PLR 200216024: Thirty-day extension to file dual consolidated loss elections

Plain-English summary

A taxpayer missed elections for a subsidiary's dual consolidated losses in two tax years and an annual certification for the earlier losses. It requested an extension before the IRS discovered the missed filings. The IRS found that the taxpayer met the good faith and no-prejudice standards for relief under Treas. Reg. § 301.9100-3. It granted 30 days from the ruling date to file the elections and certification. The extension does not decide whether the taxpayer otherwise qualifies to make those filings.

Ruling snapshot

• Question: May the taxpayer file late dual consolidated loss elections and an annual certification?
• Outcome: Approved: 30 days from the letter date to file, without a ruling on underlying eligibility
• 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: 200216024
Washington, DC 20224
Release Date: 4/19/2002
Index Number: 9100.22-00
Person to Contact:
1503.04-04
Telephone Number:

Refer Reply To:
CC:INTL:PLR-152371-01
Date:
January 22, 2002

In re:

LEGEND

Taxpayer
=

Subsidiary
=

Date A
=

Date B
=

Individual A
=

Dear
:

This replies to your letter dated September 20, 2001, submitted on behalf of Taxpayer, requesting that Taxpayer be granted an extension of time under Treas. Reg.
§ 301.9100-3 to file the elections required under § 1.1503-2(g)(2)(i) with respect to the dual consolidated losses of Subsidiary occurring in the tax years ended on Dates A and B, and to file the annual certification required under § 1.1503-2(g)(2)(vi)(B) with respect to the Date A losses, which was required to be filed with the tax return for the tax year ended on Date B. 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.

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In re: PLR-152371-01

Individual A is an Officer of Taxpayer. The affidavit of Individual A and the facts submitted describe the circumstances surrounding the discovery and failure to file the elections and annual certification as required under § 1.1503-2(g)(2). Taxpayer is requesting relief before the failure to file the elections and annual certification have been discovered by the IRS.

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, § 1.1503-2(g)(2) fixes the time to file the agreements and the annual certification. 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 elections required under § 1.1503- 2(g)(2)(i) with respect to the dual consolidated losses of Subsidiary occurring in the tax years ended on Dates A and B, and to file the annual certification required under
§ 1.1503-2(g)(2)(vi)(B) with respect to the Date A losses, which was required to be filed with the tax return for the tax year ended on Date B.

The granting of an extension of time is not a determination that Taxpayer is otherwise eligible to file the elections and annual certification. § 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.

A copy of this ruling letter should be associated with the elections and annual certification. No ruling has been requested, and none is expressed, as to the application of any

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In re: PLR-152371-01

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 and the other authorized representative.

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