IRS written determination 201607021

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: 201607021
Release Date: 2/12/2016
Index Numbers: 7701.00-00, 9100.00-00,
9100.31-00
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Third Party Communication: None
Date of Communication: Not Applicable
Person To Contact:
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Telephone Number:
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Refer Reply To:
CC:PSI:B03
PLR-118901-15
Date:
October 19, 2015
Legend
X= ------------------------------
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Trust=-----------------------
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Country1=--------------------------------------------
Country2=-------------
Date1=---------------------------
Date2= ------------------
Date3=-------------------
Dear --------------------------------------:
This letter responds to a letter dated June 3, 2015, submitted on behalf of X,
requesting an extension of time under §301.9100-3 of the Procedure and
Administration Regulations for X to file an election under § 301.7701-3(c) to be
classified as a disregarded entity for federal tax purposes.
The information submitted states that X was formed under the laws of Country1
on Date1. X is wholly-owned by Trust, which was formed under the laws of Country2on
Date2. X represents that the beneficiaries of Trustare all individuals who are not
citizens or residents of the United States.

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X represents that it is a foreign entity that is eligible to elect to be classified as a
disregarded entity for federal tax purposes effective Date3. However, X failed to file
timely Form 8832, Entity Classification Election, to be classified as a disregarded entity
for federal tax purposes effective Date3.
Section 301.7701-3(a) provides 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. Elections are necessary only when an
eligible entity does not want to be classified under the default classification or when an
eligible entity chooses to change its classification.
Section 301.7701-3(b) provides the default classification for an eligible entity that
does not make an election. Section 301.7701-3(b)(2)(i) provides that, 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.
Under § 301.7701-3(b)(2)(ii), 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 that an eligible entity may elect to be
classified other than as provided under § 301.7701-3(b)(2) by filing Form 8832 with the
appropriate service center. Under § 301.7701-3(c)(1)(iii), this election will be effective
on the date specified by the entity on Form 8832 or on the date filed if no such date is
specified. The date specified on Form 8832 cannot be more than 75 days prior to the
date on which the election is filed and cannot be more than 12 months after the date the
election is filed.
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 (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.
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 extension 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 a taxpayer provides the evidence (including

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3
affidavits described in§ 301.9100-3(e)) to establish to the satisfaction of the
Commissioner that (1) the taxpayer acted reasonably and in good faith, and (2) the
granting of relief will not prejudice the interests of the Government.
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
file a Form 8832 with the appropriate servicecenter and elect to be classified as a
disregarded entity for federal tax purposes, effective Date3. A copy of this letter should
be attached to the Form 8832. A copy is enclosed for that purpose.
This ruling is contingent on X and its owner filing within 120 days from the date of
this letter, to the extent necessary or appropriate, all required federal income tax returns
and information returns (including amended returns) consistent with the relief granted in
this letter. A copy of this letter should be attached to any such returns.
Except as specifically set forth above, we express or imply no opinion concerning
the federal tax consequences of the facts described above under any other provision of
the Code and the regulations thereunder. 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. 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 appropriateparty. While this office has not verified any of the material submitted
in support of the ruling request, it is subject to verification on examination.

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In accordance with the power of attorney on file with this office, we are sending
copies of this letter to X’s authorized representatives.
Sincerely,
Associate Chief Counsel
(Passthroughs & Special Industries
By: __________________________
Mary Beth Carchia
Senior Technician Reviewer, Branch 3
Office of Associate Chief Counsel
(Passthroughs & Special Industries)
Enclosures (2)
Copy of this letter
Copy for § 6110 purposes