IRS written determination 201548009

Private letter rulings and published taxpayer determination letters. Native document type is retained separately; a determination letter is not labeled a private letter ruling. These taxpayer-specific releases cannot be used or cited as precedent under 26 USC 6110(k)(3); applicability and current legal force are not independently certified. Keep repeated UILC subjects attached to one actual numbered document.

Internal Revenue Service
Department of the Treasury
Washington, DC 20224
Number: 201548009
Release Date: 11/27/2015
9100.04-00
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Third Party Communication: None
Date of Communication: Not Applicable
Person To Contact:
-----------------------, ID No. ----------------
Telephone Number:
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Refer Reply To:
CC:ITA:B07
PLR-107081-15
Date:
August 18, 2015
Re: Request for Extension of Time to Make the Election Not to Deduct the Additional
First Year Depreciation
Legend
Taxpayer = ----------------------------------------------------------------
Date 1 = --------------------------
A = ------
B = ---------------------------------------------------------------------------------------------------------------
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C = -----------------------------------------
D = --------------------------------
Dear --------------:
This ruling responds to a letter dated January 20, 2015, submitted by Taxpayer
requesting an extension of time pursuant to §§ 301.9100-1 and 301.9100-3 of the
Procedure and Administration Regulationsto make the election not to deduct the
additional first year depreciation under § 168(k) of the Internal Revenue Codefor all
classes of qualified property placed in service by Taxpayer during the taxable year
ended Date 1 (the A taxable year).
FACTS

PLR-107081-15
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Taxpayer represents that the facts are as follows:
Taxpayer is in the business of B and files its federal income tax return on a
calendar year-end basis. Taxpayer placed in service qualified property as defined in
§ 168(k)(2) during the A taxable year.
Taxpayer timely filed its federal income tax return for the A taxable year. On this
return, Taxpayer, as intended, did not claim the additional first year depreciation
deduction for any classes of qualified property placed in service. However, Taxpayer’s
return did not have attached the election statement not to claim the additional first year
depreciation deduction for all classes of qualified property placed in service , as
required by § 1.168(k)-1(e)(3)(ii) of the Income Tax Regulations.,
Taxpayer engaged C, a Certified Public Accounting (CPA) firm, to prepare its
federal income tax return for the A taxable year. In preparing the return, C inadvertenly
failed to attach or to advise Taxpayer to attach the election statement.
D, a CPA firm, discovered Taxpayer’s failure to attach the election statement to
the federal income tax return for the A taxable year. D advised Taxpayer to file this
request to the correct the omission.
RULING REQUESTED
Taxpayer requests an extension of time pursuant to §§ 301.9100-1 and
301.9100-3to file the electionnot to deduct the additional first year depreciation under
§ 168(k)for all classes of qualified property placed in service during the A taxable year.
LAW AND ANALYSIS
Section 168(k)(1)provides a 50-percent additional first year depreciation
deduction for the placed-in-service year for qualified property (i) acquired by a taxpayer
after December 31, 2007, and before January 1, 2015, or acquired by a taxpayer
generally after December 31, 2011, and (ii) placed in service by the taxpayer before
January 1, 2015 (or January 1, 2016, for qualified property described in § 168(k)(2)(B)
or (C)).
Section 168(k)(5) provides a 100-percent additional first year depreciation
deduction for the placed-in-service year for qualified property acquired by a taxpayer
after September 8, 2010, and generally before January 1, 2012, and placed in service
by the taxpayer before January 1, 2012 (or January 1, 2013, for qualified property

PLR-107081-15
3
described in § 168(k)(2)(B) or (C)). See section3 of Rev. Proc. 2011-26, 2011-16 I.R.B.
664, 665.
Section 168(k)(2)(D)(iii) provides that a taxpayer may elect not to deduct the
additional first year depreciation for any class of property placed in service during the
taxable year. The term “class of property” is defined in § 1.168(k)-1(e)(2) as meaning,
in general, each class of property described in § 168(e) (for example, 5-year property).
See section 5.01 of Rev. Proc. 2008-54, 2008-2 C.B. 722, andsection 3.01 of Rev.
Proc. 2011-26, 2011-16 I.R.B. at 665 (rules similar to the rules in § 1.168(k)-1 for
“qualified property” or for “30-percent additional first year depreciation deduction” apply
for purposes of § 168(k) as currently in effect).
Section 1.168(k)-1(e)(1) provides that the election not todeduct additional first
year depreciation for a class of property applies to all qualified property that is in that
class of property and placed in service in the same taxable year.
Section 1.168(k)-1(e)(3)(i) provides that the election not to deduct additional first
year depreciation must be made by the due date (including extensions) of the federal
tax return for the taxable year in which the property is placed in service by the taxpayer.
Section 1.168(k)-1(e)(3)(ii) provides that the election not to deduct additional first
year depreciation must be made in the manner prescribed on Form 4562, “Depreciation
and Amortization,” and its instructions. The instructions to Form 4562 for the A taxable
year provided that the election not to deduct the additional first year depreciation is
made by attaching a statement to the taxpayer’s timely filed tax return (including
extensions) indicating that the taxpayer is electing not to deduct the additional first year
depreciation and the class of property for which the taxpayer is making the election.
Under § 301.9100-1, the Commissioner has discretion to grant a reasonable
extension of time under the rules set forth in §§ 301.9100-2 and 301.9100-3 to make a
regulatory election.
Sections 301.9100-1 through 301.9100-3 provide the standards the
Commissioner will use to determine whether to grant an extension of time to make an
election. Section 301.9100-2 provides automatic extensions of time for making certain
elections. Section 301.9100-3 provides extensions of time for making elections that do
not meet the requirements of § 301.9100-2.
Section 301.9100-3(a) provides that requests for relief under § 301.9100-3 will be
granted when the taxpayer provides evidence to establish tothe satisfaction of the
Commissioner that the taxpayer acted reasonably and in good faith, and the grant of
relief will not prejudice the interests of the government.
CONCLUSION

PLR-107081-15
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Based solely on the facts and representations submitted, we conclude that the
requirements of §§ 301.9100-1 and 301.9100-3 have been satisfied. Accordingly,
Taxpayer is granted 60 calendar days from the date of this letter to make the election
not to deduct the additional first year depreciation under § 168(k) for all classes of
property placed in service during the A taxable year that qualify for the additional first
year depreciation deduction. This election must be made by Taxpayer filing an
amended federal income tax return for the A taxable year, witha statement indicating
that Taxpayer is electing not to deduct the additional first year depreciation for all
classes of property placed in service during that taxable year.
Except as specifically set forth above, we express no opinion concerning the
federal incometax consequences of the facts described above under any other
provisions of the Code (including other subsections of §168). Specifically, no opinion is
expressed or implied on whether any item of depreciable property placed in service
during the A taxable year is eligible for the additional first year depreciation deduction.
In accordance with the power of attorney, we are sending a copy of this letter to
Taxpayer’s authorized representatives. We are also sending a copy of this letter to the
appropriate Small Business/Self-Employed Division (SB/SE) area office.
This letter ruling is directed only to the taxpayer requesting it. Section 6110(k)(3)
provides that it may not be used or cited as precedent.
Sincerely yours,
_____________________
Willie E. Armstrong, Jr.
Senior Technician Reviewer, Branch 07
Office of Associate Chief Counsel
(Income Tax & Accounting)
Enclosures (2):
copy of this letter
copy for section 6110 purposes
cc: