internal_revenue_service number release date index number --------------------------------- ------------------------------ --------------------------------- re --------------------------------------------- --------------------------------------------------------- department of the treasury washington dc third party communication none date of communication not applicable_person to contact ---------------------------- id no -------------- ----------------- telephone number ---------------------- refer reply to cc psi b04 plr-132352-16 date november legend decedent spouse date date ------------------------------------------------------- ---------------------------- ---------------------- ----------------- dear ----------------- this letter responds to your personal representative’s letter of date requesting an extension of time pursuant to sec_301_9100-3 of the procedure and administration regulations to make the election under sec_2010 of the internal_revenue_code portability election to allow a decedent’s surviving_spouse to take into account that decedent’s deceased spousal unused exclusion dsue amount the facts and representations are as follows decedent died on date survived by spouse date is a date after the effective date of the amendment to sec_2010 which provides for portability of a dsue amount to a surviving_spouse to obtain the benefit of portability of decedent’s dsue amount to spouse decedent’s estate was required to file form_706 united_states estate and generation-skipping_transfer_tax return on or before the date that is nine months after decedent’s date of death or the last day of the period covered by an extension decedent’s form_706 was due on date but the estate did not file a form_706 to make the portability election the estate discovered its failure to elect portability after the due_date for making the election it is represented that the value of decedent’s gross_estate is less than the basic exclusion amount in the year of decedent’s death including any taxable_gifts made during his lifetime plr-132352-16 you request an extension of time pursuant to sec_301_9100-3 to elect portability of decedent’s dsue amount pursuant to sec_2010 law and analysis sec_2001 imposes a tax on the transfer of the taxable_estate of every decedent who is a citizen or resident_of_the_united_states sec_2010 provides that a credit of the applicable credit_amount shall be allowed to the estate of every decedent against the tax imposed by sec_2001 sec_2010 provides that the applicable credit_amount is the amount of the tentative_tax that would be determined under sec_2001 if the amount with respect to which such tentative_tax is to be computed were equal to the applicable_exclusion_amount on date congress amended sec_2010 effective for estates of decedents dying and gifts made after date to allow portability of a decedent’s unused applicable_exclusion_amount between spouses tax relief unemployment insurance reauthorization and job creation act of pub_l_no sec_303 124_stat_3296 sec_2010 provides that the applicable_exclusion_amount is the sum of the basic exclusion amount and in the case of a surviving_spouse the dsue amount sec_2010 generally provides that the basic exclusion amount is dollar_figure to be adjusted for inflation annually after calendar_year sec_2010 defines the dsue amount to mean the lesser_of a the basic exclusion amount or b the excess of -- i the applicable_exclusion_amount of the last deceased spouse of the surviving_spouse over ii the amount with respect to which the tentative_tax is determined under sec_2001 on the estate of such deceased spouse sec_2010 provides that a dsue amount may not be taken into account by a surviving_spouse under sec_2010 unless the executor of the estate of the deceased spouse files an estate_tax_return on which such amount is computed and makes an election on such return that such amount may be so taken into account the election once made shall be irrevocable no election may be made if such return is filed after the time prescribed by law including extensions for filing such return sec_2010 provides that the secretary shall prescribe regulations as may be necessary or appropriate to implement sec_2010 plr-132352-16 sec_20_2010-2t a of the estate_tax regulations as in effect on date provides that to allow a decedent’s surviving_spouse to take into account that decedent’s dsue amount the executor of the decedent’s estate must elect portability of the dsue amount on a timely-filed form_706 under sec_20_2010-2t a the due_date of an estate_tax_return required to elect portability is nine months after the decedent’s date of death or the last day of the period covered by an extension if an extension of time for filing has been granted under sec_20_2010-2t a the portability election is made by timely filing a complete and properly prepared estate_tax_return unless the executor satisfies the requirements for the election not to apply in sec_20_2010-2t a i sec_301_9100-1 provides that the commissioner may grant a reasonable extension of time under the rules set forth in sec_301_9100-2 and sec_301_9100-3 to make a regulatory election or a statutory election but no more than six months except in the case of taxpayer who is abroad under all subtitles of the code except subtitles e g h and i sec_301_9100-1 provides that the term statutory election means an election whose due_date is prescribed by statute the term regulatory election means an election whose due_date is prescribed by a regulation published in the federal_register or a revenue_ruling revenue_procedure notice or announcement published in the internal_revenue_bulletin sec_301_9100-3 provides the standards the commissioner will use to determine whether to grant an extension of time to make an election whose due_date is prescribed by a regulation and not expressly provided by statute a request for relief under sec_301_9100-3 will be granted when the taxpayer provides evidence to establish to the satisfaction of the commissioner that the taxpayer acted reasonably and in good_faith and that granting relief will not prejudice the interests of the government sec_301_9100-3 provides that a taxpayer is deemed to have acted reasonably and in good_faith if the taxpayer reasonably relied on a qualified_tax professional including a tax professional employed by the taxpayer and the tax professional failed to make or advise the taxpayer to make the election the due_date for the portability election is prescribed by statute in the case of an estate required to file an estate_tax_return under sec_6018 see sec_2010 sec_6075 and sec_6018 in the case of an estate that is not required to file an estate_tax_return under sec_6018 the due_date is prescribed by regulation see sec_20_2010-2t a see also sec_20_2010-2 and revproc_2014_18 2014_7_irb_513 sec_2 accordingly in the latter case a taxpayer may seek an extension of time to elect portability under the provisions of sec_301_9100-3 plr-132352-16 sec_6018 requires the filing of an estate_tax_return in all cases where the gross_estate exceeds the basic exclusion amount in effect under sec_2010 for the calendar_year which includes the date of death for purposes of this determination under sec_6018 the basic exclusion amount is reduced but not below zero by the sum of -- a the amount of the adjusted_taxable_gifts within the meaning of sec_2001 made by the decedent after date plus b the aggregate amount allowed as a specific exemption under sec_2521 as in effect before its repeal by the tax reform act of with respect to gifts made by the decedent after date it is represented that based on the value of the gross_estate and taking into account any taxable_gifts decedent’s estate is not required to file an estate_tax_return under sec_6018 under these facts the commissioner has discretionary authority under sec_301_9100-3 to grant to decedent’s estate an extension of time to elect portability based on the facts submitted and the representations made we conclude that the requirements of sec_301_9100-3 have been satisfied accordingly we grant an extension of time of days from the date of this letter in which to elect portability under sec_2010 the election should be made by filing a complete and properly-prepared form_706 and a copy of this letter within days from the date of this letter to the cincinnati service_center at the following address internal_revenue_service cincinnati service_center stop cincinnati oh for purposes of electing portability a form_706 filed by decedent’s estate within days from the date of this letter will be considered to be timely filed the rulings contained in this letter are based upon information and representations submitted by the taxpayer and accompanied by a penalty of perjury statement executed by an appropriate party while this office has not verified any of the material submitted in support of the request for rulings it is subject_to verification on examination if it is later determined that based on the value of the gross_estate and taking into account any taxable_gifts decedent’s estate is required to file an estate_tax_return pursuant to sec_6018 the commissioner is without authority under sec_301_9100-3 to grant to decedent’s estate an extension of time to elect portability and the grant of the extension referred to in this letter is deemed null and void this ruling is directed only to the taxpayer requesting it sec_6110 provides that it may not be used or cited as precedent plr-132352-16 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 associate chief_counsel passthroughs special industries by lorraine e gardner lorraine e gardner senior counsel branch office of associate chief_counsel passthroughs special industries enclosures copy of this letter copy for sec_6110 purposes cc


internal_revenue_service number release date index number ---------------------------- ---------------------------- ---------------------------------------- --------------------- department of the treasury washington dc third party communication none date of communication not applicable_person to contact ----------------------- id no ------------- telephone number --------------------- refer reply to cc psi b01 plr-148869-04 date date october -------- ---------------------------- legend x -------------------------------------------------- state d1 dear ----------------- this responds to a letter dated date submitted by your authorized representative on behalf of x requesting relief under sec_1362 of the internal_revenue_code --------------------- facts according to the information submitted x was incorporated on d1 under the laws of state x intended to be treated as an s_corporation for federal tax purposes effective d1 but the election was not timely filed law and analysis sec_1362 provides that a small_business_corporation may elect to be an s_corporation sec_1362 provides the rule on when an s election will be effective if an s election is made within the first two and one-half months of a corporation’s taxable_year then the corporation will be treated as an s_corporation for the year in which the election is made if the election is made after the first two and one-half months of a corporation’s taxable_year then the corporation will not be treated as an s_corporation until the taxable_year after the year in which the s election is made plr-148869-04 sec_1362 provides that if no election is made pursuant to sec_1362 or if made the election is made after the date prescribed for making such an election and the secretary determines there was reasonable_cause for the failure to timely make the election then the secretary may treat such election as timely made for such taxable_year and effective as of the first day of that year x did not file a timely election to be treated as an s_corporation under sec_1362 effective d1 x has however established reasonable_cause for not making a timely election and is entitled to relief under sec_1362 conclusion based solely upon the facts submitted and representations made and provided that x otherwise qualifies as a subchapter_s_corporation we conclude that x will be recognized as an s_corporation effective d1 within days from the date of this letter x should submit a properly completed form_2553 with a copy of this letter attached to the relevant service_center except as expressly provided herein no opinion is expressed or implied concerning the tax consequences of any aspect of any transaction or item discussed or referenced in this letter this ruling is directed only to the taxpayer s requesting it sec_6110 of the code provides that it may not be used or cited as precedent in accordance with the power_of_attorney on file with this office a copy of this letter is being sent to your authorized representative 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 sincerely s dianna k miosi dianna k miosi chief branch office of the associate chief_counsel passthroughs and special industries enclosures copy of this letter copy for sec_6110 purposes cc


department of the treasury internal_revenue_service washington d c tax_exempt_and_government_entities_division sin may n ooh a attn director employee services a a ur legend employer m state a ‘plan x group b employees group c employees city d amendment o dear e this letter is in response to a request for a private_letter_ruling dated march additional correspondence dated january representative regarding the federal_income_tax treatment submitted on your behalf by your authorized supplemented by and march page of certain contributions to plan x under sec_414 of the internal_revenue_code the code the following facts and representations have been submitted employer m is a political_subdivision of state a employer m has two classes of employees group b employees and group c employees group b employees are management staff employees who are exempt from the civil service system are not covered by collective bargaining agreements and serve under employer m’s board_of directors or the managing director and chief_executive_officer both group b and group c employees are covered by a defined_benefit_plan co-sponsored by city d effective date employer m established plan x to provide a supplemental benefit to group b employees and plan x currently covers only group b employees plan x is intended to be qualified under sec_401 of the code plan x is a defined_contribution_plan that provides for employer and employee contributions sec_2 as amended effective date provides that an eligible group b employee upon satisfying the conditions set forth in this sec_2 shall become a participant immediately and shall be eligible to receive contributions made by employer m pursuant to sec_4 a of plan x and shall be eligible to make the election described in sec_3_1 sec_4 of plan x provides that employer m shall make a contribution to plan x on behalf of each group b employee equal to ten percent of the group b employee’s one- time performance pay incentive amount sec_15 of plan x provides that the board_of directors of employer m may modify or amend in whole or part any or all of the provisions of plan x authority employer m has proposed the following amendment amendment effective date to sec_3_1 of plan x pursuant to this amendment is amendment o provides that upon meeting the eligibility a group b employee may make a requirements of article ii one-time irrevocable election to have mandatory_contributions made to plan x by electing salary reduction in the amount of be paid_by employer m into plan xx eligibility requirements of article ii a group b employee may make a one-time irrevocable election to have mandatory_contributions made to plan x by electing a reduction in the or of salary or wages to upon meeting the page or of the group b the group b employee’s contribution amount of employee’s one-time performance pay incentive to be paid_by employer m into plan x elections under this sec_3_1 shall be irrevocable and shall remain in force until the group b employee ceases to be an eligible group b employee under article ii or terminates employment with employer m contributions although designated as employee contributions under this sec_3_1 are being paid_by employer m in lieu of contributions by the group b employees employee contributions shall be designated as employer pick up contributions pursuant to code sec_414 a group b employee shall not have the option of receiving cash in lieu of the contributions that are elected by such group b employee pursuant to this sec_3_1 designated as employer contributions and picked up pursuant to code sec_414 h group b employee such group b a group b employee’s election to have mandatory_contributions made to plan x pursuant to this sec_3_1 shall be made no longer that months following the date they become first eligible to participate pursuant to sec_2_1 requirements of sec_2_1 as of plan x's effective date the 24-month election_period to have mandatory_contributions made to plan x shall commence as of plan x's effective date all group b employee contribution elections pursuant to this sec_3_1 shall be made at the same time for a group b employee who met the eligibility a group b employee is permitted only one irrevocable election to make mandatory contribution during the 24-month election_period pursuant to this sec_3_1 a group b employee’s election to contribute of salary wages or annual one-time performance pay incentive may not be subsequently altered or amended a group b employee who fails to make an election to contribute a percentage of salary wages or annual one-time performance pay incentive during the 24-month election_period shall be deemed to have elected to contribute of salary wages or annual one-time performance pay and may not subsequently elect to make a contribution to plan x sec_3_2 of plan x provides that group b employee contributions may be paid into plan x only by means of employer pick up which each group b employee shall authorize through a salary reduction agreement of plan x provides that salary deductions shall begin no later than the first payday of the first month which begins at least days after receipt by employer m of the approved sec_3_3 page salary reduction agreement from employer m’s administrative committee on date employer m’s director of employee services made the following representations concerning the pick up of the above-mentioned contributions - group b employees will have a period of no longer than months after the day they become first eligible to participate in plan x to make the elections under sec_3_1 of plan x both the election to contribute a percentage of salary and wages and the election to contribute a percentage of annual one-time performance pay incentive will be made a the same time a group b employee may not make more than one irrevocable election to make contributions to plan x during the 24-month election_period a one-time irrevocable election to ‘contribute of salary wages or the annual one-time performance pay incentive may not be subsequently altered or amended and a group b employee who fails to make an election to contribute a percentage of salary wages or annual one-time performance pay incentive during the specified 24-month period cannot subsequently elect to make a contribution to plan x based on the foregoing facts and representations you have requested the following rulings that the picked up contributions will be treated as employer contributions for federal_income_tax purposes in accordance with the requirements of sec_414 and of the code and revenue rulings that such contributions to be made to plan xx by employer m will be excludible from the participating employees’ wages for purpose of page federal_income_tax withholding under sec_3401 which they are contributed to plan xx a a of the code in the taxable_year in that the picked-up contributions to be made under plan x by employer m will not constitute gross_income for federal_income_tax purposes until such time as they are distributed and made available to the participating employees or their beneficiaries to the extent that the picked-up amounts represent contributions made by employer m sec_414 of the code provides that contributions otherwise designated as employee contributions shall be treated as employer contributions if such contributions are made to a plan described in sec_401 established by a state government or a political_subdivision thereof and are picked up by that employing unit the federal_income_tax treatment to be accorded contributions which are picked up by the employer within of the code is specified the meaning of sec_414 h in revrul_77_462 c b ruling the employer school district agreed to assume and pay the amounts employees were required by state law to contribute to a state pension_plan concluded that the school district’s picked-up contributions to the plan are excluded from the employees’ gross_income until such time as they are distributed to the employees the revenue_ruling held further that under the provisions of sec_3401 contributions to the plan are excluded from wages for a a of the code the school district’s revrul_77_462 in that revenue ‘purposes of the collection of income_tax at source on wages therefore no withholding is required from the employees’ salaries with respect to such picked-up contributions the issue of whether contributions have been picked up by an employer within the meaning of sec_414 h of the code is addressed in revrul_81_35 1981_1_cb_255 and revrul_81_36 c b revenue rulings established that the following two criteria must be met contributions although designated as employee contributions are being paid_by the employer in lieu of contributions by the employee and option of choosing to receive the contributed amounts directly instead of having them paid_by the employer to the pension_plan of the applicability of sec_414 whether an the employer must specify that the the employee must not be given the is immaterial for purposes furthermore it these page employer picks up contributions through a reduction in salary an offset against future salary increases or a combination of both revrul_87_10 1987_1_cb_136 provides that in order to satisfy revenue rulings and the required specification of designated employee contributions must be completed before the period to which such contributions relate thus employees may not exclude from current gross_income designated employee contributions to a qualified_plan that relate to compensation earned for services prior to the date of the last governmental action necessary to effect the pick up plan x as amended by amendment satisfies the criteria set forth in revrul_81_35 and revrul_81_36 by providing that mandatory_contributions made pursuant to amendment o although designated as employee contributions are being made by employer m in lieu of contributions by the group b employees and that the group b employees shall not have the option of receiving cash in lieu of the contributions that are elected by group b employees designated as employer m contributions and picked up pursuant to sec_414 h of the code two and three that the picked up accordingly assuming amendment o is adopted and implemented as proposed we conclude with respect to rulings number one contributions will be treated as employer contributions for federal_income_tax purposes in accordance with the requirements of sec_414 of the code and revenue rulings and that because we have determined that the picked-up amounts are to be treated as employer contributions such contributions to be made to plan x by employer m will be excludible from the group b employees’ wages for purposes of federal_income_tax withholding under sec_3401 which they are contributed to plan x and that the picked-up contributions to be made under plan x by employer m will not constitute gross_income for federal_income_tax purposes until such time as they are distributed to the group b employees or their beneficiaries to the extent the picked-up amounts represent contributions made by employer m a a of the code in the taxable_year in for purposes of the application of sec_414 h the code is immaterial whether employer m picks up contributions through a reduction in salary an offset against future salary increase or a combination of both it of page in accordance with revrul_87_10 the pick up treatment of designated employee contributions that are picked up pursuant to sec_414 become effective prior to the date of the last governmental action implementing the pick up apply to any contributions to the extent it relates to compensation or the annual one-time performance pay incentive earned by a group b employee prior to the date the last governmental action has taken place to implement the pick up arrangement as described in amendment oo thus this ruling does not of the code will not these rulings apply only if the effective date for the is not any earlier than the later of the date commencement of any proposed pick up as described in amendment o proposed amendment o proposed amendment o becomes effective or the date of the execution of the salary reduction election form by the group b employee and employer m is adopted by employer m the date this ruling is based on the assumption that a group b employee who elects to make contributions to plan x pursuant to the terms of amendment o as proposed may not make more ‘that one irrevocable election to make such contributions to plan x a one-time irrevocable election to contribute zero percent of salary or wages as defined in sec_1 r of plan x and a one-time irrevocable election to contribute zero percent of the one-time performance pay incentive as defined in sec_1 q not subsequently be altered or amended conditioned on the group b employee making the elections described in amendment o within the appropriate 24-month election_period of plan x are elections that may this ruling is also these rulings are based on the assumption that plan x as amended meets the requirements for qualification under sec_401 of the code at the time of the proposed contributions and distributions no opinion is expressed as to whether the amounts in question are subject_to tax under the federal_insurance_contributions_act the amounts in question are paid pursuant to a salary reduction agreement within the meaning of sec_3121 no opinion is expressed as to whether v b of the code this ruling is based on plan x submitted with your correspondence dated date and proposed amendment o submitted with your letter dated date page this ruling only addresses the proposed amendment to plan x that relates to the pick up of contributions pursuant to sec_414 of the code this ruling does not express an opinion as to the status of plan x under sec_401 a of the code qualified under sec_401 the employee_plans determinations office of the internal_revenue_service the determination as to whether plan x is is within the jurisdiction of this letter is directed only to the taxpayer that requested it it may not be used or cited by others as precedent sec_6110 of the code provides that a copy of this letter is being sent to your authorized representative in accordance with a power_of_attorney on file in this office if you have any questions please contact _ rs t ep ra t2 by telephone at or by fax at sincerely yours joyce e floyd manager employee_plans technical group tax_exempt_and_government_entities_division enclosures deleted copy of letter_ruling notice


department of the treasury int ernal revenue service washington d c o f f i c e o f c h i e f c o u n s e l date number release date uil cc pa apjp scaf-104684-02 memorandum for m k mortensen associate area_counsel salt lake city small_business_self-employed_division cc sb slc attn mark h howard from subject pamela w fuller senior technician reviewer branch administrative provisions and judicial practice cc pa apjp b01 significant service_center advice ogd - black reparations - interest scaf-104684-02 this chief_counsel_advice responds to your memorandum dated date in accordance with sec_6110 this chief_counsel_advice should not be cited as precedent issue sec_1 what is the proper method of computing interest on the recovery_of erroneous refunds made in slavery reparations credit cases where the service recovers the erroneous refund through deficiency procedures what is the proper method of computing interest on the recovery_of erroneous refunds made in slavery reparations credit cases where the service recovers the erroneous refund through mathematical_or_clerical_error assessment procedures what is the proper method of computing interest on the recovery_of erroneous refunds made in slavery reparations credit cases where the internal_revenue_service recovers the erroneous refund through an erroneous refund_suit conclusions interest on the recovery_of erroneous refunds made in slavery reparations credit cases where the internal_revenue_service recovers the erroneous refund through deficiency procedures runs from the date prescribed for filing the return scaf-104684-02 determined without regard to any extension of time for filing to the date of payment by the taxpayer interest on the recovery_of erroneous refunds made in slavery reparations credit cases where the internal_revenue_service recovers the erroneous refund through mathematical or clerical assessment procedures runs from the date prescribed for filing the return determined without regard to any extension of time for filing to the date of payment by the taxpayer interest on the recovery_of erroneous refunds made in slavery reparations credit cases where the internal_revenue_service recovers the erroneous refund through an erroneous refund_suit runs from the date of payment of the refund overview the service has received numerous claims for refund based on a purported black or slavery reparations credit on the line of the return reserved for credits from an regulated_investment_company ric real_estate_investment_trust reit or earned_income_tax_credit eitc initial processing of these returns often results in a credit being entered on the account typically using transaction code when the service timely identifies such frivolous claims it seeks to avoid paying refunds there have been instances however in which refunds based on these frivolous claims have been issued on date the office_of_chief_counsel issued notice_2002_012 which dealt with these claims and concluded that in certain situations the service could assess the tax_liability arising from that claim under procedures for mathematical_or_clerical_error provided by sec_6213 and sec_6213 the service has begun the process of sending out mathematical error notices to taxpayers the mathematical error assessment is typically done by reversing the credit on the taxpayer’s account if the credit is reversed as of the date of the original input of transaction code the taxpayer would receive a bill for the amount of the refund made with interest from the date_of_issuance of the refund if the credit is reversed as of the date the service issues the mathematical error notice to the taxpayer the taxpayer will receive a bill for the erroneous refund and will not be charged interest unless the taxpayer fails to pay the assessed amount within days discussion issue what is the proper method of computing interest on the recovery_of erroneous refunds made in slavery reparations credit cases where the service recovers the erroneous refund through deficiency procedures the service should issue a statutory_notice_of_deficiency where an erroneous refund has been issued and the period of limitation for assessment of a deficiency would expire before the time required for the taxpayer to properly request an abatement under sec_6213 see brown v commissioner tcmemo_1996_100 limitation period under sec_6501 applies the service should also issue a statutory notice of scaf-104684-02 deficiency where an erroneous refund has been issued the service has made a math error assessment under sec_6213 and the service has abated the assessment at the request of the taxpayer as required under sec_6213 in calculating the deficiency the service should treat the erroneous earned_income_credit as a negative tax as provided under sec_6211 sec_6601 governs the payment of interest in deficiency cases and provides that if any amount of tax is not paid on or before the last date prescribed for payment interest shall be paid on the amount from such last date to the date paid see 86_tc_540 aff’d without published opinion 838_f2d_474 9th cir cert_denied 486_us_1057 sec_6151 provides in general that the date prescribed for payment is the time fixed for filing the return determined without regard to any extension of time for filing sec_6601 provides that for determining interest on underpayments the last date prescribed for payment is determined without regard to any extension of time for payment or filing finally sec_6072 in general provides that in the case of individuals returns made on the basis of the calendar_year shall be filed on or before april 15th of following the close of the calendar_year to the extent that the service paid interest on the refund the service is entitled to recover interest computed on the refund up to the date the service made the payment see 993_fsupp_907 d md united_states v lasbury ustc at big_number d ariz 396_fsupp_44 d kan revproc_94_60 1994_2_cb_774 issue what is the proper method of computing interest on the recovery_of erroneous refunds made in slavery reparations credit cases where the service recovers the erroneous refund through mathematical_or_clerical_error assessment procedures mathematical_or_clerical_error procedures under sec_6213 should generally be used in instances in which a taxpayer has claimed a black reparations tax_credit on the line typically used to claim eitc for instance sec_6213 includes in the definition of math error an omission of a correct taxpayer_identification_number required under sec_32 relating to the eitc to be included on a return sec_32 and sec_32 require the taxpayer to provide the name age and taxpayer_identification_number of the qualifying_child on the return the failure to provide this information permits the service to summarily assess the amount claimed as an eitc the black reparations credit claimed as eitc fails to provide the information required by sec_32 thus summary_assessment as a math error under sec_6213 is appropriate a claim for black reparations credit may also fit within other provisions of sec_6213 defining mathematical or clerical errors depending on the facts and circumstances of each case we believe that the same code provisions governing computation of interest apply to erroneous refund assessments made pursuant to the mathematical_or_clerical_error scaf-104684-02 procedures under sec_6213 as to the deficiency procedures outlined in issue above see 396_fsupp_44 d kan issue what is the proper method of computing interest on the recovery_of erroneous refunds made in slavery reparations credit cases where the internal_revenue_service recovers the erroneous refund through an erroneous refund_suit sec_6602 governs the payment of interest in erroneous refund suits pursuant sec_7405 and provides that any portion of an internal revenue tax or any interest assessable penalty additional_amount or addition_to_tax which has been erroneously refunded and recovered by suit pursuant to sec_7405 shall bear interest at the underpayment rate established under sec_6621 from the date of payment of the refund sec_6404 provides that the service shall abate the assessment of all interest on an erroneous refund until the date demand for repayment is made unless the taxpayer or a related_party had in any way caused the erroneous refund or the erroneous refund exceeded dollar_figure we do not believe the taxpayers who made these false slavery reparations credit claims can qualify for interest abatement accordingly interest in this situation shall generally run from the date of payment of the refund if you have any questions please contact at


internal_revenue_service tax_exempt_and_government_entities_division exempt_organizations examinations commerce street mc dal dallas texas department of the treasury uil release number release date date date legend org - organization name xx - date address - address org address taxpayer_identification_number form tax period s ended person to contact id number contact numbers phone fax certified mail - return receipt requested dear ’ in a determination_letter dated march 19xx you were held to be exempt from federal_income_tax under sec_501 of the internal_revenue_code the code based on recent information received we have determined you have not operated in accordance with the provisions of sec_501 of the code accordingly your exemption from federal_income_tax is revoked effective december 20xx this is a final letter with regard to your exempt status we previously provided you a report of examination explaining why we believe revocation of your exempt status was necessary at that time we informed you of your right to contact the taxpayer_advocate as well as your appeal rights on october 20xx you signed form 6018-a consent to proposed action agreeing to the revocation of your exempt status under sec_501 of the code you are required to file federal_income_tax returns for the tax period s shown above if you have not yet filed these returns please file them 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 contact the person whose name and telephone number are shown at the beginning of this letter thank you for your cooperation sincerely nanette m downing director eo examinations department of the treasury tax_exempt_and_government_entities_division org address internal_revenue_service m s po box ogden ut date taxpayer_identification_number form tax_year s ended date and time of appointment place of appointment person to contact id number contact numbers telephone fax dear am writing to confirm our appointment for the examination of the above periods we realize some organizations may be concerned about an examination of their returns we hope we can relieve any concerns you may have by briefly explaining why we examine exempt_organization returns and what your appeal rights are if you do not agree with the results we examine returns to verify the correctness of income or gross_receipts deductions and credits and to determine that the organization is operating in the manner stated and for the purpose set forth in its application_for recognition of exemption in many cases we close examinations without changes when we complete the examination we will explain our recommendations and how they may affect your exempt status or tax_liability such as employment excise or unrelated_business_income taxes you should fully understand any recommended changes and their ramifications please do not hesitate to ask questions about anything that is not clear to you letter catalog number 34804c if we recommend changes involving your tax_liability and you agree with the changes we will ask you to sign an agreement form by signing the form you will indicate your agreement to the amount shown as a refund due or additional tax owed you do not have to agree with our recommendations you may request a conference at a higher level as explained in the copy of the appeal procedures that we will provide you if you do not wish to have someone present through the examination we would appreciate having an officer or representative available at the beginning of the examination to discuss the operations of the organization and again at the end of the examination to discuss the results if we conduct our examination with your representative you must file a power_of_attorney in order for your representative to receive or inspect confidential information you may use form_2848 power_of_attorney and declaration of representative or any other properly written power_of_attorney or authorization for this purpose to help make the examination as brief as possible please have the records listed on the attached information_document_request idr available for the year s under examination if you have any questions please call the contact person at the telephone number shown in the heading of this letter the most convenient time to call if we need to contact you if you write please provide a telephone number and thank you for your cooperation sincerely shay green enclosures publication idr notice letter catalog number 34804c department of the treasury internal_revenue_service mail stop po box ogden ut org address date of this notice date contact person id number contact telephone numbers toll free long distance response due_date employer_identification_number tax period s form s certified mail - return receipt requested dear we have enclosed a copy of our report of examination explaining why we believe revocation of your organization's exempt status is necessary if you do not agree with our position you may appeal your case the enclosed publication the examination process explains how to appeal an internal_revenue_service irs decision publication also includes information on your rights as a taxpayer and the irs collection process if you request a conference we will forward your written_statement of protest to the appeals_office and they will contact you for your convenience an envelope is enclosed if you and appeals do not agree on some or ail of the issues after your appeals_conference or if you do not request an appeals_conference you may file suit in united_states tax_court the united_states court of federal claims or united_states district_court after satisfying procedural and jurisdictional requirements as described in publication you may also request that we refer this matter for technical_advice as explained in publication exempt_organization appeal procedures for unagreed issues if a determination_letter is issued to you based on technical_advice no further administrative appeal is available to you within the irs on the issue that was the subject of the technical_advice if you accept our findings please sign and return the enclosed form_6018 consent to proposed adverse action we will then send you a final letter revoking your exempt letter rev catalog number 34801v status if we do not hear from you within days from the date of this letter we will process your case on the basis of the recommendations shown in the report of examination and this letter will become final in that event you will be required to file federal_income_tax returns for the tax period s shown above file these returns with the ogden service_center within days from the date of this letter unless a request for an extension of time is granted file returns for later tax years with the appropriate service_center indicated in the instructions for those returns you have the right to contact the office_of_the_taxpayer_advocate taxpayer_advocate assistance is not a substitute for established irs procedures such as the formal appeals process the taxpayer_advocate cannot reverse a legally correct_tax determination or extend the time fixed by law that you have to file a petition in a united_states court the taxpayer_advocate can however see that a tax matter that may not have been resolved through normal channels gets prompt and proper handling you may call toll-free and ask for taxpayer_advocate assistance if you prefer you may contact your local taxpayer_advocate at 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 sincerely anett m dinrige nanette m downing director eo examinations enclosures publication publication form_6018 report of examination envelope letter rev catalog number 34801v form_886 a explanation of items department of the treasury - internal_revenue_service schedule no or exhibit year period ended org november 20xx legend org - organization name issues xx - date city - city cco-1 - 15t company whether the tax-exempt status of org a c social_club that operates a golf course should be revoked facts the subject organization is recognized as a sec_501 tax-exempt_organization according to its articles of incorporation the primary purpose of the organization is to promote and practice for amusement and social recreation for activities such as golf polo tennis swimming bowling horseback riding dancing and cards membership is open to co-1 employees along with city and city area residents the organization is advertising to the area residents through internet ads and in local monthly publications they are advertising golf at a discount rate for the general_public the revenue_agent completed a sample of five months of income from the organizations daily receipt summary the organization had of non-member income on the use of the golf course non-member member march june july october november total total percent non-member income law sec_501 of the code provides exemption for clubs organized for pleasure recreation and other non profitable purposes substantially_all of the activities of which are for such purposes and no part of the net_earnings of which inure to the benefit of any private shareholder social clubs exempt under sec_501 c may receive up to of its gross_receipts including investment_income from sources outside its membership of the up to of the gross_receipts may be derived from the use of the club facilities or services form 886-a rev department of the treasury - internal_revenue_service page -1- form_8 a explanation of items department of the treasury - internal_revenue_service schedule no or exhibit yeat period ended org november 20xx by the general_public or from other activities not furthering social or recreational purposes for members c income_tax b b a club which engages in business such as making its social and recreational facilities available to the general_public or by selling real_estate timber or other products is not organized and operated exclusively for pleasure recreation and other nonprofitable purposes and is not exempt under sec_501 solicitation by advertisement or otherwise for public patronage of its facilities is prima facie evidence that the club is engaging in business and is not being operated exclusively for pleasure recreation or social purposes however an incidental sale of property will not deprive a club of its exemption revproc_71_17 sec_2 states where a club makes its facilities available to the general_public to a substantial degree the club is not operated exclusively for pleasure recreation or other non-profitable purposes’ taxpayer’s position the organization agreed to the revocation of their tax exempt status the president signed the form_6018 the organization also filed form_1120 for the tax years ended 20xx 20xx and 20xx government’s position as a result of our examination of your form_990 return for periods ending november 20xx we have determined that your organization no longer qualifies as an exempt social_club described in internal_revenue_code sec_501 your non-member revenue consistently exceeds the percentage allowed by law your non-member income jin the tax_year ended november 20xx averaged of total gross_receipts whereas revproc_71_17 and public law allow a maximum of because social clubs are primarily supported by their members' payments their tax exemption has the practical effect of allowing the membership to join together to provide themselves with recreational or social facilities without further tax consequences when the club's income is limited to membership receipts this justification should not result in any_tax advantage by receiving such a large amount of nonmember income from the use of the facilities the members do receive financial advantages the term general_public as used in this procedure means persons other than members of a club their dependents or guests total gross_receipts is defined as the receipts from normal and usual activities of the club including charges admissions form 886-a crev department of the treasury - internal_revenue_service page -2- form_886 a explanation of items department of the treasury - internal_revenue_service schedule no or exhibit year period ended org november 20xx membership fees dues and assessments to qualify for income_tax exemption a social_club should not advertise its facilities for nonmember patronage since this would be prima facie evidence it was engaging in business a social_club should not engage in any type of business activity for profit which is designed to increase or which could result in an increase in net_earnings inuring to the benefit of any shareholder or individual net_earnings may inure to members in such forms as an increase in services offered by the club without a corresponding increase in dues or other fees paid for club support or as an increase in the club's assets which would be distributable to members upon the dissolution of the club income_tax regulation itr sec_1_501_c_7_-1 states that if a social_club makes its social and recreational facilities available to the general_public it will not qualify for tax- exempt status however revproc_71_17 1971_1_cb_683 as amended by public law sets forth guidelines for determining the effect of gross_receipts derived from use of a social club's facilities by the general_public have on the club's exemption under sec_501 of the code the revenue_procedure states that where a club makes its facilities available to the general_public to a substantial degree the club is not operated exclusively for pleasure recreation or other non-profitable purposes social clubs may receive up to of their total gross_receipts including investment_income from sources outside of their membership without jeopardizing their tax-exempt status within thi sec_35 limit no more than of a club's gross_receipts may be derived from nonmember use of the club's facilities and or services if these standards are exceeded a social_club will not qualify for exemption pursuant to sec_501 conclusion the organization does not meet the requirements of c because they received more than percent of its income from non-members the organization does not qualify for exemption under c we propose a revocation of your exempt status under sec_501 effective december 20xx as a taxable entity you are required to file form_1120 u s_corporation income_tax return for the periods open under statute which are the tax years ended november 20xx november 20xx and november 20xx form 886-a ev department of the treasury - internal_revenue_service page -3-


internal_revenue_service number release date index number ----------------------- --------------------------------------------- -------------------------------- ---------------------------- in re ----------------------- department of the treasury washington dc third party communication none date of communication not applicable_person to contact ----------------------------- id no ------------- ----------------- telephone number ---------------------- refer reply to cc intl b06 plr-110072-13 date date ty ------- legend ------------------------------------------------ ------------- --------------------------------------- ---------------------------------------- ----------------------------- ---------------------- -------------------- ------------------ -------------------- -------------------- ------------------- taxpayer state company accounting firm law firm date date date date date date dear ------------------ this responds to a letter dated date submitted by accounting firm requesting that the internal_revenue_service service grant taxpayer an extension of time under sec_301_9100-1 and sec_301_9100-3 to file form 4876-a election to be treated as an interest_charge_disc for taxpayer’s first taxable_year the rulings contained in this letter are based upon information and representations submitted by taxpayer and accounting firm and accompanied by penalty of perjury statements executed by appropriate parties this office has not verified any of the material submitted in support of the request for rulings it is subject_to verification on examination plr-110072-13 facts taxpayer is a domestic_corporation wholly owned by company taxpayer was formed to serve as an interest charge domestic_international_sales_corporation ic-disc and has established a commission arrangement with company law firm prepared the articles of incorporation taxpayer was formed on date in state taxpayer engaged accounting firm which specializes in consulting on ic-disc taxation on date on the same day accounting firm advised taxpayer that it did not meet the capitalization requirements to qualify as an ic-disc according to taxpayer’s original submission the two individuals who served as the only board members of both taxpayer and company had offered to subscribe to big_number shares of taxpayer’s stock in exchange for dollar_figure cash those individuals are not the shareholders of taxpayer and taxpayer has not established that any stock was issued by taxpayer with respect to such proposed subscription according to a subsequent submission2 by taxpayer dated date based on information provided by law firm company had issued a promissory note in the amount of dollar_figure to taxpayer on date in exchange for stock based on the limited record before us it is unclear whether taxpayer had any outstanding_stock during the relevant time period and it is also unclear what the value of any such stock may have been after obtaining taxpayer’s ein accounting firm delivered the completed irs form 4876-a to taxpayer on date and erroneously advised taxpayer the election had to be filed by date one day after the actual due_date taxpayer filed the election on date and received a notice of rejection from the service on date taxpayer has requested a ruling that grants an extension of time of days from the date of the ruling letter to file form 4876-a and that such filing will be treated as a timely election to be treated as an ic-disc for taxpayer’s first taxable_year law and analysis sec_992 provides that an election by a corporation to be treated as a disc3 shall be made by such corporation for a taxable_year at any time during the 90-day period immediately preceding the beginning of the taxable_year except that the secretary may give his consent to the making of an election at such other times as he may designate taxpayer also asserts that the original articles of incorporation identified the two individuals as the shareholders of taxpayer but that the articles were amended shortly thereafter to identify company as the sole shareholder of taxpayer in addition while the original articles of incorporation specified a share par_value of dollar_figure the amended articles specified a par_value of dollar_figure the subsequent submission was not accompanied by a penalty of perjury statement as used in this letter the terms ic-disc and disc have the same meaning plr-110072-13 temp sec_1_921-1t provides in part that a corporation electing ic- disc status must file form 4876-a a corporation electing to be treated as an ic-disc for its first taxable_year shall make its election within days after the beginning of that year sec_992 provides that the term disc means with respect to any taxable_year a corporation that is incorporated under the laws of any state and satisfies a number of conditions including that such corporation does not have more than one class of stock and that the par or stated_value of its outstanding_stock is at least dollar_figure on each day of the taxable_year sec_1_992-1 provides that in the case of a corporation that has elected to be treated as a disc for its first taxable_year the capitalization requirement of sec_992 is satisfied if the par_value or in the case of stock without par_value the stated_value of the corporation’s outstanding_stock is at least dollar_figure on the last day of the period within which the election must be made and on each succeeding day of the year sec_301_9100-1 provides in part that the commissioner in exercising the commissioner's discretion may grant a reasonable extension of time under the rules set forth in sec_301_9100-2 and sec_301_9100-3 to make a regulatory election under all subtitles of the code except subtitles e g h and i sec_301_9100-1 provides that a regulatory election is 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 for this purpose an election includes an application_for relief in respect of tax sec_301_9100-3 provides that requests for extensions of time for regulatory elections that do not meet the requirements of sec_301_9100-2 automatic extensions must be made under the rules of sec_301_9100-3 requests for relief subject_to sec_301_9100-3 will be granted when the taxpayer provides the evidence 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 that the grant of relief will not prejudice the interests of the government based on the facts and representations submitted with taxpayer’s ruling_request we conclude that taxpayer satisfies sec_301_9100-3 accordingly taxpayer is granted an extension of time of days from the date of this ruling letter to file form 4876-a such filing will be treated as a timely election to be treated as an ic-disc for taxpayer's first taxable_year the granting of an extension in this ruling letter is not a determination that taxpayer is plr-110072-13 otherwise eligible to make the election or to claim ic-disc status or benefits see sec_301_9100-1 in particular taxpayer may still fail to qualify as an ic- disc for one or more years for failure to meet the capitalization requirement under sec_992 and sec_1_992-1 however we do not attempt to answer that question in this ruling a copy of this letter_ruling should be filed with the form 4876-a this ruling is directed only to the taxpayer that requested it sec_6110 of the code provides that written determinations may not be used or cited as precedent except as expressly provided herein this ruling neither expresses nor implies any opinion concerning the tax consequences of any aspect of any transaction or item discussed or referenced in this ruling letter pursuant to a power_of_attorney on file in this office copies of this ruling letter are being furnished to your authorized representatives sincerely ___________________________ christopher j bello branch chief branch office of associate chief_counsel international


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 b03 plr-136941-08 date date legend company trust1 trust2 --------------------------------------------------------------------------------------------- ------------------------ --------------------------------------------------------------------------------------------- ------------------- --------------------------------------------------------------------------------------------- ------------------------ shareholder --------------------------------- state date1 date2 date3 date4 date5 -------- ---------------- ------------------------- ------------------ ------------------------- ------------------ dear ------------------ this letter responds to a letter dated date and subsequent correspondence submitted on behalf of company requesting a ruling under sec_1362 of the internal_revenue_code plr-136941-08 facts company was incorporated under the laws of state on date1 company elected to be treated as an s_corporation effective date2 shareholder transferred all of shareholder’s shares in company to trust1 on date3 company represents that trust1 was a grantor_trust and thus an eligible s_corporation shareholder under sec_1361 shareholder died on date4 the shares in company held by trust1 were distributed to trust2 on date5 company represents that at all times trust2 satisfied the requirements to be treated as a qualified_subchapter_s_trust qsst under sec_1361 however an election under sec_1361 to treat trust2 as a qsst was not timely filed company represents that company and its shareholders have at all times intended company to be an s_corporation and have treated company consistent with this intent company also represents that company and its shareholders have reported their income consistent with company being an s_corporation company further represents that the failure to timely file a qsst election for trust2 was inadvertent and not motivated by hindsight in addition company represents that other than the failure_to_file a qsst election for trust2 company has met the definition of an s_corporation under sec_1361 company and all of its shareholders consent and agree to make any adjustments consistent with the treatment of company as an s_corporation as may be required by the secretary under sec_1362 law and analysis sec_1361 provides that the term s_corporation means with respect to any taxable_year a small_business_corporation for which an election under sec_1362 is in effect for such year sec_1361 provides that a small_business_corporation cannot have as a shareholder a person other than an estate a_trust described in sec_1361 or an organization described in sec_1361 who is not an individual sec_1361 provides that a_trust all of which is treated under subpart e of part i of subchapter_j of chapter as owned by an individual who is a citizen or resident_of_the_united_states is a permitted shareholder of a small_business_corporation sec_1361 provides that a_trust which was described in sec_1361 immediately before the death of the deemed owner and which continues in existence after such death but only for the 2-year period beginning on the day of the deemed owner's death is a permitted shareholder of a small_business_corporation plr-136941-08 sec_1361 provides that in the case of a qsst with respect to which a beneficiary makes an election under sec_1361 the trust is treated as a_trust described in sec_1361 and for purposes of sec_678 the beneficiary of the trust is treated as the owner of that portion of the trust which consists of stock in an s_corporation with respect to which the election under sec_1361 is made sec_1361 provides that a beneficiary of a qsst or his legal_representative may elect to have sec_1361 apply sec_1361 provides that the term qualified_subchapter_s_trust means a_trust a the terms of which require that - i during the life of the current income_beneficiary there shall be only one income_beneficiary of the trust ii any corpus distributed during the life of the current income_beneficiary may be distributed only to such beneficiary iii the income_interest of the current income_beneficiary in the trust terminates on the earlier of the beneficiary’s death or the termination of the trust and iv upon the termination of the trust during the life of the current income_beneficiary the trust distributes all of its assts to that beneficiary and b all of the income within the meaning of sec_643 which is distributed or required to be distributed currently to one individual who is a citizen or resident_of_the_united_states sec_1362 provides in part that a small_business_corporation may elect to be an s_corporation sec_1362 provides that an election under sec_1362 shall be terminated whenever at any time on or after the 1st day of the 1st taxable_year for which the corporation is an s_corporation such corporation ceases to be a small_business_corporation sec_1362 provides in part that if an election under sec_1362 by any corporation was terminated under sec_1362 the secretary determines that the circumstances resulting in such termination were inadvertent no later than a reasonable period of time after discovery of the circumstances resulting in such termination steps were taken so that the corporation is a small_business_corporation and the corporation and each person who was a shareholder in the corporation at any time during the period specified pursuant to sec_1362 agrees to make such adjustments consistent with the treatment of the corporation as an s_corporation as may be required by the secretary with respect to such termination period then notwithstanding the circumstances resulting in the termination the corporation shall be treated as an s_corporation during the period specified by the secretary conclusion based on the information submitted and representations made we conclude that company’s s_corporation_election terminated on date5 when shares of company were plr-136941-08 distributed to trust2 because trust2 failed to make a timely qsst election trust2 was an ineligible s_corporation shareholder under sec_1361 we further conclude that the termination was inadvertent within the meaning of sec_1362 under sec_1362 company will be treated as if it were an s_corporation from date2 and thereafter provided a qsst election with an effective date of date5 is filed with the appropriate service_center within days from the date of this letter and company’s s_corporation_election was otherwise valid and not otherwise terminated under sec_1362 accordingly company’s shareholders in determining their respective income_tax liabilities during the termination period and thereafter must include their pro_rata share of the separately and non-separately computed items of company as provided in sec_1366 make any adjustments to stock basis as provided in sec_1367 and take into account any distributions made by company as provided by sec_1368 if company or any of the shareholders fail to treat company as described above this ruling shall be void a copy of this letter should be attached to the qsst election 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 specifically no opinion is expressed or implied concerning whether company was and is an s_corporation for federal tax purposes further no opinion is expressed or implied concerning whether trust2 meets the requirements of sec_1361 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 pursuant to a power_of_attorney on file with this office we are sending a copy of this letter to your authorized representative sincerely s leslie h finlow senior technician reviewer branch office of the associate chief_counsel passthroughs special industries enclosures copy of this letter copy for sec_6110 purposes cc


tax_exempt_and_government_entities_division department of the treasury internal_revenue_service washington d c nov uniform issue list set er rct legend taxpayer a ira b financial institutionc financial institutiond fund e financial_institution financial institutiong account h amount dear this letter is in response to a request for a letter_ruling dated date as supplemented by email correspondence dated august and from your authorized representative in which you request a waiver of the 60-day rollover requirement contained in sec_408 of the internal_revenue_code code the following facts and representations have been submitted under penalty of perjury in support of the ruling requested taxpayer a age represents that he took a distribution from ira b totaling amount taxpayer a asserts that his failure to accomplish a rollover within the 60-day period prescribed by sec_408 of the code was due to an error by financial_institution d taxpayer a further asserts that amount has not been used for any purpose taxpayer a maintained ira b an individual_retirement_account under sec_408 of the code with financial_institution c financial_institution d manages fund e a pooled investment fund that invests in publicly-traded equity securities of companies with market capitalizations below certain prescribed levels the custodian for fund e is financial_institution f a subsidiary of financial_institution g financial_institution d had served as an investment_advisor to taxpayer a by regularly providing investment_asset management and advisory services in july a financial advisor at financial_institution d recommended that taxpayer a transfer funds in ira b to fund e because it was a good investment opportunity on date the financial advisor at financial_institution d prepared on taxpayer a's behalf a subscription agreement for investing in fund e taxpayer a completed and executed the subscription agreement electing an investment of amount and designating taxpayer a ira as the investor in the fund taxpayer a included this designation on the subscription agreement as a written instruction to financial_institution d that the new account be an ira financial_institution d mailed a new account opening form to financial_institution g listing taxpayer a ira as accountholder and directed it to receive an in-kind transfer of assets in ira b per the subscription agreement subsequently taxpayer a directed financial_institution c to execute a wire transfer of amount from ira b to an account with financial_institution g in the name of taxpayer a ira’ financial_institution d and taxpayer a informed financial_institution c that financial_institution g would accept a transfer of all assets from ira b for deposit in a like-titled account ie an ira the transfer was completed on or around date taxpayer a expected financial institutions d and g to coordinate the transfer of in a manner that assured it would be deposited into an ira taxpayer amount a had no direct contact with financial_institution g regarding the transaction financial_institution d instructed financial_institution g that account h be labeled taxpayer a ira after the transfer of amount from ira b taxpayer a received monthly statements for account h which indicated it was an ira in late march of taxpayer a’s financial advisor at financial_institution d communicated with financial_institution g regarding another client's beneficiary designation for fund e after a series of discussions on or around date financial_institution g informed taxpayer a’s financial advisor that account h was not an ira even though he was told it would be an ira and that it was titled as an ira account financial_institution d has acknowledged in writing that _ it erred when it failed to assure that amount would be transferred to an ira based on the above facts and representations you request that the internal_revenue_service service waive the 60-day rollover requirement contained in sec_408 of the code with respect to the distribution of amount sec_408 of the code provides that except as otherwise providedin sec_408 of the code 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 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 i is paid into an ira for the benefit of such individual not later than the day after the day on which the individual receives the payment or distribution or ii the entire amount received including money and any other_property is paid into an eligible_retirement_plan other than an ira for the benefit of such individual not later than the day after the date on which the payment or distribution is received except that the maximum amount which may be paid into such plan may not exceed the portion of the amount received which is includible in gross_income determined without regard to sec_408 of the code sec_408 of the code provides that sec_408 of the code does not apply to any amount described in sec_408 of the code 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 of the code from an ira which was not includible in gross_income because of the application of sec_408 of the code sec_408 of the code provides a similar 60-day rollover period for partial rollovers sec_408 i of the code provides that the secretary may waive the 60-day requirement under sec_408 and sec_408 of the code where the failure to waive such requirement would be against equity or good conscience including casualty disaster or other events beyond the reasonable control of the individual subject_to such requirement only distributions that occurred after date are eligible for the waiver under sec_408 of the code revproc_2003_16 2003_4_irb_359 date provides that in determining whether to grant a waiver of the 60-day rollover requirement pursuant to sec_408 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 the documentation submitted by taxpayer a is consistent with his assertion that his failure to accomplish a timely rollover of amount was due to an error by financial_institution d therefore pursuant to sec_408 of the code the service hereby waives the 60-day rollover requirement with respect to the distribution of amount from ira b taxpayer a is granted a period of days from the issuance of this letter_ruling to contribute amount into a rollover ira provided all other requirements of sec_408 of the code except the 60-day requirement are met with respect to such contribution amount will be considered a rollover_contribution within the meaning of sec_408 no opinion is expressed as to the tax treatment of the transaction described herein under the provisions of any other section of either the code or regulations which may be applicable thereto this letter is directed only to the taxpayer who requested it sec_6110 of the code provides that it may not be used or cited as precedent a copy of this letter_ruling has been sent to your authorized representative _ pursuant to a power_of_attorney on file in this office this ruling please contact d if you wish to inquire about ' -at sincerely yours cobh a wathac manager employee_plans technical group enclosures deleted copy of this letter notice of intention to disclose notice cc


internal_revenue_service department of the treasury number release date index number washington dc person to contact telephone number refer reply to cc intl br1-plr-143859-02 date november ty legend a date b country c year date d dear this is in response to your letter dated date requesting a ruling that a’s loss of lawful permanent resident status expatriation did not have for one of its principal purposes the avoidance of u s taxes under subtitle a or subtitle b of the code additional information was submitted in a letter dated date 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 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 a was born on date b in country c a obtained a green card in year a is a citizen and resident of country c and is subject_to country c tax on his worldwide income on date d a relinquished his green card on the date of a's expatriation his net_worth exceeded the applicable_amount set forth in sec_877 plr-143859-02 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 subject_to 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 u s citizen or former u s 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 exceed 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_2_cb_29 modifying notice_97_19 1997_1_cb_394 a former long-term_resident whose net_worth or average tax_liability exceeds the applicable thresholds will not be presumed to have a principal purpose of tax_avoidance if that former 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 a citizen and resident fully subject_to tax in country c the country in which he was born a submitted all of the information required to be submitted by notice_97_19 as modified by notice_98_34 including additional information requested by the service after review of the submission accordingly based solely on the facts submitted and the representations made we conclude that a has made a complete and good_faith submission in accordance with sec_877 and notice_98_34 therefore a will not be presumed under sec_877 to have had as one of his principal purposes for expatriating the avoidance of plr-143859-02 u s taxes we further conclude that a will not be treated under sec_877 as having had as one of his principal purposes for expatriating the avoidance of u s taxes because the information submitted clearly establishes the lack of a principal purpose to avoid taxes under subtitle a or b of the code 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 the taxable years prior to or after his expatriation 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 this ruling is directed only to the taxpayer requesting it sec_6110 of the code provides that it may not be used or cited as precedent in accordance with a power_of_attorney on file in this office a copy of this letter will be sent to a sincerely w edward williams senior technical reviewer cc intl br1


internal_revenue_service number release date index number ---------------------------- ----------------------------------------------- -------------------------------------- --------------------------- -------------------------------------- --------------------- department of the treasury washington dc third party communication none date of communication not applicable_person to contact ----------- id no ------------- telephone number -------------------- refer reply to cc psi b01 plr-152126-05 date date ----------------- --------------------- ---------------------------- legend legend x -------------------------------------------------- country d dear -------------- correspondence written on behalf of x requesting an extension of time under ' and ' of the procedure and administration regulations to elect to be treated as a partnership for federal tax purposes this letter responds to the letter dated date and related facts the information submitted states that x was incorporated under the laws of country on d x intended to file a form_8832 entity classification election to be treated as a partnership for federal tax purposes effective d however the election was not timely filed law and analysis sec_301_7701-3 provides that a business_entity that is not classified as a corporation under ' b or an eligible_entity can elect its classification for federal tax purposes elections are necessary only when an plr-152126-05 eligible_entity does not want to be classified under the default classification or when an eligible_entity chooses to change its classification sec_301_7701-3 provides that except for certain existing entities described in sec_301_7701-3 unless a foreign eligible_entity elects otherwise the entity is a a partnership if it has two or more members and at least one member does not have limited_liability b an association if all members have limited_liability or c disregarded as an entity separate from its owner if it has a single member that does not have limited_liability sec_301_7701-3 provides that an eligible_entity may elect to be classified other than as provided under ' b by filing form_8832 with the appropriate service_center under ' c iii this election will be effective on the date specified by the entity on form_8832 or on the date filed if no such date is specified the date specified on form_8832 cannot be more than days prior to the date on which the election is filed 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 code except e g h and i sec_301_9100-1 defines the term regulatory election as including an election whose deadline is prescribed by a regulation published in the federal_register commissioner will use to determine whether to grant an extension of time to make an election sec_301_9100-2 provides automatic extensions of time for making certain elections sec_301_9100-3 provides extensions of time for making 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 sec_301_9100-1 through provide the standards the conclusion based solely on the facts submitted and representations made we conclude that x has satisfied the requirements of and and therefore it is granted an extension of time of sixty days from the date of this letter to file a form_8832 to elect to be treated as a partnership for federal tax purposes effective d a copy of this letter should be attached to the election a copy is enclosed for that purpose plr-152126-05 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 internal_revenue_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 in accordance with the power_of_attorney on file with this office a copy of this letter is being mailed to your authorized representative sincerely heather c maloy associate chief_counsel passthroughs and special industries enclosures copy of this letter copy for ' purposes cc


internal_revenue_service number release date index no cc tege qp2 - plr-111765-00 date entity e dear this responds to the letter of date and subsequent correspondence on behalf of entity e requesting a ruling concerning the proposed amended and revised deferred_compensation plan the plan including a supplement providing special provisions regarding temporary seasonal and part-time employees which e intends to be an eligible_deferred_compensation_plan under sec_457 of the internal_revenue_code_of_1986 as amended under sections and of the small_business job protection act of e is represented to be a state governmental entity described in sec_457 of the code under the plan an employee may elect to defer compensation that would have been received for services rendered to e in any taxable_year until death separation_from_service with e attainment of age 70½ or until the occurrence of an unforeseeable_emergency the plan also includes a provision generally permitting a participant to elect an in-service distribution of dollar_figure or less to be paid to a participant from his or her account in certain limited circumstances set forth thereunder and in sec_457 a the plan’s supplement concerning temporary seasonal and part-time employees provides an automatic cash-out distribution of dollar_figure or less to be paid to a participant from his or her account in certain limited circumstances set forth thereunder no loans may be made from assets held by the plan to any participant or beneficiary under the plan the participant’s election under the plan to defer compensation not yet received must be filed prior to the beginning of the month in which his or her salary reduction agreement becomes effective the plan provides for a maximum amount that may be deferred by a participant in any taxable_year and also provides for a catch-up computation for amounts deferred for one or more of the participant's last three taxable years ending before he attains normal_retirement_age under the plan the amounts that may be deferred under the annual maximum limitation and the catch-up provision are within the limitations of sec_457 including the sec_457 coordinated deferral provision plr-111765-00 with certain limitations a participant may elect the manner in which his deferred amounts will be distributed the election generally must be made prior to the date any such payment must commence to the participant if the participant fails to make a timely election distribution will commence at the time and in the manner set forth in the plan the plan also includes a provision permitting a one-time additional election by a participant to further defer commencement of his distributions under the plan after the first permissible payout date if distribution from his account had not already commenced the plan provides that the manner and time of benefit payout must meet the distribution_requirements of sec_401 and sec_457 of the code the plan provides that amounts of compensation deferred thereunder are to be transferred to and invested into a_trust for the exclusive benefit of the participants and their beneficiaries also all amounts deferred under the plan must be transferred to a_trust represented to meet the sec_457 trust requirement within an administratively reasonable_time period but no later than days after the end of the month in which the amounts were deferred the rights of any participant or beneficiary to payments pursuant to the plan are nonassignable and not subject_to assignment transfer or alienation the plan provides that distribution to a former spouse or alternate_payee pursuant to a domestic_relations_order may occur or commence only when authorized under sec_457 governing when distributions under the plan may begin that is when the participant attains age 70½ when the participant is separated from service with the employer or when the alternate_payee is faced with an unforeseeable_emergency if such alternate_payee receives rights to amounts in a participant's account under a domestic_relations_order the plan may establish and maintain a separate_account for that alternate_payee sec_457 of the code provides rules for the deferral of compensation by an individual participating in an eligible_deferred_compensation_plan as defined in sec_457 sec_457 of the code provides that in the case of a participant in an eligible_deferred_compensation_plan any amount of compensation deferred under the plan and any income attributable to the amounts so deferred shall be includible in gross_income only for the taxable_year in which such compensation or other income is paid or otherwise made available to the participant or beneficiary sec_457 prescribes that an eligible_deferred_compensation_plan must meet the distribution_requirements of sec_457 sec_457 provides that for a sec_457 plan to be an eligible_plan the plan must have distribution_requirements providing that under the plan amounts will not be made available to participants or beneficiaries earlier than i the calendar_year in which the participant attains age ½ ii when the participant is separated from service plr-111765-00 with the employer or iii when the participant is faced with an unforeseeable_emergency as determined under treasury regulations sec_457 provides that if a sec_457 plan is or becomes an ineligible plan then the deferred_compensation shall be included in the gross_income of the participant or beneficiary for the first taxable_year in which there is no substantial_risk_of_forfeiture of the rights to such compensation and the tax treatment of any amount made available under such plan to a participant or beneficiary shall be determined under sec_72 relating to annuities sec_457 provides that a plan maintained by an eligible governmental employer shall not be treated as an eligible_deferred_compensation_plan unless all assets and rights purchased with such deferred_compensation amounts and all income attributable to such amounts property or rights of the plan are held in trust for the exclusive benefit of participants and their beneficiaries sec_457 provides that a_trust described in sec_457 shall be treated as an organization exempt from tax under sec_501 sec_457 provides that the amounts in the trust are treated as includible in the gross_income of participants and beneficiaries only to the extent and at the time provided in sec_457 based upon the provisions of the plan summarized above and the documents presented we conclude as follows the amended and revised deferred_compensation plan established by entity e is an eligible_deferred_compensation_plan as defined in sec_457 of the internal_revenue_code_of_1986 as amended under sections and of the small_business job protection act of amounts of compensation deferred in accordance with the plan including any income attributable to the deferred_compensation will be includible in the recipient’s gross_income for the taxable_year or years in which amounts are paid or otherwise made available to a participant or beneficiary in accordance with the terms of the plan the trust associated with e’s sec_457 plan is treated under sec_457 as an organization_exempt_from_taxation under sec_501 no opinion is expressed concerning the timing of the inclusion in income of amounts deferred under any deferred_compensation plan other than e's amended and revised plan described above in addition this ruling applies only to deferrals made after the date this ruling is issued this ruling is directed only to entity e and applies only to the amended plan submitted on date as revised by the amendments submitted on date and to the trust document submitted on date if either the plan or trust document is significantly modified this ruling will not necessarily plr-111765-00 remain applicable sec_6110 of the internal_revenue_code provides that this ruling may not be used or cited as precedent temporary or final regulations pertaining to one or more of the issues addressed in this ruling have not yet been adopted therefore this ruling may be modified or revoked if the adopted temporary or final regulations are inconsistent with any conclusion in the ruling see section dollar_figure of revproc_2000_1 2000_1_irb_4 however when the criteria in section dollar_figure of revproc_2000_1 are satisfied a ruling is not revoked or modified retroactively except in rare or unusual circumstances sincerely yours robert d patchell acting chief qualified_plans branch office of the associate chief_counsel tax exempt and government entities enclosure copy for sec_6110 purposes