PLR 9935069: IRS declines to rule on proposed corporate reorganization

Number

9935069

Outcome

Other outcome

Document type

Private Letter Ruling

IRS subject

Passive Investment Income; Assets for Control of Transferee (Type D)

Topics

S corporations Corporate transactions and reorganizations

Code sections

§ 1362, § 368

Ruling dated

June 2, 1999

Publicly released

September 3, 1999

Source

View Official PDF

Apply this to your situation

This page covers one taxpayer's ruling, issued in 1999, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, 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.

Transcribed from a scanned original: the IRS released this determination as an image-only PDF. The full text below is a machine transcription, proofread against the scan. Check the original PDF before quoting exact language.

View official IRS release (PDF)

Plain-English summary

A company and three subsidiaries requested rulings about a proposed corporate reorganization and the subsidiaries' later elections to become S corporations. The IRS letter says it declined to rule on the reorganization plan under Revenue Procedure 99-3. It also says the IRS requested a refund of the company's $3,650 user fee. The released letter gives no substantive ruling on the proposed transaction or elections.

Ruling snapshot

Question: Would the IRS rule on the proposed reorganization and later S corporation elections?
Outcome: The IRS declined to rule on the reorganization plan; the letter gives no other substantive ruling.
Key authorities: Rev. Proc. 99-3, § 4.02(1); Rev. Proc. 99-1, § 15.10(2)(e)

Full text (IRS public release)

Internal Revenue Service Department of the Treasury

199935069

Index Number: 1362.02-03 Washington, DC 20224 368.04-00

Person to Contact:
Telephone Number:
Refer Reply To:

CC:DOM:P&SI:3 PLR-121930-98
Date:

JUN - 2 1999

Company:
Subsidiary A:
Subsidiary B:

Subsidiary C:

Dear

This letter responds to a letter dated December 2, 1998, as well as subsequent correspondence, submitted on behalf of Company and Subsidiaries A, B, and C by your authorized representative, requesting various rulings relating to a proposed corporate reorganization and the subsequent election by Subsidiaries A, B, and C to be S corporations. As your authorized representative was advised, the Service declines under § 4.02(1) of Rev. Proc. 99-3, 1999-1 I.R.B. 103, 111, to rule on the plan of reorganization.

In accordance with § 15.10(2)(e) of Rev. Proc. 99-1, 1999-1 I.R.B. 6, 56, we have submitted a request for the refund of Company's user fee of $3650.

349

-2- 199935069

PLR-121930-98

In accordance with the power of attorney on file with this office, we are sending a copy of this letter to your authorized representative.

Sincerely,

DONNA M. YOUNG

Senior Technician Reviewer,
Branch 3

Office of the Assistant
Chief Counsel

(Passthroughs and
Special Industries)

350

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