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Contents : Internal Revenue Service Number: 200931029 Release Date: 7/31/2009 Department of the Treasury Washington DC 20224 Third Party Communication: None Date of Communication: Not Applicable Person To Contact: Index Number: 7701.00-00 9100.00-00 -------------------- ID No. ------------- ------------------------------------------------------------------------------------------------------------------- --------------------- Telephone Number: Refer Reply To: CC:PSI:B01 PLR-145179-08 Date: April 16 2009 X -----------------------------------------------------------------------------P ------------------------- Member --------------------------------------------------------------------------Country -------- d1 ------------------------- Year 1 ------- Year 2 ------- Dear ------------------: This letter responds to a letter dated October 15 2008 and subsequent correspondence submitted on behalf of X by its authorized representative requesting a ruling under 301.9100-1 and 301.9100-3 of the Procedure and Administration Regulations that X be granted an extension of time to file an election to be classified as a disregarded entity under 301.7701-3 effective d1. FACTS The information submitted states that X is a P formed under the laws of Country and was acquired by Member on d1. Under the laws of Country the owners of a P have limited liability. Member intended that X be treated as a disregarded entity for PLR-145179-08 2 federal tax purposes however due to inadvertence X failed to file a timely Form 8832 Entity Classification Election. 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 as provided in 301.7701-3. Section 301.7701-3(b)(2)(i) provides that unless it elects otherwise a foreign eligible entity is (A) a partnership if it has two or more 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 in 301.7701-3(b) or to change its classification by filing Form 8832 with the service center designated on Form 8832. Section 301.7701-3(c)(1)(iii) provides that an election made under 301.77013(c)(1)(i) will be effective on the date specified by the entity on Form 8832 or on the date filed if no date is specified on the election form. The effective date specified on Form 8832 cannot be more than 75 days prior to the date on which the election is filed and cannot be more than 12 months after the date on which the election is filed. Section 301.7701-3(d)(1)(i) provides that for purposes of 301.7701-3 a foreign eligible entity's classification is relevant when its classification affects the liability of any person for federal tax or information purposes. The date that the classification of a foreign eligible entity is relevant is the date an event occurs that creates an obligation to file a federal tax return information return or statement for which the classification of the entity must be determined. Thus the classification of a foreign entity is relevant for example on the date that an interest in the entity is acquired which will require a U.S. person to file an information return on Form 5471. Section 301.9100-1(c) provides that the Commissioner has discretion to grant a reasonable extension of time under the rules set forth in 301.9100-2 and 301.9100-3 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 a regulatory election to include an election whose due date is prescribed by a regulation published in the Federal Register. Section 301.9100-2 provides the rules governing automatic extensions of time for making certain elections. Section 301.9100-3 sets forth the standards the PLR-145179-08 3 Commissioner will use to determine whether to grant an extension of time for regulatory elections that do not meet the requirements of 301.9100-2. Section 301.9100-3(a) provides that requests for relief subject to 301.9100-3 will be granted when the taxpayer provides evidence (including affidavits described in 301.9100-3(e)) to establish to the satisfaction of the Commissioner that (1) the taxpayer acted reasonably and in good faith and (2) granting relief will not prejudice the interests of the Government. CONCLUSION Based on the facts submitted and the representations made we conclude that the requirements of 301.9100-1 and 301.9100-3 have been satisfied. As a resu

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