Late historic-status certification application treated as timely

Plain-English summary

A taxpayer renovated a property while relying on a consultant and accountant but did not learn until after the property was placed in service that the first part of its historic-preservation certification application should already have been filed. The IRS concluded that the taxpayer met the standards for discretionary filing relief. It therefore treated the application as timely for purposes of determining whether the property could qualify as a certified historic structure for the rehabilitation credit.

Ruling snapshot

• Question: Could the late historic-status certification application be treated as timely for the rehabilitation credit?
• Outcome: Approved
• Key authorities: IRC § 47; Treas. Reg. §§ 1.48-12(d)(1) and 301.9100-1 through 301.9100-3

Full text (IRS public release)

Internal Revenue Service Department of the Treasury
Washington, DC 20224

Number: 201450006 Third Party Communication: None
Release Date: 12/12/2014 Date of Communication: Not Applicable
Index Number: 47.00-00, 9100.00-00
Person To Contact:
---------------------------- -----------------, ID No. -----------------
------------------------- Telephone Number:
--------------------------------------- ---------------------
---------------------------------- Refer Reply To:
CC:PSI:B05
PLR-109144-14
Date:
August 18, 2014

Legend:

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

Property = -----------------------

Year 1 = ------

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

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

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

Consultant = ----------------------------------------

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

    This letter responds to your letter dated February 28, 2014, requesting an

extension of time pursuant to § 301.9100-3 of the Procedure and Administration
Regulations to file an application for certification of historic status with the United States
Department of Interior for purposes of claiming rehabilitation tax credits under § 47(a)(2)
of the Internal Revenue Code.

  According to the facts submitted, Taxpayer acquired Property in Year 1. On Date

1, Taxpayer began renovations on Property, and retained the services of Consultant to
PLR-109144-14 2

assist Taxpayer in preparing the application for certification of historic status of
Property. In addition, Taxpayer consulted with an accountant regarding Property.

   The renovations to Property were completed and the property was placed in

service on Date 2. On Date 3, Taxpayer learned that it failed to file Part I of the Historic
Preservation Certification application with the Department of Interior prior to placing
Property in service.

   Taxpayer represents that Consultant and the accountant failed to inform

Taxpayer that Part I of the application needed to be filed before Property was placed in
service.

LAW AND ANAYLYSIS

   Section 47(a)(2) provides that the rehabilitation credit for any taxable year

includes an amount equal to 20 percent of the qualified rehabilitation expenditures with
respect to any certified historic structure.

    Section 47(c)(3)(A) provides that the term “certified historic structure” means any

building (and its structural components) that is (i) listed on the National Register, or (ii)
is located in a registered historic district and certified by the Secretary of the Interior as
being of historic significance to the district.

    Section 1.48-12(d)(1) provides that a building shall be considered to be a

certified historic structure at the time it is placed in service if the taxpayer reasonably
believes on that date the building will be determined to be a certified historic structure
and has requested on or before that date a determination from the Department of
Interior that such building is a certified historic structure within the meaning of the
historic rehabilitation credit provisions, and the Department of Interior later determines
that the building is a certified historic structure.

   Section 301.9100-1(c) provides that the Commissioner may grant a reasonable

extension of time under the rules set forth in §§ 301.9100-2 and 301.9100-3 to make a
regulatory election, or a statutory election (but no more than six months except in the
case of taxpayer who is abroad), under all subtitles of the Code, except subtitles E, G,
H, and I.

    Section 301.9100-1(b) provides that the term “election” includes an application

for relief in respect of tax.

    Sections 301.9100-2 and 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. A request for relief under § 301.9100-3 will be granted
when the taxpayer provides evidence to establish to the satisfaction of the
PLR-109144-14 3

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 satisfied. Accordingly,
Taxpayer’s application will be considered timely filed for purposes of § 1.48-12(d)(1). A
copy of this letter should be sent to the appropriate service center with a request that it
be attached to Taxpayer’s amended tax return for the taxable year. A copy is enclosed
for that purpose.

   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.

   We are sending a copy of this letter to the appropriate SB/SE official.

  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 a power of attorney on file, a copy of this letter is being sent

to Taxpayer’s authorized representatives.

                                                Sincerely,

                                                Associate Chief Counsel
                                                (Passthroughs and Special Industries)



                                      By:       ______________________________
                                                Nicole R. Cimino
                                                Senior Technician Reviewer, Branch 5
                                                Associate Chief Counsel
                                                (Passthroughs and Special Industries)

Enclosures (2)

Copy of this letter
Copy for section 6110 purpose

cc: