Private Letter Ruling
201606016
Released February 5, 2016
Approved
Housing project receives late multiple-building election
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This page covers one taxpayer's ruling from 2016, which can't be cited as precedent. Ezel answers your situation under the current Code and IRS guidance, with citations.
Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It resolved one taxpayer's situation on its specific facts, 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
A taxpayer intended to treat all buildings in a low-income housing development as one multiple-building project but inadvertently failed to make an effective election on the Forms 8609 issued for every building. The IRS concluded from the taxpayer's submitted facts and representations that the requirements for discretionary late-election relief were met. It granted 120 days to file amended Forms 8609 and the accompanying information statements making the section 42(g)(3)(D) election for all project buildings. The amended filings must include a copy of the ruling. The IRS did not decide whether the original Forms 8609 were timely or correct, the election's tax effect, or whether the project otherwise qualified for low-income housing credits.
Ruling snapshot
- Question: May the taxpayer make a late election to treat all project buildings as one multiple-building project?
- Outcome: Yes, by filing amended Forms 8609 and information statements within 120 days.
- Key authorities: IRC § 42; Treas. Reg. §§ 1.42-1(h), 301.9100-1, and 301.9100-3
Full text (IRS public release)
lnternal Revenue Service Department of the Treasury
Washington, DC 20224
Number: 201606016 Third Party Communication: None
Release Date: 2/5/2016 Date of Communication: Not Applicable
Index Number: 9100.01-00
Person To Contact:
----------------------------- ----------------------, ID No. ----------------
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----------------------------------------- Telephone Number:
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--------------------------------- Refer Reply To:
CC:PSI:B05
In Re: PLR-128123-15
------------------------------------------ Date:
October 20, 2015
LEGEND:
Taxpayer = -----------------------------------------------------------------------------------------
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Project = ------------------------------------
N = ---
BIN/Address = -----------------------------------------------------------------------------------------
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PLR-128123-15 2
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Agency = ------------------------------------------------------
Dear -----------------:
This letter responds to Taxpayer’s authorized representative’s letter dated August 20,
2015, requesting an extension of time pursuant to §§ 301.9100-1 and 301.9100-3 of the
Procedure and Administration Regulations to elect to identify all buildings in Project as
part of a single, multiple building project under § 42(g)(3)(D) of the Internal Revenue
Code.
Project consists of N buildings identified by BIN/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)
requires that a building owner (i.e., taxpayer) must file a completed Form 8609 with the
Internal Revenue Service in accordance with the form instructions. The election under
PLR-128123-15 3
§ 42(g)(3)(D) to treat a building as part of a multiple-building project 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 regulation published in the Federal Register, or a revenue ruling,
revenue procedure, notice, or announcement published in the Internal Revenue Bulletin.
Section 301.9100-1(c) provides that 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 certain regulatory elections (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.
Section 301.9100-3(a) provides that applications for relief that fall within § 301.9100-3
will be granted when the taxpayer provides sufficient evidence to establish that the
taxpayer acted reasonably and in good faith, and that granting such relief will not
prejudice the interests of the Government. Section 301.9100-3(b) provides when a
taxpayer is deemed to have acted reasonably and in good faith. Section 301.9100-3(c)
provides when the interests of the Government are prejudiced. Section 301.9100-3(e)
provides that the taxpayer must provide evidence that satisfies the requirements of
§ 301.9100-3(a) and (b).
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
§ 42(g)(3)(D) to treat all N buildings 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 the Forms
8609 were timely or correctly filed, the effect of Taxpayer’s election under § 42(g)(3)(D),
or whether Project otherwise qualifies for the low-income housing tax credits under
§ 42.
PLR-128123-15 4
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 Taxpayer’s 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:
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