IRS written determination 201424018

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: 201424018
Release Date: 6/13/2014
Index Number: 9100.31-00, 7701.00-00
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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:PSI:B02
PLR-144085-13
Date:
February 26, 2014
X=---------------------------------------------------------------------------------------------------
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Country=-------
Date =---------------------
Dear --------------
This letter responds to a letter dated October 11, 2013, submitted on behalf of X by its
authorized representative, requesting an extension of time under § 301.9100-3 of the
Procedure and Administration Regulations to file an election under § 301.7701-3 to be
classified as a partnership for federal tax purposes.
The information submitted provides that X was organized under the laws of Countryon
Date. X represents that it is a foreign entity eligible to elect to be classified as a
partnership for federal tax purposes; however, X failed to timely file Form 8832, Entity
Classification Election, to be treated as a partnership effective Date.
Section 301.7701-3(a) provides, in part, that a business entity that is not classified as a
corporation under § 301.7701-2(b)(1), (3), (4), (5), (6), (7), or (8) (an eligible entity) can
elect its classification for federal tax purposes as provided in § 301.7701-3. An eligible
entity with at least two members can elect to be classified as either an association (and
thus a corporation under § 301.7701-2(b)(2)) or a partnership, and an eligible entity with

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2
a single owner can elect to be classified as an association or to be disregarded as an
entity separate from its owner.
Section 301.7701-3(b)(2) provides guidance on the classification of a foreign eligible
entity for federal tax purposes. Unless the entity elects otherwise, a foreign eligible
entity is treated as an association if all members have limited liability. A foreign eligible
entity with a single owner may elect to be treated as a disregarded entity pursuant to the
rules under § 301.7701-3(c). A foreign eligible entity with two or more members is
treated as a partnership if at least one member does not have limited liability. A foreign
eligible entity with two or more members may elect tobe treated as a partnership
pursuant to the rules under § 301.7701-3(c).
Section 301.7701-3(c)(1)(i) provides that an eligible entity may make an entity
classification election by filing Form 8832 with the appropriate service center. Under §
301.7701-3(c)(1)(iii), this election will be effective on the date specified by the entity on
Form 8832 or on the date filed if no such date is specified. The effective date specified
on Form 8832 cannot be more than 75 days prior to the date on which the election is
filed.
Section 301.9100-1(c) provides that the Commissioner in exercising the
Commissioner’s discretion may grant a reasonable extension of time under the rules set
forth in §§ 301.9100-2 and 301.9100-3 to make a regulatory election, or a statutory
election (but not more than 6 months except in the case of a taxpayer who is abroad),
under all subtitles of the Internal Revenue Code (Code), except subtitles E, G, H, and I.
Section 301.9100-1(b) provides that the term “regulatory election” includes an election
whose due date is prescribed by a regulation published in the Federal Register.
Sections 301.9100-1 through 301.9100-3 provide the standards by which the
Commissioner will determine whether to grant an extension of time to make an election.
Section 301.9100-2 provides the rules governing automatic extensions of time for
making certain elections. Section 301.9100-3 describes the conditions under which the
Commissioner will grant requests for relief that do not meet the requirements of
§ 301.9100-2. Requests for relief under § 301.9100-3 will be granted when the
taxpayer provides evidence to establish that (1) the taxpayer acted reasonably and in
good faith, and (2) granting relief will not prejudice the interests of the government.
Based solely on the facts submitted and representations made, we conclude that X has
satisfied the requirements of §§ 301.9100-1 and 301.9100-3. As a result, we grant X an
extension of time of one hundred twenty (120) days from the date of this letter to file
Form 8832 with the appropriate service center to elect to be classified as a partnership
effective Date. A copy of this letter should be attached to the Form 8832.
This ruling is contingent on X and the owners of X filing within 120 days from the date of
this letterall required returns (including amended returns) consistent with the requested

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relief granted in this letter. To the extent appropriate these returns must include, but are
not limited to, Form 8865, Information Return of U.S. Persons With Respect to Certain
Foreign Partnerships. A copy of this letter should be attached to any such returns.
Except as specifically set forth above, we express or imply no opinion concerning the
federal tax consequences of any aspect of any transaction or item either discussed or
referenced in this letter. 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 ruling request, it is subject to verification on
examination.
We are directing the ruling only to the taxpayer who requested it. Section 6110(k)(3) of
the Code provides that it may not be used or cited as precedent. Pursuant to a power
of attorney on file with this office, we are sending a copy of this letter to X’s authorized
representative.
Sincerely,
Associate Chief Counsel
(Passthroughs & Special Industries)
By:____________________________
Bradford R. Poston
Senior Counsel, Branch 2
(Passthroughs & Special Industries)
Enclosures (2)
Copy of this letter
Copy for § 6110 purposes
cc: