CCA 201321021: Appeals may accept an amended return for a late real-estate election

Plain-English summary

Chief Counsel Advice addresses a procedural requirement for relief under Rev. Proc. 2011-34. That procedure allows certain taxpayers to make a late election under Treas. Reg. § 1.469-9(g) to treat all interests in rental real estate as one rental real-estate activity. The advice concludes that Appeals may accept the amended return required by the revenue procedure if Appeals otherwise has authority to accept amended returns from the taxpayer.

Ruling snapshot

• Question: May Appeals accept the amended return required for relief under Rev. Proc. 2011-34?
• Outcome: Advice given. Appeals may accept it when Appeals otherwise has authority to accept the taxpayer's amended returns.
• Key authorities: IRC § 469; Treas. Reg. § 1.469-9(g); Rev. Proc. 2011-34; IRC § 6110(k)(3).

Full text (IRS public release)

ID: CCA_2013050114164761
Office: -----------------
UILC: 469.14-00
Number: 201321021
Release Date: 5/24/2013
From: ----------------------
Sent: Wednesday, May 01, 2013 2:16:59 PM
To: -------------------
Cc: -------------------------------------------------------------------------------------- Subject: RE: Rev. Proc. 2011-34

Dear --

You have requested our interpretation of one of the procedural requirements for obtaining relief under Revenue Procedure 2011-34, which provides guidance under § 1.469-9(g) of the Income Tax Regulations allowing certain taxpayers to make late elections to treat all interests in rental real estate as a single rental real estate activity. In particular, section 4.02 of Rev. Proc. 2011-34 provides in part that to obtain relief, "The taxpayer must attach the statement required by § 1.469-9(g)(3) to an amended return for the most recent tax year and mail the amended return to the IRS service center where the taxpayer will file its current year tax return." You have asked whether, if Appeals otherwise has authority to accept amended returns from a taxpayer, Appeals may accept the amended return required by section 4.02 of Rev. Proc. 2011-34.

Our view is if Appeals otherwise has authority to accept amended returns from a taxpayer, Appeals may accept the amended return required by section 4.02 of Rev. Proc. 2011-34.

We appreciate the opportunity to provide assistance to you.