Tax Imposed On Certain Passive Investment Income

ID:
Office:
UILC:
CCA_2009072212015721
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1362.02-03, 1362.04-00, 1375.00-
00
Number: 200937029
Release Date: 9/11/2009
From: ---
Sent: Wednesday, July 22, 2009 12:01:59 PM
To: ---
Cc: ---
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Subject: RE: §1362(d)(3) and §1375(d) Excess Net Passive Investment Income
Relief for inadvertent termination of an S corporation election under § 1362(f) and waiver of the tax on excess passive investment income under § 1375(d) are separate determinations under the jurisdiction of different offices of the Internal Revenue Service. A grant of waiver under § 1375(d) and § 1.1375-1(d) does not waive any termination that may have taken place under § 1362(d)(3), and to cure such a termination, the taxpayer would have to request relief under § 1362(f) by submitting a private letter ruling request which satisfies all the specific requirements of § 1.1362-4, as well as the general requirements for private letter rulings under Revenue Procedure 2009-1 (or its successors).
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