit freezing the refund and assigning the case to examination for resolution examination uses math error procedures to disallow the eic subject the two-year ban set out in sec_32 law and analysis you ask whether math error procedures must be used in addressing a current_year eic claim when the basis for disallowing the claim in the present year was the disallowance of eic in a prior year through statutory deficiency procedures sec_6213 includes under the term mathematical_or_clerical_error an omission of information required by sec_32 relating to taxpayers making improper prior claims of earned_income_credit sec_32 deals with the handling of cases involving taxpayers who made improper prior eic claims the section provides that i n the case of a taxpayer who is denied credit under this section for any taxable_year as a result of the deficiency procedures under subchapter_b of chapter no credit shall be allowed under this section for any subsequent taxable_year unless the taxpayer provides such information as the secretary may require to demonstrate eligibility for such credit the service has set out the information required to demonstrate eligibility for eic in sec_1_32-3 which provides in pertinent part a in general a taxpayer who has been denied the earned_income_credit eic in whole or in part as a result of the deficiency procedures under subchapter_b of chapter deficiency procedures is ineligible to file a return claiming the eic subsequent to the denial until the taxpayer demonstrates eligibility for the eic in accordance with paragraph c of this section if a taxpayer demonstrates eligibility for a taxable_year in accordance with paragraph c of this section the taxpayer need not comply with those requirements for any subsequent taxable_year unless the service again denies the eic as a result of the deficiency procedures b denial of the eic as a result of the deficiency procedures for purposes of this section denial of the eic as a result of the deficiency procedures occurs when a tax on account of the eic is assessed as a deficiency other than as a mathematical_or_clerical_error under sec_6213 c demonstration of eligibility in the case of a taxpayer to whom paragraph a of this section applies and except as otherwise provided by the commissioner in the instructions for form_8862 information to claim earned_income_credit after disallowance no claim for the eic filed subsequent to the denial is allowed unless the taxpayer properly completes form_8862 demonstrating eligibility for the eic and otherwise is eligible for the eic if any item of information on form_8862 is incorrect or inconsistent with any item on the return the taxpayer will be treated as not demonstrating eligibility for the eic the taxpayer must follow the instructions for form_8862 to determine the income_tax return to which form_8862 must be attached if the taxpayer attaches form_8862 to an incorrect tax_return the taxpayer will not be relieved of the requirement that the taxpayer attach form_8862 to the correct_tax return and will therefore not be treated as meeting the taxpayer’s obligation under paragraph a of this section d failure to demonstrate eligibility if a taxpayer to whom paragraph a of this section applies fails to satisfy the requirements of paragraph c of this section with respect to a particular taxable_year the irs can deny the eic as a mathematical_or_clerical_error under sec_6213 thus as a general_rule the service can use math error procedures where a taxpayer previously had eic disallowed through deficiency procedures unless a proper form_8862 is filed the use of sec_6213 however is not mandatory the service could use deficiency procedures to disallow eic in such instances you have raised though the more specific instance where the eic claim is subject_to the two-year ban under sec_32 you seek advice concerning how these claims should be processed sec_32 provides that eic shall not be allowed for the period of taxable years after the most recent taxable_year for which there was a final_determination that the taxpayer's claim of credit under this section was due to reckless or intentional_disregard_of_rules_and_regulations the letter sent by rejects specifically instructs the taxpayer not to file the form_8862 during the ban period furthermore the instructions for form_1040 also advise taxpayers not to file a form_8862 during the ban period while sec_6213 can be used for the general situation where a taxpayer previously had eic disallowed through deficiency procedures it cannot be used where a taxpayer is subject_to the two-year ban this is so because the failure_to_file a proper form_8862 forms the basis for math error procedures in the general situation conversely the taxpayer is advised that form_8862 should not be filed during the two-year ban period furthermore there is no other provision under sec_6213 which would allow the service to resort to math error procedures when disallowing eic during a year in which the ban is in place instead the service should issue a notice_of_deficiency to disallow eic during a ban year this writing may contain privileged information any unauthorized disclosure of this writing may have an adverse effect on privileges such as attorney-client_privilege if disclosure becomes necessary please contact his office for our views please call if you have any further questions by _____________________ peter k reilly special counsel practice and procedure administrative provisions and judicial practice


cca_2016100612570315 id uilc number release date from sent thursday october pm to cc bcc subject re tefra statute extension for revproc_92_29 project questions john if in your example jane smith is now the tmp for the earlier tax years she may sign the form 921-p for those years need to sign forms 921-p unless the partnership provides written authorization for jane smith to sign a consent for those years see the instructions on the reverse side of the form 921-p if she is not then the tmp for the earlier years will samuel berman special counsel office of division counsel small_business self-employed -------------------------------- -----------------------------


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 intl b02 plr-149318-09 date date ------------- legend taxpayer fc state x country y company a company b company c d e date date date year year year ---------------------------------------------- ---------------------- -------------------------------------------- ---------------------- ------------- --------- ------------------------------------------ ---------------------------------- ----------------------------------------- ---- -------- ---------------------- ------------------ ---------------------- ------- ------- ------- plr-149318-09 accounting firm accounting firm -------------------------- ---------------------------------------- dear --------------- this is in response to your letter received by our office on date requesting the consent of the commissioner of the internal_revenue_service to make a retroactive qualified_electing_fund qef election under sec_1295 of the internal_revenue_code code and sec_1_1295-3 with respect to your investment in fc 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 facts taxpayer is a state x corporation taxpayer and company a a real_estate_investment_trust taxpayer’s indirect shareholder both made an election to treat taxpayer as a taxable_reit_subsidiary effective date company b taxpayer’s majority direct shareholder is an operating partnership owned primarily by company a taxpayer is a calendar_year taxpayer and uses the accrual_method of accounting taxpayer is engaged in the business of developing managing and leasing income producing real_estate projects owned by third parties as well as projects in which company a has an indirect ownership_interest with non-affiliated partners fc is a country y joint stock corporation taxpayer holds a d percent direct interest in fc and a e percent indirect interest through its disregarded single member llc company c taxpayer and company c acquired their joint_venture interests in fc on date the formation of the joint_venture was to provide services related to the development general planning leasing and management of shopping centers and other commercial real_estate in country y since year accounting firm has been engaged to perform u s tax compliance review services for taxpayer and has signed all of taxpayer’s u s income_tax returns as the preparer since year accounting firm has been engaged to prepare and sign u s information returns with respect to taxpayer’s investment in fc both accounting firms employed tax professionals competent to render u s tax_advice plr-149318-09 with respect to stock ownership of a foreign_corporation also both accounting firms had full access to all the information and facts relating to taxpayer’s ownership of fc stock and taxpayer relied on the advice of both accounting firms with regards to complying with u s tax laws taxpayer intended to make the sec_1295 election with respect to fc for year accounting firm calculated taxpayer’s pro-rata share of taxable_income with respect to fc for year and sent such calculations to taxpayer on date these taxable_income amounts were appropriately identified by accounting firm and included in taxpayer’s year federal_income_tax return further accounting firm prepared irs form_5471 information_return of u s persons with respect to certain foreign_corporations and irs form_8621 return by a shareholder of a passive_foreign_investment_company of qualified_electing_fund for taxpayer with respect to fc however on irs form_8621 accounting firm incorrectly stated company b as the shareholder taxpayer instead of taxpayer accounting firm did not identify this error and the forms pertaining to fc were attached to company b’s year income_tax return this error was discovered during the review of taxpayer’s tax_return for year as a result taxpayer did not make a timely qef election with respect to fc for year taxpayer has submitted affidavits signed under penalties of perjury describing the events that led to the failure to make the qef election by the election due_date including the role of accounting firm and accounting firm taxpayer has also submitted affidavits from accounting firm and accounting firm corroborating the statements made by taxpayer taxpayer represents that as of the date of this request_for_ruling the pfic status of fc has not been raised by the irs on audit for any of the taxable years at issue ruling requested taxpayer requests the consent of the commissioner of the internal_revenue_service to make a retroactive qef election with respect to fc for year under sec_1_1295-3 law sec_1295 of the code provides that any pfic shall be treated as a qef with respect to a taxpayer if an election by the taxpayer under sec_1295 applies to such company for the taxable_year and the company complies with such requirements as the secretary may prescribe for purposes of determining the ordinary_earnings and net capital_gains of such company plr-149318-09 under sec_1295 a qef election may be made for any taxable_year at any time on or before the due_date determined with regard to extensions for filing the return for such taxable_year to the extent provided in regulations such an election may be made after such due_date if the taxpayer failed to make an election by the due_date because the taxpayer reasonably believed the company was not a pfic under sec_1_1295-3 a taxpayer may request the consent of the commissioner to make a retroactive qef election for a taxable_year if the shareholder reasonably relied on a qualified_tax professional within the meaning of sec_1_1295-3 granting consent will not prejudice the interests of the united state sec_3 government as provided in sec_1_1295-3 the request is made before a representative of the internal_revenue_service raises upon audit the pfic status of the corporation for any taxable_year of the shareholder and the shareholder satisfies the procedural requirements of sec_1 f the procedural requirements include filing a request for consent to make a retroactive election with and submitting a user_fee to the office of the associate chief_counsel international sec_1_1295-3 additionally affidavits signed under penalties of perjury must be submitted that describe the events which led to the failure to make a qef election by the election due_date the discovery of such failure the engagement and responsibilities of the qualified_tax professional and the extent to which the shareholder relied on such professional sec_1_1295-3 and iii conclusion based on the information submitted and representations made with taxpayer’s ruling_request we conclude that taxpayer has satisfied sec_1_1295-3 accordingly consent is granted to taxpayer to make a retroactive qef election with respect to fc for year provided that taxpayer complies with the rules under sec_1_1295-3 regarding the time and manner for making the retroactive qef election plr-149318-09 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 a copy of this ruling must be attached to any_tax return to which it is relevant sincerely jeffery g mitchell special counsel international


syr ce internal_revenue_service department of asury p e - t washington dc contact person telephone numb in reference to date oct dear sir or madam this is in response to your letter dated date in which you requested certain rulings with respect to transfer of assets from b and c to d a proposed a private_foundation under sec_509 is of the code and is c b is exempt under sec_501 classified as exempt under sec_501 foundation under sec_509 c with classification under sec_509 d and is classified as a private is exempt under section and has been determined to be nonprivate foundation e d owns and operates a cultural educational and charitable the center which is open to the public as well as center in to numerous educational groups appreciation of history arts in adtition to operating the center d furthers its exempt purposes by operating a historical dwelling and a botanic garden in is designed to promote the and industry in f ef d for the past several years b and c have made annual grants to help meet the expenses of operating the center and d's to other exempt purposes grants on unlike the operational grants these grants are designed to help build d's endowment an annual basis from b and c's investment_assets now b and c desire to assist d by making b and c intend that the grants will eliminate the annual operational grants reduce and eventually in light of the purpose of the grants b and c do not intend to continue awarding grants once d's endowment is self-sufficient grants to d over a ten-year period b and c plan to award the you have represented that since d received its letter a sec_509 organization in classifying it has operated and been treated for all purposes as an organization described in sec_509 as it you have represented that the grants to d will be made for purposes described in sec_170 b not controlled by b and c because it and that d is an organization described in sec_509 of the code that d is is not a private_foundation you have further represented that neither b and c will voluntarily terminate its status as sec_507 in addition there have been neither willful repeated acts failures to act act with respect to either b termination provisions of sec_507 therefore are not applicable to b or c a private_foundation under in connection with the grants or otherwise or or failure to nor a willful and flagrant act and the involuntary or c sec_507 of the code which provides for the voluntary that except for transfers described in section and involuntary termination of private_foundation_status provides in part b an organization's private_foundation_status will be terminated only if its intent to terminate or repeated acts or failure to act giving rise to liability for tax under chapter there has been either willful or failures to act the organization notifies the service of or a willful and flagrant act sec_507 of the code provides that when a private_foundation transfers assets to another private_foundation pursuant to any liquidation merger redemption - recapitalization or other adjustment organization or reorganization the transferee foundation shall not be treated as a new organization sec_507 of the code imposes a termination_tax on each organization described in sec_507 sec_1_507-1 of the income_tax regulations provides that neither a transfer of all of foundation nor a significant disposition of assets as defined in sec_1_507-3 by a private_foundation whether or any portion of such significant disposition of assets is made to another private_foundation shall be deemed to result ina the assets of a private not termination of the transferor private_foundation under sec_507 elects to terminate pursuant to sec_507 a of the code unless the transferor private_foundation is applicable or section sec_1_507-1 of the regulations provides that if private_foundation makes a transfer described in paragraph this paragraph and prior to transfer liability for any_tax under chapter the transferor foundation transferee_liability may be applied against the transferee organization for payment of such taxes in connection with is incurred by such or a of sec_509 of the code provides that the term private_foundation means an organization described in sec_501 other than certain organizations described in sec_509 or sec_4942 of the code imposes a tax on a private foundation's undistributed_income for failure to distribute the required amounts of income equal to its minimum_investment_return a private_foundation must have qualifying distributions under the provisions of section sec_4942 of the code provides that the term qualifying_distribution means any amount_paid to accomplish one or more purposes described in sec_170 b paid to acquire an asset used or held for use directly in carrying out one or more charitable purposes described in sec_170 b other than any contribution to i an organization controlled directly or indirectly by the foundation or one or more disqualified persons as defined in sec_4946 respect to the foundation except as provided in paragraph or as defined in subsection j except as provided in paragraph use directly in carrying out one or more purposes described in sec_170 b ii a private_foundation which is not an operating_foundation or b any amount_paid to acquire an asset used or any amount or held for with sec_4945 of the code imposes a tax on the foundation on of the code provides that for purposes of this each taxable_expenditure as defined in sec_4945 sec_4945 section the term taxable_expenditure means any amount_paid or incurred by a private_foundation as unless a or of sec_509 foundation as defined in sec_4940 or foundation exercises expenditure_responsibility with respect to such grant in accordance with subsection h such organization is described in paragraph a grant to an organization an exempt operating the private b or is based upon the above facts the grants to d from b and c of the the grants do not change the relationship between d and would not jeopardize d's status under sec_509 code the organization it supports and do not cause d controlled by a disqualified_person to become grants to d an organization described in sec_501 c of the code would serve a charitable purpose within the meaning of sec_170 by helping d to build an endowment is not controlled by b and c or by disqualified persons with respect to constitute qualifying distributions within the meaning of sec_4942 therefore the grants made by b and c to d would b and c d d has been classified as not a private_foundation by reason of sec_509 of the code a grant to an organization described in sec_501 has been classified as not expenditure sec_4945 a private_foundation is not a taxable states that that since neither b nor c is voluntarily terminating its existence and since there have been no willful repeated or flagrant acts giving rise to liability under chapter will be imposed under sec_507 no tax a result of the grants as since d is a public charity within the meaning section of the regulations do not apply the transferee_liability provisions of sec_1 a b note that under sec_1_507-3 of the regulations if its status under sec_509 within three years after the making of described in sec_507 a apply to and the provisions of section the grant will be treated as however you should a transfer a grant d loses d accordingly based on the information furnished we rule as follows - after receiving the grants from b and c to be an organization described in sec_509 d will continue of the code the grants will constitute qualifying distributions by b and c under sec_4942 of the code the grants will not constitute taxable_expenditures by b and c under sec_4945 of the code the grants will not result in the imposition of tax on b and c under sec_507 of the code the grants will not result in the imposition of transferee_liability on d for taxes under sec_1_507-1 of the regulations you should note the provisions of sec_1_507-3 of the regulations would apply in the event that d reclassified as a private_foundation is we are informing the ep eo key district_office of this action organization's permanent records please keep a copy otf this ruling with your this ruling is directed only to the organization that requested it may not be used or cited as precedent sec_6110 of the code provides that it - sincerely beralor vv baok gerald v sack chief exempt_organizations technical branch 2d


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 b04 plr-132158-12 date date --------------------------------------------------------------------------- ------------------------ ---------------------- --------------------------- -------------- ------------------------------------------------------------ --------------------------------------------------------------- ----------------------------------------------------- ----------------------------------------------- taxpayer date date date foreign_country fund fund general_partner parent separate_account ---------------- separate_account ---------------- state z x y year year year -------------- ---- ---- ------- ------- ------- dear -------------------- this is in response to the letter submitted by your authorized representatives dated date requesting rulings on whether each of fund and fund will be treated as satisfying the diversification requirements of sec_817 of the internal_revenue_code the code i facts taxpayer taxpayer was incorporated under the laws of foreign_country taxpayer’s principal office is located in foreign_country taxpayer is licensed to engage in the life plr-132158-12 insurance_business in foreign_country and is not licensed to engage in such business in any u s jurisdiction pursuant to sec_953 taxpayer elected to be treated as a domestic_corporation for federal tax purposes in year the internal_revenue_service accepted taxpayer’s election in year effective for taxpayer’s taxable_year commencing on date as a result taxpayer is taxed as a domestic life_insurance_company under sec_801 taxpayer is a wholly-owned third-tier subsidiary of parent taxpayer and parent file a consolidated federal_income_tax return with other includible affiliates on an accrual accounting calendar_year basis contracts as part of its business taxpayer issues variable life_insurance contracts the contracts each contract permits the contractholder to allocate premium payments among one or more variable investment options each variable investment option corresponds to a segregated_asset_account the separate_accounts include separate_account and separate_account together the separate_accounts the service previously recognized that taxpayer’s separate_accounts maintained under the laws of foreign_country are segregated from its general asset accounts pursuant to state law or regulation for purposes of sec_817 in plr date all amounts invested in the separate_accounts are invested in corresponding funds all amounts invested in separate_account are invested in fund all amounts invested in separate_account are invested in fund together with fund the funds under the contracts each contractholder has the right subject_to certain contractual limitations to reallocate contract values from one variable investment option to another withdraw cash from the contract and surrender the contract for its cash_surrender_value collectively the cash_value requests taxpayer has represented that as part of the proposed transaction a cash_value request cannot be used to reallocate funds from fund to fund or vice-versa and new amounts cannot be invested in either fund or fund under the contracts general_partner in its role as the manager of each fund may suspend its obligation to satisfy immediately cash_value requests in the manner described below in order to protect the best interests of all the investors in each fund funds each fund is a limited_partnership under the laws of state z and is treated as a partnership for federal_income_tax purposes each separate_account is a limited_partner in the fund to which it corresponds ie separate_account is a limited_partner plr-132158-12 in fund and separate_account is a limited_partner in fund general_partner is the general_partner and investment manager of each fund except as otherwise permitted by sec_1_817-5 all beneficial interests in each fund are held by the corresponding separate_account and other segregated accounts of life_insurance_companies public access to each fund is available exclusively through the purchase of variable_contracts within the meaning of sec_817 underlying assets the funds primarily invest the amounts received under the contracts in other investment pools eg partnerships or limited_liability companies and managed accounts the investment vehicles as well as other assets together with the investment vehicles the underlying assets there are two types of investment vehicles investment vehicles that are not managed by general_partner and for which general_partner is not the general_partner unaffiliated investment vehicles and investment vehicles that are managed by general_partner and for which general_partner is the general_partner affiliated investment vehicles the recent economic crisis resulted in significant investment losses for the investment vehicles as a result the managers of some of the unaffiliated investment vehicles have suspended or otherwise restricted the ability of the funds to redeem the funds’ investment interests in the unaffiliated investment vehicles in connection with the liquidation of those unaffiliated investment vehicles these redemption restrictions are being imposed on the funds in their capacity as investors in the unaffiliated investment vehicles by the managers of the liquidating unaffiliated investment vehicles and are beyond the control of the funds or general_partner in addition to the redemption restrictions and suspensions being imposed on the funds by the managers of the unaffiliated investment vehicles general_partner has suspended redemptions from the affiliated investment vehicles under its obligations to all investors in the affiliated investment vehicles under federal securities law general_partner is obligated to act in the best interests of all of the investors all investors in the affiliated investment vehicles are subject_to the same redemption restrictions taxpayer represents that the decision to suspend redemptions from the affiliated investment vehicles was based entirely on non-tax considerations and was not intended to facilitate any particular tax result for the funds the funds own directly and indirectly between approximately ---- and ---- of the interests of any particular affiliated investment vehicle and the remaining interests in each such affiliated investment vehicle are owned by investors other than the funds the funds’ ownership interests in the affiliated investment vehicles are de_minimis relative to the ownership interests of the other investors plr-132158-12 general_partner does not expect to acquire any assets for the affiliated investment vehicles there may be circumstances however in which general_partner in its role as manager of the affiliated investment vehicles finds it necessary to acquire new assets for an affiliated investment vehicle’s portfolio in order to protect the best interests of all of the investors in that affiliated investment vehicle any such acquisition activity will be limited to situations in which general_partner determines that it is in the best economic interests of all investors in the affiliated investment vehicles to acquire an asset in order to protect or preserve the value of existing investments or to prevent or limit losses on existing investments any such activity will occur in the normal course of general_partner managing the assets of an affiliated investment vehicle consistent with general partner’s objective of liquidating and redeeming all interests therein as soon as reasonably practicable as of date fund had received redemption requests totaling approximately x of its net asset value as of date fund had received redemption requests totaling approximately y of its net asset value as a result of suspensions and other redemption restrictions imposed by the managers of the investment vehicles described above for reasons beyond the control of either the funds or general_partner the funds are no longer able to satisfy immediately cash_value requests in year general_partner suspended its obligation to fulfill cash_value requests general_partner will redeem all of the contractholders’ interests in each fund regardless of whether general_partner has received a cash_value request from every contractholder as a result of the proposed transaction described below each fund will redeem all of the limited partners’ interests in each fund pursuant to the proposed transaction described below general_partner will redeem all of the limited partners’ interests in the funds on a pro_rata basis by distributing cash generated from the disposition of the investment vehicles and other underlying assets ii proposed transaction to facilitate the pro_rata redemption of the limited partners’ interests in the funds as described above taxpayer proposes to engage in the following transaction with respect to each fund the proposed transaction each fund will distribute some or all of the cash it may currently hold to its limited partners as each fund receives additional_amounts of cash it will distribute that cash on a pro_rata basis to its limited partners the additional_amounts of cash may result from either a payment generated by an underlying asset or through the disposition of an underlying asset shortly after receiving the cash with respect to its underlying assets each fund will distribute the cash it receives to its respective limited partners pro_rata based on each limited partner’s capital_account plr-132158-12 the funds will not use the cash to purchase other assets or increase the funds’ investment in any of the existing underlying assets neither fund will exchange any of its assets for any other non-cash assets taxpayer which holds its limited_partnership_interest in each fund through a separate_account will transfer any cash it receives as part of the proposed transaction in accordance with contractholders’ instructions pursuant to cash_value requests while a contractholder may reallocate cash received under a contract to another investment option under the contract a contractholder may not reallocate any cash received in the proposed transaction to either fund or fund with respect to each fund the proposed transaction will last until each fund has redeemed all of its limited partners’ interests the proposed transaction is expected to last multiple calendar quarters taxpayer has represented that the proposed transaction will be completed as soon as reasonably practicable as a result of engaging in the proposed transaction taxpayer expects that during the proposed transaction a discrepancy may arise between each fund’s holdings and the diversification requirements of sec_817 taxpayer expects that any such discrepancy between the asset composition of either fund and the diversification requirements of sec_817 would continue for multiple calendar quarters iii additional representations in addition to the facts and representations presented above taxpayer has also made the following representations with respect to the unaffiliated investment vehicles general_partner will not directly or indirectly attempt to influence the investment manager of any unaffiliated investment vehicle to engage in any activity involving the acquisition of assets the independent investment managers of the unaffiliated investment vehicles may decide on their own to engage in such activity and general_partner would have no control_over such decisions neither fund will increase or otherwise modify its non-cash holdings as part of the proposed transaction each fund will be adequately diversified within the meaning of sec_817 at the end of the calendar_quarter immediately preceding the calendar_quarter in which the proposed transaction first occurs and each separate_account has satisfied the diversification requirements of sec_817 since its inception the contracts are variable_contracts within the meaning of sec_817 the contracts qualify as life_insurance contracts for federal_income_tax purposes plr-132158-12 other than any discrepancy that may arise in connection with the proposed transaction each fund has satisfied and will satisfy the diversification requirements under sec_817 iv requested ruling under sec_1_817-5 any discrepancy that may arise as a result of the proposed transaction would not cause either fund or fund to fail the diversification requirements of sec_817 in the calendar_quarter in which such discrepancy arises or any subsequent calendar_quarter v law and analysis sec_817 defines the term variable_contract for purposes of part i of subchapter_l of the code a life_insurance_contract is one type of variable_contract recognized under sec_817 for a life_insurance_contract to be a variable_contract all or part of the amounts received by the insurance_company pursuant to the contract must be allocated to a segregated_asset_account which pursuant to state law or regulation is separate from the general assets of the insurance_company in addition the amount of the contractholder’s death_benefit or the period of coverage must be adjusted on the basis of the investment return and the market_value of the segregated_asset_account sec_817 sec_817 was enacted as part of the deficit_reduction_act_of_1984 pub_l_no the conference_report to the deficit_reduction_act_of_1984 h_r conf_rep no pincite indicates that i n authorizing treasury to prescribe diversification standards the conferees intend that the standards be designed to deny annuity or life_insurance treatment for investments that are publicly available to investors and investments which are made in effect at the direction of the investor in addition to the diversification requirements under sec_817 the investor_control doctrine applies to determine whether a variable_contract based on a given segregated_asset_account qualifies for treatment as a life_insurance_contract see eg revrul_77_85 1977_1_cb_12 see also t d 1986_2_cb_97 providing that the diversification rules do not override the investor_control doctrine taxpayer has represented that the contracts qualify as life_insurance contracts for federal_income_tax purposes sec_817 generally provides that a variable_contract that otherwise meets the requirements of sec_817 shall not be treated as a life_insurance_contract for any period and for any subsequent period for which the investments made by the underlying segregated_asset_account are not adequately diversified in accordance with treasury regulations sec_1_817-5 of the regulations states the diversification requirements for variable_contracts based on segregated_asset accounts including variable life_insurance contracts generally the investments of a segregated_asset_account are considered to be adequately diversified for purposes of sec_817 if there are plr-132158-12 at least five investments and no more than percent of the total asset value of the segregated_asset_account is represented by any one investment no more than percent by any two investments no more than percent by any three investments and no more than percent by any four investments the diversification of segregated_asset accounts is tested quarterly sec_1_817-5 for purposes of applying the diversification requirements of sec_817 a look- through rule in sec_1_817-5 applies to a segregated_asset account’s assets held through a partnership the look-through_rule only applies to a partnership if all beneficial interests in the partnership are held by one or more segregated_asset accounts of one or more insurance_companies or as otherwise described in sec_1_817-5 sec_1_817-5 interests in the partnership must also be available exclusively through the purchase of a variable_contract sec_1_817-5 if the look-through_rule applies the partnership_interest of the segregated_asset_account is not treated as a single investment of the segregated_asset_account instead the regulations look through the partnership to the partnership’s assets a pro_rata portion of each partnership asset is treated as an asset of the segregated_asset_account each partner’s ratable interest in a partnership asset is determined in accordance with the partner’s capital interest in the partnership sec_1_817-5 sec_1_817-5 provides that a segregated_asset_account that satisfies the diversification requirements stated in sec_1_817-5 at the end of any calendar_quarter or within days after the end of such calendar_quarter shall not be considered nondiversified in a subsequent quarter because of a discrepancy between the value of its assets and the diversification requirements unless such discrepancy exists immediately after the acquisition of any asset and such discrepancy is wholly or partly the result of such acquisition sec_1_817-5 does not provide an exception to the diversification requirements of sec_817 in the interests of sound tax_administration the regulation clarifies that neither holding assets in nor disposing assets from a segregated_asset_account which otherwise satisfied the diversification requirements at the end of the preceding calendar_quarter or within days thereafter does not give rise to a failure to meet the diversification requirements in a subsequent quarter the regulation provides that there is no failure to meet the diversification requirements in such situations unless the discrepancy exists immediately after the acquisition of any asset and such discrepancy is wholly or partly the result of such acquisition and the discrepancy is not remedied within days after the end of the calendar_quarter in which such post-acquisition discrepancy arises taxpayer has represented that each contract is a variable_contract within the meaning of sec_817 and qualifies as a life_insurance_contract taxpayer has represented that each of separate_account and separate_account is a segregated_asset_account for a contract to be treated as a variable_contract the segregated_asset_account underlying each contract must be diversified taxpayer has represented that plr-132158-12 the diversification requirements must be applied at the fund level according to the look- through rule in sec_1_817-5 taxpayer has represented that each fund will be adequately diversified within the meaning of sec_817 at the end of the calendar_quarter immediately preceding the calendar_quarter in which the proposed transaction first occurs neither fund will increase or otherwise modify its non-cash holdings as part of the proposed transaction although neither fund will increase or otherwise modify its non-cash holdings as part of the proposed transaction each cash distribution a fund makes will reduce its overall holdings such that the relative value of the fund’s remaining assets expressed as a percentage of each fund’s reduced overall holdings will increase taxpayer expects that the proposed transaction may generate discrepancies between the diversification requirements and the holdings of each fund any potential discrepancy between the relative value of each fund’s remaining assets and the diversification requirements imposed by sec_817 will result from the disposition of underlying assets by each of the funds and the related distributions to the contractholders in the proposed transaction no potential discrepancy will exist immediately after the acquisition of any asset no potential discrepancy will arise either wholly or partly as the result of the acquisition of any asset accordingly under sec_1_817-5 neither fund will be considered to fail the diversification requirements imposed by sec_817 in the calendar_quarter in which any discrepancy arises pursuant to the proposed transaction or in any subsequent calendar_quarter vi holding based on the information submitted and taxpayer’s representations under sec_1_817-5 any discrepancy that may arise as a result of the proposed transaction would not cause either fund or fund to fail the diversification requirements of sec_817 in the calendar_quarter in which such discrepancy arises or any subsequent calendar_quarter except as expressly provided herein no opinion is expressed concerning the tax consequences of any aspect of any transaction or item discussed or referenced in this letter the rulings contained in this letter are based upon information and representations submitted by 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 this ruling is directed only to the taxpayer who requested it sec_6110 provides that it may not be used or cited as precedent plr-132158-12 in accordance with the power_of_attorney on file with this office a copy of this letter is being sent to your authorized representatives sincerely sheryl b flum branch chief branch office of associate chief_counsel financial institutions products


internal_revenue_service date number info release date uilc cc psi 1-cor-104091-01 we are responding to your correspondence requesting relief in order to establish as the effective year for your s_corporation_election the information submitted explains that the internal_revenue_service never received your election although we are unable to respond to to your request as submitted this letter provides useful information relating to your request based on the instructions to form_2553 taxpayers are generally notified of acceptance or nonacceptance of their election within three months of date of filing_date mailed if the irs questions whether the election was filed acceptable proof of filing is a certified or registered mail receipt b form_2553 with an accepted stamp c form_2553 with stamped irs received date or e an irs letter stating the election has been accepted announcement copy enclosed provides guidance on seeking relief for late s_corporation elections and inadvertent invalid s_corporation elections generally to request relief for a late or invalid s_corporation_election you must request a private_letter_ruling from the national_office the procedures for requesting a private_letter_ruling are set out in revproc_2001_1 copy enclosed in addition revproc_2001_1 requires taxpayers to submit a user_fee along with their ruling_request the standard user_fee for a private_letter_ruling is dollar_figure however taxpayers with gross_income of less than dollar_figure million on their last-filed tax_return qualify for a reduced user_fee in the amount of dollar_figure if you are eligible to use the reduced fee provision you must include the statement described in b b of appendix a with your request please review appendix b for a sample format for requesting a private_letter_ruling if you decide to submit a formal request for a private_letter_ruling please include the proper user_fee if applying under the reduced fee provisions send a statement certifying gross_income and refer your request to our office by adding the following to the address attn cc p a p o box ben franklin station washington dc direct to cc psi room please keep this letter with your tax records and feel free to provide a copy of it to your authorized representative we hope that the above information proves helpful sincerely yours s dianna k miosi dianna k miosi chief branch associate chief_counsel passthroughs and special industries enclosures announcement revproc_2001_1


department of the treasury internal_revenue_service washington d c jul commissioner tax_exempt_and_government_entities_division uniform issue list selt ep o47 legend taxpayer a taxpayer b ira c financial_institution d amount amount dear this is in response to your request dated date as supplemented by correspondence dated 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 represents that on date he received a distribution equal to amount from ira c an individual_retirement_account ira described in sec_408 of the code which was maintained by financial_institution d taxpayer a asserts that his failure to accomplish a rollover within the 60-day period prescribed by sec_408 was due to the medical conditions of taxpayer a and taxpayer a’s spouse taxpayer b in august of taxpayer a had hip replacement surgery taxpayer a’s physician informed him that for several weeks after the surgery he would be using a walker or crutches and would need assistance performing everyday tasks on date taxpayer a’s physician recommended that taxpayer a continue using a walker and taking medication for pain and inflammation in addition taxpayer b taxpayer a’s spouse suffered from chronic orthopedic issues that compromised her ability to walk taxpayer a and taxpayer b are both elderly individuals on date taxpayer a requested a distribution equal to amount from ira c with the intention to complete a rollover within the 60-day period due to circumstances beyond their control and their ongoing medical issues taxpayer a missed the 60-day period by nine days in april of taxpayer a paid federal income and state taxes on the distribution of amount from ira c which left amount remaining from total_distribution amount based on the above facts and representations taxpayer a requests a waiver of the 60-day rollover requirement with respect to the distribution of amount from ira c to enable him to roll over amount an amount equal to amount less taxes paid on the distribution back into ira c sec_408 of the code defines an ira to mean a_trust created or organized in the united_states and requires that the trustee be a bank or an approved non- bank trustee sec_408 of the code provides that except as otherwise provided in sec_408 any amount_paid or distributed out of an ira shail be included in gross_income by the payee or distribute as the case may be in the manner provided under sec_72 sec_408 of the code provides the rules applicable to ira_rollovers sec_408 of the code provides that sec_408 does not apply to any amount_paid or distributed out of an ira to the individual for whose benefit the ira is maintained if i the entire amount received including money or any other_property is paid into an ira for the benefit of such individual not later than the 60th day after the day on which the individual receives the payment or distribution or ii the entire amount received including money and any other_property is paid into an eligible_retirement_plan other than an ira for the benefit of such individual not later than the 60th day after the date on which the payment or distribution is received except that the maximum amount which may be paid into such plan may not exceed the portion of the amount received which is includible in gross_income determined without regard to sec_408 sec_408 of the code provides that sec_408 does not apply to any amount described in sec_408 received by an individual from an ira if at any time during the 1-year period ending on the day of such receipt such individual received any other amount described in sec_408 from an ira which was not includible in gross_income because of the application of sec_408 sec_408 of the code provides a similar 60-day rollover period for partial rollovers sec_408 of the code provides that the rollover provisions of sec_408 do not apply to any amount required to be distributed under sec_408 sec_408 of the code provides that the secretary_of_the_treasury may waive the 60-day requirement under sec_408 and sec_408 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 revproc_2003_16 2003_4_irb_359 provides that the service will issue a ruling waiving the 60-day rollover requirement in cases 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 taxpayer in determining whether to grant a waiver of the 60-day rollover requirement pursuant to sec_408 of the code the service will consider all relevant facts and circumstances including errors committed by a financial_institution inability to complete a rollover due to death disability hospitalization incarceration restrictions imposed by a foreign_country or postal error the use of the amount distributed for example in the case of payment by check whether the check was cashed and the time elapsed since the distribution occurred the information presented and documentation submitted by taxpayer a are consistent with taxpayer a’s assertion that the failure to complete a timely rollover of the distribution of amount from ira c was due to taxpayer a’s and taxpayer b’s medical conditions therefore pursuant to sec_408 of the code the service waives the day rollover requirement with respect to the distribution of amount from ira c and taxpayer a has days from the issuance of this letter_ruling to contribute amount into an ira provided all other requirements of sec_408 except the 60-day requirement will be met with respect to the contribution of amount to an ira the contribution of this amount is considered a rollover_contribution within the meaning of sec_408 this ruling does not authorize the rollover of amounts that are required to be distributed by sec_408 of the code no opinion is expressed as to the tax treatment of the transaction described herein under the provisions of any other section of either the code or regulations which may be applicable thereto this letter is directed only to the taxpayer who requested it sec_6110 of the code provides that it may not be used or cited as precedent if you wish to inquire about this ruling please contact at please address all correspondence to se t ep ra t1 sincerely yours cullen wither carlton a watkins manager employee_plans technical group enclosures notice of intention to disclose deleted copy of this letter


internal_revenue_service department of the treasury washington dc person to contact telephone number refer reply to cc p si - plr-130227-01 date date number release date index number x a d1 dear this responds to a letter dated date and subsequent correspondence submitted on behalf of x requesting a ruling under sec_1362 of the internal_revenue_code the information submitted states that x was incorporated on d1 a the president of x represents that the shareholders of x intended x to be an s_corporation effective d1 however a form_2553 election by a small_business_corporation was not filed for x effective d1 sec_1362 provides that if -- a an election under sec_1362 is made for any taxable_year after the date prescribed by sec_1362 for making such election for such taxable_year or no such election is made for any taxable_year and b the secretary determines that there was reasonable_cause for the failure to timely make such election the secretary may treat such an election as timely made for such taxable_year based solely on the facts and the representations submitted we conclude that x has established reasonable_cause for failing to make a timely election to be an s_corporation effective d1 accordingly provided that x makes an election to be an s_corporation by filing a completed form_2553 with the appropriate service_center effective d1 within days following the date of this letter then such election will be treated as timely made a copy of this letter should be attached to the form_2553 plr-130227-01 except as specifically set forth above no opinion is expressed concerning the federal tax consequences of the facts described above under any other provision of the code including whether x was or is a small_business_corporation under sec_1361 this 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 a power_of_attorney on file with this office a copy of this letter is being sent to your authorized representative sincerely yours shannon cohen assistant to the branch chief branch associate chief_counsel passthroughs and special industries enclosures copy of this letter copy for sec_6110 purposes