PLR 200430027: Late historic building certification application treated as timely

Plain-English summary

A property owner planned to claim the historic rehabilitation credit for several buildings. A consultant filed a form with the state historic preservation officer, but neither the owner nor the consultant filed the required historic status application with the National Park Service before the property was placed in service. The owner said he learned of that requirement only after the state officer notified him. The IRS granted relief under the section 301.9100 regulations and treated the application as timely for purposes of the historic structure rule in section 1.48-12(d)(1) of the regulations.

Ruling snapshot

• Question: Could a late historic status application be treated as timely for the rehabilitation credit rules?
• Outcome: Approved; the application was treated as timely filed.
• Key authorities: IRC § 47; Treas. Reg. §§ 1.48-12(d)(1), 301.9100-3.

Full text (IRS public release)

Internal Revenue Service
Department of the Treasury
Washington, DC 20224
Number: 200430027
Release Date: 7/23/04
Index Number: 9100.00-00

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Person To Contact:
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Telephone Number:
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Refer Reply To:
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CC:PSI:6 – PLR-171462-03
Date:
April 02, 2004

Re:----------------------------------------------------------------------------------------------------------------
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Taxpayer = ------------------------
Property = --------------------------
Location = -----------------------------------------------------------------------------------------------
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A = ------------------------
B = -------
Consultant = ------------------
Application = -------------------------------------------------------- C = ---------------- F = --------------------- G = ------------------------- H = -------

Dear ------------------:

This letter responds to a letter dated November 10, 2003, requesting an extension of time pursuant to ' 301.9100-3 of the Procedure and Administration Regulations for Taxpayer to file an application for certification of historic status with the United States Department of Interior for purposes of § 47(a)(2) of the Internal Revenue Code.

Taxpayer represents the following facts:

Taxpayer is the owner of the several buildings known as the Property, located at Location. Taxpayer operates the property as a A.

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In B, Taxpayer hired Consultant to file the Application with the state historical preservation officer (“SHPO”). Consultant timely filed this form. However, neither Taxpayer nor Consultant filed the application for certification of historic status (the “application”) with the National Park Service, Department of Interior (”NPS”).

The property was placed on service in C.

Taxpayer represents that he was unaware of the requirement to file the application with the NPS before the property was placed in service, as required by ' 1.48-12(d)(1) of the Income Tax Regulations. Taxpayer first became aware of the filing requirement upon notification by the SHPO.

Taxpayer intended to claim historic rehabilitation credit attributable to the rehabilitation. However, as discussed, Taxpayer did not learn of the requirement to file the application with the NPS before the Property was placed in service until notified by the SHPO. Taxpayer filed the application with the SHPO on G, and the NPS acknowledged receipt of the Taxpayer's application on F. Taxpayer submitted the request for an extension of time under ' 301.9100-3 on November 10, 2003.

LAW AND ANALYSIS

Section 47(a)(2) provides that the rehabilitation credit for any taxable year includes an amount equal to 20 percent of the qualified rehabilitation expenditures with respect to any certified historic structure.

Section 47(c)(3)(A) provides that the term "certified historic structure" means any building 1) listed in the National Register of Historic Places, or 2) located in a registered historic district and certified by the Secretary of the Interior as being of historic significance to the district.

Section 1.48-12(d)(1) of the regulations provides that a building shall be considered to be a certified historic structure at the time it is placed in service if the taxpayer reasonably believes on that date the building will be determined to be a certified historic structure and has requested on or before that date a determination from the U.S. Department of the Interior that such a building is a certified historic structure within the meaning of the historic rehabilitation credit provisions, and the U.S. Department of Interior later determines that the building is a certified historic structure.

Section 301.9100-1(c) provides that the Commissioner may grant a reasonable extension of time under the rules set forth in '' 301.9100-2 and 301.9100-3 to make a regulatory election, or a statutory election (but no more than six months except in the case of a taxpayer who is abroad), under all subtitles of the Code, except subtitles E, G, H, and I.

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Section 301.9100-1(b) provides that the term "election" includes an application for relief in respect of tax.

Sections 301.9100-2 and 301.9100-3 provide the standards the Commissioner will use to determine whether to grant an extension of time to make an election. Section 301.9100-2 provides automatic extensions of time for making certain elections. Section 301.9100-3 provides extensions of time for making elections that do not meet the requirements of ' 301.9100-2. A request for relief under ' 301.9100-3 will be granted when the taxpayer provides evidence to establish to the satisfaction of the Commissioner that the taxpayer acted reasonably and in good faith, and that granting relief will not prejudice the interests of the government.

CONCLUSIONS

Based solely on the facts and representations submitted, we conclude that the requirements of '' 301.9100-1 and 301.9100-3 have been satisfied. Accordingly, Taxpayer's application will be considered timely filed for purposes of ' 1.48-12(d)(1). A copy of this letter should be sent to the appropriate service center with a request that it be attached to Taxpayer's amended H tax return. A copy is enclosed for that purpose.

Except as specifically set forth above, we express no opinion concerning the federal income tax consequences of the facts described above under any other provisions of the Code.

In accordance with the power of attorney, we are sending a copy of this letter to Taxpayer=s authorized representative. We are also sending a copy of this letter to the SB/SE Official.

This ruling is directed only to the taxpayer requesting it. Section 6110(k)(3) provides that it may not be used or cited as precedent.

Sincerely,

HEATHER C. MALOY
Associate Chief Counsel
(Passthroughs and Special Industries)

Enclosures (2): copy of this letter copy for section 6110 purposes