Extension of Time for Making Certain Elections

Internal Revenue Service Department of the Treasury
Washington, DC 20224
Number: 201614024
Release Date: 4/1/2016
Index Number: 7701.00-00, 9100.00-00
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Third Party Communication: None
Date of Communication: Not Applicable
Person To Contact:
---, ID No. ---
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Telephone Number:
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Refer Reply To:
CC:PSI:B01
PLR-129703-15
Date:
December 16, 2015
Legend
X = ---
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Y = ---
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Z = ---
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Country = ---
Date 1 = ---
Date 2 = ---
Dear ---,
This responds to a letter dated September 8, 2015, and accompanying materials, submitted on behalf of X, requesting an extension of time pursuant to Treas. Reg. §§ 301.9100-1 and 301.9100-3 of the Procedure and Administration Regulations, to make an entity classification election under Treas. Reg. § 301.7701-3.

# Facts

According to the letter and accompanying submission, X is an entity organized under the laws of Country. X is wholly owned by Y, a QSub, which in turn, is wholly owned by Z, an S corporation. The taxpayer was formed on Date 1 by Z through Y.
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X intended that it be classified as foreign association taxable as a corporation federal tax purposes. However, the taxpayer failed to file Form 8832to be classifies as a corporation effective Date 2. The taxpayer is requesting an extension to make an election to be classified as a corporation effective Date 2.

# Law and Analysis

Section 301.7701-3(a) provides that a business entity that is not classified as a corporation under section 301.7701-2(b)(1), (3), (4), (5), (6), (7), or (8) (an eligible entity), can elect its classification for federal tax purposes. An eligible entity with more than one owner can elect to be classified as an association or as partnership.
Section 301.7701-3(b) provides a default classification for an eligible entity that does not make an election. Section 301.7701-3(b)(2)(i) provides that, unless the entity elects otherwise, a foreign eligible entity is (A) a partnership if it has two members and at least one member does not have limited liability; (B) an association if all members have limited liability; or (C) disregarded as an entity separate from its owner if it has a single owner that does not have limited liability.
Section 301.7701-3(c)(1)(i) provides that an eligible entity may elect to be classified other than as provided under § 301.7701-3(b) by filing Form 8832, Entity Classification Election, with the appropriate service center. Under § 301.7701-3(c)(1)(iii), this election will be effective on the date specified by the entity on Form 8832 or on the date filed if no such date is specified. The date specified on Form 8832 cannot be more than 75 days prior to the date on which the election is filed.
Section 301.7701-3(c)(1)(i) provides, in part, that an eligible entity may elect to be classified other than as provided under section 301.7701-3(b) by filing Form 8832, Entity Classification Election, with the applicable service center.
Under section 301.9100-1(c) the Commissioner may 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 301.9100-2 and 301.9100-3 provide the standards the Commissioner will use to determine whether to grant an extension of time to make an election. Section 301.9100-2 provides automatic extensions of time for making certain elections. Section 301.9100-3 provides extensions of time for making elections that do not meet the requirements of § 301.9100-2. Requests for relief under § 301.9100-3 will be granted when the taxpayer provides evidence to establish that the taxpayer acted reasonably and in good faith, and that granting relief will not prejudice the interests of the government.
PLR-129703-15 3

# Conclusion

Based solely on the facts submitted and representations made, we conclude that the requirements of § 301.9100-3 have been satisfied. As a result, X is granted an extension of time of 120 days from the date of this letter to file Form 8832 to elect to treat X as an association taxable as a corporation, effective Date 2. The election should be filed with the appropriate service center. A copy of this letter should be attached to the election. A copy of this letter is attached for this purpose.
Except as specifically set forth above, we express or imply no opinion concerning the federal tax consequences of the facts described above under any other provision of the Code. Specifically, we do not express an opinion concerning whether X or any entity described in the facts is a valid corporation for federal tax purposes.
This ruling is directed only to the taxpayer requesting it. Section 6110(k)(3) of the
Internal Revenue 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 is being faxed and mailed to X’s authorized representatives.
Sincerely,
Curt G. Wilson
Deputy Associate Chief Counsel
(Passthroughs & Special Industries)
David R.Haglund
By: David R. Haglund
Branch Chief, Branch 1
Office of Chief Counsel
(Passthroughs & Special Industries)
Enclosures (2):
Copy of this letter
Copy for section 6110 purposes cc: