Election

Internal Revenue Service Department of the Treasury
Washington, DC 20224
Number: 201631010
Release Date: 7/29/2016
Index Number: 9100.22-00, 992.02-00
---
---
---
---
---
In re: ---
Third Party Communication: None
Date of Communication: Not Applicable
Person To Contact:
---, ID No. ---
---
Telephone Number:
---
Refer Reply To:
CC:INTL:B06
PLR-141558-15
Date:
April 28, 2016
---
LEGEND
Taxpayer = --- ---
Law Firm = ---
Company = ---
Trust = ---
Date 1 = ---
Date 2 = ---
Date 3 = ---
Date 4 = ---
Dear ---:
This responds to a letter dated December 7, 2015 requesting that the Internal Revenue Service (“Service”) 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 Taxpayer’s first taxable year.
The rulings contained in this letter are based upon information and representations submitted by Taxpayer and Law Firm and accompanied by affidavits and penalties of perjury statements executed by appropriate parties. This office has not verified any of the materials submitted in support of the request for rulings. It is subject to verification on examination.

# FACTS

PLR-141558-15 2
Taxpayer is a domestic corporation formed on Date 1 for the purpose of qualifying and operating as an interest charge domestic international sales corporation (“IC-DISC”).
Taxpayer started doing business on Date 2. Taxpayer operates under a commission arrangement with Company. On Date 3, Law Firm sent Form 4876-A to Taxpayer with instructions to return the original signed form to Law Firm. Law Firm did not receive the signed original form, but did receive an electronic copy of the signed original form.
While Law Firm has the practice to inform clients if Law Firm does not receive a signed original Form 4876-A within a reasonable time, in this case Law Firm inadvertently failed to do so.
Believing all the requirements to conduct business and be treated as an IC-DISC were satisfied, Taxpayer filed Form 1120-IC-DISC for its first taxable year. Taxpayer received correspondence from the Service dated Date 4 that Taxpayer was ineligible to file Form 1120-IC-DISC because the Service did not have an approved Form 4876-A.
As a result, Taxpayer has requested a ruling that grants an extension of time to file Form 4876-A effective Date 2.

# LAW AND ANALYSIS

Section 992(b)(1)(A) provides that an election by a corporation to be treated as a DISC1 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.
Temp. Treas. Reg. § 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.
Treas. Reg. § 301.9100-1(c) provides, in part, that the Commissioner, in exercising the Commissioner’s discretion, may 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.
Treas. Reg. § 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.
1 As used in this letter, the terms “IC-DISC” and “DISC” have the same meaning.
PLR-141558-15 3
Treas. Reg. § 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.
In the present situation, the election described in Temp. Treas. Reg. § 1.921-1T(b)(1) is a regulatory election as defined in Treas. Reg. § 301.9100-1(b). Therefore, the Commissioner has discretionary authority under Treas. Reg. § 301.9100-1(c) to grant Taxpayer an extension of time, provided that Taxpayer satisfies the standards for relief set forth in Treas. Reg. § 301.9100-3.
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 60 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). Taxpayer should attach a copy of this ruling letter to its Federal income tax return for the taxable years to which this letter applies.
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. 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.
PLR-141558-15 4
Pursuant to a Power of Attorney on file in this office, copies of this ruling letter are being furnished to your authorized representatives.
Sincerely,
____
Marissa K. Rensen
Senior Counsel, Branch 6
Office of Associate Chief Counsel (International)
Enclosures (2)
Copy of this letter
Copy for § 6110 purposes