IRS written determination 201529005

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: 201529005
Release Date: 7/17/2015
Index Numbers: 7701.00-00, 9100.31-00
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Person To Contact:
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Telephone Number:
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Refer Reply To:
CC:PSI:B03– PLR-141062-14
Date: April 14, 2015
LEGEND
X=--------------------------------------------
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Country=----------
D1=---------------------------
D2=---------------------
D3=-----------------
Dear ------------------------:
This letter responds to a letter dated October 15, 2014, and subsequent
correspondence submitted on behalf of X 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 disregarded entity for federal tax purposes.
FACTS
The information submitted discloses that X was formed on D1 under the laws of
Country. X intended to be treated asa disregarded entity for federal tax purposes
effective D1. However, X failed to timely file Form 8832, Entity Classification Election,
to be classified as a disregarded entity for federal tax purposes. On D2, X became a
multiple member entity. Then onD3, X again became a single member entity.

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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 ithas 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 with
the service center designated on Form 8832.
Section 301.7701-3(c)(1)(iii) provides, in part, that an election made under
§ 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.
Section 301.7701-3(f)(2) provides, in part, that an eligible entity classified as a
partnership becomes disregarded as an entity separate from its owner when the entity’s
membership is reduced to one member. A single member entity disregarded as an
entity separate from its owner is classified as a partnership when the entity has more
than one member.
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 “regulatoryelection” includes an election whose due date is prescribed by
a regulation published in the Federal Register.

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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 X has
satisfied the requirements of §§301.9100-1 and 301.9100-3. Consequently, X 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 D1. X
must file Form 8832 within the extension period with the appropriate service center, with
a copy of this letter attached. In so doing, X must subsequently be treated as a
partnership effective D2, when X became a multiple member entity. Then, X must
subsequently be treated as a disregarded entity effective D3, when X again became a
single member entity.
This ruling is contingenton X and its owners filing within 120 days from the date
of this letter all required federal income tax and information returns (including amended
returns) consistent with the requested relief granted in this letter. To the extent
appropriate, these returns may include, but are not limited to, Form 8858, Information
Return of U.S. Persons With Respect to Foreign Disregarded Entities, and Form 8865,
Return of U.S. Persons With Respect to Certain Foreign Partnerships, such that these
forms reflect the consequences of the relief granted in this letter. A copy of this letter
should be attached 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 the granting 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 ruling may 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 X’s authorized representative.

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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 notverified 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