IRS written determination 201527035

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: 201527035
Release Date: 7/2/2015
Index Number: 7701.00-00, 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:B01
PLR-141238-14
Date:
March 16, 2015
X=-------------------------------------------------------------------
Country=-----------
Date 1 =------------------
Date 2=
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Date 3=
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Dear --------------------------
This letter responds to a letter dated November 3, 2014, submitted on behalf of X by its
authorized representatives, requesting a ruling under § 301.7701-3(c)(1)(iv) and
§ 301.9100-3 of the Procedure and Administration Regulations. Specifically, your letter
requests the Service’s consent to change X’s classification from an association taxable
as a corporation to a disregarded entity, effective Date 3.
Facts
X was formed under the laws of Country. X, an eligible entity, elected to be treated as a
corporation for federal tax purposes effective Date 1. X represents that as of Date 2, X
had a change of ownership of more than fifty percent that would satisfy §301.7701-
3(c)(1)(iv).

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2
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 eligible entity) 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(c)(1)(iii) provides thatan 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 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(c)(1)(iv) provides that, if an eligible entity makes an election under
§ 301.7701-3(c)(1)(i) to change its classification, the entity cannot change its
classification by election again during the sixty months succeeding the effective date of
the election. However, the Commissioner may permit the entity to change its
classification by election within the sixty months if more than fifty percent of the
ownership interests in the entity as of the effective date of the subsequent election are
owned by persons that did not own any interests in the entity on the filing date or on the
effective date of the entity’s priorelection.
Section 301.9100-1(c) provides that the Commissioner may grant a reasonable
extension of time under the rules set forth in §§ 301.9100-2 and 301.9100-3 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
except subtitles E, G, H, and I. Section 301.9100-1(b) defines the term "regulatory
election" as an election whose due date is prescribed by a regulation published in the
Federal Register, or a revenue ruling, revenue procedure, notice, or announcement
published in the Internal Revenue Bulletin.
Section 301.9100-2 provides the rules governing automatic extensions of time for
making certain elections. Section 301.9100-3 sets forth 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.
Section 301.9100-3(a) provides that requests for relief subject to § 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

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3
acted reasonably and in good faith, and the grant of relief will not prejudice the interests
of the Government.
Conclusion
Based on the facts submitted and representations made, we consent to X changing its
classification for federal tax purposes less than 60 months after its previous
classification change. As a result, X is granted an extension of time of 120 days from
the date of this letter to file Form 8832 with the appropriate service center to elect to be
classified as a disregarded entity for federal tax purposes effective Date 3.
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.
Pursuant to a power of attorney on file with this office, we are sending a copy of this
letter to X’s authorized representatives.
Sincerely,
Associate Chief Counsel
(Passthroughs & Special Industries)
By: David R. Haglund
David R. Haglund
Chief, Branch 1
Office of the Associate Chief Counsel
(Passthroughs & Special Industries)
Enclosures (2)
Copy of this letter
Copy for § 6110 purposes