IRS written determination 201424012

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: 201424012
Release Date: 6/13/2014
Index Number: 9100.00-00, 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:B02
PLR-137639-13
Date:
September 26, 2013
Legend
X=--------------------------------------
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A=------------------------------------------------------------------
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B=------------------------------------------
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D=------------------------------
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E=----------------------------------
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F=------------------------------------
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G=----------------------------------
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Country 1=--------------------
Country 2 =---------
Country 3=---------------------

PLR-137639-13 2
Date 1=----------------
Date 2=----------------------
Date 3=------------------
Date 4=----------------------
Date 5=----------------------
Date 6=------------------------
Dear --------------:
This is in response to a letter dated August 23, 2013, and subsequent
correspondence submitted on behalf of X by X’s authorized representative, requesting
that the Service grant X an extension of time under § 301.9100-1(c) of the Procedure
and Administration Regulations to elect to treat A, B, C, D, E, F, and G, which X wholly
owns, as disregarded entities for federal tax purposes.
The facts submitted and representations made are summarized as follows. A
was formed on Date 1, under the laws of Country 1. X acquired B on Date 2, under the
laws of Country 2. C was formed on Date 3, under the laws of Country 3. D was
formed on Date 4, under the laws of Country 3. E and F were formed on Date 5, under
the laws of Country 3. G was formed on Date 6, under the laws of Country 3. Each of
A, B, C, D, E, F, and G is a foreign entity eligible to be treated as a disregarded entity
for U.S. income tax purposes. However, X failed to timely file Forms 8832, Entity
Classification Election electing to treat A, B, C, D, E, F, and G as disregarded entities
for federal tax purposes.
Section 301.7701-3(b)(2) provides guidance on the classification of a foreign
entity for federal income tax purposes. Generally, a foreign eligible entity is treated as
an association taxable as a corporation if all members have limited liability, unless the
entity makes an election to be treated otherwise. If the foreign eligible entity has one
owner, it may elect to be treated as a disregarded entity pursuant to the rules in
§ 301.7701-3(c).
Section 301.7701-3(c)(1)(iii) provides than an entity classification election must
be filed on Form 8832 and can be effective up to 75 days prior to the election filing date
or more than 12 months after the election filing date.
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

PLR-137639-13 3
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 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 by which the
Commissioner will determine whether to grant an extension of time to make an election.
Section 301.9100-2 provides the rules governing automatic extensions of time for
making certain elections. Section 301.9100-3 describes the conditions under which the
Commissioner will grant requests for relief 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 (1) the taxpayer acted reasonably and in good faith,
and (2) granting relief will not prejudice the interests of the government.
Based solely on the facts submitted and representations made, we conclude that
the requirements of § 301.9100-3 have been satisfied. Accordingly, A, B, C, D, E, F,
and G are granted an extension of 120 days from the date of this letter to file Form 8832
with the appropriate service center to elect to be classified as disregarded entities
effective on the following dates: A on Date 1; B on Date 2; C on Date 3; D on Date 4; E
and F on Date 5; and G on Date 6. A copy of this letter should be attached to the
Forms 8832.
This ruling is contingent on X filing all required Federal income tax and
information returns (including amended returns) consistent with the requested relief
being effective on the relevant dates provided above. Any amended returns should be
filed within 120 days of the date of this letter and a copy of this letter should be attached
to each such return. Failure to file the amended returns will cause this letter to be null
and void. The owners' filing obligations may include those required under §6038 and
the regulations.
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. Section 6110(k)(3) of the Internal Revenue 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.

PLR-137639-13 4
In accordance with the power of attorney on file with this office, a copy of this
letter will be sent to X’s authorized representative.
Sincerely,
Associate Chief Counsel
(Passthroughs & Special Industries)
By: _______________________________
Bradford Poston
Senior Counsel, Branch 2
Office of the Associate Chief Counsel
(Passthroughs & Special Industries)
cc: