PLR 1128002: IRS grants extra time to file a duplicate Form 3115

Plain-English summary

A partnership asked the IRS for more time to file a signed duplicate copy of Form 3115, which it had used to request an automatic change in accounting method for depreciation. The partnership attached the original form to its timely filed tax return but, because of a miscommunication with its firm, did not timely send the duplicate to the IRS national office. The IRS found that the taxpayer acted reasonably and in good faith and that granting relief would not prejudice the government. It granted 60 calendar days from the ruling date to file the signed duplicate copy. The ruling did not decide whether the taxpayer otherwise qualified for the accounting-method change.

Ruling snapshot

• Question: Could the taxpayer receive an extension to file the signed duplicate copy of Form 3115 after missing the filing deadline?
• Outcome: approved
• Key authorities: IRC §§ 446(e) and 6110(k)(3); Treas. Reg. §§ 301.9100-1 and 301.9100-3; Rev. Proc. 2008-52, as modified by Rev. Proc. 2009-39

Full text (IRS public release)

Internal Revenue Service Department of the Treasury
Washington, DC 20224

Number: 201128002 Third Party Communication: None
Release Date: 7/15/2011 Date of Communication: Not Applicable
Person To Contact:
Index Number: 9100.00-00, 9100.10-00, ---------------------------, ID No. ----------------
9100.04-00 -----------------
Telephone Number:
---------------------
----------------------- Refer Reply To:
-------------------------------- CC:ITA:B07
--------------------------- PLR-100539-11
Attn: -------------------- Date:
--------------------------- April 05, 2011

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

Firm =----------------

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

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

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

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

This ruling responds to a letter dated October 26, 2010, submitted by Taxpayer
requesting an extension of time pursuant to §§ 301.9100-1 and 301.9100-3 of the
Procedure and Administration Regulations to file a duplicate copy (with signature) of a
Form 3115, Application for Change in Accounting Method, with the Internal Revenue
Service (IRS) national office.

Facts

Taxpayer, a limited liability company taxed as a partnership, timely filed its federal tax
return for the taxable year ending Date 1 along with the original of a Form 3115 to
change its method of accounting for depreciation of certain property under the
automatic procedures of Rev. Proc. 2008-52, 2008-2 C.B. 587, as amplified, clarified,
and modified by Rev. Proc. 2009-39, 2009-2 C.B. 371. However, Taxpayer failed to file
a signed duplicate copy of the Form 3115 with the IRS national office as required by
section 6.02(3)(a) of Rev. Proc 2008-52. Firm assisted Taxpayer in the preparation of
the Form 3115. Firm advised Taxpayer to attach the original Form 3115 to Taxpayer’s
federal tax return and to file the federal tax return before Date 2, the due date of the
PLR-100539-11 2

return for the taxable year ending Date 1. Firm advised Taxpayer either to send the
duplicate copy of the Form 3115 back to Firm so that Firm could hand deliver the
duplicate copy to the IRS national office before Date 2, or to mail the duplicate copy of
the Form 3115 directly to the IRS national office at the address provided in Rev. Proc.
2008-52, via certified mail, postmarked no later than Date 2. Because of a
miscommunication between Taxpayer and Firm, Taxpayer mailed the duplicate copy of
the Form 3115 to Firm on Date 2 with the understanding that Firm would file the
duplicate copy with the IRS national office. Firm received the duplicate copy on Date 3,
which precluded it from filing the duplicate copy with the IRS national office on or before
the date of Taxpayer’s timely filed tax return. Upon learning that the duplicate copy of
the Form 3115 was not timely filed with the IRS national office, Taxpayer submitted this
request for relief under §§ 301.9100-1 and 301.9100-3.

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 Income Tax 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(c), 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. Section 301.9100-1(b) defines a regulatory election as an election
whose due date is prescribed by a regulation published in the Federal Register, or a
revenue ruling, revenue procedure, notice, or announcement published in the Internal
Revenue Bulletin.

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.
PLR-100539-11 3

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 required duplicate copy
of the Form 3115 (with signature) with the IRS national office for the taxable year ended
Date 1. Please attach this ruling letter to the copy.

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 for the change in method of accounting for
depreciation of certain property under Rev. Proc. 2008-52, or whether Taxpayer
otherwise meets the requirements of Rev. Proc. 2008-52.

The ruling contained in this letter is based upon information and representations
submitted by 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 a ruling, it is subject to verification on examination.

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.

In accordance with the Power of Attorney on file with this office, a copy of this letter is
being sent to Taxpayer’s authorized representatives.

                                   Sincerely,



                                   Willie E. Armstrong, Jr.
                                   Senior Technician Reviewer, Branch 7
                                   (Income Tax & Accounting)

Enclosure:
Copy for section 6110 purposes

cc: