IRS written determination 201532001

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: 201532001
Release Date: 8/7/2015
Index Number: 9100.15-00
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Legend
X = ----------------------------------------
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State = --------------------
A = --------------------
Date = -------------------
Year 1= -------
Year 2= -------
Year 3= --------
Third Party Communication: None
Date of Communication: Not Applicable
Person To Contact:
--------------------------, ID No. ----------------
-----------------
TelephoneNumber:
--------------------
Refer Reply To:
CC:PSI:B03
PLR-100323-15
Date:
March 31, 2015
Dear ----------------:
This letter responds to a letter dated December 18, 2014 and subsequent
correspondence submitted on behalf of X by its authorized representatives, requesting
an extension of time under § 301.9100-3 of the Procedure and Administration
Regulations to file anelection under § 754 of the Internal Revenue Code.
FACTS
X was formed as a limited liability company under the laws of Statein Year 1and
is treated as a partnership for federal income tax purposes. On Date, A, a partner of X,

PLR-100323-15
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died. X relied on its tax advisor to make a timely §754 election for Year 2. However, the
tax advisor inadvertently failed to timely make the election with X’s return for its Year 2
taxable year.
In Year 3, X became aware of its failure to make an election under § 754. X now
requests an extension of time under §§ 301.9100-1 and 301.9100-3 to make a § 754
election to adjust the basis of its assets.
LAW AND ANALYSIS
Section 754 provides that a partnership may elect to adjust the basis of
partnership property when there is a distribution of property or a transfer of a
partnership interest. An election under §754 applies with respect to all distributions of
property by the partnership and to all transfers of interests in the partnership during the
taxable year with respect to which the election was filed and all subsequent taxable
years.
Section 1.754-1(b) of the Income Tax Regulations provides that an election
under § 754 to adjust the basis of partnership property under §§ 734(b) and 743(b), with
respect to a distribution of property to a partner or a transfer of an interest in a
partnership, must be made in a written statement filed with the partnership return for the
taxable year during which the distribution or transfer occurs. For the election to be valid,
the return must be filed not later than the time prescribed by § 1.6031-1(e) (including
extensions therefore) for filing the return for the taxable year.
Under Section 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
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 including 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 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. Requests for relief under §301.9100-3 will be
granted when the taxpayer provides evidence to establish that the taxpayer acted
reasonably and in good faith, and that granting relief will notprejudice the interests of
the government.
CONCLUSION

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Based solely on the information submitted and the representations made, we
conclude that the requirements of §§ 301.9100-1 and 301.9100-3 have been satisfied.
As a result, X is granted an extension of time of 120 days from the date of this letter to
make an election under § 754 effective for the Year 2taxable year and thereafter. The
election should be made in a written statement filed with the appropriate service center
for association with X’s Year 2tax return. A copy of this letter should be attached to the
election.
Except as specifically set forth above, no opinion is expressed or implied
concerning the tax consequences of the facts of this case under any other provision of
the Code and the regulations thereunder.
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.
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.
In accordance with the power of attorney on file with this office, a copy of this
letter is being sent to X’s authorized representative.
Sincerely,
Associate Chief Counsel
(Passthroughs and Special Industries)

By:_______________
Bradford R. Poston
Senior Counsel, Branch 3
Office of Associate Chief Counsel
(Passthroughs & Special Industries)
Enclosures (2)
Copy of this letter
Copy for §6110 purposes
cc: