9100 extension to make a late election to file a consolidated return (1.1502-75)
Plain-English summary
A corporate parent and its affiliated group of subsidiaries were eligible to
file one combined ("consolidated") federal income tax return for a given year,
but they missed the deadline to make that election, which is made simply by
filing the consolidated return on time under Treasury Regulation
§ 1.1502-75(a)(1). The parent asked for relief under § 301.9100-3, the rule
that lets the IRS grant extra time for a missed regulatory election. The IRS
granted 75 days from the date of the letter to file the consolidated return
(with a Form 1122 for each subsidiary). The relief carries the usual
conditions: the group must actually qualify to consolidate, the statute of
limitations must still be open, and the election can't be used to lower the
group's overall tax below what timely filing would have produced. This is the
standard cure for a corporate group that intended to file consolidated but let
the election lapse.
Ruling snapshot
- Question: May the parent get an extension of time under § 301.9100-3 to make a late election to file a consolidated return?
- Outcome: approved
- Key authorities: Treas. Reg. § 1.1502-75(a)(1); Treas. Reg. § 301.9100-1 through § 301.9100-3; IRC § 6501(a); IRC § 6662
Full text (IRS public release)
Internal Revenue Service Department of the Treasury
Washington, DC 20224
Number: 202620003 Third Party Communication: None
Release Date: 5/15/2026 Date of Communication: Not Applicable
Index Number: 9100.00-00, 9100.20-00
Person To Contact:
---------------------------- ------------------------, ID No. -----------------
----------------------------------------- Telephone Number:
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Refer Reply To:
CC:CORP:BO2
PLR-116561-25
Date:
February 18, 2026
Legend:
Parent = ---------------------------------------------------------------------------------
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Date 1 = --------------------------
Company Official = ---------------------------------------------------------------------------------
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Tax Professional = ---------------------------------------------------------------------------------
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Dear --------------:
This letter responds to a letter dated September 2, 2025, and subsequent
correspondence dated December 5, 2025, submitted on behalf of Parent, requesting an
extension of time under § 301.9100-3 of the Procedure and Administration
Regulations to file an election. Parent is requesting an extension of time for Parent and
the members of its affiliated group to make an election under § 1.1502-75(a)(1) of the
Income Tax Regulations to file a consolidated federal income tax return, with Parent as
the common parent, for the taxable year ending on Date 1 (the "Election"). The material
information submitted for consideration is summarized below.
Parent was the common parent of an affiliated group of corporations that was eligible to
file a consolidated income tax return for the taxable year ending on Date 1 (the "Parent
Group"). An election for the Parent Group to file a consolidated income tax return, with
Parent as the common parent, for the taxable year ending on Date 1 was due on the
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last day prescribed by law (including extensions of time) for the filing of Parent's return.
For various reasons, a valid Election (i.e., the timely filing of the consolidated return)
was not filed by the due date of Parent's return. Subsequently, a request was submitted
under § 301.9100-3 for an extension of time to file the Election. The period of limitations
on assessment under section 6501(a) of the Internal Revenue Code ("Code") has not
expired for the taxable year ending on Date 1 or any subsequent taxable year. Parent
has represented that it is not seeking to alter a return position for which an accuracy-
related penalty has been or could be imposed under section 6662.
Under § 301.9100-1(c), the Commissioner has discretion to grant a reasonable
extension of time 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 subtitles E, G, H, and I.
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 a regulatory
election. Section 301.9100-1(a). Section 301.9100-2 provides automatic extensions of
time for making certain elections. Requests for relief under § 301.9100-3 will be granted
when the taxpayer provides evidence to establish to the satisfaction of the
Commissioner that the taxpayer acted reasonably and in good faith, and that granting
relief will not prejudice the interests of the government. Section 301.9100-3(a).
The time for filing the Election is fixed by the regulations (i.e., § 1.1502-75(a)(1)).
Therefore, the Commissioner has discretionary authority under § 301.9100-3 to grant an
extension of time for Parent to file the Election, provided Parent shows it acted
reasonably and in good faith, the requirements of §§ 301.9100-1 and 301.9100-3 are
satisfied, and granting relief will not prejudice the interests of the government.
Information, affidavits, and representations submitted by Parent, Company Official, and
Tax Professional explain the circumstances that resulted in the failure to timely file the
Election. The information establishes that that the request for relief was filed before the
failure to make the Election was discovered by the Internal Revenue Service. See §
301.9100-3(b)(1)(i).
Based on the facts, affidavits, and supplemental information submitted by Parent,
Company Official, and Tax Professional, including the representations made, we
conclude that Parent has shown it acted reasonably and in good faith, the requirements
of §§ 301.9100-1 and 301.9100-3 are satisfied, and granting relief will not prejudice the
interests of the government. Accordingly, provided that the Parent Group qualifies
substantively to file a consolidated return for the applicable tax year and that the statute
of limitations is still open for the taxable year ending on Date 1 and all subsequent
years, an extension of time is granted under § 301.9100-3, until 75 days from the date
on this letter, for Parent to file the Election (by filing a consolidated return, with Parent
as the common parent, and attaching a Form 1122 for each subsidiary which was a
member of the Parent Group for the taxable year ending on Date 1. Parent must attach
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a copy of this ruling letter to such return, or if the return is filed electronically, a
statement must be attached to the return that provides the date on, and the control
number (PLR-116561-25) of this ruling letter.
The above extension of time is conditioned on the Parent Group's tax liability (if any)
being not lower, in the aggregate, for all years to which the Election applies, than it
would have been if the Election had been timely made (taking into account the time
value of money). No opinion is expressed as to the Parent Group's tax liability for the
years involved. A determination thereof will be made by the applicable Director's office
upon audit of the federal income tax returns involved.
We express no opinion with respect to whether the Parent Group qualifies substantively
to file a consolidated return. In addition, we express no opinion as to the tax effects or
consequences of filing the return or the Election late under the provisions of any other
section of the Code or regulations, or as to the tax treatment of any conditions existing
at the time of, or effects resulting from, filing the Election late that are not specifically set
forth in the above ruling.
For the purposes of granting relief under § 301.9100-3, we relied on certain statements
and representations made by Parent, Company Official, and Tax Professional.
However, the Director should verify all essential facts. In addition, notwithstanding that
an extension is granted under § 301.9100-3 to file the Election, penalties and interest
that would otherwise be applicable, if any, continue to apply.
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, copies of this letter are
being sent to your authorized representatives.
Sincerely,
__________________
Mark Weiss
Office of Associate Chief Counsel (Corporate)
Branch Chief, Branch 2
PLR-116561-25 4