PLR 200548001: Company gets 45 days to correct dual consolidated loss filings

Number

200548001

Outcome

Approved

Document type

Private Letter Ruling

IRS subject

Late dual consolidated loss election agreements and certifications

Topics

Late election relief (§ 9100) Corporate transactions and reorganizations

Code sections

§ 1503

Ruling dated

August 29, 2005

Publicly released

December 2, 2005

Source

View Official PDF

Apply this to your situation

This page covers one taxpayer's ruling, issued in 2005, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.

Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It resolved one taxpayer's situation on its specific facts, and identifying details were redacted by the IRS before release. The official IRS release (linked on this page as a PDF) is the authoritative source.

About this page: The plain-English summary and ruling snapshot below were written by Ezel based on the official IRS release. The full text is the IRS's own document.

View official IRS release (PDF)

Plain-English summary

A company and its advisers found missing or inaccurate dual consolidated loss filings while reviewing prior years after a triggering event. They attributed the errors to uncertainty about the filing rules for partnerships and the company's reliance on its tax adviser. The IRS granted 45 days to file the election agreements and annual certifications identified in the ruling's schedule. It did not decide whether the company was otherwise eligible to file them. The schedule identifies the affected entities and years, although their names and dates are redacted in the public release.

Ruling snapshot

Question: Could the company file late dual consolidated loss election agreements and annual certifications for the entities and years in Schedule A?
Outcome: Approved: 45 days to file the listed documents; underlying eligibility was not decided.
Key authorities: Treas. Reg. §§ 1.1503-2(g)(2), 301.9100-3.

Full text (IRS public release)

Internal Revenue Service
Department of the Treasury
Washington, DC 20224
Number: 200548001
[Third Party Communication:
Release Date: 12/2/2005
Date of Communication: Month DD, YYYY]
Index Number: 9100.22-00, 1503.04-04
Person To Contact:
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-------------------------, ID No. -----------------
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Telephone Number:
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In Re:
Refer Reply To:
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CC:INTL:B02
---------------------------------
PLR-105442-03
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Date:
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August 29, 2005

LEGEND

Taxpayer = --------------------------------------------
Individual A = -----------------------
Individual B = -----------------------
Tax Advisor = -------------------
Year C = -------
Date D = -----------------------

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

This replies to a letter dated December 20, 2002 in which Taxpayer requests an extension of time under Treas. Reg. §301.9100-3 to file the election and agreement described in §1.1503-2(g)(2)(i), and the annual certification described in §1.1503- 2(g)(2)(vi)(B) in accordance with Schedule A, which is attached to and made a part of this ruling letter. Additional information was submitted in a letter dated June 3, 2005. The information submitted for consideration is substantially as set forth below.

Individual A has held various positions with the predecessor companies of Taxpayer and has held the position of tax counsel since Year C. Individual B is a tax partner with Tax Advisor. On Date D a triggering event occurred with respect to the dual consolidated loses of Taxpayer. In conjunction with preparation of the closing agreement, Tax Advisor reviewed the dual consolidated loss filings for all prior years and discovered issues with some of the certifications. In an affidavit, Individual A states that ambiguities in the regulations with respect to filing requirements for partnerships resulted in reporting inaccurate amounts in some instances and in the failure to file certifications that should have been filed in other instances. Individual B confirms in an affidavit that it was in conjunction with filing the request for a closing agreement that Tax Advisor identified these discrepancies. Individual B further states that Taxpayer reasonably relied on Tax Advisor to make the necessary filings and when it was
PLR-105442-03
2

determined there was a more accurate interpretation of the filing requirements, Tax Advisor recommended seeking relief under §301.9100 to rectify the situation.

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, 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, the election agreement and annual certification described in
§1.1503-2(g)(2) 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 information submitted, we conclude that Taxpayer satisfies
§301.9100-3(a). Accordingly, Taxpayer is granted an extension of time of 45 days from the date of this ruling letter to file the election agreements described in §1.1503- 2(g)(2)(i), and the annual certifications described in §1.1503-2(g)(2)(vi)(B) in accordance with Schedule A.

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

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, including the information listed on Schedule A which has been made a part of this ruling letter, may be required as a part of the audit process.

A copy of this ruling letter should be associated with the election agreements and annual certifications.
PLR-105442-03
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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 Taxpayer and the other authorized representative.

Sincerely,

Thomas D. Beem
Senior Technical Reviewer, Branch 4
Office of Associate Chief Counsel (International)

Enclosure: Schedule A

cc: ------------------------

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PLR-105442-03
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SCHEDULE A

Taxpayer requested an extension of time to file the election and agreement described in Treas. Reg. § 1.1502-2T(g)(2)(i) (indicated in the table below as “g2”) and/or the annual certification described in Treas. Reg. § 1.1503-2T(g)(2)(vi)(B)(indicated in the table below as “ac”) with respect to the dual resident corporations and separate units shown below. The years shown in the table indicate the tax return on which the election, agreement, or certification should have been filed.

Dual Resident
-------- --------- -------- -------- -------- -------- --------
Corporation or Separate - - - - - - Unit
------------------------------------ g2 g2/ac g2/ac g2/ac g2/ac g2/ac
------------------------------------
------------------------------------
--------
------------------------------------ g2 g2/ac g2/ac
----------------------
------------------------------------
------------------------------------
--------

------------------------------------ g2 g2/ac g2/ac
---------------------
------------------------------------
-------------------

------------------------------------ g2 g2/ac g2/ac g2/ac g2/ac
------------------------------------
-----------------------------------
PLR-105442-03
5

Dual Resident
-------- --------- -------- -------- -------- -------- --------
Corporation or Separate - - - - - - Unit
------------------------------------ g2 g2/ac g2/ac
------------------------------------
------------------------------------
----------------------------------
--------------------------------- g2 g2/ac g2/ac
------------------------------------
-----------------------------------

------------------------------------ g2 g2/ac g2/ac g2/ac g2/ac
---------------------
------------------------------------
------------------------------------
-----------------

------------------------------------ g2 g2/ac
------------------------------------
----------------------------------
------------------------------------ g2 g2/ac
------------------------------------
------------------

------------------------------------ g2 g2/ac g2/ac g2/ac g2/ac
------------------------------------
------------------------------------
----------
------------------------------------ g2 g2/ac g2/ac
------------------------------------
------------------------------------
------------------------------------
----
------------------------------------ g2 g2/ac g2/ac
------------------------------------
------------------------------------
----------
------------------------------------ g2 g2/ac g2/ac g2/ac g2/ac
------------------------------------
------------------------------------
------------------------------------
----------------------
------------------------------------ g2 g2/ac
------------------------------------
------------------------------------
PLR-105442-03
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Dual Resident
-------- --------- -------- -------- -------- -------- --------
Corporation or Separate - - - - - - Unit
----------
------------------------------------ g2 g2/ac
------------------------------------
----------------------

------------------------------------ g2 g2/ac g2/ac g2/ac g2/ac g2/ac
------------------------------------
------------------------------------
------------------------------
------------------------------------ g2 g2/ac g2/ac
------------------------------------
------------------------------------
------------------------------------
----------------
------------------------------------ g2 g2/ac g2/ac
------------------------------------
------------------------------------
------------------------------
------------------------------------ g2 g2/ac g2/ac g2/ac g2/ac g2/ac
------------------------------------
------------------------------------
------------------------------------
------------------------------------
-----------------
------------------------------------ g2 g2/ac g2/ac
------------------------------------
------------------------------------
------------------------------
------------------------------------ g2 g2/ac g2/ac
------------------------------------
------------------------------------
-----------------

------------------------------------ g2 g2/ac g2/ac g2/ac ac ac ac
------------------------------------
------------------------------------
----------------------
------------------------------------ g2 g2/ac g2/ac
------------------------------------
------------------------------------
------------------------------------
-----
PLR-105442-03
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Dual Resident
-------- --------- -------- -------- -------- -------- --------
Corporation or Separate - - - - - - Unit
------------------------------------ g2 g2/ac g2/ac
------------------------------------
------------------------------------
----------------------
------------------------------------ g2 g2/ac g2/ac g2/ac ac ac ac
------------------------------------
--------------------------------
------------------------------------
----------------------

------------------------------------ g2 ac ac ac
------------------------------------
------------------------------------
----------------------
------------------------------------ g2 ac ac ac
------------------------------------
----------------------
------------------------------------ g2/ac ac g2/ac ac ac ac
------------------------------------
(12/31)
------------------------------------
----------------------

------------------------------------ ac ac ac ac ac ac
------------------------------------
------------------------------------
------------------------------------
--------

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