Housing project receives more time to make a multiple-building election

Plain-English summary

A taxpayer intended to treat all buildings in a low-income housing project as one multiple-building project but inadvertently failed to make an effective election on every Form 8609. The IRS found that the taxpayer acted reasonably and in good faith and that relief would not prejudice the government. It granted a 120-day extension to file amended Forms 8609 and the required information statements under section 42(g)(3)(D). The ruling did not decide whether the original forms were timely or correct, whether the election affected closed years, or whether the buildings otherwise qualified for the housing credit.

Ruling snapshot

• Question: May the taxpayer receive extra time to elect single-project treatment for all buildings in its low-income housing project?
• Outcome: Approved, with amended Forms 8609 and information statements due within 120 days.
• Key authorities: IRC § 42(g)(3)(D) and (l)(1); Treas. Reg. §§ 1.42-1(h), 301.9100-1, and 301.9100-3.

Full text (IRS public release)

Internal Revenue Service Department of the Treasury
Washington, DC 20224

Number: 201516061 Third Party Communication: None
Release Date: 4/17/2015 Date of Communication: Not Applicable
Index Number: 9100.01-00, 42.00-00
Person To Contact:
------------------------------- ---------------------------, ID No. ---------------
------------------------------------------------ ----------------
------------------------- Telephone Number:
------------ --------------------
------------------------------ Refer Reply To:
In Re: CC:PSI:B05
------------------------------------------------ PLR-143244-14
Date:
December 23, 2014

LEGEND:

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

Project = ---------------------------------

N = ---

BINs = ---------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------

Address = -------------------------------

Agency = -----------------------------------------------------------------------

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

This letter responds to Taxpayer’s authorized representative’s letter dated November
12, 2014, requesting an extension of time pursuant to § 301.9100-1 of the Procedure
and Administration Regulations to elect to identify all of the buildings in Project for which
a building identification number (BIN) was assigned as part of a single, multiple-building
PLR-143244-14 2

project under § 42(g)(3)(D) of the Internal Revenue Code on Taxpayer’s IRS Forms
8609, Low-Income Housing Credit Allocation and Certification.

Project consists of N buildings identified by BINs and located at Address. According to
information submitted, Taxpayer through inadvertence failed to make an effective
election for all N buildings in Project for which Forms 8609 were issued by Agency,
consistent with Taxpayer’s intent to treat these buildings as part of a single, multiple-
building project under § 42(g)(3)(D).

Section 42(g)(3)(D) provides that a project will consist of only one building unless, prior
to the end of the first calendar year in the project period (as defined in § 42(h)(1)(F)(ii)),
each building that will comprise the project is identified in the form and the manner that
the Secretary provides.

Section 42(l)(1) sets forth the certifications for the first year of the credit period
regarding any qualified low-income building that a taxpayer must certify to the Secretary
(at such time and in such manner as the Secretary prescribes). Section 1.42-1(h) of the
Income Tax Regulations requires that a building owner (i.e., taxpayer) must file a
completed Form 8609 with the Service in accordance with the form instructions. The
election under § 42(g)(3)(D) for a building is made on Part II of Form 8609 and requires
the inclusion of an accompanying informational statement.

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 301.9100-1(b) defines the term “regulatory election” as including 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.

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, or a statutory election (but no more than six months except in the
case of a taxpayer who is abroad), under all subtitles of the Code, except E, G, H, and I.
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.

Requests for relief under § 301.9100-3(a) will be granted when the taxpayer provides
evidence to establish that the taxpayer acted reasonably and in good faith and that
granting relief will not prejudice the interests of the government.

In the instant case, based solely on Taxpayer’s facts submitted and its representations
made, we conclude that the requirements of §§ 301.9100-1 and 301.9100-3 have been
met. Accordingly, Taxpayer is granted an extension of time to make the election under
PLR-143244-14 3

§ 42(g)(3)(D) to treat all N buildings identified by BINs in Project for which Forms 8609
were issued by Agency as part of a single, multiple-building project by filing within 120
days from the date of this letter amended Forms 8609, and accompanying information
statement(s), that include this intended election. The amended Forms 8609 and
statement(s) (along with a copy of this letter) are to be filed with the Philadelphia
Service Center at the address provided for the Service Center in that form. A copy of
this letter is enclosed for this purpose.

No opinion is expressed or implied regarding the application of any other provisions of
the Code or regulations. Specifically, we express no opinion on whether any of the
Forms 8609 for the N buildings identified by BINs in Project were timely or correctly
filed, the effect of Taxpayer’s election under § 42(g)(3)(D) for any closed year, or
whether Project buildings otherwise qualify for low-income housing tax credits under
§ 42.

This ruling is directed only to the taxpayer requesting it. Section 6110(k)(3) of the Code
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 your authorized representative.

                                       Sincerely,

                                       Associate Chief Counsel
                                       (Passthroughs and Special Industries)


                                       By: _____________________________
                                       CHRISTOPHER J. WILSON
                                       Senior Counsel, Branch 5
                                       Office of Associate Chief Counsel
                                       (Passthroughs and Special Industries)

Enclosures:
Copy of this letter
Copy for section 6110 purposes

cc: