Gross Income Requirement

Internal Revenue Service Department of the Treasury
Washington, DC 20224
Number: 201716026
Release Date: 4/21/2017
Index Number: 851.02-00, 7805.00-00
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Third Party Communication: None
Date of Communication: Not Applicable
Person To Contact:
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Telephone Number:
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Refer Reply To:
CC:FIP:B01
PLR-131769-16
Date:
January 13, 2017
Legend
Fund = ---
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Dear ---:
This letter revokes PLR 200822012 (PLR-139547-07) issued to Fund on February 12,
2008, and, in response to a request from your authorized representative dated
December 27, 2016, limits the retroactive effect of such revocation pursuant to section
7805(b) of the Internal Revenue Code.
In PLR 200822012, the Internal Revenue Service (the “Service”) issued a ruling that income and gain from certain commodity-linked notes constitute qualifying income under section 851(b)(2) (the “CLN Ruling”). In a letter dated September 29, 2016, the Service notified Fund that it was considering revoking the CLN Ruling. On December 27, 2016, Fund requested that the Service exercise its discretionary authority under section 7805(b) to limit the retroactive effect of any revocation.
Since issuing PLR 200822012, the Service has determined that having provided a private letter ruling on the issue in the CLN Ruling is not in accord with the current views of the Service. See Rev. Proc. 2016-50, 2016-43 I.R.B. 522, superseded by Rev. Proc.
2017-3, 2017-1 I.R.B.130, 140 (section 4.01(44)); see also REG-123600-16, 81 Fed.
Reg. 66576-77 (Sept. 28, 2016). Section 11.04 of Rev. Proc. 2017-1, 2017-1 I.R.B. 1,
61, provides, in part, that unless it was part of a closing agreement, a letter ruling found to be in error or not in accordance with the current views of the Service may be revoked or modified. Accordingly, PLR 200822012 is revoked.
PLR-131769-16 2
Section 11.04 of Rev. Proc. 2017-1 also provides that, if a letter ruling is revoked, the revocation applies to all years open under the statute of limitations on assessment unless the Service uses its discretionary authority under section 7805(b) to limit the retroactive effect of the revocation. In accordance with Fund’s request, the Service has decided to grant relief under section 7805(b). The revocation of PLR 200822012 will apply prospectively only to commodity-linked notes acquired by Fund after June 30, 2017.
In accordance with the power of attorney on file with this office, we are sending a copy of this letter to Fund’s authorized representative. We are also sending a copy of this letter to the appropriate operating division.
Sincerely,
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Julanne Allen
Assistant to the Branch Chief, Branch 3
Office of Associate Chief Counsel
(Financial Institutions and Products)