t c summary opinion united_states tax_court alexander dominic senulis jr petitioner v commissioner of internal revenue respondent docket no 11204-07s filed date alexander dominic senulis jr pro_se benjamin j peeler for respondent goldberg special_trial_judge this case was heard pursuant to the provisions of sec_7463 of the internal_revenue_code in effect at the time the petition was filed pursuant to sec_7463 the decision to be entered is not reviewable by any other court and this opinion shall not be treated as precedent for any other case unless otherwise indicated subsequent section references are to the internal_revenue_code in effect for the year in issue and all rule references are to the tax_court rules_of_practice and procedure respondent determined a deficiency in petitioner’s federal_income_tax for of dollar_figure together with additions to tax under sec_6651 and and a for failure_to_file failure to pay amount due and failure to pay estimated income_tax of dollar_figure dollar_figure and dollar_figure respectively the issues for decision are whether petitioner was temporarily away from home during and thus entitled to deduct expenses for airfare automobile cellular telephone use computer supplies internet service meals and incidentals m ie and postage and whether additions to tax are applicable for for failure_to_file failure to pay amount due and failure to pay estimated income_tax under sec_6651 and and a respectively background some of the facts have been stipulated and are so found the stipulation of facts and the attached exhibits are incorporated herein by this reference petitioner resided in louisiana when the petition was filed petitioner has a long history of employment in and around destrehan louisiana he spent approximately years from through working as a self-employed automobile claims field mechanical inspector and manager petitioner ended this business because of physical injuries he had received in an automobile accident petitioner then started a business that provided extended warranties for automobiles where he administered warranty claims this business terminated in because the insurance_company that petitioner was associated with went into receivership petitioner was then introduced by an associate to mr horn the owner of managed healthcare inc mhi a medical insurance administration company in houston texas mhi had been using multiple redundant systems for the processing of medical claims mhi wanted to merge these systems into a single coherent system without going through the laborious process of reentering all of the data individuals whom mr horn consulted regarding the project advised him that the data had to be reentered because they questioned the feasibility of using available computer technology to merge the various medical recordkeeping systems however petitioner believed that he could merge the systems without reentering the data petitioner was contracted by mhi on a month-to-month basis as an independent_contractor he began to merge the existing systems in date the project completion date was unknown however petitioner estimated that it would take approximately to months to complete it was understood that at the latest petitioner’s services would be terminated when the project was completed however because petitioner was contracted month to month his services could be terminated during any given month petitioner was paid dollar_figure per month for his services mhi provided petitioner with a cubicle in which to set up his own computer equipment and supplies petitioner was not reimbursed by mhi for any of his expenses in order to merge the various medical recordkeeping systems into a single coherent system petitioner used at t worldnet internet service to transfer data between san antonio austin and houston while working at mhi petitioner lived with his mother in pasadena texas a suburb of houston to minimize his expenses petitioner had his mail forwarded to his mother’s house by the u s postal service because his mail was being returned to sender from his post office box in louisiana petitioner had only a bedroom at his mother’s residence and did not maintain any of his computer equipment or business records there during this time petitioner continued to maintain a leased townhouse in destrehan louisiana with his companion whose surname is not in the record and who hereinafter will be referred to as ms m the destrehan townhouse was where he maintained his home_office a separate computer and certain business records although the lease was in ms m’s name petitioner was listed on the lease as living there petitioner has resided at these premises for approximately years and they became his principal_place_of_business beginning in all of the accounts for utility and home telephone services were in petitioner’s name and he paid for these services and all of the rent while he was working petitioner also maintained cellular telephone service through verizon wireless and used the service for both business and personal_use the distance from the shared townhouse in destrehan louisiana to his mother’s house in pasadena texas is approximately miles during the months that petitioner worked at mhi he made nine round trips to destrehan louisiana to research new software and hardware technology to maintain business records related to his consulting business to find new clients that might need work similar to the work that petitioner was performing at mhi and for personal reasons in date the project at mhi fell apart and petitioner’s employment at mhi terminated the record is silent as to where petitioner worked and lived during the rest of in years in which petitioner had income he filed state of louisiana income_tax returns and his federal_income_tax returns using the destrehan louisiana address because respondent had no record of petitioner’s filing a federal_income_tax return respondent prepared a substitute for return using third-party information reported to the irs for in computing the federal_income_tax deficiency respondent allowed petitioner a standard_deduction of dollar_figure one personal_exemption of dollar_figure and prepaid credits of dollar_figure the income respondent determined is not in dispute however petitioner contests the deficiency alleging that he incurred deductible business_expenses in discussion deductions are a matter of legislative grace and the taxpayer bears the burden of proving his entitlement to a deduction rule a 503_us_79 292_us_435 a taxpayer is required to maintain records sufficient to establish the amounts of his or her income and deductions sec_6001 sec_1_6001-1 e income_tax regs taxpayers may deduct only the business_expenses that they can substantiate 90_tc_74 pursuant to sec_7491 the burden_of_proof as to factual matters shifts to the commissioner under certain circumstances petitioner has neither alleged that sec_7491 applies nor established his compliance with its requirements petitioner therefore bears the burden_of_proof as to the additions to tax sec_7491 places the burden of production on respondent see 116_tc_438 i business_expenses a meals and incidental airfare and automobile expenses petitioner claims that he is entitled to deduct meals and incidental airfare and automobile expenses contending that they were ordinary and necessary business_expenses incurred while away from home as a result of the project at mhi respondent contends that petitioner’s work outside the area of his louisiana residence was indefinite as opposed to temporary respondent argues that petitioner’s tax_home was in texas where he was working indefinitely and as a result all travel and meals and incidental_expenses are nondeductible personal expenses in general a taxpayer may deduct ordinary and necessary expenses paid_or_incurred in connection with the operation of a trade_or_business sec_162 122_tc_305 however sec_262 disallows any deduction for personal living or family_expenses including meals and travel_expenses normally transportation_expenses incurred between one’s residence and one’s principal_place_of_business a job site are referred to as commuting expenses and are nondeductible personal expenses under sec_262 413_us_838 326_us_465 under an exception to this rule a taxpayer may deduct meals and travel_expenses associated with employment that is temporary as opposed to indefinite in duration when the taxpayer is away from home sec_162 358_us_59 a taxpayer’s tax_home is generally the area of the taxpayer’s principal place of employment however a taxpayer’s tax_home may be the taxpayer’s personal_residence if the taxpayer’s employment away from home is temporary as opposed to indefinite and if the taxpayer has a principal_place_of_business in the vicinity of the taxpayer’s personal_residence farran v commissioner tcmemo_2007_151 in congress amended sec_162 for costs paid_or_incurred after date as follows for purposes of paragraph the taxpayer shall not be treated as being temporarily away from home during any period of employment if such period exceed sec_1 year energy policy act of publaw_102_486 sec a 106_stat_3033 however if the employment is initially expected to last for year or less and at some later point the employment is expected to exceed year then the employment will be treated as temporary until the earlier of when the taxpayer’s reasonable expectations change or year johnson v commissioner tcmemo_1999_153 revrul_93_86 1993_2_cb_71 to decide the primary issue we must flesh out the definitions that have been assigned to temporary and indefinite employment a word is not a crystal transparent and unchanged it is the skin of a living thought and may vary greatly in color and content according to the circumstances and the time in which it is used 245_us_418 temporary employment has been defined as that which is forseeably terminable or lasting for a relatively short fixed duration 482_f2d_417 5th cir when a taxpayer reasonably expects to be employed for a short or temporary period and travels a long distance from his personal_residence to the place of employment the reasonable inference is that the taxpayer’s choice of residence is dictated by business necessity 603_f2d_1292 8th cir indefinite employment is employment where the prospect is that the work will continue for an indeterminate and substantially long period boone v united_states supra pincite citing 321_f2d_504 8th cir affg 38_tc_470 and 305_f2d_221 9th cir when a taxpayer reasonably expects to be employed in a location for a substantial or indefinite period of time the reasonable inference is that the taxpayer’s choice of residence is a personal decision unrelated to any business necessity frederick v united_states supra pincite5 another relevant consideration is the taxpayer’s prospects for continued employment away from the taxpayer’s personal_residence id pincite we must examine the facts available to the taxpayer when he began the project to determine whether the employment was for a temporary or an indefinite period id pincite citing peurifoy v commissioner supra and 55_tc_783 the following facts demonstrate that petitioner’s assignment was temporary before petitioner had maintained a personal_residence the rented townhouse in louisiana for at least years and had a lengthy history of employment in louisiana petitioner left louisiana for the purpose of working on a project in houston texas that no other party had been willing to undertake petitioner was contracted on a month-to-month basis to perform services for mhi on a project that was estimated to last less than a year if technologically feasible presumably the purpose of this arrangement was to allow mhi the flexibility to abandon the project if it chose to do so because the technological feasibility of the project was questionable when petitioner accepted the employment he expected the project to last for approximately to months but because of technological delays the project ultimately lasted for months petitioner had no prospects for continued employment with mhi in texas following the completion or termination of the project because of petitioner’s expectation that the project would last for less than months and in an effort to reduce expenses he decided to live in a bedroom at his mother’s house in texas petitioner continued to maintain his home_office computer and business records in louisiana and periodically returned to louisiana for the purpose of researching new hardware and software technology maintaining business_expense records and attempting to develop his client base and business contacts as well for as personal reasons petitioner also paid many of the bills relating to the louisiana townhouse that he shared with ms m when petitioner undertook the project he intended to return to louisiana after the completion of the project in order to perform the same type of work for similarly situated clients in summary even though the project ultimately lasted for months we believe that at the time he undertook the project petitioner had a reasonable expectation that the project would last for less than months and that the exigencies of business necessitated that he maintain his personal_residence in louisiana therefore on the basis of the relevant facts and circumstances we find that petitioner’s self-employment with mhi was temporary for months january through date and that during this period petitioner’s tax_home remained in destrehan louisiana we have determined that petitioner’s self-employment was temporary and petitioner’s tax_home was destrehan louisiana petitioner must also show that the expenses were reasonable and necessary and incurred in the pursuit of a trade_or_business see sec_162 commissioner v flowers u s pincite to be ordinary the expense must be of a common or frequent occurrence in the type of business involved 308_us_488 to be necessary an expense must be appropriate and helpful to the taxpayer’s business 290_us_111 additionally the expenditure must be directly connected with or pertaining to the taxpayer’s trade_or_business sec_1_162-1 income_tax regs petitioner’s travel_expenses were necessitated by the fact that he continued to maintain his home_office computer and business records in louisiana and periodically returned to louisiana primarily for the purpose of researching new hardware and software technology performing administrative functions relating to his business and attempting to develop his client base and business contacts petitioner’s meals and incidental_expenses were necessitated by the fact that he was required to be away from his tax_home because of a period of temporary employment on the basis of the relevant facts we find that petitioner’s expenses for travel and meals and incidentals were ordinary and necessary and directly connected with his business however petitioner must also adequately substantiate his expenses see sec_6001 sec_1_6001-1 e income_tax regs if a taxpayer establishes that an expense is deductible but is unable to substantiate the precise amount we may estimate the amount bearing heavily against the taxpayer whose inexactitude is of his own making 39_f2d_540 2d cir the taxpayer must nonetheless present sufficient evidence for the court to form an estimate because without such a basis any allowance would amount to unguided largesse 245_f2d_559 5th cir 85_tc_731 with respect to travel and m ie taxpayers must maintain an account book diary log statement of expenses or other similar record that provides the following information the amount of the expense the time and place that the expense was incurred and the business_purpose of the expense see sec_274 however pursuant to revproc_2001_47 2001_2_cb_332 and revproc_2002_63 2002_2_cb_691 a self-employed taxpayer may use a federal per_diem m ie rate in lieu of substantiation for purposes of sec_1_274-5 income_tax regs if the taxpayer substantiates the time place and business_purpose of each day or partial day of travel for which m ie is claimed a taxpayer who is unable to meet the adequate_records standard may be able to substantiate these expenses with his own statements containing specific details of each element in conjunction with other corroborative evidence of each element sec_1_274-5t temporary income_tax regs fed reg date additionally pursuant to revproc_2001_47 sec c b pincite and revproc_2002_63 sec c b pincite for partial days of travel away from home a taxpayer is allowed to establish a plan such as claiming percent of the federal per_diem m ie rate in accordance with the federal travel regulations many of petitioner’s tax records were lost or damaged as a result of hurricane katrina and the aftermath nevertheless petitioner provided a thorough and credible reconstruction of his expenses and a calendar based on receipts these documents show that petitioner was in houston texas for days traveling between houston texas and destrehan louisiana for days and in destrehan louisiana for days during the tax_year therefore petitioner was away from his tax_home primarily for business purposes for a total of days and is entitled to a deduction for travel and meals and incidentals expenses to reflect a change in the per_diem rate during we separate the year into two parts for january through date petitioner was away from his tax_home for days full days and partial days the federal per_diem m ie rate for houston texas during this period was dollar_figure see c f_r ch app a therefore petitioner’s meals and incidental expense for this period is dollar_figure for october through date petitioner was away from his tax_home for days full days and partial days the federal per_diem m ie rate for houston texas during this period was dollar_figure see c f_r ch app a therefore petitioner’s meals and incidental expense for this period is dollar_figure in summary petitioner’s total meals and incidental expense for was dollar_figure petitioner is entitled to a deduction for m ie equal to percent of the dollar_figure or dollar_figure see sec_274 allowing a deduction of percent for meal expenses with respect to airfare expenses petitioner traveled by commercial aircraft to destrehan louisiana on february march may and date petitioner returned to houston texas by airplane on february march june and date petitioner has substantiated this travel through the use of a calendar and receipts totaling dollar_figure therefore petitioner is entitled to a deduction for this air travel of dollar_figure regarding vehicle expenses petitioner traveled by automobile to destrehan louisiana on april august september october and date petitioner returned to houston texas by automobile on april august september october and date petitioner has substantiated this travel through the use of credit card statements that show his whereabouts during the applicable travel periods petitioner also provided a mapquest map which shows a roundtrip distance of miles and a yahoo map which shows a roundtrip distance of miles petitioner has requested mileage based on a roundtrip distance of miles and is entitled to a deduction for mileage based on this lesser amount the applicable federal mileage rate during the tax_year was dollar_figure5 per mile petitioner made a total of five trips traveling miles per trip which yields a total of big_number miles traveled therefore petitioner is entitled to an automobile expense deduction of dollar_figure b cellular telephone expense sec_274 applies to the use of listed_property as defined in sec_280f which includes cellular telephones to deduct these types of expenses the taxpayer must provide evidence that through adequate_records corroborates the taxpayer’s testimony as to the amount of the expenditure or use and the business relationship of the taxpayer to each expenditure or use sec_274 to satisfy the adequate_records requirement of sec_274 a taxpayer must maintain records and documentary_evidence that in combination are sufficient to establish each element of an expenditure or use sec_1_274-5t temporary income_tax regs fed reg date although a contemporaneous log is not required corroborative evidence to support a taxpayer’s reconstruction of the elements of the expenditure or use must have a high degree of probative value to elevate such statement to the level of credibility of a contemporaneous record sec_1_274-5t temporary income_tax regs fed reg date petitioner produced billing statements from january through date showing the amounts that he paid for the cellular telephone service to substantiate this expense we find that cellular telephone service would be an ordinary and necessary business_expense in petitioner’s line of work because petitioner was essentially on call hours per day days per week however petitioner conceded that he also used the cellular telephone to call ms m when he was in texas petitioner has failed to meet the strict substantiation requirements of sec_274 in that he did not substantiate the business use of the cellular telephone therefore petitioner is not entitled to a deduction for cellular telephone expense c computer supplies at the mhi locations in texas petitioner maintained several computers that he owned these computers were vital to performing the work necessary to complete the project while petitioner was contracted to work at mhi he purchased miscellaneous computer supplies we find that computer supplies are an ordinary and necessary business_expense in petitioner’s line of work because he could not have successfully performed his job without them petitioner submitted receipts to substantiate total computer supplies of dollar_figure and therefore he is entitled to a deduction for this amount d postage expense petitioner submitted a receipt to substantiate dollar_figure in postage expenses however petitioner has failed to establish why this would be an ordinary and necessary business_expense in his line of work therefore petitioner is not entitled to a deduction for postage expenses e internet expense the goal of the project at mhi was to merge data from multiple information systems into a single coherent database this necessitated that data be transferred by some means petitioner used the internet to transfer data between various locations in texas petitioner originally obtained internet service through bellsouth but because of a billing issue he changed his service provider to at t worldnet service the internet service account was in petitioner’s name and he submitted billing and credit card statements to substantiate total internet expense of dollar_figure petitioner is entitled to a deduction of dollar_figure for internet expenses ii additions to tax under sec_6651 and and a a sec_6651 --failure to file and sec_6651 --failure to pay petitioner requested an extension of time to file hi sec_2002 federal_income_tax return and submitted a payment of dollar_figure with his extension request on date however petitioner does not know whether he filed a federal_income_tax return at trial petitioner failed to produce a copy of his federal_income_tax return for certified transcripts of petitioner’s tax account show that he did not file a federal_income_tax return and that a substitute for return was prepared by the irs and processed on date the substitute for return prepared under sec_6020 is disregarded for purposes of sec_6651 but treated as a return for purposes of sec_6651 see sec_6651 respondent determined additions to tax under sec_6651 and respondent bears the burden of production under sec_7491 the certified official transcript for produced by respondent establishes that petitioner did not file a return for see 115_tc_35 furthermore petitioner has not demonstrated reasonable_cause for failing to file hi sec_2002 income_tax return and failing to pay hi sec_2002 income_tax_liability in full by the appropriate date therefore these additions to tax are sustained b sec_6654 a --failure to pay estimated income_tax the irs also determined an addition_to_tax under sec_6654 for failure to pay estimated income_tax the commissioner has the burden of production under sec_7491 to show in accordance with sec_6654 that the taxpayer had a tax_liability for the preceding_taxable_year 127_tc_200 affd 521_f3d_1289 10th cir respondent failed to produce any evidence reflecting that petitioner had an income_tax_liability in additionally petitioner unequivocally stated that he did not have any income in because petitioner did not have a tax_liability for he was not required to make estimated income_tax payments for see sec_6654 therefore petitioner is not liable for the sec_6654 addition_to_tax to reflect the foregoing decision will be entered under rule


internal_revenue_service number info release date uil dear cor-142296-01 date this is in response to your correspondence of date to the internal_revenue_service your correspondence concerns your ability to combine a keogh_plan and an individual_retirement_account ira and receive the minimum distribution from one account the specific information you gave us is as follows you are years old and have both a keogh_plan and an ira you are receiving an annual minimum distribution from the keogh_plan of dollar_figure and an annual minimum distribution from the ira of dollar_figure you would like to take the total annual minimum distribution of dollar_figure from the keogh_plan and if you cannot do that you would like to roll over the keogh_plan into a new ira and take the dollar_figure minimum distribution from the new ira with respect to your first question you cannot take the entire total annual minimum distribution for the keogh_plan and the ira from just the keogh_plan federal_income_tax regulations prohibit combining two employer plans and taking the total minimum distribution from one two ira’s however may be combined and the total minimum distribution may be taken from one but there are no provisions for combining a keogh_plan and an ira for this purpose thus the total minimum distribution for the ira and keogh_plan cannot be taken from the keogh_plan your next question concerns your ability to roll over the keogh_plan into an ira the minimum_required_distribution from the keogh_plan for and whether you can roll over part of the keogh_plan to an ira it appears to us that you wish to take the minimum distribution from the keogh_plan for and roll over the rest of the keogh_plan into an ira from the information you have given us it does not appear that you will be able to do this sec_402 of the internal_revenue_code sets forth the rules for rollovers from qualified_plans to ira’s sec_402 defines an eligible_rollover_distribution as any distribution to an employee of all or any portion of the balance_to_the_credit of the employee in a qualified_plan this definition does not include however any distribution which is one of a series of substantially_equal_periodic_payments not less frequently than annually made for the life or life expectancy of the employee or the joint lives or joint life expectancies of the employee and the employee’s designated_beneficiary or for a specified period of ten years or more in addition any distribution that is a required_minimum_distribution under sec_401 is not an eligible_rollover_distribution we do not have exact information about the election you made at age ½ to receive the minimum distribution from the keogh_plan however you do state that you are receiving a minimum distribution of dollar_figure from your keogh annuity retirement_plan based upon this language it appears that you have a type of annuity_contract and under the federal_income_tax regulations the entire amount of any such annuity_payment made on or after january of the year in which an employee attains age ½ will be treated as an amount required under sec_401 and thus will not be an eligible_rollover_distribution another possibility based upon the information you have supplied is that you are receiving substantially equal payments over your life expectancy or for a period of ten years or more none of these payments would be eligible to be rolled over into an ira based upon the information you have furnished it appears that you should continue to receive the minimum distribution for your ira from your ira and the minimum distribution for your keogh_plan from your keogh_plan we trust this information addresses your concerns this is a general information_letter and not a ruling thus it cannot be relied upon as a ruling sincerely robert d patchell acting chief qualified_plans branch two office of the division counsel associate chief_counsel tax exempt and government entities


internal_revenue_service number info release date index number ------------------------- ---------------------------- in re ----------------------------- ----------- ----------------------------------- ------------- -------------------------------- dear --------- department of the treasury washington dc person to contact ---------- id no ------------- telephone number --------------------- refer reply to cc psi - genin-161034-03 date november we are answering your correspondence in which you requested information about the private_letter_ruling process as it relates to relief for a late s_corporation_election the information provided in this letter should prove to be helpful announcement copy enclosed provides guidance on seeking relief for late s_corporation elections generally to request relief for a late s_corporation_election you must request a private_letter_ruling from the national_office the information forwarded to our office is insufficient for us to process a private_letter_ruling request the procedures for requesting a private_letter_ruling are set forth in revproc_2003_1 copy enclosed in addition taxpayers must submit a user_fee along with their ruling_request the standard user_fee for a private_letter_ruling is dollar_figure however taxpayers with gross_income of less than dollar_figure million on their tax_return for the most recent 12-month taxable_year qualify for a reduced user_fee in the amount of dollar_figure if you qualify for the reduced fee you must include a statement claiming that your gross_income for the last 12-month taxable_year was less than one million dollars if you decide to submit a formal request for a private_letter_ruling please follow the sample format provided in appendix b of revproc_2003_1 your request should include all required procedural statements a check for the user_fee and any documents that substantiate your intent to be an s_corporation from inception please refer your request to our office by adding the following to the address attn cc pa t p o box ben franklin station washington dc direct to cc psi room incidentally the irs has developed two compact discs to help educate small_business owners on their tax responsibilities introduction to federal taxes for small_business self-employed and a virtual small_business workshop these items are free and can be ordered by calling the irs also makes information available to small_business taxpayers online at www irs gov businesses small index please keep this letter with your tax records and feel free to provide a copy of it to your authorized representative we hope that the above information proves helpful s dianna k miosi sincerely yours dianna k miosi chief branch associate chief_counsel passthroughs and special industries enclosures announcement revproc_2003_1


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 ------------------------------ ------------ telephone number -------------------- refer reply to cc psi b01 plr-146340-14 date date legend x trust trust trust state date date date dear--------------- ------------------------------------------------------------------------------------------------------------- -------------- ----------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------- ---------------- ------------------------------------------------------------------------------------------------------------- ---------------- ------ ----------------- --------------------- ------------------------------------------------------------------------------------------------------------- -------- this responds to a letter dated date submitted on behalf of x by its authorized representatives requesting a ruling under sec_1362 of the internal_revenue_code plr-146340-14 facts the information submitted states that x was incorporated under the laws of state effective date x elected to be taxed as an s_corporation on date shares of x stock were transferred to trust trust and trust also on date additional shares of x were transferred to trust trust and trust x represents that trust trust and trust meet the requirements to be treated as qualified subchapter_s trusts qssts as described in sec_1361 as of date except the respective income beneficiaries of trust trust and trust failed to make the required election under sec_1361 therefore trust trust and trust were not eligible s_corporation shareholders and as a result x’s s_corporation_election terminated on date furthermore x’s s_corporation_election would have terminated on date if it had not already terminated on date due to the additional transfers of x stock to trust trust and trust x represents that the circumstances resulting in the termination of x’s s_corporation_election were inadvertent and were not motivated by tax_avoidance or retroactive tax planning additionally x represents that x and its shareholders have filed their federal_income_tax returns consistent with having a valid s_corporation_election in effect for x x and its shareholders have agreed to make any adjustments consistent with the treatment of x as an s_corporation as may be required by the secretary with respect to the period specified by 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 means a domestic_corporation that is not an ineligible_corporation and that does not 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 for the purposes of sec_1362 a_trust all of which is treated under title_26 subtitle a chapter subchapter_j part i subpart e of the united_states_code as owned by an individual who is a citizen or resident_of_the_united_states may be a shareholder of an s_corporation sec_1361 provides that in the case of a qualified_subchapter_s_trust with respect to which a beneficiary makes an election under sec_1361 a such trust will be treated as a_trust described in sec_1361 and b for purposes of sec_678 the beneficiary of such trust shall be treated as the owner of that portion of the trust plr-146340-14 which consists of stock in an s_corporation with respect to which the election under sec_1361 is made sec_1362 provides that if an election under sec_1362 by any corporation was terminated under sec_1362 or 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 the termination steps were taken so that the corporation is a small_business_corporation and the corporation and each person who was a shareholder of the corporation at any time during the period specified under sec_1362 agrees to make the adjustments consistent with the treatment of the corporation as an s_corporation as may be required by the secretary for that period then notwithstanding the circumstances resulting in such termination the corporation shall be treated as an s_corporation during the period specified by the secretary conclusion based solely on the facts submitted and representation made we conclude x’s s election terminated on date when the stock in x was transferred to trust trust and trust because the income beneficiaries of trust trust and trust failed to timely file the required qsst elections under sec_1361 we further conclude that the termination of x’s s_corporation_election was inadvertent within the meaning of sec_1362 moreover had x’s s_corporation not already terminated it would have terminated on date when the additional shares of x were transferred to trust trust and trust similarly this terminating event would have been an inadvertent termination within the meaning of sec_1362 accordingly under sec_1362 x will be treated as continuing to be an s_corporation from date and thereafter provided that x’s s election is valid and not otherwise terminated under sec_1362 this relief is contingent upon the income beneficiaries of trust trust and trust filing a qsst election for their respective trust effective date within days from the date of this letter a copy of this letter should be attached to each qsst election except as specifically ruled above we express or imply no opinion concerning the federal tax consequences of the transactions described above under any other provision of the code specifically we express or imply no opinion regarding whether x is otherwise eligible to be an s_corporation or whether trust trust and trust are eligible to be treated as qssts this ruling is directed only to the taxpayer who requested it sec_6110 provides that it may not be used or cited as precedent in accordance with the power of plr-146340-14 attorney on file with this office a copy of this letter is being sent to x’s authorized representatives sincerely laura c fields laura c fields senior technician reviewer branch 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-102452-17 date date legend x ------------------------------------------------------- ------------------------ country d ----------------------------- -------------------- dear --------------- this responds to a letter dated date submitted on behalf of x requesting an extension of time under sec_301_9100-3 of the procedure and administration regulations to file an election under sec_301_7701-3 to be treated as a partnership for federal tax purposes facts according to the information submitted x was organized under the laws of country on d x represents that it is a foreign_entity eligible to elect to be classified as a partnership effective d x failed to timely file form_8832 entity classification election to be treated as a partnership for federal tax purposes effective d x represents that it acted reasonably and in good_faith x also represents that granting the relief requested will not prejudice the interests of the government plr-102452-17 law and analysis sec_301_7701-3 provides in part that a business_entity that is not classified as a corporation under sec_301_7701-2 or an eligible_entity can elect its classification for federal tax purposes an eligible_entity with at least two members can elect to be classified as either an association or a partnership and an eligible_entity with a single owner can elect to be classified as an association or to be disregarded as an entity separate from its owner sec_301_7701-3 provides guidance on the classification of a foreign eligible_entity for federal tax purposes generally a foreign eligible_entity is treated as an association if all members have limited_liability unless the entity makes an election to be treated otherwise a foreign eligible_entity with two or more members all having limited_liability may elect to be treated as a partnership pursuant to the rules of sec_301_7701-3 sec_301_7701-3 provides that an entity classification election must be filed on form_8832 and can be effective up to days prior to the date the form is filed or up to months after the date the form is filed under sec_301_9100-1 the commissioner may grant a reasonable extension of time to make a regulatory election or a statutory election but no more than six months except in the case of a taxpayer who is abroad under all subtitles of the internal_revenue_code except subtitles e g h and i sec_301_9100-1 defines the term regulatory election as including an election whose due_date is prescribed by a regulation published in the federal_register or a revenue_ruling revenue_procedure notice or announcement published in the internal_revenue_bulletin sec_301_9100-1 through provide the standards the commissioner will use to determine whether to grant an extension of time to make 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 conclusion based solely on the facts submitted and the representations made we conclude that the requirements of sec_301_9100-1 and sec_301_9100-3 have been satisfied as a result x is granted an extension of time of days from the date of this letter to make an election to be treated as a partnership for federal tax purposes effective d x should make the election by filing a properly executed form_8832 with the appropriate service_center a copy of this letter should be attached to the form plr-102452-17 this ruling is contingent on the owners of x filing within days of this letter all required returns for all open years consistent with the requested relief these returns may include but are not limited to the following forms i forms information_return of u s persons with respect to certain foreign_corporations ii forms return of u s persons with respect to certain foreign_partnerships and iii forms information_return of u s persons with respect to disregarded entities such that these forms reflect the consequences of the relief granted in this letter a copy of this letter should be attached to any such returns 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 sent to x’s authorized representatives sincerely john p moriarty acting associate chief_counsel passthroughs special industries joy c spies by ________________________________ joy c spies senior technician reviewer branch office of associate chief_counsel passthroughs special industries enclosures copy of this letter copy of this letter for sec_6110 purposes


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 b02 plr-106998-08 date july x --------------------------------------------------------------------------------------------------- ------------------------ country ------------ date ------------------------- dear --------------- this responds to a letter dated date submitted on behalf of x by x’s authorized representative requesting that the service grant x an extension of time under sec_301_9100-3 of the procedure and administration regulations to elect to be treated as a partnership under sec_301_7701-3 the information submitted states that x was formed under the laws of country on date x represents that x is a foreign_entity eligible to elect to be treated as a partnership however x inadvertently failed to timely file a form_8832 entity classification election electing to treat x as a partnership effective date sec_301_7701-3 provides guidance on the classification of a foreign eligible_entity for federal tax purposes generally a foreign eligible_entity is treated as an association_taxable_as_a_corporation if all members have limited_liability unless the entity makes an election to be treated otherwise if the foreign eligible_entity has more than one owner it may elect to be treated as a partnership pursuant to the rules in sec_301_7701-3 sec_301_7701-3 provides that an entity classification election must be filed on form_8832 and can be effective up to seventy-five days prior to the date the form is plr-106998-08 filed or up to twelve months after the date on which the form is filed sec_301_9100-1 provides that the commissioner may grant a reasonable extension of time to make a regulatory election or a statutory election but no more than months except in the case of a taxpayer who is abroad under all subtitles of the internal_revenue_code except subtitles e g h and i sec_301_9100-1 defines the term regulatory election as an election whose due_date is prescribed by a regulation published in the federal_register or a revenue_ruling revenue_procedure notice or announcement published in the internal_revenue_bulletin sec_301_9100-1 through provide the standards the commissioner will use to determine whether to grant an extension of time to make the election sec_301_9100-2 provides the rules governing automatic extensions of time for making certain elections sec_301_9100-3 provides the standards the commissioner will use to determine whether to grant an extension of time for regulatory elections that do not meet the requirements of sec_301_9100-2 under sec_301_9100-3 a request for relief will be granted when the taxpayer provides evidence to establish to the satisfaction of the commissioner that the taxpayer acted reasonably and in good_faith and granting relief will not prejudice the interests of the government based solely on the information submitted and the representations made we conclude that the requirements of sec_301_9100-3 have been satisfied as a result x is granted an extension of time of days from the date of this letter to file a form_8832 with the appropriate service_center and elect to be treated as a partnership effective date a copy of this letter should be attached to the form_8832 a copy is enclosed for that purpose except as specifically set forth above no opinion is expressed concerning the federal tax consequences of the facts described above under any other provision of the code in particular we express no opinion on whether x is properly classified as a partnership within the meaning of sec_301_7701-2 this ruling is directed only to the taxpayer requesting it sec_6110 provides that it may not be used or cited as precedent plr-106998-08 pursuant to a power_of_attorney on file with this office a copy of this letter is being sent to x's authorized representative sincerely william p o'shea associate chief_counsel passthroughs special industries enclosures copy of this letter copy for sec_6110 purposes cc


internal_revenue_service department of the treasury number release date index number 468a 468a washington dc person to contact telephone number refer reply to cc psi plr-103037-01 date date re request for a revised schedule of ruling amounts taxpayer parent plant location commission a commission b commission c cooperative cooperative municipalities director fund dear this letter responds to the request of taxpayer dated date for a revised schedule of ruling amounts in accordance with sec_1_468a-3 of the income_tax regulations taxpayer was previously granted a revised schedule of ruling amounts on date information for the schedule of ruling amounts was submitted on behalf of the taxpayer pursuant to sec_1_468a-3 taxpayer represents the facts and information relating to its request for a revised schedule of ruling amounts as follows taxpayer is under the audit jurisdiction of the director taxpayer is a principal subsidiary of parent taxpayer has a direct ownership_interest of percent in plant which is situated at location plant’s operating license expires in taxpayer is planning to separate its generation assets from its transmission and distribution assets by establishing a new company to which the generation assets will be transferred taxpayer will retain its transmission and distribution assets and operations and will distribute the stock of the new company to parent therefore taxpayer’s request for a revised schedule of ruling amounts extends through the year by which taxpayer expects to have transferred its generating assets plr-103037-01 taxpayer is subject_to the jurisdiction of commission a which covers percent of the taxpayer’s total electric sales commission b which covers percent commission c cooperative which covers percent commission c cooperative which covers percent and municipalities which covers percent for a total of percent these percentages may vary slightly from year to year the estimated base cost for decommissioning the plant is based on an independent study and is premised on the prompt removal and dismantlement method commission b in docket no effective authorized nuclear decommissioning costs to be included in the taxpayer’s cost of service for ratemaking purposes for the plant in the amount of and estimated an after-tax rate of return on assets of percent commission also determined the total estimated cost of decommissioning the plant to be this base cost escalated using an estimated inflation rate of percent results in an estimated future decommissioning cost of the tax and investment changes made to sec_468a of the internal_revenue_code by section of the energy policy act of were not taken into consideration when estimating these costs commission c in docket no effective approved rates that taxpayer negotiated with cooperative and cooperative commission c authorized nuclear decommissioning costs to be included in the taxpayer’s cost of service for ratemaking purposes for the plant in the amount of includes amounts for both cooperative and cooperative and estimated an after-tax rate of return on assets of percent for cooperative and percent for cooperative commission c also determined the total estimated cost of decommissioning the plant to be for cooperative and for cooperative this base cost escalated using an estimated inflation rate of percent results in an estimated future decommissioning cost of for cooperative and for cooperative the tax and investment changes made to sec_468a of the internal_revenue_code by section of the energy policy act of were not taken into consideration when estimating these costs municipalities in an agreement effective authorized nuclear decommissioning costs to be included in the taxpayer’s cost of service for ratemaking purposes for the plant in the amount of and estimated an after-tax rate of return on assets of percent commission also determined the total estimated cost of decommissioning the plant to be this base cost escalated using an estimated inflation rate of percent results in an estimated future decommissioning cost of the tax and investment changes made to sec_468a of the internal_revenue_code by section of the energy policy act of were not taken into consideration when estimating these costs plr-103037-01 amounts for commission a are not specifically reviewed herein there are no proceedings pending before either commission a commission b or commission c that may result in an increase or decrease in the amount of decommissioning costs for the plant to be included in taxpayer’s cost of service for ratemaking purposes there are however proceedings pending before municipalities that may result in an increase or decrease in the amount of decommissioning costs for the plant to be included in taxpayer’s cost of service for ratemaking purposes the funding_period for the plant extends from and the level_funding limitation period for the plant extends from the estimated period for which the fund will be in effect is the estimated_useful_life of the plant is for commission b and municipalities and for commission c thus the taxpayer has calculated its qualifying percentage to be percent for the amounts related to commission b and municipalities and percent for the amount related to commission c sec_468a of the internal_revenue_code provides that a taxpayer may elect to deduct the amount of payments made to a qualified nuclear decommissioning fund however sec_468a limits the amount_paid into the fund for any taxable_year to the lesser_of the amount of nuclear decommissioning costs allocable to the fund that is included in the taxpayer’s cost of service for ratemaking purposes for the taxable_year or the ruling_amount applicable to that year sec_468a of the code provides that no deduction shall be allowed for any payment to the nuclear decommissioning fund unless the taxpayer requests and receives from the secretary a schedule of ruling amounts the ruling_amount for any taxable_year is defined under sec_468a as the amount which the secretary determines to be necessary to fund that portion of nuclear decommissioning costs which bears the same ratio to the nuclear power plant as the period for which the fund is in effect bears to the estimated_useful_life of the plant this term is further defined to include the amount necessary to prevent excessive funding of nuclear decommissioning costs or funding of these costs at a rate more rapid than level_funding taking into account such discount rates as the secretary deems appropriate sec_468a of the code provides that a taxpayer shall be deemed to have made a payment to the nuclear decommissioning fund on the last day of the taxable_year if the payment is made on account of the taxable_year within 2½ months after the close of the taxable_year sec_1_468a-1 of the regulations provides that an eligible_taxpayer may elect to deduct nuclear decommissioning costs under sec_468a of the code an eligible_taxpayer as defined under sec_1_468a-1 is a taxpayer that has a qualifying interest in a nuclear power plant as defined under sec_1_468a-1 a qualifying interest is among other things a direct ownership_interest including an plr-103037-01 interest held as a tenant in common or joint tenant sec_1_468a-2 of the regulations provides that the maximum amount of cash payments made or deemed made to a nuclear decommissioning fund during any taxable_year shall not exceed the lesser_of i the cost of service amount applicable to the nuclear decommissioning fund for such taxable_year or ii the ruling_amount applicable to the nuclear decommissioning fund for such taxable_year sec_1_468a-3 of the regulations provides that in general a schedule of ruling amounts for a nuclear decommissioning fund is a ruling specifying annual payments that over the taxable years remaining in the funding_period as of the date the schedule first applies will result in a projected balance of the nuclear decommissioning fund as of the last day of the funding_period equal to and in no event more than the amount of decommissioning costs allocable to the fund sec_1_468a-3 of the regulations provides that each schedule of ruling amounts shall be based on the reasonable assumptions and determinations used by the applicable public_utility commission s in establishing or approving the amount of decommissioning costs to be included in the cost of service for ratemaking purposes taking into account amounts that are otherwise required to be included in the taxpayer’s income under sec_88 of the code and the regulations thereunder each schedule of ruling amounts shall be based on the public_utility commission’s reasonable assumptions concerning i the after-tax rate of return to be earned by the amounts collected for decommissioning ii the total estimated cost of decommissioning the nuclear power plant and iii the frequency of contributions to the nuclear decommissioning fund for a taxable_year sec_1_468a-3 of the regulations requires the internal_revenue_service to provide a schedule of ruling amounts that is identical to the schedule proposed by the taxpayer but no such schedule shall be provided by the service unless the taxpayer’s proposed schedule is consistent with the principles and provisions of this section sec_1_468a-3 of the regulations provides that the ruling_amount specified in a schedule of ruling amounts for any taxable_year in the level_funding limitation period shall not be less than the ruling_amount specified in such schedule for any earlier taxable_year under sec_1_468a-3 the level_funding limitation period begins on the first day of the first taxable_year for which a deductible payment is made to the nuclear decommissioning fund and ends on the last day of the taxable_year that includes the estimated date on which the nuclear power plant will no longer be included in the taxpayer’s rate base for ratemaking purposes sec_1_468a-3 of the regulations provides that the funding_period for a nuclear decommissioning fund is the period that begins on the first day of the first taxable_year for which a deductible payment is made or deemed to be made to such plr-103037-01 nuclear decommissioning fund and ends the later of i the last day of the taxable_year that includes the estimated date on which decommissioning costs of the nuclear power plant to which the nuclear decommissioning fund relates will no longer be included in the taxpayer’s cost of service for ratemaking purposes or ii the last day of the taxable_year that includes the estimated date on which the nuclear power plant to which the nuclear decommissioning fund relates will no longer be included in the taxpayer’s rate base for ratemaking purposes sec_1_468a-3 of the regulations provides that the amount of decommissioning costs allocable to a nuclear decommissioning fund is the taxpayer’s share of the total estimated cost of decommissioning the nuclear power plant multiplied by the qualifying percentage sec_1_468a-3 of the regulations provides that in general the total estimated cost of decommissioning a nuclear power plant is the reasonably estimated cost of decommissioning used by the applicable public_utility commission in establishing or approving the amount of these costs to be included in cost of service for ratemaking purposes sec_1_468a-3 of the regulations provides that a taxpayer’s share of the total estimated cost of decommissioning a nuclear power plant equals the total estimated cost of decommissioning the plant multiplied by the taxpayer’s qualifying interest in the plant sec_1_468a-3 of the regulations provides that the qualifying percentage for any nuclear decommissioning fund is equal to the fraction the numerator of which is the number of taxable years in the estimated period for which the nuclear decommissioning fund is to be in effect and the denominator of which is the number of taxable years in the estimated_useful_life of the applicable nuclear power plant sec_1_468a-3 of the regulations provides that the estimated period for which a nuclear decommissioning fund is to be in effect begins on the later of the first day of the first taxable_year for which a deductible payment is made to the nuclear decommissioning fund or deemed made or the first day of the taxable_year that includes the date that the nuclear power plant begins commercial operations as determined by the applicable public_utility commission at the time the plant was first included in the taxpayer’s rate base and ends on the last day of the taxable_year that includes the estimated date on which the nuclear power plant will no longer be included in the taxpayer’s rate base for ratemaking purposes according to sec_1_468a-3 the estimated date on which the nuclear power plant will no longer be included in the taxpayer’s rate base for ratemaking purposes is determined under the ratemaking assumptions used by the applicable public_utility commission in establishing or approving rates during the first ratemaking proceeding in which the nuclear power plant was included in the taxpayer’s rate base plr-103037-01 sec_1_468a-3 of the regulations provides that the estimated_useful_life of a nuclear power plant begins on the first day of the taxable_year that includes the date that the plant begins commercial operations as determined by the applicable public_utility commission at the time the plant was first included in the taxpayer’s rate base and ends on the last day of the taxable_year that includes the estimated date on which the nuclear power plant will no longer be included in the taxpayer’s rate base for ratemaking purposes according to sec_1_468a-3 the estimated date on which the nuclear power plant will no longer be included in the taxpayer’s rate base for ratemaking purposes is determined under the ratemaking assumptions used by the applicable public_utility commission in establishing or approving rates during the first ratemaking proceeding in which the nuclear power plant was included in the taxpayer’s rate base sec_1_468a-3 of the regulations provides that if two or more public_utility commissions establish or approve rates for electric energy generated by a single nuclear power plant then the schedule of ruling amounts shall be separately determined pursuant to the rules of sec_1_468a-3 through e for each public_utility commission that has determined the amount of decommissioning costs to be included in the cost of service for ratemaking purposes for this plant under sec_1_468a-3 this separate determination shall be based on the reasonable assumptions and determinations used by the relevant public_utility commission and shall take into account only that portion of the total estimated cost of decommissioning that is properly allocable to the ratepayer whose rates are established or approved by the public_utility commission according to sec_1_468a-3 the ruling amounts for any taxable_year is the sum of the ruling amounts for such taxable_year determined under the separate schedules of ruling amounts sec_1_468a-3 of the regulations provides that the internal_revenue_service shall not provide a taxpayer with a schedule of ruling amounts for any nuclear decommissioning fund unless the public_utility commission that establishes or approves the rates for electric energy generated by the plant to which the nuclear decommissioning fund relates has determined the amount of decommissioning costs to be included in the taxpayer’s cost of service for ratemaking purposes and has disclosed the after-tax rate of return and any other assumptions and determinations used in establishing or approving the amount sec_1_468a-3 of the regulations enumerates the information required to be contained in a request for a schedule of ruling amounts filed by a taxpayer in order to receive a ruling_amount for any taxable_year sec_1_468a-3 of the regulations provides that a taxpayer is required to request a revised schedule of ruling amounts for a nuclear decommissioning fund if a any public_utility commission that establishes or approves rates for the furnishing or sale of electric energy generated by a nuclear power plant to which the nuclear decommissioning fund relates increases the proposed period over which plr-103037-01 decommissioning costs of the nuclear power plant will be included in cost of service for ratemaking purposes adjusts the estimated date on which the nuclear power plant will no longer be included in the taxpayer’s rate base for ratemaking purposes or reduces the amount of decommissioning costs to be included in cost of service for any taxable_year and b the taxpayer’s most recent request for a schedule of ruling amounts did not provide notice to the service of such action by the public_utility commission sec_1_468a-3 of the regulations provides that any taxpayer that has previously obtained a schedule of ruling amounts can request a revised schedule of ruling amounts such a request must be made in accordance with the rules of sec_1_468a-3 the internal_revenue_service shall not provide a revised schedule of ruling amounts applicable to a taxable_year in response to a request for a schedule of ruling amounts that is filed after the deemed payment deadline date for such taxable_year sections a and c of the energy act of eliminated for taxable years beginning after date the investment restrictions contained in sec_468a of the code sections b and c of the energy act revised sec_468a by lowering the tax_rate applicable to a nuclear decommissioning fund for taxable years beginning after date we have examined the representations and information submitted by the taxpayer in relation to the requirements set forth in the sec_468a of the code and the regulations thereunder based solely on these representations of the facts we reach the following conclusions taxpayer has a qualifying interest in the plant and is therefore an eligible_taxpayer under sec_1_468a-1 of the regulations commissions a b and c and municipalities have determined the amount of decommissioning costs to be included in the taxpayer’s cost of service for ratemaking purposes as required by sec_1_468a-3 of the regulations taxpayer as owner of the plant has calculated its share of the total decommissioning costs under sec_1_468a-3 of the regulations taxpayer has determined that pursuant to sec_1_468a-3 of the regulations the qualifying percentage is percent for the amounts related to commission b and municipalities and percent for the amount related to commission c taxpayer has proposed a schedule of ruling amounts which meets the requirements of sec_1_468a-3 and of the regulations the annual payments specified in the proposed schedule of ruling amounts plr-103037-01 are based on the reasonable assumptions and determinations used by commissions a b and c and municipalities and will result in a projected fund balance at the end of the funding_period equal to or less than the amount of decommissioning costs allocable to the fund the maximum amount of cash payments made or deemed made to the fund during any taxable_year is restricted to the lesser amount of the decommissioning costs applicable to the fund or the ruling_amount applicable to the fund as set forth under sec_1_468a-2 of the regulations taxpayer subject_to the jurisdiction of three public_utility commissions for ratemaking purposes has calculated its share of the total decommissioning costs allocable to commissions a b and c and municipalities as required by sec_1_468a-3 of the regulations based on the above determinations we conclude that the taxpayer’s proposed schedule of ruling amounts satisfies the requirements of sec_468a of the code approved schedule of ruling amounts taxable years commissions a b and c and municipalities year comm a1 comm b comm c comm c mun total approval of the schedule of ruling amounts is contingent on there being no change in the facts and circumstances known or assumed at the time this ruling is issued if any of the events described in sec_1_468a-3 of the regulations occur in future years the taxpayer must request a review and revision of the schedule of ruling amounts generally the taxpayer is required to file such a request on or before the deemed payment deadline date for the first taxable_year in which the rates reflecting such action became effective when no such event occurs the taxpayer must file a request for a revised schedule of ruling amounts on or before the deemed payment deadline of the tenth taxable_year following the close of the tax_year in which the most recent schedule of ruling amounts was received amounts for commission a are not specifically reviewed herein and are merely reprinted to arrive at the amount for the total annual ruling_amount for purposes of the review and revision under sec_1_468a-3 of the regulations the date of the schedule of ruling amounts approved by the service on date governs the review period for the commission a ruling amounts plr-103037-01 the approved schedule of ruling amounts is relevant only to those payments made to the fund payments allocable to any funds other than the fund cannot qualify for purposes of the deduction under the provisions of sec_468a of the code as stated above payments made to the fund can qualify only to the extent that they do not exceed the lesser_of the decommissioning costs applicable to the fund or the ruling amounts applicable to the fund in the taxable_year except as specified above no opinion is made express or implied regarding other federal_income_tax consequences of the facts presented more specifically no opinion is expressed regarding the impact of taxpayer’s plan relating to the separation of its generation assets from its transmission and distribution assets this letter_ruling is directed only to the taxpayer who requested it sec_6110 of the code provides that this ruling may not be used or cited as precedent pursuant to sec_1_468a-7 of the regulations a copy of this letter must be attached with the required election statement to the taxpayer's federal_income_tax return for each taxable_year in which the taxpayer claims a deduction for payments made to the fund in accordance with the power_of_attorney a copy of this letter_ruling is being sent to your authorized representatives a copy of this letter_ruling also is being sent to the director sincerely yours peter c friedman senior technician reviewer branch office of the associate chief_counsel passthroughs and special industries enclosure copy