PLR 200232017: Taxpayer receives more time to file dual consolidated loss elections and certifications

Plain-English summary

A taxpayer asked for more time to file elections, agreements, and annual certifications concerning an entity's dual consolidated losses for specified tax years. The IRS treated these filings as regulatory elections and applied the relief standards in Treasury Regulation § 301.9100-3. Because the taxpayer satisfied the requirements of acting reasonably and in good faith without prejudicing the government, the IRS granted an extension until 30 days after the ruling letter. The extension did not determine whether the taxpayer was otherwise eligible to make the elections or file the certifications.

Ruling snapshot

• Question: May the taxpayer file its dual consolidated loss elections, agreements, and annual certifications after the original deadlines?
• Outcome: Approved, with a 30 day extension from the ruling letter
• Key authorities: IRC § 1503; Treas. Reg. §§ 301.9100-1 and 301.9100-3

Full text (IRS public release)

Internal Revenue Service
Department of the Treasury

Number: 200232017
Washington, DC 20224
Release Date: 8/9/2002
Index Number: 9100.22-00
Person to Contact:
1503.04-04
Telephone Number:

Refer Reply To:
CC:INTL:PLR-156854-01
Date:
May 3, 2002

LEGEND

Taxpayer
=

Entity
=

Tax Years A, B C, D, E, F =

Individual A
=

Dear
:

This replies to a letter dated October 8, 2001, submitted by your authorized representative, requesting that Taxpayer be granted an extension of time under Treas. Reg.§ 301.9100-3 to file elections and agreements under § 1.1503-2(g)(2)(i) with respect to the dual consolidated losses of Entity occurring in Tax Years A through F; and to file annual certifications under § 1.1503-2(g)(2)(vi)(B) with respect to those losses in Tax Years B through F. Additional information was submitted in a letter dated May 2, 2002. 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.

Individuals A is the tax director of Taxpayer. Individual A’s affidavit and the facts submitted describe the circumstances surrounding the failure to comply with the requirements for filing the elections and agreements, and the annual certifications under § 1.1503-2(g)(2) for the tax years at issue.

Treas. Reg. § 301.9100 -1(b) provides that an election includes an application for relief in respect of tax, and defines a regulatory election as an election whose due date is prescribed by a regulation, a revenue ruling, revenue procedure, notice, or announcement. 2

In re: PLR-156854-01

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 elections and agreements, and the annual certifications 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 elections and agreements under
§ 1.1503-2(g)(2)(i) with respect to the dual consolidated losses of Entity occurring in Tax Years A through F; and to file annual certifications under § 1.1503-2(g)(2)(vi)(B) with respect to those losses in Tax Years B through F.

The granting of an extension of time is not a determination that Taxpayer is otherwise eligible to file the elections and agreements, and the annual certifications. § 301.9100- 1(a).

A copy of this ruling letter should be associated with the agreements and annual certifications.

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 ruling letter is being furnished to your authorized representative.

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