IRS written determination 202634003

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: 202634003
Release Date: 8/21/2026
Index Number: 9100.00-00

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Person To Contact:
----------------------, ID No. -----------------
Telephone Number:
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Refer Reply To:
CC:ITA:B08
PLR-104806-26
Date:
May 28, 2026

LEGEND

Taxpayer = ------------------------------------------------------
Advisor = --------------------------------
Date 1 = -------------------
Date 2 = ------------------
Date 3 = ------------------
Date 4 = -------------------------
Date 5
Date 6
=
=
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Year 1 = -------

Dear -------------------:

This letter responds to Taxpayer’s request dated Date 1, seeking a private letter ruling
granting relief to make a late election pursuant to §§ 301.9100-1 through 301.9100-3 of
the Procedure and Administration Regulations. Specifically, Taxpayer requests an
extension of time to file Form 1128, Application to Adopt, Change or Retain a Tax Year,
to adopt a taxable year ending on Date 2, effective for Year 1.

FACTS

Taxpayer engaged Advisor, a qualified tax professional, to file Taxpayer’s federal tax
return for Year 1. Historically, Taxpayer had a taxable year ending on Date 3.
However, the majority owner of Taxpayer died on Date 4. The majority owner’s estate
filed a tax return choosing a taxable year end of Date 5. Advisor did not become aware
of the statutory requirement to change Taxpayer's taxable year to that of the majority
interest taxable year until shortly after the due date for Taxpayer’s Year 1 tax return of
Date 6. Therefore, Advisor did not file the Year 1 return or Form 1128 electing a taxable
year ending Date 2 for Year 1 by their due date of Date 5, nor did Advisor file a timely
extension for the due date of the Year 1 return. The error was not due to any lack of

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due diligence or prompt action on the part of Taxpayer. As part of its review, Advisor
realized the mistake and Taxpayer subsequently filed this request on Date 1, which was
less than 90 days after Date 5, the missed deadline for timely filing Taxpayer’s Form
1128.

Rev. Proc. 2006-46 provides the time and manner for a taxpayer within its scope to
change its accounting period. Therefore, such a change is a regulatory election as
defined in § 301.9100-1(b).

LAW AND ANALYSIS

Section 441(a) of the Internal Revenue Code provides that taxable income is computed
on the basis of the taxpayer's taxable year. Section 441(b) and § 1.441-1(b)(1) of the
Income Tax Regulations provide that the term "taxable year'' generally means the
taxpayer's annual accounting period, if it is a calendar or fiscal year, or, if applicable, the
taxpayer's required taxable year.

Section 706(b)(1)(B)(i) provides that a partnership shall not have a taxable year other
than the majority interest taxable year. Section 706(b)(4)(A)(i) provides that the term
“majority interest taxable year” means the taxable year which constitutes the taxable
year of 1 or more partners having an aggregate interest in partnership profits and capital
of more than 50 percent.

Section 442 provides that if a taxpayer changes its annual accounting period, the new
accounting period shall become the taxpayer’s taxable year only if the change is
approved by the Secretary.

Section 4.01 of Rev. Proc. 2006-46 provides that a change to the taxpayer’s required
taxable year may be an automatic accounting period change, provided the requirements
of Rev. Proc. 2006-46 are met. Section 7.02(2) of Rev. Proc. 2006-46 provides that
taxpayer must file a Form 1128 no earlier than the day following the first effective year
(generally, the short period required to make the change), and no later than the due
date (including extensions) for filing the tax return for the first effective year.

Sections 301.9100-1 through 301.9100-3 provide the standards that the Commissioner
will use to determine whether to grant an extension of time to make a regulatory
election. Section 301.9100-3(a) provides that requests for extensions of time for
regulatory elections (other than automatic extensions covered in section 301.9100-2)
will be granted when the taxpayer provides evidence (including affidavits) to establish
that the taxpayer acted reasonably and in good faith and the grant of relief will not
prejudice the interests of the Government.

Section 301.9100-3 sets forth standards that the Commissioner will employ in
determining whether to grant discretionary relief in situations that do not meet the
requirements of § 301.9100-2. The standards applied are whether the taxpayer acted

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reasonably and in good faith in the matter, and whether the granting of relief will
prejudice the interests of the government. Generally, a taxpayer will be deemed to have
acted reasonably and in good faith if the taxpayer reasonably relied on a qualified tax
professional, and that professional failed to make, or advise the taxpayer to make, the
election at issue.

Section 301.9100-3(c)(1) provides that the Commissioner will grant a reasonable
extension of time to make the regulatory election only when the interests of the
Government will not be prejudiced by the granting of relief. Section 301.9100-3(c)(1)(i)
states that the interests of the Government are prejudiced if granting relief will result in
the affected Taxpayers, in the aggregate, having a lower tax liability in the aggregate for
all years to which the election applies than if the election had been made on a timely
basis. Section 301.9100-3(c)(1)(ii) provides that relief ordinarily will not be granted if the
tax year in which the regulatory election should have been made, or any tax year that
would have been affected by the election had it been timely made, is closed by the
statute of limitations on assessment before the Taxpayer's receipt of the ruling granting
9100 relief.

Section 301.9100-3(c)(3) provides that the interests of the Government are deemed
prejudiced except in unusual and compelling circumstances if an election is an
accounting period regulatory election (other than the election to use other than the
required taxable year under section 444) and the request for relief is filed more than 90
days after the due date for filing the Form 1128.

Based on the facts and information submitted and the representations made, we
conclude that Taxpayer has acted reasonably and in good faith, and that the granting of
relief would not prejudice the interests of the government. Taxpayer has satisfied the
requirements for the granting of relief under § 301.9100-3. Consequently, the Service
will consider Taxpayer’s Form 1128 requesting permission to change to a tax year
ending Date 2, effective for the taxable year ended Date 2, Year 1, timely filed.
Because a change of period under Rev. Proc. 2006-46 is under the jurisdiction of the
Director, Internal Revenue Service Cener, where Taxpayer’s returns are filed, we have
forwarded the application to the Director, Ogden, Utah Service Center. Any further
communication regarding this matter should be directed to the Service Center.

Except for the specific ruling above, which is restricted to the filing of Form 1128, we
express or imply no opinion concerning the federal income tax consequences of the
facts of this case under any other provision of the Code or regulations that may be
applicable thereto. This letter ruling is based on facts and representations provided
by Taxpayer and its authorized representative, and is limited to the matters specifically
addressed. No opinion is expressed as to the tax treatment of the transactions
considered herein under the provisions of any other sections of the Code or regulations
which may be applicable thereto, or the tax treatment of any conditions not specifically
addressed herein.

PLR-104806-26

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This office has not verified any of the material submitted in support of the request for a
ruling. However, as part of an examination process, the Service may verify the factual
information, representations, and other data submitted.

This ruling is directed only to the taxpayer requesting it. Section 6110(k)(3) 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 is
being sent to your authorized representatives.

A copy of this letter must be attached to any income tax return to which it is relevant.
Alternatively, taxpayers filing their returns electronically may satisfy this requirement by
attaching a statement to their return that provides the date and control number of the
letter ruling.

Sincerely,

Erika C. Reigle
Acting Branch Chief, Branch 8
Office of Associate Chief Counsel
(Income Tax & Accounting)

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