PLR 200234036: Former resident gets more time to request an expatriation ruling

Plain-English summary

A former U.S. permanent resident surrendered his green card and missed the deadline to request an expatriation ruling under IRC § 877 and Notice 97-19. He asked for an extension before the IRS discovered the missed deadline. The IRS found that he met the standards for late filing relief and gave him 30 days from the letter date to submit the ruling request. This letter grants time to request a ruling; it does not decide his tax consequences under § 877.

Ruling snapshot

• Question: May the former resident submit his § 877 ruling request after the original deadline?
• Outcome: Approved: 30 days from the letter date to submit the request
• Key authorities: IRC § 877; Treas. Reg. § 301.9100-3; Notices 97-19 and 98-34

Full text (IRS public release)

Internal Revenue Service
Department of the Treasury

Number: 200234036
Washington, DC 20224
Release Date: 8/23/2002
Index Number: 9100.22-00
Person to Contact:
877.08-00
Telephone Number:

Refer Reply To:
CC:INTL:PLR-161057-01
Date:
May 16, 2002

LEGEND

Taxpayer
=

Date A
=

Foreign Country
=

Dear
:

This replies to a letter dated November 1, 2001, requesting that Taxpayer be granted an extension of time under Treas. Reg. § 301.9100-3 to submit a ruling request provided by I.R.C. § 877 and Section IV of Notice 97-19, as modified by Notice 98-34. 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 Taxpayer and accompanied by a penalty of perjury statement executed by Taxpayer. 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.

Taxpayer was born in Foreign Country. Taxpayer surrendered his green card on Date A. On the date of expatriation, Taxpayer was a resident and citizen of Foreign Country. Taxpayer has been and will be fully liable to tax in Foreign Country by reason of his residency there. During each year of the 10-year period prior to expatriation, Taxpayer was present in the United States for no more than 30 days.

The facts describe the circumstances that led to the discovery of Taxpayer’s failure to submit a ruling request within one year of Date A. Taxpayer is requesting relief prior to the discovery by the Internal Revenue Service that Taxpayer failed to submit such a ruling request.

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 2
In re: PLR-161057-01

announcement.

Treas. Reg. § 301.9100-1(c) provides that the Commissioner has discretion to grant a taxpayer a reasonable extension of time, under the standards 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, Section IV of Notice 97-19 fixes the time for an individual to submit a ruling request under I.R.C. § 877. 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 submit a ruling request provided by I.R.C. § 877 and Section IV of Notice 97-19, as modified by Notice 98-34.

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. Specifically, no opinion is expressed as to the tax consequences under I.R.C. § 877.

A copy of this ruling letter should be associated with the ruling request filed pursuant to Notice 97-19.

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.

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

Sincerely,

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