IRS written determination 201425008

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: 201425008
Release Date: 6/20/2014
Index Numbers:1362.00-00, 1362.01-00,
1362.01-03
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Third Party Communication: None
Date of Communication: Not Applicable
Person To Contact:
-----------------------, ID No. -------------------
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Telephone Number:
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Refer Reply To:
CC:PSI:B03
PLR-141104-13
Date:
March 6, 2014
LEGEND
Company=---------------------------------------------------------------------------------------------
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Shareholder=---------------------------------------------------------------------------------------------
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State=----------------
Date=------------------
Dear --------------------:
This letter responds to a letter dated July 31, 2013, and subsequent
correspondence, written on behalf of Companyrequesting a ruling under § 1362(b)(5) of
the Internal Revenue Code (Code).
FACTS
Companywas incorporated under Statelaw on Date. Company’s sole
shareholder, Shareholder, intended for Companyto be an S corporation effective Date.
However, Company’s Form 2553, Election by a Small Business Corporation, was not
timely filed.
Companyrequests a ruling that it will be recognized as an S corporation effective
Date.

PLR-141104-13
2
LAW AND ANALYSIS
Section 1362(a)(1) provides that except as provided in § 1362(g), a small
business corporation may elect, in accordance with the provisions of § 1362, to be an S
corporation.
Section 1362(b)(1) provides that an electionunder § 1362(a) may be made by a
small business corporation for any taxable year (A) at any time during the preceding
taxable year, or (B) at any time during the taxable year and on or before the 15th day of
the third month of the taxable year.
Section 1362(b)(3) provides that if (A) a small business corporation makes an
election under § 1362(a) for any taxable year, and (B) the election is made after the
15th day of the third month of the taxable year and on or before the 15th day of the third
month of the following taxable year, then the election is treated as made for the
following taxable year.
Section 1362(b)(5) provides that if (A) an election under § 1362(a) is made for
any taxable year (determined without regard to § 1362(b)(3)) after the date prescribed
by § 1362(b) for making the election for the taxable year or no election is made for any
taxable year, and (B) the Secretary determines that there was reasonable cause for the
failure to timely make the election, the Secretary may treat the election as timely made
for the taxable year (and § 1362(b)(3) shall not apply).
CONCLUSION
Based solely on the facts submitted and representations made, we conclude that
Companyhas established reasonable cause for failing to make an S corporation
election ina timely manner. Thus, we conclude that Companyis eligible for relief under
§ 1362(b)(5). Accordingly, if Companymakes an election to be an S corporation
effective Dateby filing a completed Form 2553 with the appropriate service center
within 120 days from the date of this letter, then such election will be treated as timely
made. A copy of this letter should be attached to the Form 2553 filed with the service
center.
Except as expressly provided herein, we express or imply no opinion concerning
the tax consequences of any aspect of any transaction or item discussed or referenced
in this letter. Specifically, we express or imply no opinion concerning whether Company
is otherwise eligible to be an S corporation for federal tax purposes.
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.

PLR-141104-13
3
In accordance with a power of attorney on file with this office, we are sending a
copy of this letter to your authorized representative.
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,
Mary Beth Carchia
Senior Technician Reviewer, Branch 3
Office of the Associate Chief Counsel
(Passthroughs & Special Industries)
Enclosures(2):
A copy of this letter
A copy for § 6110 purposes