EXTENSION GRANTED TO FILE FOR FSC ELECTION.

Index Number: 9100.18-00, 927.04-00

[2] The ruling contained in this letter is predicated upon facts and representations submitted by the taxpayer and accompanied by a penalty of perjury statement executed by an appropriate party. This office has not verified any of the material submitted in support of the request for a ruling. Verification of the factual information, representations, and other data may be required as a part of the audit process.

[3] Individual A is a senior manager with CPA Firm. One of his duties was to ensure that an election to treat Taxpayer as a FSC was timely filed on or before Date B with the IRS. For various reasons, Individual A believed that Form 8279 had been forwarded to the parent of Taxpayer for signature. It was discovered after Date B that Form 8379 had not been filed. Taxpayer's failure to timely file Form 8279 has not been discovered by the IRS.

[4] Treas. Reg. section 301-9100-1(c) provides that the Commissioner in exercising the Commissioner's discretion may grant a reasonable extension of time under the rules set forth in section 301.9100-3 to make a regulatory election under all subtitles of the Internal Revenue Code except subtitles E, G, H, and I.

[5] Treas. Reg. section 301-9100-3 provides rules for extensions of time for making regulatory elections when the deadline for making the election is other than a due date prescribed by statute. A regulatory election means an election whose due date is prescribed by a regulation, a revenue ruling, revenue procedure, notice, or announcement. Section 301.9100-1(b).

[6] Treas. Reg. section 301.9100-3(a) provides that requests for relief subject to this section will be granted when the taxpayer provides the evidence (including affidavits described in section 301.9100-3(e)) to establish to the satisfaction of the Commissioner that the taxpayer acted reasonably and in good faith, and the grant of relief will not prejudice the interests of the Government.

[7] In the present situation, section 1.921-1T(b)(1), Q&A 1, fixes the time to elect treatment as an FSC or small FSC. Thus, the Commissioner has discretionary authority pursuant to section 301.9100-1(c) to grant Taxpayer an extension of time, provided that Taxpayer acted reasonably and in good faith, and the grant of relief will not prejudice the interests of the Government.

[8] Based on the facts and circumstances of this case, we conclude that Taxpayer satisfies section 301.9100-3(a). Accordingly, Taxpayer is granted an extension of time until 30 days from the date of this ruling letter to file Form 8279 effective for the tax year beginning on Date A.

[9] This ruling is directed only to the taxpayer who requested it. I.R.C. section 6110(k)(3) provides that it may not be used or cited as precedent.

[10] No ruling has been requested, and none is expressed, as to the application of any other section of the Code or regulations to the facts presented.

[11] Pursuant to a power of attorney on file in this office, a copy of this letter is being sent to the Taxpayer and the other authorized representative.

                                   Sincerely,