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Contents : Internal Revenue Service Department of the Treasury Number: 200915008 Release Date: 4/10/2009 Third Party Communication: None Date of Communication: Not Applicable Washington DC 20224 Index Number: 7701.00-00 9100.00-00 Person To Contact: --------------------------------------------------------------------------------------------------------------------------------------------- ----------------------- ID No. ------------Telephone Number: --------------------Refer Reply To: CC:PSI:B1 PLR-130086-08 Date: December 29 2008 Legend X ------------------------------------------------------------------------Country --------------------------- Date 1 ------------------------- Dear --------------: This is in response to a letter dated July 2 2008 requesting an extension of time pursuant to 301.9100-3 of the Procedure and Administration Regulations to file an election to treat X as an entity disregarded as separate from its owner for federal tax purposes under 301.7701-3(c). Facts X represents that as of Date 1 X was eligible to make an election under section 301.7701-3(c) to be taxed as a disregarded entity for federal tax purposes. However the Form 8832 Entity Classification Election was not timely filed. Law and Analysis Section 301.7701-3(a) provides that a business entity that is not classified as a corporation under 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 a single owner can elect either to be classified as an association (and thus a corporation under section 301.7701-2(b)(2)) or to be disregarded as an entity separate from its owner. PLR-130086-08 2 Section 301.7701-3(b)(2) provides guidance on the classification of a foreign eligible entity for federal tax purposes. Generally unless the entity makes an election to be treated otherwise a foreign eligible entity is treated as an association taxable as a corporation if all members have limited liability. If a foreign eligible entity has only one owner it may elect to be treated as a disregarded entity pursuant to the rules in 301.7701-3(c). If a foreign eligible entity has more than one owner it may elect to be treated as a partnership pursuant to the rules in 301.7701-3(c). Section 301.7701-3(c) further provides that an entity classification election must be filed on Form 8832 Entity Classification Election and can be effective up to 75 days prior to the date the form is filed or up to 12 months after the date on which the form is filed. Under 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. Section 301.9100-1(b) defines the term regulatory election as including an election with a deadline prescribed by a regulation published in the Federal Register. Sections 301.9100-1 through 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. Section 301.9100-3(a). Conclusion Based solely upon the information submitted we conclude that the requirements of 301.9100-1 and 301.9100-3 have been satisfied. As a result an extension of 60 days from the date of this letter is granted to elect to treat X as a disregarded entity for federal tax purposes effective Date 1. The entity classification election should be made by filing Form 8832 with the appropriate service center. A copy of this letter should be attached to the Form 8832. A copy is enclosed for that purpose. PLR-130086-08 3 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. This ruling is directed only to the taxpayer(s) 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 a copy of this letter is being sent to your authorized representatives. Sincerely Curtis G. Wilson Curtis G. Wilson Associate Chief Counsel (Passthroughs & Special Industries) Enclosures (2) Copy of this letter Copy for 6110 purposes cc:

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