PLR 200213022: Extra time to file dual consolidated loss statements

Plain-English summary

A taxpayer failed to file an election, agreement, and certifications for an entity's dual consolidated losses, as well as a later annual certification. The IRS had not discovered the omissions when the taxpayer sought relief. It found the taxpayer met the standards for an extension under Treas. Reg. § 301.9100-3 and gave it 30 days from the ruling date to file the missing statements. The IRS expressly left open whether the taxpayer was otherwise eligible to make those filings.

Ruling snapshot

• Question: Could the taxpayer file the missing dual consolidated loss statements after their deadlines?
• Outcome: Approved; 30 days from the ruling date to file.
• Key authorities: Treas. Reg. §§ 1.1503-2(g)(2), 301.9100-1, 301.9100-3.

Full text (IRS public release)

Internal Revenue Service
Department of the Treasury

Number: 200213022
Washington, DC 20224
Release Date: 3/29/2002
Index Number: 9100.22-00
Person to Contact:
1503.04-04
Telephone Number:

Refer Reply To:
CC:INTL:PLR-124080-01
Date:
January 2, 2002

In re:

LEGEND

Taxpayer
=

Entity
=

Dates A, B
=

Year X
=

Individual A, B, C =

CPA Firm
=

Dear :

This replies to your letter dated April 19, 2001, submitted on behalf of Taxpayer, requesting that Taxpayer be granted an extension of time under Treas. Reg.
§ 301.9100-3 to file the election, agreement and certifications required under § 1.1503- 2(g)(2)(i) with respect to the dual consolidated losses of Entity occurring in the tax year ended on Date A (or the Year X losses), and to file an annual certification with respect to the Year X losses that was required to be filed with the tax return for the tax year ended on Date B as required under § 1.1503-2(g)(2)(vi)(B). (Hereinafter the election, agreement and certification, as well as the annual certification will be referred to collectively sometimes as “the statements”.) 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.
2

In re: PLR-124080-01

Individuals A and B are employees of Taxpayer. Individual A is the Vice President of Tax, and Individual B is the domestic Director of Tax. Individual C is a tax partner with CPA Firm. The affidavits of Individuals A, B and C describe the circumstances surrounding the discovery and failure to file the statements. The IRS has not discovered Taxpayer’s failure to file the statements.

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

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, the statements are regulatory elections as defined in
§ 301.9100-1(b). Therefore, the Commissioner has discretionary authority under
§ 301.9100-1(c) to grant Taxpayer an extension of time, provided that Taxpayer satisfies the rules 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 election, agreement and certifications required under § 1.1503-2(g)(2)(i) with respect to the dual consolidated losses of Entity occurring in the tax year ended on Date A, and to file an annual certification with respect to the Year X losses that was required to be filed with the tax return for the tax year ended on Date B as required under § 1.1503-2(g)(2)(vi)(B).

The granting of an extension of time is not a determination that Taxpayer is otherwise eligible to file the statements. § 301.9100-1(a). A copy of this ruling letter should be associated with the statements.

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.
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In re: PLR-124080-01

Pursuant to a power of attorney on file in this office, a copy of this ruling letter is being furnished to Taxpayer and the other authorized representative.

Sincerely,

/s/ Allen Goldstein
Allen Goldstein
Reviewer
Office of the Associate Chief Counsel (International)