IRS written determination 201440002

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: 201440002
Release Date: 10/3/2014
Index Number: 7701.00-00, 9100.31-00
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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:B01
PLR-103352-14
Date:
June 17, 2014
LEGEND
X=------------------------------------------------------------------------------------------
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Y=------------------------------
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Z=------------------------------------------
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A=---------------------
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State 1=--------------------
State 2=------------------
Date 1=----------------------
Date 2=------------------
Date 3=-------------------------
Date 4=------------------
Date 5=--------------------------
Date 6=-------------------------

PLR-103352-14
2
Dear -----------------:
This letter responds to your request for a written determination, dated December 13,
2013, submitted on behalf of X, seeking a ruling that X be granted an extension of time
pursuant to § 301.9100 of the Procedure and Administration Regulations to file a
corrected Form 8832, Entity Classification Election, with respect to Y and Z.
FACTS
According to the information submitted, we understand the relevant facts to be as
follows. X incorporated in State 1on Date 1and elected to be classified as an S
corporation effective Date 1. Y was formed as a single member limited liability company
in State 2on Date 2and elected to be classified as an S corporation effective Date 3. Z
was formed as a single member limited liability company in State 2on Date 4and
elected to be classified as an S corporation effective Date 4. On Date 5, A (sole
shareholder of Y and Z) contributed all of A’s membership interests in Y and Z to X in
exchange for interests in X. Following the reorganization, X intended to file elections
classifying both Y and Z as entities disregarded as an entity separate from its owner
effective Date 6. However, the entity classification elections were mistakenly filed with
an effective date of Date 5.
LAW AND ANALYSIS
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. An eligible entity with at least two
members can elect to be classified as either an association or a partnership, and an
eligible entity with a single owner can elect to be classified as an association or to be
disregarded as an entity separate from its owner.
Section 301.7701-3(c)(2) provides that an election must be signed by (A) Each member
of the electing entity who is an owner at the time the election is filed; or (B) Any officer,
manager, or member of the electing entity who is authorized to make the election and
who represents to having such authorization under penalties of perjury.
Section 301.9100-1(c) provides that the Commissioner may grant a reasonable
extension of time to make a regulatory election, or a statutory election (but no more than
6 months except in the case of a taxpayer who is abroad),under all subtitles of the
Internal Revenue Code except subtitles E, G, H, and I. Section 301.9100-1(b) defines
the term “regulatory election” as an election whose due date is prescribed by a
regulation published in the Federal Register or a revenue ruling, revenue procedure,
notice, or announcement published in the Internal Revenue Bulletin.

PLR-103352-14
3
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 the election. Section
301.9100-2 provides the rules governing automatic extensions of time for making
certain elections. Section 301.9100-3 provides the standards the Commissioner will use
to determine whether to grant an extension of time for regulatory elections that do not
meet the requirements of § 301.9100-2. Under § 301.9100-3, a request for relief will be
granted when the taxpayer provides evidence to establish to the satisfaction of the
Commissioner that (1) the taxpayer acted reasonably and in good faith, and (2) granting
relief will not prejudice the interests of the government.
CONCLUSION
Based solely on the facts submitted and representations made, we conclude that the
requirements of section 301.9100-3 have been satisfied. Accordingly, X is granted an
extension of time of 120 days from the date of this letter to elect to be disregarded as an
entity separate from its owner for federal tax purposes, effective Date 6. The election
should be made by filing Form 8832, Entity Classification Election, with the appropriate
service center. A copy of this letter should be attached to the election.
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. Section 6110(k)(3) of the
Internal Revenue 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 will
be sent to the taxpayer.
Sincerely,
Laura Fields
Laura Fields
Senior Technician Reviewer, Branch 1
Office of the Associate Chief Counsel
(Passthroughs and Special Industries)
Enclosures (2)
Copy of this letter
Copy for section 6110 purposes
cc: