IRS written determination 201442026

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: 201442026
Release Date: 10/17/2014
Index Numbers: 7701.00-00, 9100.31-00
--------------------------------------------
---------------------------------
------------------------------------------------------------
--------------------
------------------------------------------------
---------------------------------------------------
-------------------------------
Person To Contact:
-------------------------------------------------
Telephone Number:
----------------------
Refer Reply To:
CC:PSI:B03– PLR-142933-13
Date:
March 18, 2014
LEGEND
Sub=--------------------------------------------
-------------------------------------------------
X=----------------------------------
-------------------------------------------------
Y=---------------------------------------------------------------------
Z=-------------------------------------
Country=-----------
a=--------------------------
Dear ------------:
This letter responds to a letter dated August 20, 2013, and subsequent
correspondence, submitted on behalf of Sub requesting an extension of time under
§ 301.9100-3 of the Procedure and Administration Regulations to file anelection under
§ 301.7701-3(a) to be classified as a disregarded entity for federal tax purposes.
FACTS

2
PLR-142933-13
The information submitted discloses that Sub was formed under the laws of
Country. After a corporate reorganization, Sub is wholly owned by X, which is equally
owned by Y and an unrelated foreign third party. Y’s ultimate owner is Z, the common
parent corporation of an affiliated group that files a U.S. consolidated return. Sub failed
to file timely a Form 8832, Entity Classification Election, tobe classified as a
disregarded entity for federal tax purposes, effective a.
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
eligibleentity) 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 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)(i) provides that, except as provided in § 301.7701-
3(b)(3), unless the entity elects otherwise, a foreign eligible entity is: (A) a partnership if
it has two or more members and at least one member does not have limited liability;
(B) an association if all members have limited liability; or (C) disregarded as an entity
separate from its owner if it has a single owner that does not have limited liability.
Section 301.7701-3(b)(2)(ii) provides, in part, that for purposes of § 301.7701-3(b)(2)(i),
a member of a foreign eligible entity has limited liability if the member has no personal
liability for the debts of or claims against the entity by reason of being a member.
Section 301.7701-3(c)(1)(i) provides, in part, that, except as provided in
§ 301.7701-3(c)(1)(iv) and (v), an eligible entity may elect to be classified other than as
provided under §301.7701-3(b), or to change its classification, by filing Form 8832,
Entity Classification Election, with the service center designated on Form 8832.
Section 301.7701-3(c)(1)(iii) provides, in part, that an election madeunder
§ 301.7701-3(c)(1)(i) will be effective on the date specified by the entity on Form 8832
or on the date filed if no such date is specified on the election form. The effective date
specified on Form 8832 can not be more than 75 days prior to the date on which the
election is filed and can not be more than 12 months after the date on which the election
is filed.
Under § 301.9100-1(c), the Commissioner may grant a reasonable extension of
time to make a regulatory election, 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 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.

3
PLR-142933-13
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 regulatory 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 the evidence (including affidavits described in
§ 301.9100-3(e)) to establish to the 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
Based on the facts and representations submitted, we conclude that the
requirements of §§301.9100-1 and 301.9100-3 are satisfied. Consequently, Sub is
granted an extension of time of one hundred twenty (120) days from the date of this
letter to elect under § 301.7701-3 to be treated as a disregarded entity, effective a. Sub
must file Form 8832 within the extension period with the appropriate service center, with
a copy of this letter attached.
This ruling is contingent on Sub and its owner filing within 120 days of the date of
this letter all required federal income tax and information returns (including amended
returns) for all open years consistent with the requested relief. Thesereturns must
include, but are not limited to, Form 8858, Information Return of U.S. Persons With
Respect To Foreign Disregarded Entities, such that these forms reflect the
consequences of the relief granted in this letter. A copy of this letter should beattached
to any such returns.
Except for the specific ruling above, we express or imply no opinion concerning
the federal tax consequences of the facts of this case under any other provision of the
Code. In addition, §301.9100-1(a) provides that thegranting of an extension of time for
making an election is not a determination that the taxpayer is otherwise eligible to make
the election.
This ruling is directed only to the taxpayer requesting it. According to
§ 6110(k)(3) of the Code, this rulingmay not be used or cited as precedent.
Under a power of attorney on file with this office, we are sending a copy of this
letter to Sub’s authorized representatives.

4
PLR-142933-13
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.
Sincerely,
Associate Chief Counsel
(Passthroughs & Special Industries)
By: /s/
Holly Porter
Chief, Branch 3
Office of the Associate Chief Counsel
(Passthroughs & Special Industries)
Enclosures:Copy of this letter
Copy for § 6110 purposes