Taxpayer granted 60 days to file the correct Form 3115

Plain-English summary

The IRS granted a taxpayer an extension of time to file the signed original of Form 3115, Application for Change in Accounting Method. The taxpayer had submitted the correct signed duplicate to the IRS National Office but accidentally attached a different Form 3115 to its electronically filed return. The IRS concluded that the taxpayer acted reasonably and in good faith and that relief would not prejudice the government. The taxpayer received 60 calendar days from the ruling date to file the original form.

Ruling snapshot

• Question: Could the taxpayer receive additional time to file the correct signed original Form 3115?
• Outcome: Approved
• Key authorities: Treas. Reg. §§ 301.9100-1, 301.9100-2, and 301.9100-3; Rev. Proc. 2008-52

Full text (IRS public release)

Internal Revenue Service Department of the Treasury
Washington, DC 20224

Number: 201023052 Third Party Communication: None
Release Date: 6/11/2010 Date of Communication: Not Applicable
Index Number: 9100.00-00
Person To Contact:
----------------------- ----------------, ID No. -------------
-------------------------------------------- Telephone Number:
------------------------------------ ---------------------
------------------------------------------- Refer Reply To:
-------------------------------------- CC:ITA:B03
PLR-154717-09
Date:
March 05, 2010

              TY: -------

Legend

Subsidiaries = -------------------------------------------

------------------------------------------------------------------

----------------------------------------------------------------------------------

Taxpayer = ---------------------------------------

Date 1 = --------------------------

Date 2 = ---------------------------

Date 3 = --------------------------

Date 4 = ---------------------------

Dear ------------------:
This letter responds to a letter dated --------------------------, submitted by Taxpayer on
behalf of Subsidiaries requesting an extension of time under § 301.9100-3 of the
Procedure and Administration Regulations to file Form 3115, Application for Change in
Accounting Method.
FACTS
Taxpayer is the parent corporation of a consolidated group of corporations that includes
Subsidiaries. Taxpayer filed a signed duplicate copy of a Form 3115 to change

PLR-154717-09 2

Subsidiaries’ method of accounting for advance payments under section 15.07 of Rev.
Proc. 2008-52, 2008-36 I.R.B. 587, as described under section 5.02 of Rev. Proc. 2004-
34, 2004-22 I.R.B. 991, 2004-1, with the IRS National Office on Date 2. Because
Taxpayer was under examination by the Internal Revenue Service, the filing was made
in accordance with the Director Consent provisions pursuant to section 6.03(4) of Rev.
Proc. 2008-52. On Date 3, three days prior to Date 2, the examining agent had
provided a signed statement to Taxpayer indicating that the requested accounting
method change was not an issue “under consideration” and that she did not object to
Taxpayer’s filing of the Form 3115. Taxpayer timely filed its federal income tax return
for the taxable year ending Date 1, on Date 4, through an electronic filing. Taxpayer’s
return reflected a change in Subsidiaries’ method of accounting for advance payments
pursuant to section 15.07 of Rev. Proc. 2008-52, as reflected on the Date 2 duplicate
filing and as reflected in the statement provided by the examining agent. However,
Taxpayer inadvertently attached an incorrect Form 3115 to the electronically filed
federal income tax return.

A member of Taxpayer’s federal consolidation group was responsible for scanning the
original Form 3115 into the electronically filed federal income tax return and scanned in
the wrong Form 3115. However, the duplicate copy of the correct Form 3115 was
properly submitted to the IRS National Office on Date 2. Approximately six weeks later
taxpayer discovered the error while assembling a file for documentation purposes.
Soon thereafter Taxpayer requested this relief.
RULING REQUESTED
Accordingly, Taxpayer requests that the Service grant an extension of time to file the
signed original Form 3115 in accordance with Rev. Proc. 2008-52, and that the Form
3115 be considered timely-filed under the authority contained in §§ 301.9100-1 and
301.9100-3 of the Procedure and Administration Regulations.
LAW AND ANALYSIS
Rev. Proc. 2008-52, 2008-2 C.B. 587 (as amplified, clarified and modified by Rev. Proc.
2009-39 and Announcement 2009-67) provides the procedures by which a taxpayer
may obtain automatic consent to change certain methods of accounting described in the
Appendix thereto.
Section 6.02(3) of Rev. Proc. 2008-52 requires a taxpayer making a change under the
automatic consent procedures to complete and file an application in duplicate. The
original must be attached to the taxpayer’s timely filed (including extensions) original
federal income tax return for the year of change, and a copy (with signature) of the
Form 3115 must be filed with the IRS National Office no earlier than the first day of the
year of change and no later than when the original is filed with the federal income tax
return for the year of change.
Under § 301.9100-1, the Commissioner has discretion to grant a reasonable extension
of time under the rules set forth in §§ 301.9100-2 and 301.9100-3 to make a regulatory
election.

PLR-154717-09 3

Sections 301.9100-1 through 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.
Section 301.9100-3(a) provides that requests 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 the representations submitted, we conclude that the
requirements of §§ 301.9100-1 and 301.9100-3 have been met. Accordingly, Taxpayer
is granted 60 calendar days from the date of this letter to file the original of the Form
3115 (with signature) in accordance with Rev. Proc. 2008-52.
Except as specifically ruled upon above, no opinion is expressed or implied concerning
the federal income tax consequences of the facts described above. Specifically, no
opinion is expressed or implied concerning (i) whether Taxpayer is qualified to file the
Form 3115 for the change in method of accounting for advance payments under Rev.
Proc. 2008-52; or (ii) whether the change in method of accounting that is the subject of
such Form 3115 qualifies under section 15.07 of Rev. Proc. 2008-52.

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.

In accordance with the Power of Attorney on file with this office, a copy of this letter is
being sent to your authorized representative.

The rulings contained in this letter are based upon information and representations
submitted by the taxpayer and accompanied by a penalty of perjury statement executed
by an appropriate party. While this office has not verified any of the material submitted
in support of the request for rulings, it is subject to verification on examination.

                                   Sincerely,



                                   Christopher F. Kane
                                   Branch Chief, Branch 3
                                   (Income Tax & Accounting)