Ezel / IRS Rulings / 201142024

CCA 201142024: Changing the business form does not accelerate the section 6166 election

Number
201142024
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Extension of Time to Pay Estate Tax
Topics
Procedure, penalties, and administration
Code sections
§ 6166
Ruling dated
October 11, 2011
Publicly released
October 21, 2011
Source
View Official PDF

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This page covers legal advice the IRS Office of Chief Counsel wrote for IRS staff, issued in 2011, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.

Currency note: this determination was released in 2011
Statutory amendments, regulation changes, court decisions, or later IRS guidance may have changed the analysis since then. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, threshold, or position mentioned here.
Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It is advice from the IRS Office of Chief Counsel to IRS personnel on the facts they presented, 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

Chief Counsel advised that changing the form of the business holding a closely held interest would not accelerate the section 6166 election. Although section 6166(g) covers interests that are distributed, sold, exchanged, or otherwise disposed of, a change in the form of the business would not be a true divestment from the gross estate.

Ruling snapshot

  • Question: Does changing the form of a business holding a closely held interest accelerate the section 6166 election?
  • Outcome: Advice given
  • Key authorities: IRC § 6166(g)

Full text (IRS public release)

ID: CCA_2011101110042947 Number: 201142024
Release Date: 10/21/2011
Office: -------------
UILC: 6166.00-00

From: -----------------------
Sent: Tuesday, October 11, 2011 10:04:31 AM
To: -------------------
Cc:
Subject: FW: 6166 question

Hi -----------I would not think this would accelerate the section 6166 election. 6166(g) applies where the interest in a closely held business is "distributed, sold, exchanged, or otherwise disposed of". This is broad language meant to encompass different ways that interest ceases to form a part of the gross estate. A change in the form of business holding the subject property would not qualify as a true divestment of the interest in the property from the gross estate.

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