IRS written determination 201434002

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: 201434002
Release Date: 8/22/2014
Index Number: 9100.22-00, 992.02-00
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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:INTL:B06
PLR-105608-14
Date:
May 13, 2014
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Legend
Taxpayer = --------------------------------------------------------------
Accounting Firm =-----------------------------
CPA =----------------------------
Company = ------------------------------------------
Individual =---------------------
Year 1 =-------
Date 1 =----------------
Dear ---------------:
This responds to a letter dated January 24, 2014, submitted by Accounting Firm
requesting that the Internal Revenue Service (“Service”) grant Taxpayer an extension of
time under Treas. Reg. §§ 301.9100-1 and 301.9100-3 to file Form 4876-A (“Election To
Be Treated as an Interest Charge DISC”) for Taxpayer’s first taxable year.
The rulings contained in this letter are based upon information and representations
submitted by Taxpayer and Accounting Firm and accompanied by affidavits and penalty
of perjury statements executed by appropriate parties. This office has not verified any
of the materials submitted in support of the request for rulings. It is subject to
verification on examination.

PLR-105608-14
2
FACTS & REPRESENTATIONS
Taxpayer, a wholly owned subsidiary of Company, is a domestic corporation that sells
products manufactured by theCompany on a commission basis.
In Year 1, Company decided to establish an interest charge domestic international sales
corporation (“IC-DISC”) and engaged an attorney to complete the necessary
organizational documents. Taxpayer was incorporated on Date 1 and began operating
as an IC-DISC.
Individual was appointed as Taxpayer’s Treasurer at the time of Taxpayer’s
incorporation. Individual relied on Accounting Firm and CPA to make the necessary
elections to qualify Taxpayer as an IC-DISC.
As a result of an inadvertent oversight, the due date for filing Form 4876-A was not
entered into the CPA’s due date monitoring system. After Taxpayer discovered in late
Year 1 that the Form 4876-A had not been timely filed, CPA advised Taxpayer that the
best course of action to remedy the situation was to seek a private letter ruling granting
an extension of time to file Form 4876-A for Year 1, its first taxable year.
Taxpayer represents that the extension does not prejudice the Government’s interests
and that Taxpayer is not placed in a better position by making the election at this time
than it would have been in had the election been timely made.
LAW AND ANALYSIS
Section 992(b)(1)(A) provides that an election by a corporation to be treated as a DISC
1
shallbe made by such corporation for a taxable year at any time during the 90-day
period immediately preceding the beginning of the taxable year, except that the
Secretary may give his consent to the making of an election at such other times as he
may designate.
Section 992(b)(1)(B) provides that such election shall be made in such manner as the
Secretary shall prescribe and shall be valid only if all persons who are shareholders in
such corporation on such first day of the first taxable year for which such election is
effective consent to such election.
Temporary Treasury Regulation § 1.921-1T(b)(1) provides, in part, that a corporation
electing IC-DISC status must file Form 4876-A and that a corporation electing to be
treated as an IC-DISC for its first taxable year shall make its election within 90 days
after the beginning of that year.

1
As used in this letter, the terms “IC-DISC” and “DISC” have the same meaning.

PLR-105608-14
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Treasury Regulation § 301.9100-1(c) provides, in part, that the Commissioner, in
exercising the Commissioner’s discretion, may grant a reasonable extension of time
under the rules set forth in Treas. Reg. §§ 301.9100-2 and 301.9100-3 to make a
regulatory election under all subtitles of the Code except subtitles E, G, H, and I.
Treasury Regulation § 301.9100-1(b) provides that a regulatory election is an election
whose due date is prescribed by a regulation published in the Federal Register, or a
revenue ruling, revenue procedure, notice, or announcement published in the Internal
Revenue Bulletin. For this purpose, an election includes an application for relief in
respect of tax.
Treasury Regulation § 301.9100-3(a) provides that requests for extensions of time for
regulatory elections that do not meet the requirements of Treas. Reg. § 301.9100-2
(automatic extensions) must be made under the rules of Treas. Reg. § 301.9100-3.
Requests for relief subject to Treas. Reg. § 301.9100-3 will be granted when the
taxpayer provides the evidence (including affidavits described in Treas. Reg.
§ 301.9100-3(e)) to establish to the satisfaction of the Commissioner that the taxpayer
acted reasonably and in good faith, and that the grant of relief will not prejudice the
interests of the Government.
Based on the facts and representations submitted with Taxpayer’s ruling request, we
conclude that Taxpayer satisfies Treas. Reg. § 301.9100-3(a). Accordingly, Taxpayer is
granted an extension of time of 60 days from the date of this ruling letter to file
Form 4876-A. Such filing will be treated as a timely election to be treated as an
IC-DISC for Taxpayer’s first taxable year.
The grantingof an extension in this ruling letter is not a determination that Taxpayer is
otherwise eligible to make the election or to claim IC-DISC status or benefits. See
Treas. Reg. § 301.9100-1(a). Taxpayer should attach a copy of this ruling letter to its
Federal income tax return for the taxable years to which this letter applies.
This ruling is directed only to the taxpayer requesting it. Section 6110(k)(3) of the Code
provides that it may not be used or cited as precedent. 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.

PLR-105608-14
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In accordance with the Power of Attorney on file with this office, a copy of this letter is
being sent to your authorized representatives.
Sincerely,
_____________________________________
Marissa K. Rensen
Assistant to the Branch Chief, Branch 6
Office of Associate Chief Counsel (International)
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