IRS EXTENDS DEADLINE FOR APPLICATIONS TO STOP FILING CONSOLIDATED RETURNS.

Rev. Proc. 91-39

SECTION 1. PURPOSE

This revenue procedure modifies Rev. Proc. 91-11, 1991-6 I.R.B. 9, by providing additional time for consolidated groups to apply for permission to discontinue filing consolidated returns. This revenue procedure also clarifies Rev. Proc. 91-11 by stating that until an electing consolidated group has received permission to discontinue filing a consolidated return, it must continue filing consolidated returns pursuant to section 1.1502-75(a) of the Income Tax Regulations.

SEC. 2. Procedure

01 The second sentence of section 1.01 of Rev. Proc. 91-11 is modified to read as follows:

To obtain permission, (a) a consolidated group must file an application with the National Office no later than ninety (90) days after the date proposed section 1.1502-20 of the regulations is superseded by final regulations, and (b) each member of the group must enter into a closing agreement.

02 Section 4.012 of Rev. Proc. 91-11 is modified to read as follows:

2. Any application to discontinue filing consolidated returns pursuant to this revenue procedure must be filed no later than ninety (90) days after the date proposed section 1.1502-20 of the regulations is superseded by final regulations.

03 A new section 1.03 is added to Rev. Proc. 91-11 to read as follows:

03 Permission to discontinue filing a consolidated return is not effective until an electing consolidated group files a timely application and each former member has executed a closing agreement. Until such time, section 1.1502-75(a) of the regulations continues to apply and a consolidated return must be filed. If an electing consolidated group has filed a consolidated return for the taxable year that includes November 19, 1990 (or a later year), and subsequently receives permission to file separate returns for such year(s), each former member must file separate returns for such year(s).

SEC. 3. EFFECT ON OTHER DOCUMENTS

Rev. Proc. 91-11 is hereby modified and clarified.

DRAFTING INFORMATION

The principal author of this revenue procedure is David Kessler of the Office of Assistant Chief Counsel (Corporate). For further information regarding this revenue procedure, contact David Kessler at (202) 566-3226 (not a toll-free number).