9100 extension to make a late IC-DISC election (Form 4876-A) under § 992

Plain-English summary

A newly formed corporation wanted to be treated as an interest charge domestic international sales corporation (IC-DISC), a special export-tax structure, for its first tax year. To elect that status, a corporation must file Form 4876-A within 90 days of the start of its first year. Here the company's CFO filled out the form incorrectly (with materially inaccurate information) and mailed it, but the IRS has no record of ever receiving it and the company kept no certified-mail receipt, so no valid election was ever on file. After the company's return preparer flagged the problem, it asked the IRS for late-election relief. Under Treas. Reg. § 301.9100-3, the IRS can grant extra time to make a missed regulatory election if the taxpayer acted reasonably and in good faith and relief will not hurt the government. The IRS agreed the taxpayer met that standard and gave it 90 days from the date of the ruling to file a proper Form 4876-A, which will then count as a timely IC-DISC election for its first year. The ruling only extends the deadline; it does not decide whether the company actually qualifies as an IC-DISC.

Ruling snapshot

• Question: Should the taxpayer get an extension of time under Treas. Reg. § 301.9100-3 to file a late Form 4876-A electing IC-DISC status for its first taxable year?
• Outcome: Approved (90-day extension granted).
• Key authorities: IRC § 992(b)(1); Temp. Treas. Reg. § 1.921-1T(b)(1); Treas. Reg. §§ 301.9100-1 and 301.9100-3; IRC § 996(g).

Full text (IRS public release)

Internal Revenue Service
Department of the Treasury
Washington, DC 20224

Number: 202625020
Release Date: 6/18/2026
Index Number: 9100.00-00, 992.02-00

Third Party Communication: None
Date of Communication: Not Applicable

Person To Contact:
------------------------------, ID No. ------------
Telephone Number:

Refer Reply To:
CC:INTL:B06
PLR-118896-25

In Re: ------------------------------------------

Date: March 19, 2026

TY: -------
TY: -------

Legend

Taxpayer = ------------------------------------------
Law Firm 1 = ------------------------------
Law Firm 2 = ---------------------------------------------------
Company = -------------------------------------------
CFO = -------------------------
Individual 1 = -------------
Date 1 = -------------------
Date 2 = ---------------------
Year 1 = -------

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

This responds to correspondences dated October 9, 2025 and December 23, 2025, submitted by Law Firm 1 requesting that the Internal Revenue Service ("IRS") grant Taxpayer an extension of time under Treas. Reg. §§ 301.9100-1 and 301.9100-3 to file Form 4876-A ("Election to Be Treated as an Interest Charge DISC") for Year 1, Taxpayer's first taxable year.

FACTS

Taxpayer was incorporated on Date 1 on behalf of Company to serve as an interest charge domestic international sales corporation ("IC-DISC") at the recommendation of Company's CFO. Taxpayer and Company relied on Law Firm 2 for the incorporation of Taxpayer. Taxpayer is a domestic corporation wholly owned by Individual 1.

Following Taxpayer's incorporation, the CFO prepared a Form 4876-A on behalf of Taxpayer. However, the CFO incorrectly completed the Form 4876-A by mistakenly listing materially inaccurate information, thereby making the Form 4876-A invalid. On or around Date 2, the CFO (to the best of Taxpayer's knowledge) filed the invalid Form 4876-A by mail with the IRS. This attempted election was made within 90 days of the beginning of Taxpayer's first taxable year.

After Taxpayer did not receive a response from the IRS, Law Firm 2 corresponded with the IRS to determine the status of the IC-DISC election. The IRS informed Law Firm 2 that the IRS never received a Form 4876-A, and Taxpayer could not provide a certified mail receipt for the initial attempted election.

Taxpayer ultimately contacted Law Firm 1, its return preparer, for advice on the situation. Law Firm 1 advised Taxpayer that they would need to submit a private letter ruling request to obtain late election relief.

Taxpayer submitted this request for relief under Treas. Reg. §§ 301.9100-1 and 301.9100-3 for an extension of time to file Form 4876-A to take effect for the tax year beginning Date 1.

LAW AND ANALYSIS

Section 992(b)(1)(A) of the Internal Revenue Code (the "Code") provides that an election by a corporation to be treated as an IC-DISC shall be made by such corporation for a taxable year at any time during the 90-day period immediately preceding the beginning of the taxable year, except that the Secretary may give his consent to the making of an election at such other times as he may designate.

Section 992(b)(1)(B) provides that such election shall be made in such manner as the Secretary shall prescribe and shall be valid only if all persons who are shareholders in such corporation on such first day of the first taxable year for which such election is effective consent to such election.

Temporary Treasury Regulation § 1.921-1T(b)(1) provides, in part, that a corporation electing IC-DISC status must file Form 4876-A and that a corporation electing to be treated as an IC-DISC for its first taxable year shall make its election within 90 days after the beginning of that year.

Treasury Regulation § 301.9100-1(c) gives the Commissioner discretion to grant a reasonable extension of time under the rules set forth in Treas. Reg. §§ 301.9100-2 and 301.9100-3 to make a regulatory election under all subtitles of the Code except subtitles E, G, H, and I.

Treasury Regulation § 301.9100-1(b) provides that a regulatory election is 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. For this purpose, an election includes an application for relief in respect of tax.

Treasury Regulation § 301.9100-3(a) provides that requests for extensions of time for regulatory elections that do not meet the requirements of Treas. Reg. § 301.9100-2 (automatic extensions) must be made under the rules of Treas. Reg. § 301.9100-3. Requests for relief subject to Treas. Reg. § 301.9100-3 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 that the grant of relief will not prejudice the interests of the Government.

Treasury Regulation § 301.9100-3(b)(1)(ii) provides that a taxpayer is generally deemed to have acted reasonably and in good faith if the taxpayer failed to make the election because of intervening events beyond the taxpayer's control.

CONCLUSION

Based on the facts and representations submitted with Taxpayer's ruling request, we conclude that Taxpayer satisfies Treas. Reg. § 301.9100-3(a). Accordingly, Taxpayer is granted an extension of time of 90 days from the date of this ruling letter to file Form 4876-A. Such filing will be treated as a timely election to be treated as an IC-DISC for Taxpayer's first taxable year.

The granting of an extension in this ruling letter is not a determination that Taxpayer is otherwise eligible to make the election or to claim IC-DISC status or benefits. See Treas. Reg. § 301.9100-1(a). Except as expressly provided herein, no opinion is expressed or implied concerning the tax consequences of any aspect of any transaction or item discussed or referenced in this letter. For example, no opinion is expressed regarding the consequences to any person under section 996(g).

In accordance with section 996(g), Taxpayer should not accept any income tax treaty claims of reduced withholding under sections 1441 and 1442 with respect to distributions (deemed or otherwise) of accumulated DISC income.

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.

Taxpayer should attach a copy of this ruling letter to its Form 4876-A and Federal income tax return for the taxable years to which this letter applies. Alternatively, taxpayers filing their returns electronically may satisfy this requirement by attaching a statement to their return that provides the date and control number of the letter ruling.

The rulings contained in this letter are based upon information and representations submitted by Taxpayer and accompanied by affidavits and penalty of perjury statements executed by appropriate parties. This office has not verified any of the material submitted in support of the request for rulings. It is subject to verification upon examination.

Sincerely,

Robert Z. Kelley
Branch Chief, Branch 6
(International)

Enclosures (2)

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