PLR 200102035: Extension granted for dual consolidated loss filings

Plain-English summary

A tax consultant inadvertently omitted two affiliates' dual consolidated losses from a taxpayer's elections. The taxpayer asked for more time to file the required agreements and certifications before the IRS discovered the omission. The IRS found that the taxpayer met the requirements for discretionary filing relief and granted 30 days from the ruling date to submit the documents. The letter does not decide whether the taxpayer is otherwise eligible to make the election.

Ruling snapshot

• Question: May the taxpayer file the dual consolidated loss agreements and certifications late?
• Outcome: Approved: a 30 day extension from the ruling date.
• Key authorities: Treas. Reg. §§ 1.1503-2(g)(2), 301.9100-3.

Full text (IRS public release)

Internal Revenue Service
Department of the Treasury

Number: 200102035
Washington, DC 20224
Release Date: 1/12/2001
Index Number: 9100.22-00
Person to Contact:
1503.04-04
Telephone Number:

In re: Refer Reply To:
CC:INTL:PLR-106003-00
Date:
October 12, 2000

LEGEND

Taxpayer
=
Affiliate #1
=
Affiliate #2
=
Individual A
=
Date A
=

Dear:

This replies to a letter dated March 10, 2000, in which Taxpayer requests an extension of time under Treas. Reg. § 301.9100-3 to file the agreement and certifications described in § 1.1503-2(g)(2) with respect to Affiliates #1 and #2 for the tax year ended on Date A. Additional information was submitted in a letter dated October 3, 2000. The information submitted for consideration is substantially as set forth below.

The ruling contained in this letter is predicated upon facts and representations submitted by the taxpayer and accompanied by a penalty of perjury statement executed by an appropriate party. This office has not verified any of the material submitted in support of the request for a ruling. Verification of the factual information, representations, and other data may be required as a part of the audit process.

Individual A was hired as a tax consultant to handle senior level tax compliance responsibilities. However, he inadvertently failed to include the dual consolidated losses of Affiliates #1 and #2 in the dual consolidated loss elections for the tax year ended on Date A. Taxpayer is requesting relief before the failure to make the dual consolidated loss elections was discovered by the IRS.

Treas. Reg. § 301.9100-1(c) provides that the Commissioner may grant a taxpayer a reasonable extension of time to make a regulatory election under all subtitles of the Internal Revenue Code except subtitles E, G, H, and I under the standards set forth in
§ 301.9100-3
 2

In re: PLR-106003-00

Treas. Reg. § 301.9100 -1(b) defines a regulatory election as an election whose due date is prescribed by a regulation, a revenue ruling, revenue procedure, notice, or announcement.

Treas. Reg. § 301.9100-3 provides standards for extensions of time for making regulatory elections.

Treas. Reg. § 301.9100-3(a) provides that requests for relief subject to this section 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 acted reasonably and in good faith, and the grant of relief will not prejudice the interests of the Government.

In the present situation, § 1.1503-2(g)(2) fixes the time to file the agreement and certifications. Therefore, the Commissioner has discretionary authority under § 301.9100–1(c) to grant Taxpayer an extension of time, provided that Taxpayer satisfies the standards set forth in § 301.9100-3(a).

Based on the facts and circumstances of this case, we conclude that Taxpayer satisfies § 301.9100-3(a). Accordingly, Taxpayer is granted an extension of time until 30 days from the date of this ruling letter to file the agreement and certifications described in § 1.1503-2(g)(2) with respect to Affiliates #1 and #2 for the tax year ended on Date A. The granting of an extension of time to file the agreement and certifications is not a determination that Taxpayer is otherwise eligible to make the election § 301.9100-1(a).

This ruling is directed only to the taxpayer who requested it. I.R.C. § 6110(k)(3) provides that it may not be used or cited as precedent.

No ruling has been requested, and none is expressed, as to the application of any other section of the Code or regulations to the facts presented.

Pursuant to a power of attorney on file in this office, a copy of this letter is being sent to Taxpayer.

Sincerely,
Allen Goldstein, Reviewer
Office of the Associate Chief Counsel (International)