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 ita b04 plr-121584-14 date date legend taxpayer llc tax_matters_partner for llc company tax advisor tax advisor year year year x dollar_figurea dear ------------- ----------------------------------------------------- --------------------------------------------------------------------- -------------------------- ---------------- ---------------------- --------------------------- ------- ------- ------- ----- ----------------- this letter responds to a letter_ruling request originally dated date submitted on behalf of taxpayer taxpayer requests an extension of time under sec_301_9100-1 and sec_301_9100-3 of the procedure and administration regulations to make an election under sec_108 of the internal_revenue_code and sec_1_108-5 of the income_tax regulations to exclude income resulting from the discharge of qualified_real_property_business_indebtedness and to reduce the basis of depreciable real_property effective for taxpayer’s year tax_return facts taxpayer is an individual taxpayer taxpayer is a member of llc and owns an x interest in llc llc is a domestic limited_liability_company that is taxed as a partnership llc’s primary asset is a commercial building which formerly was leased plr-121584-14 to company prior to year company closed the location leased from llc and the property has been vacant in year the debt secured_by this property was restructured reducing the outstanding balance by approximately dollar_figurea taxpayer represents that the original debt has been incurred to acquire and construct the building and as such constitutes qualified_real_property_business_indebtedness as defined in sec_108 while these events were taking place tax advisor discussed with llc the tax consequences of this debt restructuring including the treatment of the discharge of qualified_real_property_business_indebtedness llc and tax advisor agreed that elections pursuant to sec_108 were advisable and would be made by the members of llc in march of year tax advisor prepared a draft of the year form_1065 for llc the primary purpose of this draft was to prepare the schedule k-1s that the llc owners could use to complete their year personal income_tax returns the llc’s year tax_return could not be completed at this time however because one of the owners died during year therefore llc waited for the completion of a valuation of the real_estate this was necessary to properly report the sec_743 adjustment attributable to the decedent’s successor_in_interest one of the consequences of the return’s preparation in draft form was that the review was focused primarily on the amounts reported on the k-1s relatively little time was spent on disclosures including information relevant to the debt restructuring as a consequence the fact that partners needed to explicitly make the sec_108 election on their tax returns by completing form_982 reduction of tax_attributes due to discharge_of_indebtedness was overlooked when tax advisor prepared the year tax returns for taxpayer and the other partners however tax advisor prepared the llc’s year tax_return with the exclusion of income as if the sec_108 election had been made in doing so llc applied the limitations outlined in sec_108 - ultimately limiting the income exclusion to the aggregate adjusted_basis of depreciable real_property held immediately prior to the discharge the amount excluded was applied to reduce the basis of the depreciable real_property to zero the excess was included in llc’s taxable_income subsequently llc’s year tax_return was completed and filed in december of year llc engaged tax advisor to succeed tax advisor as the provider of llc’s tax services in year tax advisor discovered that no disclosure regarding the debt forgiveness was made in llc’s year tax_return furthermore there was also no cancellation of indebtedness cod income included on the schedule k-1s as a flow-through item although the partners of llc had been informed that tax advisor would prepare all necessary disclosures and forms none of the partners’ tax returns included form_982 or any other disclosure related to the debt forgiveness as plr-121584-14 such none of the partners had made the sec_108 election taxpayer tax_matters_partner for llc and tax advisor submitted affidavits consistent with the above facts taxpayer and the other partners filed this request for an extension of time to make the election taxpayer represents that upon receipt of a favorable ruling taxpayer will file an amended_return to make the election under sec_108 the amended_return will include form_982 along with a copy of this ruling no further adjustments would be required to taxpayer’s tax_return because prior returns of llc and the partners including taxpayer were prepared as if the partners had made the sec_108 election law sec_108 provides that gross_income does not include any amount that but for sec_108 would be includible in gross_income by reason of the discharge_of_indebtedness if in the case of a taxpayer other than a c_corporation the indebtedness discharged is qualified_real_property_business_indebtedness sec_108 provides in general that the amount excluded under sec_108 with respect to any qualified_real_property_business_indebtedness shall not exceed the excess of the outstanding principal_amount of such indebtedness immediately before the discharge over the fair_market_value of the real_property described in sec_108 as of such time sec_108 requires a taxpayer to make an election to exclude cod income under sec_108 sec_108 provides that in the case of a partnership sec_108 and sec_108 are applied at the partner level sec_1_108-5 provides that the election under sec_108 is made on the timely filed including extensions federal_income_tax return for the taxable_year in which the taxpayer has discharge_of_indebtedness income that is excludible from gross_income under sec_108 the election is made on a completed form_982 in accordance with that form and its instructions sec_301_9100-1 through sec_301_9100-3 provide the standards that the service will use to determine whether to grant an extension of time to make a regulatory election sec_301_9100-3 provides that requests for extension of time for regulatory elections other than automatic extensions covered in sec_301_9100-2 will be granted when the taxpayer provides evidence including affidavits to establish that the taxpayer plr-121584-14 acted reasonably and in good_faith and the grant of relief will not prejudice the interests of the government under sec_301_9100-3 a taxpayer is deemed to have acted reasonably and in good_faith if the taxpayer reasonably relied on a qualified_tax professional and the tax professional failed to make or advise the taxpayer to make the election however a taxpayer is not considered to have reasonably relied on a qualified_tax professional if the taxpayer knew or should have known that the professional was not competent to render advice on the regulatory election or was not aware of all relevant facts in addition sec_301_9100-3 provides that a taxpayer is deemed not to have acted reasonably and in good_faith if the taxpayer - i seeks to alter a return position for which an accuracy-related_penalty has been or could be imposed under sec_6662 at the time the taxpayer requests relief and the new position requires or permits a regulatory election for which relief is requested ii was informed in all respects of the required election and related consequences but chose not to make the election or iii uses hindsight in requesting relief sec_301_9100-3 provides that the commissioner will grant a reasonable extension of time to make the regulatory election only when the interests of the government will not be prejudiced by the granting of relief sec_301_9100-3 provides that the interests of the government are prejudiced if granting relief would result in a taxpayer having a lower tax_liability in the aggregate for all taxable years affected by the election than the taxpayer would have had if the election had been timely made taking into account the time_value_of_money similarly if the tax consequences of more than one taxpayer are affected by the election the government's interests are prejudiced if extending the time for making the election may result in the affected taxpayers in the aggregate having a lower tax_liability than if the election had been timely made sec_301_9100-3 provides that the interests of the government are ordinarily prejudiced if the taxable_year in which the regulatory election should have been made or any taxable_year that would have been affected by the election had it been timely made are closed by the period of limitations on assessment under sec_6501 before the taxpayer's receipt of a ruling granting relief under this section analysis plr-121584-14 the information and representations made by taxpayer establish that taxpayer acted reasonably and in good_faith taxpayer reasonably relied on tax advisor to prepare federal_income_tax returns for llc and taxpayer for year furthermore taxpayer is not seeking to alter a return position for which an accuracy-related_penalty has been or could be imposed under sec_6662 at the time relief is requested taxpayer did not affirmatively choose not to make the election rather taxpayer anticipated that tax advisor would prepare the appropriate election taxpayer is not using hindsight in requesting relief it was taxpayer’s expectation that the debt relief qualified for sec_108 treatment additionally based on the facts of the case provided granting an extension will not prejudice the interests of the government granting relief would simply allow taxpayer to file an amended tax_return for year consistent with how the original tax_return was filed previously - as if the election had been made taxpayer represents that none of the years impacted by this late election are closed by the period of limitations on assessments under sec_6501 ruling based upon our analysis of the facts as represented we conclude that taxpayer acted reasonably and in good_faith and granting relief will not prejudice the interests of the government thus the requirements of sec_301_9100-1 and sec_301_9100-3 are met accordingly we grant taxpayer an extension of days from the date of this letter to file an amended_return to make the election under sec_108 and sec_1_108-5 the election is to be made on form_982 a copy of this letter must be attached to any income_tax return to which it is relevant alternatively taxpayers filing their returns electronically may satisfy this requirement by attaching a statement to their return that provides the date and control number of the letter_ruling except as expressly provided herein we do not express or imply an opinion concerning the tax consequences of any aspect of any transaction or item discussed or referenced in this letter specifically this letter does not rule on whether the amount of income at issue is properly treated as cod income under sec_61 in addition this letter also does not rule on whether the income in fact qualifies for exclusion from income under sec_108 including sec_108 the rulings contained in this letter are based upon information and representations submitted by taxpayer and accompanied by a penalty of perjury statement executed by an appropriate party while this office has not verified any of the material submitted in support of the request for rulings it is subject_to verification on examination plr-121584-14 this ruling is directed only to the taxpayer requesting it sec_6110 provides that it may not be used or cited as precedent in accordance with the power_of_attorney on file with this office a copy of this letter is being sent to taxpayer and the first-listed authorized representative we are also sending a copy of this letter to the appropriate operating division director enclosed is a copy of the letter_ruling showing the deletions proposed to be made in the letter when it is disclosed under sec_6110 sincerely michael j montemurro chief branch office of associate chief_counsel income_tax accounting enclosure


department of the treasury employer_identification_number contact person - id number contact telephone number uil internal_revenue_service p o box cincinnati oh release number release date date date legend w name x name y place b c dollars amount d amount quantity dear you asked for advance approval of your educational grant procedures under internal_revenue_code sec_4945 this approval is required because you are a operating_foundation that is exempt from federal_income_tax private our determination we approved your procedures for awarding educational grants based on the information you submitted and assuming you will conduct your program as proposed we determined that your procedures for awarding educational grants meet the requirements of code sec_4945 as a result expenditures you make under these procedures will not be taxable description of your request your letter indicates that you will operate w the purpose of w is to improve the skills and talents of certain performance artists in particular grant recipients will receive funds to defray the cost of attending a skills-enhancing dance program such as a summer dance training course at a ballet or dance school or company each year the number of grants will depend on your financial resources and you anticipate awarding roughly b grants annually totaling c dollars the amount of each grant will be based upon the cost of the particular skills-enhancing dance program the recipient wishes to attend as well as the recipient’s overall talent skill work ethic potential and financial need your board_of trustees shall determine the number of fellowships to be provided each year you estimate the number of those eligible to apply for a grant is in the range of d eligible grant recipients primarily include individuals who at the time of the grant are dancers for x which you operate located in y applicants who are disqualified persons within the meaning of internal_revenue_code sec_4946 or who are related to a selection committee member are not eligible to receive grants applicants must complete a detailed application applicants are required to provide biographical data including details of their education dance history and financial need or hardship as it relates to the grant as well as reasons why they are applying for the grant and qualifications as well as a description of any special talents skills interests and work ethic as they apply to the grant your board_of directors appoints the selection committee and will consist of individuals with an interest in dance or your operations your board_of directors also has the right to remove and replace any member of the selection committee currently your selection committee consists of your directors your selection committee will publicize the grant program to potential applicants at x and receive acknowledge and process all grant applications the selection committee will review the applicant's certification that he or she is not related to any director officer employee or selection committee member and evaluates each applicant based on the information supplied on the application if an application is substantially incomplete your selection committee may choose in its discretion notto consider the application or request the missing information from the applicant recipients are selected on the basis of skill work ethic motivation potential talent ability character aptitude and in appropriate cases financial need or hardship the committee does not apply any point system and does not weigh any particular factor more heavily than others but considers each application as whole and ranks the applicants in accordance with your committee’s evaluations the committee awards the grants to the applicants based on the ranking and if a selected applicant does not accept the grant for any reason the committee awards the grant to the next ranked applicant the selection committee will take into consideration the amount of funds available for distribution as determined by your board and will make the final_determination of the number of grant recipients and the amount of each grant applicants will be considered without regard to age race color religion gender national origin sexual orientation or physical disability and all grants will be awarded on an objective and nondiscriminatory basis all grants are in the form of absolute grants payable directly to the recipient furthermore your grants will not be renewable but recipients may reapply to your grant program each year that they meet the eligibility requirements upon completion of w grant recipients are required to provide you a report describing the progress of their development and an accounting for_the_use_of the grant funds letter catalog number 58222y your selection committee shall have the responsibility to notify recipients for awards and non-recipients confirm enrollment of recipients at an approved program keep permanent records of the meetings and actions of their meetings account for all funds disburse the funds on behalf of you receive and review progress and final reports received from recipients on their progress and use of grant funds investigate any diversions of funds from their intended purpose and take all reasonable and appropriate steps to recover diverted funds if any basis for our determination the law imposes certain excise_taxes on the taxable_expenditures of private_foundations code sec_4945 a taxable_expenditure is any amount a private_foundation pays as a grant to an individual for travel study or other similar purposes however a grant that meets all of the following requirements of code sec_4945 is not a taxable_expenditure the foundation awards the grant on an objective and nondiscriminatory basis the irs approves in advance the procedure for awarding the grant the grant is e e e - - - ascholarship or fellowship subject_to sec_117 and is to be used for study at an educational_organization described in sec_170 or a prize or award subject_to the provisions of sec_74 if the recipient of the prize or award is selected from the general_public or to achieve a specific objective produce a report or similar product or improve or enhance a literary artistic musical scientific teaching or other similar skill or talent of the recipient to receive approval of its educational grant procedures sec_53_4945-4 requires that a private_foundation show e e e the grant procedure includes an objective and nondiscriminatory selection process the grant procedure results in the recipients performing the activities the grants were intended to finance the foundation plans to obtain reports to determine whether the recipients have performed the activities that the grants were intended to finance e e other conditions that apply to this determination this determination covers only the grant program described above this approval will apply to succeeding grant programs only if their standards and procedures don’t differ significantly from those described in your original request this determination applies only to you it may not be cited as precedent letter catalog number 58222y you cannot rely on the conclusions in this letter if the facts you provided have changed substantially you may report any significant changes to your program by completing form_8940 and sending it to the cincinnati office of exempt_organizations at internal_revenue_service exempt_organizations determinations p o box cincinnati oh you cannot make grants to your creators officers directors trustees foundation managers or members of selection committees or their relatives all funds distributed to individuals must be made on a charitable basis and must further the purposes of your organization you cannot award grants for a purpose that is inconsistent with code sec_170 you should keep adequate_records and case histories so that you can substantiate your grant distributions with the irs if necessary we've sent a copy of this letter to your representative as indicated in your power_of_attorney please keep a copy of this letter in your records lf you have any questions please contact the person listed at the top of this letter sincerely director exempt_organizations letter catalog number 58222y


t c memo united_states tax_court yigal elbaz and bonnie elbaz petitioners v commissioner of internal revenue respondent docket no filed date zack kuperwaser for petitioners diana p hinton for respondent memorandum findings_of_fact and opinion colvin judge respondent determined the following deficiencies and accuracy-related_penalties with respect to petitioners’ federal_income_tax for taxable years and year deficiency dollar_figure big_number penalty sec_6662 dollar_figure big_number after concessions the sole issue for decision is whether dollar_figure petitioners received in from a refund of state_income_tax is taxable_income we hold that it is findings_of_fact petitioners resided in hewlett new york when they filed the petition in this case a qualified empire zone enterprise credit qeze the state of new york provides tax benefits to businesses that invest in certain designated areas of the state one of these benefits is the qualified empire zone enterprise credit for real_property_taxes qeze real_property tax_credit the qeze real_property tax_credit is provided to businesses that qualify as a qualified petitioners concede the dollar_figure deficiency and dollar_figure accuracy-related_penalty for tax_year we have rounded monetary amounts to the nearest dollar unless otherwise indicated section references are to the internal_revenue_code in effect for the year in issue petitioners concede that if the court holds that the dollar_figure new york state overpayment is includable in their federal taxable_income then they are liable for the accuracy-related_penalty empire zone enterprise qeze for taxes paid on real_property in an empire zone see n y tax law sec_15 mckinney supp a business must submit an application in order to become a qeze a business may become eligible to claim various targeted tax_credits if its application is accepted it operates within a designated area and it meets certain annual employment requirements id subsecs a and b if a business qualified as a qeze before date the amount of the credit equals the product or pro_rata share of the product of the benefit period factor the employment increase factor and the eligible real_property_taxes paid_or_incurred by the qeze during the taxable_year id subsec b the income_tax_credit may not exceed the amount of real_property_taxes paid see id subsecs b e a taxpayer that is a sole_proprietor of a qeze a shareholder of a new york s_corporation that is a qeze or a partner in a partnership that is a qeze is entitled to the credit id subsec a maines v commissioner t c ___ ____ slip op pincite date each shareholder or partner is allocated his or her pro_rata share of the entity’s qeze credit it is creditable against new york income_tax and refundable to the extent that it exceeds the taxpayer’s income_tax_liability b petitioners’ interest in the entities petitioner yigal elbaz petitioner hold sec_50 interests in the following three entities hereinafter referred to collectively as the entities superflex ltd an s_corporation superflex management llc a limited_liability_company treated as a partnership for federal_income_tax purposes and superflex realty llc which is also a limited_liability_company treated as a partnership for federal_income_tax purposes on date new york state provided a certificate of eligibility for the qeze credit to superflex ltd on date new york state provided a certificate of eligibility for the qeze credit to both superflex management llc and superflex realty llc superflex ltd paid new york state property_tax of dollar_figure in which it subsequently deducted on its form_1120s u s income_tax return for an s_corporation superflex management llc deducted dollar_figure on its form_1065 u s return of partnership income at least dollar_figure of which was property_tax paid to the state of new york superflex realty llc deducted dollar_figure on its form_1065 at least dollar_figure of which was property_tax paid to the state of new york for and petitioners jointly filed form sec_1040 u s individual_income_tax_return they also jointly filed forms it-201 new york state resident income_tax return for taxable years and as a shareholder in superflex ltd and a member with a interest in both superflex management llc and superflex realty llc petitioner submitted schedules k-1 shareholder’s share of income deductions credits etc for the deduction of real_estate_taxes by the entities reduced the amount of income that petitioners reported on their schedule_k-1 form_1065 c petitioners’ tax_return on schedule a itemized_deductions of their form_1040 petitioners deducted state_and_local_income_taxes of dollar_figure on their form it-201 petitioners claimed credits and payments totaling dollar_figure which consisted of dollar_figure the pro_rata share of their qeze refunded credits dollar_figure of new york state withholding_tax and dollar_figure of estimated_tax payments the qeze credit of dollar_figure derives from petitioner’s ownership interests in superflex ltd superflex management llc and superflex realty llc the amounts of income petitioners reported from each are as follows dollar_figure from superflex ltd dollar_figure from superflex management llc and dollar_figure from superflex realty llc for petitioners owed new york state tax of dollar_figure petitioners claimed an overpayment of dollar_figure this amount is the difference between the payments totaling dollar_figure which consisted of a petitioners’ pro_rata share of their qeze refunded credits b their new york state withholding_tax and c their estimated payments and petitioners’ new york state tax owed totaling dollar_figure on their form it-201 petitioners applied this overpayment to their estimated_tax d petitioners’ tax_return on schedule a of their form_1040 petitioners deducted state_and_local_income_taxes of dollar_figure of that amount dollar_figure is attributable to the overpayment petitioners claimed for which includes the dollar_figure of qeze credits petitioners received as a result of petitioner’s interests in the entities in the state of new york issued a form 1099-g statement for recipients of state_income_tax refunds to petitioners for tax_year reporting the payment of dollar_figure petitioners reported this amount as income received on their form_1040 petitioners did not report as income the remaining dollar_figure which consisted of the qeze refunded credits opinion the issue for decision is whether dollar_figure petitioners received as a refund of state_income_tax is taxable_income for a state tax deductions and the tax_benefit_rule state tax deductions a taxpayer may deduct certain taxes paid_or_accrued during the taxable_year including income real_property and personal_property_taxes imposed by local state and foreign governments sec_164 a taxpayer who itemizes his or her deductions must include state_income_tax refunds in income for the year received if the taxpayer deducted state_income_tax payments made in the preceding year maines v commissioner t c at ___ slip op pincite state tax refunds however are not income unless the taxpayer deducted them for the previous year see id at ___ slip op pincite citing 136_tc_341 ndollar_figure aff’d sub nom 744_f3d_648 10th cir tax_benefit_rule the tax_benefit_rule eliminates some of the inequities that would otherwise result from the annual accounting system used for federal_income_tax see 460_us_370 an item is excluded from income if inclusion would be fundamentally inconsistent with the taxpayer’s treatment of the item for the prior tax_year id pincite maines v commissioner t c at ___ slip op pincite generally under section a if a taxpayer deducted a tax on a prior year’s return that resulted in a tax_benefit the taxpayer’s subsequent recovery_of the tax is included in gross_income for the year in which the taxpayer receives it kadunc v commissioner tcmemo_1992_61 aff’d without published opinion 981_f2d_1251 4th cir b petitioners’ argument sec_1 chief_counsel_advice petitioners rely on irs chief_counsel_advice however a written_determination of the commissioner may not be used or cited as precedent sec_6110 and written determinations are defined to include chief_counsel_advice sec_6110 see also ellison v commissioner tcmemo_2004_57 slip op pincite parties are statutorily proscribed from citing chief_counsel_advice as precedent thus we may not use or cite as precedent irs chief_counsel_advice in deciding this case nature of the qeze credit petitioners point out that they did not deduct new york state real_property_taxes for on their form_1040 that is the entities that paid the real_property_taxes in deducted these taxes on their federal returns petitioners argue that because the entities not petitioners deducted the real_property_taxes petitioners received no federal_income_tax benefit from the new york state real_property_taxes paid petitioners’ qeze credit was based on the real_property_taxes the entities paid in maines as here the property_tax was paid and deducted at the entity level which led to decreased income that was passed through to the taxpayers and which led to decreased tax_liability maines v commissioner t c at ___ slip op pincite the decreased tax_liability is a benefit and receiving an untaxed cash refund of the previously deducted taxes would be fundamentally inconsistent with the previous treatment to the extent the taxpayer benefited from the decreased passthrough income id the tax_benefit_rule applies whether or not the taxpayer personally claimed the earlier deduction if the taxpayer’s tax-free receipt of the qeze credit is fundamentally inconsistent with the earlier tax treatment id c conclusion though the entities deducted the real_property_taxes petitioners calculated their proportionate share of the entities’ net real_estate income on their schedule_k-1 the entities’ deduction of real_property_taxes led to a lower amount of income reported on petitioners’ schedule_k-1 this lower amount of income petitioners reported resulted in reduced tax_liability for which is a benefit to petitioners the receipt of a refund of this previously deducted tax is fundamentally inconsistent with the previous treatment to the extent petitioners benefited from the decreased passthrough income thus we conclude that the dollar_figure petitioners received in from a refund of state_income_tax is taxable_income to reflect the foregoing decision will be entered for respondent


internal_revenue_service department of the treasury number release date index number washington dc person to contact mary truchly i d telephone number refer reply to cc tege eoeg teb-plr-123158-01 date date legend issuer state_agency x year year dear this is in response to your request on behalf of the issuer for an extension of time under sec_301_9100-1 of the procedure and administrative regulations to file form_8328 carryforward election of unused private_activity_bond volume_cap to make a carryforward election under sec_146 of the internal_revenue_code the code facts and representations you make the following factual representations the issuer is a public instrumentality and political_subdivision of the state created pursuant to state law and authorized to issue municipal revenue bonds to fund loans for among other things solid_waste disposal facilities the state allocates its private_activity_bond volume_cap though the agency in year the issuer received volume_cap from the agency but was unable to use x of this volume_cap by the end of the year under agency procedures unused volume_cap reverts back to the agency however in december of year the agency took action to reallocate this same amount of volume_cap x to the issuer to finance solid_waste disposal projects in future years and to authorize the issuer to carry forward this amount under state law the issuer may not make a carryforward election using form_8328 until it receives written notice from the agency that volume_cap has been transferred to the issuer for this purpose because the paperwork was misrouted the issuer did not receive written notice from the agency until march year after the deadline for filing form_8328 the issuer contacted bond counsel who advised that it was too late to file form_8328 without receiving an extension of time from the internal_revenue_service the issuer thereupon authorized bond counsel to proceed with the plr-123158-01 necessary filings and this request was filed as expeditiously as possible prior to filing this request the issuer’s failure to timely file the election had not been discovered by the irs law and analysis generally sec_103 of the code provides that gross_income does not include interest on any state_or_local_bond however interest on a private_activity_bond is included in gross_income unless it is a qualified private_activity_bond within the meaning of sec_141 sec_141 requires a bond to meet the volume_cap requirements of sec_146 to be a qualified_bond sec_146 provides that a private_activity_bond issued as part of an issue meets the volume_cap requirements if the aggregate face_amount of the private_activity_bonds issued pursuant to such issue when added to the aggregate face_amount of tax- exempt private_activity_bonds previously issued by the issuing authority during the calendar_year does not exceed such authority's volume_cap for the calendar_year sec_146 provides that if an issuing authority's volume_cap for any calendar_year after exceeds the aggregate amount of tax-exempt private_activity_bonds issued during the calendar_year by the authority such authority may elect to treat all or any portion of the excess as a carryforward for one or more carryforward purposes sec_146 requires the issuing authority to identify the purpose for which the carryforward is elected and to specify the portion of which is to be a carryforward for each such purpose sec_146 defines carryforward_purpose to mean four different purposes including the purpose of issuing exempt solid_waste_disposal_facility bonds described in sec_142 once an election is made it is irrevocable the sec_146 election is made by filing form_8328 with the internal_revenue_service center ogden ut under notice_89_12 1989_1_cb_633 form_8328 must be filed by the earlier of february of the calendar_year following the year in which the excess_amount arises or the date_of_issue of bonds issued pursuant to the carryforward election sec_301_9100-1 of the procedure and administrative regulations provides in part that the commissioner has discretion to grant a reasonable extension of time to make a regulatory election defined in sec_301_9100-1 as an election whose due_date is prescribed by regulations or a revenue_ruling a revenue_procedure a notice or an announcement published in the internal_revenue_bulletin 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 subtitles e g h and i sec_301_9100-3 sets forth rules that must be met before the commissioner will grant an extension of time for regulatory elections that do not meet the requirements of sec_301_9100-2 sec_301_9100-3 provides that relief will be granted if the taxpayer provides evidence to establish to the satisfaction of the plr-123158-01 commissioner that the taxpayer acted reasonably and in good_faith and the grant of relief will not prejudice the interests of the government sec_301_9100-3 provides in part that if a taxpayer applies for relief under this section before the failure to make the regulatory election is discovered by the irs the taxpayer will be deemed to have acted reasonably and in good_faith sec_301_9100-3 provides in part that the interests of the government are prejudiced if granting relief would result in a taxpayer having a lower tax_liability in the aggregate for all years affected by the election than the taxpayer would have had if the election had been timely made taking into account the time_value_of_money conclusion based on all of the facts and circumstances represented in the submission we conclude that the issuer acted reasonably and in good_faith and that granting relief will not prejudice the interests of the government the issuer is granted an extension of time to days from the date of this letter_ruling to file the form_8328 to carry forward unused volume_cap in the amount of x 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 a ruling it is subject_to verification on examination 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 the taxpayer sincerely assistant chief_counsel exempt_organizations employment_tax government entities by rebecca l harrigal branch chief tax exempt bonds branch


o f f i c e o f t h e c h i e f c o u n s e l department of the treasury i n t e r n a l r e v e n u e s e r v i c e w a s h i n g t o n d c date cc ita conex-101893-15 number release date uil the honorable susan m collins united_states senate washington dc attention -------------- dear senator collins i am responding to your inquiry dated date you asked if businesses in the empowerment_zone of aroostook county maine the aroostock county empowerment_zone qualify for the empowerment_zone_employment_credit for the termination_date for the aroostook county empowerment_zone is date last year the entity that nominated aroostock county maine as an empowerment_zone amended the nomination to establish this termination_date as a result businesses in the aroostock county empowerment_zone do not qualify at this time for the empowerment_zone tax benefits including the empowerment_zone_employment_credit for however we are preparing guidance that explains how a state_or_local_government amends the nomination of an empowerment_zone to provide for a new termination_date of date after we issue this guidance the entity that nominated aroostock county maine as an empowerment_zone can change to a new termination_date of date once the termination_date has been changed businesses in the aroostock county empowerment_zone will qualify for the empowerment_zone tax benefits for conex-101893-15 i hope this information is helpful if we can assist you further please contact me at ---- ------------ or -------------------- or -------------------- at ----- ------------ sincerely andrew j keyso andrew j keyso associate chief_counsel income_tax and accounting


department of the treasury internal_revenue_service washington c government entities jul uniform issue list o ter rect y control number legend taxpayer plan a date financiat institution b date account c financial_institution d employer b amount i dear ‘this letter is in response to a request for a letter_ruling dated date as supplemented by correspondence dated may in which you have asked for a waiver of the 60-day rollover requirement contained in sec_402 of the internal_revenue_code code regarding the distribution of amount from plan a maintained with financial_institution b the following facts and representations have been submitted under penalty of perjury in support of the ruling requested taxpayer age at the time of the distribution of amount from plan a asserts that her failure to accomplish a rollover within the 60-day period prescribed by sec_402 c of the code was due to the failure of financial_institution d to follow taxpayer's instructions ‘taxpayer participated in plan a following her termination of employment with employer e taxpayer received a notice of an eligible_plan distribution taxpayer completed an application on line with financial_institution d to open an ira account to receive the rollover_distribution but the account that was established was a non-ira account account c on date taxpayer received a check representing the distribution of her retirement benefit the check was made out to financial_institution d ffb o ‘taxpayer and in the for area of the lower left hand comer of the check taxpayer marked ira account c evidencing her intent that the direct eligibie rollover_distribution be deposited into her ira at financial_institution d instead financial_institution d deposited the check into the non-ira account on date a date less than days after date taxpayer received monthly statements for account c indicating that is was a ira rollover account taxpayer did not become aware that the funds had becn incorrectly deposited into a non- jra account until she received form_1099 for based on the facts and representations you request a ruling that the internal_revenue_service waive the day rollover requirement contained in sec_402 c of the code with respect to the distribution of amouat sec_402 of the code provides that if any portion of the balance_to_the_credit of an employee in a qualified trast is paid to the employce in an eligible_rollover_distribution and the distributee transfers any portion of the property received in such distribution to an cligible retirement_plan and in the case of a distribution_of_property other than money the amount so transferred consists of the property distributed then such distribution to the extent transferred shall not be includible in gross_income for the taxable_year in which paid sec_402 states that such rollover must be accomplished within days following the day on which the distributes received the property an individual_retirement_account ira constitutes one form of eligible_retirement_plan sec_402 b of the code provides in relevant part that the seoretary may waive the 60-day requirement under sec_402 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 afler date are eligible for the waiver under sec_402 of the code sec_401 provides the rules for governing direct transfers of eligible rollover distributions sec_1 a of the income_tax regulations question and answer-15 provides in relevant part that an eligible_rollover_distribution that is paid to an eligible_retirement_plan in a direct_rollover is a distribution and rollover and not a transfer of assets and liabilities rev_proc r b date provides that in determining whether to grant a waiver of the 60-day rollover requirement pursuant to sec_402 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 facts indicate taxpayer both intended and attempted to complete a rollover the information presented and the documentation submitted by taxpayer is consistent with her assertion that her failure to accomplish a timely rollover of amount was due to the failure of financial_institution d to follow her instructions therefore pursizant to code sec_402 the service hereby waives the 60-day rollover requirement with respect to the distribution of amount from plan a taxpayer 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_402 except the 60-day requirement are met with respect to such contribution amount will be considered a rollover_contribution within the meaning of sec_402 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_61 k of the code provides that it may not be used or cited as precedent if you wish to inquire about this ruling please contact vat d sincerely yours manager employee_plans technical group enclosures deleted copy of this letter notice of intention to disclose notice


department of the treasury internal_revenue_service p o box irs cincinnati oh number release date uil dear date employer id number contact person id number contact telephone number form you must file tax years this letter is our final_determination that you don’t qualify for tax-exempt status under sec_501 of the internal_revenue_code the code recently we sent you a proposed adverse determination in response to your application the proposed adverse determination explained the facts law and basis for our conclusion and it gave you days to file a protest because we didn’t receive a protest within the required days the proposed determination is now final you must file federal_income_tax returns for the tax years listed at the top of this letter using the required form also listed at the top of this letter within days of this letter unless you request an extension of time to file we’ll make this final adverse determination_letter and the proposed adverse determination_letter available for public inspection as required under sec_6110 of the code after deleting certain identifying information please read the enclosed notice notice of intention to disclose and review the two attached letters that show our proposed deletions if you disagree with our proposed deletions follow the instructions in the notice on how to notify us if you agree with our deletions you don’t need to take any further action if you have questions about this letter you can contact the person listed at the top of this letter if you have questions about your federal_income_tax status and responsibilities call our customer service number pincite-829-1040 tty for deaf or hard of hearing or customer service for businesses pincite-829-4933 we sent a copy of this letter to your representative as indicated in your power_of_attorney letter rev catalog number 47635z ’ sincerely stephen a martin director exempt_organizations rulings and agreements enclosures notice redacted letter proposed adverse determination under sec_501 other than c redacted letter final adverse determination under sec_501 other than c - no protest letter rev catalog number 47635z department of the treasury internal_revenue_service cincinnati oh legend b date c state x dollars amount dear date date employer id number contact person id number contact telephone number contact fax number vil we considered your application_for recognition of exemption from federal_income_tax under sec_501 a of the internal_revenue_code the code based on the information provided we determined that you don’t qualify for exemption under sec_501 of the code this letter explains the basis for our conclusion please keep it for your records issues do you qualify for exemption under sec_501 of the code no for the reasons stated below facts you were formed as a corporation on b in c your articles of incorporation state that your purpose is to provide security services your bylaws state that you were formed to support and defend the constitution of the united_states to improve the individual proficiency of your members in the performance of their duties to cultivate a spirit of fraternization and mutual helpfulness among your members and community and to increase the efficiency of the law enforcement profession and to establish the confidence of the public any law enforcement officer may apply for membership a law enforcement officer is any person active or retired sworn or appointed of any law enforcement agency in the state of c in good standing your members must pay you for liability insurance life_insurance as well as general membership dues initially you requested exemption under sec_501 of the code in that application you said you were established to further the interests of your membership by seeking improved terms and conditions of employment to render moral and material aid to members in need to provide representation and or counsel in legal proceedings and to promote social and fraternal activities you will also provide members with benefits such as liability insurance and life_insurance you later changed your exemption request from sec_501 of the code to sec_501 as a voluntary employees’ beneficiary association hereafter veba you are providing life_insurance to your members but you did not specify what type s of life_insurance you offer you did not submit copies of your plan documents we asked for details regarding the insurance you provide your members including a full description of the benefits available the members each benefit amount duration eligibility requirements and the circumstances that will cause payments of the benefit in response to this request you submitted a copy of the certificate of your liability insurance which covers law enforcement liabilities up to x dollars per incident you indicated that all members are covered under your liability insurance we requested more information regarding the security services your members provide how you seek improved terms and conditions of employment for your members details of the insurance benefits and how you promote social and fraternal activities we asked whether you provide term coverage life_insurance or whole-life and for a copy of the plan documents we also asked if you were a separate_entity from the employer with a separate employer_identification_number ein you did not respond to our request for these details law sec_501 of the code provides for the exemption from federal_income_tax of voluntary employees’ beneficiary associations providing for the payment of life sick accident or other_benefits to the members of such association or their dependents or designated beneficiaries if no part of the net_earnings of such association inures other than through such payments to the benefit of any private_shareholder_or_individual sec_1_501_c_9_-1 provides that for an organization to be described in sec_501 of the code it must be an employees’ association membership in the association must be voluntary the organization must provide for the payment of life sick accident or other_benefits to its members or their dependents and substantially_all of its operations must be in furtherance of providing such benefits and no part of the net_earnings of the organization can inure other than by payment of permitted benefits to the benefit of any private_shareholder_or_individual sec_1_501_c_9_-2 requires that a veba must be an entity such as a corporation or trust established under applicable local law having an existence independent of the member-employees or their employer s sec_1_501_c_9_-3 provides that substantially_all of a veba's operations must be in furtherance of providing permissible benefits this means that a veba will not qualify for exemption if it systematically and knowingly provides nonqualifying benefits of more than a de_minimis amount sec_1_501_c_9_-3 states that the term other_benefits includes only benefits that are similar to life sick or accident benefits a benefit is similar to a life sick or accident benefit if it is intended to safeguard or improve the health of a member or a member's dependents or it protects against a contingency that interrupts or impairs a member's earning power revproc_2018_5 2018_1_irb_233 sec_3 states that a determination_letter or ruling on exempt status is issued based solely upon the facts and representations contained in the administrative record the applicant is responsible for the accuracy of any factual representations contained in the application section letter rev catalog number 47628k and its predecessors provides that a favorable determination_letter or ruling will be issued to an organization only if its application and supporting documents establish that it meets the particular requirements of the section under which exemption from federal_income_tax is claimed in 372_fsupp_770 e d cal the court concluded that one seeking a tax exemption has the burden of establishing his right to a tax-exempt status pius xii academy inc v commissioner tcmemo_1982_97 affd 711_f2d_1058 6th cir provides that an organization must establish through the administrative record that it operates as an exempt_organization denial of exemption may be based solely upon failure to provide information describing in adequate detail how the operational_test will be met in 82_tc_215 the administrative record did not demonstrate that the organization would operate exclusively in furtherance of an exempt_purpose therefore denial of organization’s request for tax-exempt status was reasonable 70_fedclaims_782 was an action for declaratory_judgment that the petitioner brought to challenge the denial of his application_for exempt status the court in finding that the actual purposes displayed in the administrative record supported the service’s denial stated it is well- accepted that in initial qualification cases such as this gaps in the administrative record are resolved against the applicant the court noted that if the petitioner had evidence that contradicted these findings it should have submitted it as part of the administrative process the court also highlighted the principle that exemptions from income_tax are matters of legislative grace ohio disability association v commissioner t c memo states denial is justified because responses to requests for additional information failed to supplement the initial application or clarify purposes and activities and generalizations did not provide sufficient detail to determine that the organization would be operated exclusively for exempt purposes application of law based on the information submitted you have failed to establish that you are operated for exempt purposes within the meaning of sec_501 of the code and the related_income tax regulations as such we are unable to determine you are primarily engaged in providing for life sick accident or other_benefits to members as required by sec_1_501_c_9_-1 you have not established that you exist independent of your employer as required under sec_1_501_c_9_-2 or that substantially_all of your operations are dedicated to providing permissible benefits as required under sec_1_501_c_9_-3 you have also not provided sufficient detail regarding the other_benefits payable as required under sec_1_501_c_9_-3 a ruling on exempt status is based solely on facts and representations in the administrative file you did not provide sufficient facts in your application and the additional information you provided did not establish that you are entitled to exempt status it is unknown if you conduct substantial non-qualifying activities or whether the benefits you provide qualify under sec_501 therefore there is not sufficient documentation to establish that you meet the requirements of sec_501 as required by revproc_2018_5 as in universal life church you have the burden of establishing that you qualify for tax exemption_letter rev catalog number 47628k in pius xii academy inc la verdad and new dynamics foundation it was established that an organization must establish through its administrative record that it meets the requirements for exemption because you failed to provide sufficient details in your initial application and the additional information you provided did not meet the statutory and regulatory requirements for exemption you have not established that you meet the requirements for exemption under sec_501 of the code as provided in ohio disability association the court found that even when additional information was provided but it contained generalizations and failed to clarify purposes denial is justified you did not provide supplemental information therefore we are unable to determine that you qualify for exemption conclusion based on the information submitted you have failed to establish that you are operated for exempt purposes within the meaning of sec_501 of the code and the related_income tax regulations therefore based on the administrative record you fail to qualify for exemption under sec_501 if you don’t agree you have a right to file a protest if you don’t agree with our proposed adverse determination to do so you must send a statement to us within days of the date of this letter the statement must include e e e e e e your name address employer_identification_number ein and a daytime phone number acopy of this letter highlighting the findings you disagree with anexplanation of why you disagree including any supporting documents the law or authority if any you are relying on the signature of an officer director trustee or other official who is authorized to sign for the organization or your authorized representative one of the following declarations for an officer director trustee or other official who is authorized to sign for the organization under penalties of perjury i declare that i examined this protest statement including accompanying documents and to the best of my knowledge and belief the statement contains all relevant facts and such facts are true correct and complete for authorized representatives under penalties of perjury i declare that i prepared this protest statement including accompanying documents and to the best of my knowledge and belief the statement contains all relevant facts and such facts are true correct and complete letter rev catalog number 47628k your representative attorney certified_public_accountant or other individual enrolled to practice_before_the_irs must file a form_2848 power_of_attorney and declaration of representative with us if he or she hasn’t already done so you can find more information about representation in publication practice_before_the_irs and power_of_attorney we'll review your protest statement and decide if you provided a basis for us to reconsider our determination if so we'll continue to process your case considering the information you provided if you haven’t provided a basis for reconsideration we’ll forward your case to the office of appeals and notify you you can find more information about the role of the appeals_office in publication how to appeal an irs decision on tax- exempt status if you don’t file a protest within days you can’t seek a declaratory_judgment in court at a later date because the law requires that you use the irs administrative process first sec_7428 of the code where to send your protest please send your protest statement form_2848 if needed and any supporting documents to the applicable address u s mail street address for delivery service internal_revenue_service eo determinations quality assurance room p o box cincinnati oh internal_revenue_service eo determinations quality assurance main street room cincinnati oh you can also fax your statement and supporting documents to the fax number listed at the top of this letter if you fax your statement please contact the person listed at the top of this letter to confirm that he or she received it letter rev catalog number 47628k if you agree if you agree with our proposed adverse determination you don’t need to do anything if we don’t hear from you within days we’ll issue a final adverse determination_letter that letter will provide information on your income_tax filing_requirements you can find all forms and publications mentioned in this letter on our website at www irs gov formspubs if you have questions you can contact the person listed at the top of this letter we sent a copy of this letter to your representative as indicated in your power_of_attorney sincerely stephen a martin director exempt_organizations rulings and agreements enclosure publication letter rev catalog number 47628k


number release date id office uilc cca_2010052410035537 ---------- from -------------------- sent monday date am to ------------------- cc ---------------------------------- subject re advice sec_6223 allows us to issue fpaa's to indirect partners who have been identified in accordance with sec_301_6223_c_-1 subsection -1 f of the regulation in question allows the service at its discretion to search for and update this information on its own - but the service_center issuing the fpaa is not required to search for information that is not specifically provided in accordance with the other provisions of the regulations -------------------------------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------


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 ita b05 plr-125296-14 date date ty ------- legend taxpayer corporation partnership_tax_year a percent b percent state affidavit --------------------------------- ------------------------ exempt_organization --------------------- ------------------------ ----------------------------------------- ----------------------------------------------------- ------------------------ ------- --------------- --------------- -------------- ---------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------- affidavit ----------------------------------------------------------------------------------------------------------- related partnership ---------------------------------------------- ----------------------------------------------------------------------------- dear ------------------ this letter is in response to a request for a private_letter_ruling dated date submitted on your behalf by your authorized representative specifically you have requested an extension of time under sec_301_9100-1 and sec_301_9100-3 of the procedure and administration regulations for taxpayer a tax-exempt_controlled_entity under sec_168 of the internal_revenue_code to make an election under sec_168 to not be treated as a tax-exempt_controlled_entity plr-125296-14 facts taxpayer was formed in tax_year in state and is taxed as a c_corporation for federal_income_tax purposes taxpayer is a percent owned by exempt_organization a not-for- profit corporation exempt from taxation under sec_501 and b percent owned by corporation based on exempt organization’s majority ownership_interest in and control of taxpayer taxpayer is a tax-exempt_controlled_entity within the meaning of sec_168 taxpayer is the general_partner of partnership partnership’s real_property was placed_in_service in tax_year and taxpayer filed a timely federal_income_tax return for tax_year but failed to make the sec_168 election on that return taxpayer’s failure to make the required sec_168 election was discovered for the first time when evidence of such election was requested in the case of related partnership which is also owned by exempt_organization however from affidavit affidavit and the other materials submitted it is clear that taxpayer at all times intended to make the sec_168 election to not be treated as a tax-exempt_controlled_entity affidavit and affidavit further make it clear that taxpayer’s return preparer was unaware that an affirmative election statement was required to be attached to the taxpayer’s federal tax_return for tax_year upon discovering its failure taxpayer promptly sought an extension of time in which to file the sec_168 election taxpayer makes the following representations notwithstanding omitting the statement of the sec_168 from the tax_return for tax_year every tax_return prepared and filed by taxpayer reflects the same treatment as if the sec_168 election had been made taxpayer is not under audit nor is being considered by an appeals officer or federal court for any_tax year in which the sec_168 election should have been made or for any_tax year affected by that election taxpayer is not seeking to alter a return position for which an accuracy-related_penalty has been or could be imposed under sec_6662 taxpayer is not using hindsight in requesting the relief sought the requested relief will not result in a lower tax_liability in the aggregate for all tax years affected by the sec_168 election than taxpayer would have had if the sec_168 election had been timely made finally although the period of limitations on assessment under sec_6501 for tax_year has expired taxpayer states its belief that the government is not prejudiced in this case and thus relief should be granted law sec_167 of the internal_revenue_code provides generally for a depreciation deduction for property used in a trade_or_business under sec_168 the alternative plr-125296-14 depreciation system must be used for any tax-exempt_use_property as defined in sec_168 sec_168 provides that for purposes of sec_168 if any property which but for this subparagraph is not tax-exempt_use_property is owned by a partnership having both a tax-exempt_entity and a nontax-exempt entity as partners and any allocation to the tax-exempt_entity is not a qualified_allocation then an amount equal to such tax- exempt entity's proportionate share of such property is treated as tax-exempt_use_property sec_168 provides generally that any tax-exempt_controlled_entity is treated as a tax-exempt_entity for purposes of sec_168 under sec_168 a tax-exempt_controlled_entity means any corporation without regard to that subparagraph and sec_168 if percent or more in value of the corporation's stock is held by one or more tax-exempt entities other than a foreign_person_or_entity sec_168 applies similar rules in the case of tiered partnerships and other entities under sec_168 a tax-exempt_controlled_entity can elect not to be treated as a tax-exempt_entity such an election is irrevocable and will bind all tax-exempt entities holding an interest in the tax-exempt_controlled_entity under sec_301_9100-7t of the procedure and administration regulations a sec_168 election must be made by the due_date of the tax_return for the first taxable_year for which the election is to be effective sec_301_9100-7t provides the manner in which the sec_168 election is made sec_301_9100-1 provides that the commissioner of internal revenue has discretion to grant a reasonable extension of time to make a regulatory election sec_301_9100-1 defines the term regulatory election as including any election the due_date for which is prescribed by a regulation because the due_date of the sec_168 election is prescribed in sec_301_9100-7t the sec_168 election is a regulatory election sec_301_9100-1 through provide the standards the service will use to determine whether to grant an extension of time to make a regulatory election sec_301_9100-3 provides that requests for extensions of time for regulatory elections other than automatic extensions of time covered in sec_301_9100-2 will be granted when the taxpayer provides evidence including affidavits to establish that the taxpayer acted reasonably and in good_faith and granting relief will not prejudice the interests of the government plr-125296-14 sec_301_9100-3 provides that a taxpayer is deemed to have acted reasonably and in good_faith if the taxpayer - i requests relief before the failure to make the regulatory election is discovered by the service ii failed to make the election because of intervening events beyond the taxpayer's control iii failed to make the election because after exercising due diligence the taxpayer was unaware of the necessity for the election iv reasonably relied on the written advice of the service or v reasonably relied on a qualified_tax professional and the tax professional failed to make or advise the taxpayer to make the election under sec_301_9100-3 a taxpayer is considered to have not acted reasonably and in good_faith if the taxpayer - i seeks to alter a return position for which an accuracy-related_penalty could be imposed under sec_6662 at the time the taxpayer requests relief and the new position requires a regulatory election for which relief is requested ii was fully informed of the required election and related tax consequences but chose not to file the election or iii uses hindsight in requesting relief if specific facts have changed since the original deadline that make the election advantageous to a taxpayer the service will not ordinarily grant relief sec_301_9100-3 provides that the service will grant a reasonable extension of time only when the interests of the government will not be prejudiced by the granting of relief sec_301_9100-3 provides that the interests of the government are prejudiced if granting relief would result in a taxpayer having a lower tax_liability in the aggregate for all taxable years affected by the election than the taxpayer would have had if the election had been timely made under sec_301_9100-3 the interests of the government are ordinarily prejudiced if the taxable_year in which the regulatory election should have been made or any taxable years affected by the election had it been timely made are closed by the period of limitations on assessment under sec_6501 before the taxpayer's receipt of a ruling granting relief under this section analysis the information submitted indicate that taxpayer at all times intended from the outset to make the sec_168 election and that taxpayer’s failure to make the sec_168 election was inadvertent taxpayer represents that it has requested relief before the failure to make the sec_168 election was discovered by the plr-125296-14 service pursuant to an examination there is no evidence that taxpayer is using hindsight in requesting relief furthermore based on the facts presented and the representations made taxpayer will not have a lower tax_liability for all tax years affected by the sec_168 than it would have had if the sec_168 election had been timely made although the taxable_year in which the sec_168 election should have been made is closed under sec_6501 the above representations support our conclusion that taxpayer has acted reasonably and in good_faith therefore the interests of the government will not be prejudiced by the granting of relief conclusion based solely on the facts as represented and the applicable law we conclude that the requirements of sec_301_9100-3 have been met and the request for relief under sec_301_9100-3 is granted accordingly taxpayer is treated as if it had made the sec_168 election with the tax_return it filed for tax_year provided that taxpayer attaches a copy of this letter to the next tax_return it files taxpayer also must attach the aforementioned sec_168 election and the information set forth in sec_301_9100-7t to its next return if taxpayer files electronically it may satisfy this requirement by attaching a statement to the return that provides the date and control number of this letter_ruling in addition the letter_ruling or statement should be attached for all subsequent returns and amended returns for all taxable years to which this ruling is relevant pursuant to sec_301_9100-7t a copy of this letter and the sec_168 election statement also should be attached to the federal_income_tax returns of each of the tax-exempt shareholders or beneficiaries of taxpayer 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 further we express no opinion concerning the assessment of any interest additions to tax additional_amounts or penalties for failure_to_file a timely income_tax return with respect to any taxable_year the ruling in this letter is based upon the information and representations submitted by taxpayer and accompanied by a penalty of perjury statement executed by an appropriate party although this office has not verified any of the material submitted in support of the request for the ruling it is subject_to verification on examination this ruling is directed only to the taxpayer requesting it sec_6110 provides that it may not be used or cited as precedent plr-125296-14 enclosed is a copy of the letter showing the deletions proposed to be made when it is disclosed under sec_6110 if you have any questions concerning this matter please contact the individual whose name and telephone number appear at the top of the letter 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 seoyeon sharon park assistant to the branch chief branch office_of_chief_counsel income_tax accounting enclosure copy for sec_6110 purposes


department of the treasury internal_revenue_service washington d c tax_exempt_and_government_entities_division mar uniform issue list sect ep pa ty legend individual a bank b amount c date d date f ira x dear this is in response to a ruling_request dated submitted by your authorized representative for a waiver of the 60-day rollover requirement in sec_408 of the internal_revenue_code the code the following facts and representations have been submitted under penalty of perjury in support of the ruling requested on date d individual a went to a branch office of bank b where she maintained investments in two separate certificates of deposit cds one of the cds was held in ira x and the other cd was a non-ira certificate of deposit individual a requested a withdrawal in amount c from the non-ira certificate of deposit individual a was not asked to sign any form requesting a withdrawal from ira x individual a received a cashier's check for amount c and deposited that sum in another financial_institution in a money market account individual a had no intention of taking a distribution from ira x and did not sign the form required for a distribution from an ira nevertheless the bank employee distributed_amount c from ira x _ form 1099-r at the time individual a contacted bank b to correct the problem the 60-day rollover period had expired bank b has admitted in a letter dated date f that the bank failed to have individual a complete an ira distribution form individual a did not discover this error until she received a based on the above facts and representations you request that the service waive the 60-day rollover requirement with respect to the distribution of amount c sec_408 of the code provides that except as otherwise provided in sec_408 any amount_paid or distributed out of an ira shall be included in gross_income by the payee or distributee as the case may be in the manner provided under sec_72 of the code sec_408 of the code defines and provides the rules applicable to ira_rollovers sec_408 of the code provides that sec_408 of the code does not apply to any amount_paid or distributed out of an ira to the individual for whose benefit the ira is maintained if i the entire amount received including money and any other_property is paid into an ira for the benefit of such individual not later than the day after the day on which the individual 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 sec_408 of the code provides that sec_408 does not apply to any amount described in sec_408 received by an individual from an ira if at any time during the 1-year period ending on the day of such receipt such individual received any other amount described in sec_408 from an ira which was not includible in gross_income because of the application of sec_408 where the failure to waive such requirement would be against equity or good sec_408 of the code provides a similar 60-day rollover period for partial rollovers sec_408 of the code provides that the secretary_of_the_treasury may waive the 60-day requirement under sec_408 and d of the code 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 dollar_figure revproc_2003_16 2003_4_irb_359 provides that in determining whether to grant a waiver of the 60-day rollover requirement pursuant to sec_408 the service will consider all relevant facts and circumstances including errors committed by a financial_institution inability to complete a rollover due to death disability hospitalization incarceration restrictions imposed by a foreign_country or postal error the use of the amount distributed for example in the case of payment by check whether the check was cashed and the time elapsed since the distribution occurred the information presented demonstrates that an error was committed by an employee of bank b which resulted in an unintended distribution from ira x you were not aware of this distribution until after the expiration of the 60-day rollover period therefore pursuant to sec_408 of the code the service hereby waives the 60-day rollover requirement with respect to amount c you are granted a period of days from the issuance of this ruling letter to contribute amount c into an ira provided all other requirements of sec_408 of the code except the 60-day rollover requirement are met with respect to such contribution amount c will be considered a rollover_contribution within the meaning of sec_408 of the code this ruling is directed solely to the taxpayer who requested it sec_6110 of the code provides that it may not be used or cited as precedent a copy of this letter has been sent to your authorized representative in accordance with a power_of_attorney on file in this office 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 that may be applicable hereto if you have any questions regarding this ruling you may contact rekrkerrerekrkreereeerrererererkrerereererrerreeekeeekrek sincerely yours s donzell littlejohn manager employee_plans technical group enclosures notice of intention to disclose deleted copy of this letter


department of the treasury internal_revenue_service washington d c jun number release date cc tege eoeg et1 - cor-118677-01 uilc memorandum for from subject office of division counsel associate chief_counsel tax exempt and government entities cc tege eoeg et1 - cor-118677-01 railroad retirement act tax status in accordance with the coordination procedure established between the service and the railroad retirement board rrb the rrb has provided us with its opinion that the following business became an employer under the railroad retirement act and the railroad unemployment insurance act effective date we have reviewed the opinion of the rrb and based upon the information submitted to the rrb we also conclude that became an employer under the railroad_retirement_tax_act effective date please take the appropriate action regarding this business cc will e mcleod