PLR 200453008: IRS withdraws earlier section 897 ruling without retroactive effect

Plain-English summary

The IRS wrote to the representative of a taxpayer who had received an earlier private letter ruling. It said it was reconsidering that letter's first ruling, which applied IRC § 897 to liquidating distributions. The IRS withdrew that first ruling and its related discussion without retroactive effect. The letter does not state a replacement conclusion or address the other rulings in the earlier letter.

Ruling snapshot

• Question: What happens to the earlier letter's first ruling on § 897 and liquidating distributions?
• Outcome: Revocation of that ruling and related discussion, without retroactive effect.
• Key authorities: IRC § 897.

Full text (IRS public release)

Internal Revenue Service
Department of the Treasury
Washington, DC 20224
Number: 200453008
Third Party Communication: None
Release Date: 12/31/2004
Date of Communication: Not Applicable
Index Number: 897.09-00
Person To Contact:
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--------------------, ID No. -------------
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Telephone Number:
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Refer Reply To:
CC:INTL:B04
In Re:
PLR-150443-04
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Date:
PLR 9016021
September 27, 2004
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TY: ---------------

Legend

A = ---------------------------------------------------------------

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

This letter is in regards to the Private Letter Ruling, Project number INTL- 729-89 dated January 18, 1990, which was issued by Associate Chief Counsel (International), Branch 6, to A which you represented.

Please be advised that the first ruling in the above referenced Private Letter Ruling, i.e., the ruling applying section 897 of the Code to the liquidating distributions, and the discussion related to that ruling, are being reconsidered, and therefore, are withdrawn. The revocation of the first ruling in the Private Letter Ruling and of the discussion related to the first ruling is being applied without retroactive effect.

This letter is being sent to you pursuant to the power of attorney which was submitted with the original ruling request.

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

Sincerely,

Charles P. Besecky
Chief, Branch 4
(International)