Extra time granted for a foreign insurer's lost 953(d) election to be taxed as a U.S. corporation
Plain-English summary
A regulated insurance company organized in a foreign country, but wholly owned
inside a U.S. corporate group, wanted to be treated as a domestic corporation
for U.S. tax purposes by making an election under Section 953(d). Its advisors
recommended the election, and the group's tax staff prepared and, according to
the taxpayer, timely filed the 953(d) election statement. Ever since, the
company has been treated as domestic and included in the group's consolidated
U.S. tax return. During an audit, however, the IRS found it had no record of
receiving the election statement and had never issued an approval letter. The
taxpayer asked for an extension of time under Treasury Regulation 301.9100-3.
The IRS concluded the taxpayer acted reasonably and in good faith (it had
relied on qualified tax professionals) and that relief would not prejudice the
government, so it granted 60 days to make the election, effective back to the
original year. The IRS cautioned that this is not a ruling that the company is
otherwise eligible to make the election. This matters because a 953(d)
election lets a foreign insurer be taxed like a U.S. company, and a lost or
unacknowledged election can be rescued through 9100 relief.
Ruling snapshot
- Question: Should the taxpayer get more time under § 301.9100-3 to make a § 953(d) election to be treated as a domestic corporation?
- Outcome: Approved (60 days from the date of the letter)
- Key authorities: IRC § 953(d); Treas. Reg. §§ 301.9100-1, 301.9100-3; Rev. Proc. 2003-47; Notice 89-79
Full text (IRS public release)
Internal Revenue Service Department of the Treasury
Washington, DC 20224
Number: 202617011 [Third Party Communication:
Release Date: 4/24/2026 Date of Communication: Month DD, YYYY]
Index Number: 9100.22-00, 953.06-00
Person To Contact:
---------------------- -----------------, ID No. ------------------
------------------------------- Telephone Number:
-------------------------- --------------------
Refer Reply To:
CC:INTL:B02
PLR-117602-25
Date:
January 22, 2026
TY: ------
Legend
Taxpayer: -------------------------------
EIN: ----------------
Country X: ------------
Date 1: -------------------
Year 1: ------
Company A: --------------------------------------------------------
EIN: ----------------
Company B: ------------------------------
EIN: -------------------
Company C: -----------
EIN: ----------------
Accounting Firm: ---------------
Insurance Advisor: ------------------------------
Dear ------------:
This is in response to a letter dated September 30, 2025, submitted on behalf of
Taxpayer by its authorized representative, requesting an extension of time under Treas.
Reg. § 301.9100-3 to make the election provided by section 953(d) of the Internal
Revenue Code (Code) to be treated as a domestic corporation for U.S. tax purposes
effective for the taxable year ending Date 1, Year 1.
The ruling contained in this letter is predicated upon facts and representations
submitted by the taxpayer and accompanied by a penalty of perjury statement executed
by an appropriate party. This office has not verified any of the material submitted in
support of the request for a ruling. Verification of the factual information,
representations, and other data may be required as part of the audit process.
FACTS
Taxpayer is a regulated insurance company organized under the laws of Country
X. Taxpayer is a wholly-owned subsidiary of Company A and is an affiliate of Company
B, both U.S. corporations. Company C, also a U.S. corporation, is the ultimate parent
company of the affiliated group that includes Taxpayer, Company A, and Company B,
which files a consolidated federal income tax return.
Taxpayer represents that for the relevant years, Company A and Company B
engaged the services of Accounting Firm and Insurance Advisor for the planning of
Taxpayer's insurance program. Both Accounting Firm and Insurance Advisor concluded
that it was advisable for Taxpayer to make an election under section 953(d) of the Code
to be treated as a domestic corporation for U.S. tax purposes.
Taxpayer represents that prior to filing its tax return for the taxable year ending
Date 1, Year 1, Taxpayer submitted the section 953(d) statement in accordance with
Rev. Proc. 2003-47, 2003-2 C.B. 55. A member of Company B's tax staff prepared the
necessary statement and other attachments required to make an election under section
953(d) of the Code. Taxpayer represents its section 953(d) election statement was
timely filed with the IRS and has provided supporting documentation of such filing.
However, the IRS has no record of receiving Taxpayer's section 953(d) election
statement, and thus, did not issue a letter in response to Taxpayer's section 953(d)
election statement. Company C assumed Taxpayer's section 953(d) election was in
order, and included Taxpayer in its U.S. consolidated return for the year ending Date 1,
Year 1, and attached a copy of Taxpayer's section 953(d) election statement to its
return.
Taxpayer represents that Company B's tax staff were qualified tax professionals,
on whom Taxpayer relied to ensure that the section 953(d) election statement was
properly filed and that all necessary elements required to effect the election were
completed. Taxpayer further represents that, beginning with the Year 1 taxable year,
Taxpayer has consistently been treated as if a valid section 953(d) election had been
made: as a domestic corporation and a member of the consolidated group.
However, during an audit of Company C's U.S. consolidated return, the IRS
asked Taxpayer for the approval of its section 953(d) election statement. Upon
executing a search, Taxpayer was unable to locate such letter or any IRS
documentation acknowledging Taxpayer's section 953(d) election statement.
Taxpayer represents that it does not seek to alter a return position for which the
accuracy-related penalty has been or could have been imposed under section 6662 at
the time Taxpayer requested relief and that it has not used hindsight to seek an
extension of time to make the election. Taxpayer also represents that granting relief will
not result in a lower tax liability in the aggregate for all taxable years affected by the
election than it would have had if it had filed the section 953(d) election timely.
LAW AND ANAYLSIS
Under section 953(d), certain foreign insurance companies may elect to be
treated as domestic corporations for U.S. tax purposes. The substantive and procedural
rules for making a section 953(d) election are contained in Notice 89-79, 1989-2 C.B.
392, and Rev. Proc. 2003-47, 2003-2 C.B. 55. Rev. Proc. 2003-47 provides that the
election must be filed by the due date prescribed in section 6072(b) (including
extensions) for the U.S. income tax return that is due if the election becomes effective.
Rev. Proc. 2003-47, section 4.04(2). In addition, an electing corporation must use the
calendar year as its annual accounting period for U.S. tax purposes, unless it joins in
the filing of a consolidated return and adopts the parent corporation's tax year. Notice
89-79, section 1. Rev. Proc. 2003-47 fixes the time to make the election under section
953(d). Therefore, the Commissioner has discretionary authority under Treas. Reg.
§ 301.9100-1(c) to grant Taxpayer an extension of time, provided that Taxpayer
satisfies the standards set forth under Treas. Reg. § 301.9100-3(a).
Treas. Reg. § 301.9100-3(a) provides that requests for relief subject to that
section will be granted when the taxpayer provides the evidence (including affidavits
described in Treas. Reg. § 301.9100-3(e)) to establish to the satisfaction of the
Commissioner that the taxpayer acted reasonably and in good faith, and the grant of
relief will not prejudice the interests of the Government.
Treas. Reg. § 301.9100-3(b)(1) provides that except as provided in paragraphs
(b)(3)(i) through (iii) of that section, a taxpayer is deemed to have acted reasonably and
in good faith if it meets one of the conditions described in Treas. Reg. § 301.9100-
3(b)(1)(i) through (v):
(i) Requests relief before the failure to make the regulatory
election is discovered by the Internal Revenue Service;
(ii) Failed to make the election because of intervening events beyond the
taxpayer's control;
(iii) Failed to make the election because, after exercising reasonable diligence
(taking into account the taxpayer's experience and complexity of the return
or issue), the taxpayer was unaware of the necessity for the election;
(iv) Reasonably relied on the written advice of the Internal Revenue Service; or
(v) Reasonably relied on a qualified tax professional, including a tax
professional employed by the taxpayer, and the tax professional failed to
make, or advise the taxpayer to make, the election.
Further, the Commissioner will grant a reasonable extension of time to make a
regulatory election only when the interests of the Government will not be prejudiced by
the granting of relief. Treas. Reg. § 301.9100-3(c)(1). The interests of the Government
are prejudiced if granting relief would result in a taxpayer having a lower tax liability in
the aggregate for all taxable years affected by the election than the taxpayer would
have had if the election had been timely made (taking into account the time value of
money). Treas. Reg. § 301.9100-3(c)(1)(i).
Lastly, Treas. Reg. § 301.9100-1(a) cautions that granting an extension of time to
make an election is not a determination that the taxpayer is otherwise eligible to make
the election.
CONCLUSION
Based on the facts and information submitted, we conclude that Taxpayer
satisfies Treas. Reg. § 301.9100-3(a). Taxpayer qualifies for an extension of time to
make the election under section 953(d). Taxpayer is deemed to have acted in good
faith, as defined by Treas. Reg. § 301.9100-3(b), and the grant of relief will not prejudice
the interests of the Government. Accordingly, Taxpayer is granted an extension of time
of 60 days from the date of this ruling letter to make the election provided by section
953(d), in accordance with the procedural rules set forth in Rev. Proc. 2003-47, to be
treated as a domestic corporation for federal income tax purposes effective for the
taxable year ending Date 1, Year 1.
The above extension of time is conditioned on Taxpayer's tax liability (if any)
being not lower, in the aggregate, for all years to which the section 953(d) election
applies than it would have been if the election had been timely filed (taking into account
the time value of money). No opinion is expressed as to Taxpayer's tax liability for the
years involved. Further, the granting of the above extension is not a determination that
Taxpayer is otherwise eligible to make the section 953(d) election. Treas. Reg.
§ 301.9100-1(a).
Taxpayer should attach a copy of this letter ruling to its federal income tax return
for the relevant year.
This ruling is directed only to the taxpayer who requested it. Section 6110(k)(3)
provides that it may not be used or cited as precedent.
Pursuant to a power of attorney on file in this office, a copy of this ruling letter is
being furnished to your authorized representative.
Sincerely,
/s/ Kristine Crabtree
Kristine A. Crabtree
Senior Counsel, Branch 2
(International)
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