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EXTENSION GRANTED TO REQUEST CHANGE OF ACCOUNTING PERIOD.

AUG. 9, 2000

LTR 200045016

DATED AUG. 9, 2000
DOCUMENT ATTRIBUTES
  • Institutional Authors
    Internal Revenue Service
  • Code Sections
  • Subject Area/Tax Topics
  • Index Terms
    accounting period, change
  • Jurisdictions
  • Language
    English
  • Tax Analysts Document Number
    Doc 2000-28966 (2 original pages)
  • Tax Analysts Electronic Citation
    2000 TNT 219-20
Citations: LTR 200045016

Index Nos.: 9100.09-00

 

Release Date: 11/9/2000

 

 

                                             Date: August 9, 2000

 

 

               Refer Reply To: PLR-109473-00/CC:ITA:B9

 

 

LEGEND:

 

Attention: * * *

 

EIN: * * *

 

 

Dear: * * *

[1] This is in reference to a Form 1128, Application to Adopt, Change, or Retain a Tax Year, submitted on behalf of the above-named taxpayer, requesting permission to change its accounting period, for federal income tax purposes, from a taxable year ending * * *, to a taxable year ending * * *, effective * * *. The taxpayer has requested that the Form 1128 be considered timely filed under the authority contained in section 301.9100-3 of the Procedure and Administration Regulations.

[2] The taxpayer's Form 1128 requesting a change in accounting period to a tax year ending * * * was due on or before * * *. The information furnished indicates that the application for the change in accounting period was filed late because of an error or misunderstanding. However, the form was filed within 90 days of the due date.

[3] Section 1.442-1(b) of the Income Tax Regulations provides that in order to secure the Commissioner's consent to a change in accounting period, the taxpayer must file an application on Form 1128 with the Commissioner on or before the 15th day of the second calendar month following the close of the short period.

[4] Section 301.9100-3(a) provides that requests for extensions of time for regulatory elections that do not meet the requirements of section 301.9100-2 (automatic extensions), such as the instant case, must be made under the rules of section 301.9100-3. Requests for relief subject to section 301.9100-3 will be granted when the taxpayer provides evidence to establish that the taxpayer acted reasonably and in good faith, and that the granting of relief will not prejudice the interests of the government.

[5] Based on the facts and information submitted and the representations made, it is held that the taxpayer has acted reasonably and in good faith, and that the granting of relief will not prejudice the interests of the government. Accordingly, the requirements of the regulations for the granting of relief have been satisfied in this case, and the taxpayer's late filed Form 1128 requesting permission to change to a tax year ending * * *, effective for the short period of * * *, is considered timely filed.

[6] Pursuant to Appendix A of Rev. Proc. 2000-1, 2000-1 I.R.B. 6, 62, an additional user fee is required in order to process the Form 1128. The user fee will be requested in a separate correspondence. We will begin processing the taxpayer's application after the user fee is received.

[7] The ruling contained in this letter is based 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 part of an examination process.

[8] This ruling addresses the granting of section 301.9100-3 relief only. No opinion is expressed regarding the tax treatment of the instant transaction under the provisions of any other sections of the Code or regulations that may be applicable thereto, or regarding the tax treatment of any conditions existing at the time of, or effects resulting from, the instant transaction. Specifically, no opinion is expressed as to whether the taxpayer is permitted under the Code and applicable regulations to change to the tax year requested in the subject Form 1128.

[9] This ruling is directed only to the taxpayer that requested it. Section 6110(k)(3) of the Internal Revenue Code provides that it may not be used or cited as precedent.

                                   Sincerely yours,

 

 

                                   Associate Chief Counsel

 

                                    Income Tax and Accounting

 

                                   By: Heather Maloy

 

 

Enclosures:

 

  Copy of this letter

 

  Copy for section 6110 purposes
DOCUMENT ATTRIBUTES
  • Institutional Authors
    Internal Revenue Service
  • Code Sections
  • Subject Area/Tax Topics
  • Index Terms
    accounting period, change
  • Jurisdictions
  • Language
    English
  • Tax Analysts Document Number
    Doc 2000-28966 (2 original pages)
  • Tax Analysts Electronic Citation
    2000 TNT 219-20
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