PLR 1038007: IRS granted more time to file a duplicate Form 3115

Plain-English summary

A taxpayer timely filed an original Form 3115 to change its accounting method for internally developed computer software but inadvertently failed to file the required duplicate with the IRS national office. The IRS granted 60 calendar days from the ruling date to file the signed duplicate copy. The relief was granted under the procedures for extending the time to make a regulatory election. The ruling did not decide whether the taxpayer otherwise qualified to use the accounting-method procedure.

Ruling snapshot

• Question: Could the taxpayer receive additional time to file the duplicate signed copy of Form 3115?
• Outcome: Approved
• Key authorities: IRC § 446(e); Treas. Reg. §§ 301.9100-1 through 301.9100-3; Rev. Proc. 2008-52

Full text (IRS public release)

Internal Revenue Service Department of the Treasury
Washington, DC 20224

Number: 201038007 Third Party Communication: None
Release Date: 9/24/2010 Date of Communication: Not Applicable
Index Number: 9100.10-01
Person To Contact:
----------------------------------------------------- ---------------------, ID No. -------------
------------------------ Telephone Number:
------------------------------------------ ---------------------
---------------------------------------- Refer Reply To:
CC:ITA:B07
PLR-102660-10
Date:
June 11, 2010

Re: ----------------------------------------------------------------------------

Taxpayer = --------------------------------------------------
Date1 = ---------------------------

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

   This letter responds to a letter dated December 14, 2009, submitted by Taxpayer

requesting an extension of time pursuant to § 301.9100-3 of the Procedure and
Administration Regulations to file the required duplicate copy (with signature) of Form
3115, Application for Change in Accounting Method, with the Internal Revenue Service
(IRS) national office.

FACTS

     Taxpayer represents that the facts are as follows:

   Taxpayer timely filed its federal income tax return for the taxable year ended

Date 1, along with an original Form 3115 filed under section 9.01 of the Appendix of
Rev. Proc. 2008-52, 2008-36 I.R.B. 587, as amplified, clarified, and modified by Rev.
Proc. 2009-39, 2009-38 I.R.B. 371, to change its method of accounting for internally
developed computer software. Taxpayer recently discovered, however, that it
inadvertently failed to file a duplicate of the Form 3115 with the IRS national office as
required by section 6.02(3)(a) of Rev. Proc. 2008-52.

RULING REQUESTED

PLR-102660-10 2

  Taxpayer requests an extension of time pursuant to § 301.9100-3 of the

Procedure and Administration Regulations to file a copy (with signature) of the Form
3115 at issue with the IRS national office.

LAW AND ANALYSIS

    Rev. Proc. 2008-52 provides the procedures by which a taxpayer may obtain

automatic consent to change certain methods of accounting. A taxpayer complying with
all the applicable provisions of this revenue procedure has obtained the consent of the
Commissioner of Internal Revenue to change the taxpayer’s method of accounting
under § 446(e) of the Internal Revenue Code and the regulations thereunder.

    Section 6.02(3)(a) of Rev. Proc. 2008-52 provides that a taxpayer changing a

method of accounting pursuant to Rev. Proc. 2008-52 must complete and file a Form
3115 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.

   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 the grant of
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 is granted 60 calendar days from the date of this letter to file the required
duplicate copy (with signature) of the Form 3115 at issue with the IRS national office.
Please attach a copy of this ruling to the copy of the Form 3115 when it is filed.

PLR-102660-10 3

   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. Specifically, no opinion is expressed or implied concerning
whether Taxpayer is qualified to file the Form 3115 at issue under Rev. Proc. 2008-52
or whether Taxpayer otherwise meets the requirements of Rev. Proc. 2008-52,
including those in section 9.01 of the Appendix of Rev. Proc. 2008-52.

  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
appropriate Industry Director, LMSB.

  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,


                                             KATHLEEN REED


                                             KATHLEEN REED
                                             Chief, Branch 7
                                             Office of Associate Chief Counsel
                                             (Income Tax and Accounting)

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

cc: