IRS Provides 9100 Relief for Foreign Entity To Elect To Be Treated As A Corporation

A foreign entity has been granted time to elect as a corporation for federal tax purposes, the Internal Revenue Service said in PLR 202024010 released June 12, 2020.

The information submitted states that X was formed as an entity under the laws of Country on Date 1. X represents that, as a foreign eligible entity, X was able to elect to be treated as a corporation effective Date 2. However, X inadvertently failed to timely file Form 8832, Entity Classification Election, electing to treat X as a corporation effective Date 2.

Section 301.9100-1(c) provides that the Commissioner may grant a reasonable extension of time to make a regulatory election, or a statutory election (but no more than 6 months except in the case of a taxpayer who is abroad), under all subtitles of the Internal Revenue Code except subtitles E, G, H, and I. Section 301.9100-1(b) defines the term “regulatory election” as an election whose due date is prescribed by a regulation published in the Federal Register or a revenue ruling, revenue procedure, notice, or announcement published in the Internal Revenue Bulletin.

Under § 301.9100-3, a request for relief will be granted when the taxpayer provides evidence 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.

Based solely on the information submitted and the representations made, the IRS concluded that the requirements of § 301.9100-3 have been satisfied. As a result, X is granted an extension of time of 120 days from the date of this letter to file a Form 8832 with the appropriate service center to elect to be classified as an association treated as a corporation for federal tax purposes effective Date 2. A copy of this letter should be attached to the Form 8832 filed for X.

This ruling is contingent on the owners of X filing within 120 days of this letter all required returns and amended returns for all open years consistent with the requested relief. These returns may include, but are not limited to, the following forms: (i) Forms 5471, Information Return of U.S. Persons With Respect to Certain Foreign Corporations, (ii) Forms 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships, and (iii) Forms 8858, Information Return of U.S. Persons With Respect to

Disregarded Entities, such that these forms reflect the consequences of the relief granted in this letter. A copy of this letter should be attached to any such returns. 

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