§9100
10 citing cases
Statute Text — 26 U.S.C. §9100
Statute text not available for this section.
Treasury Regulations
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Treas. Reg. §301.9100-0Outline of regulations
This section lists the paragraphs in §§ 301.9100-1 through 301.9100-3.
(a) Introduction.
(b) Terms.
(c) General standards for relief.
(d) Exceptions.
(e) Effective dates.
(a) Automatic 12-month extension.
(1) In general.
(2) Elections eligible for automatic 12-month extension.
(b) Automatic 6-month extension.
(c) Corrective action.
(d) Procedural requirements.
(e) Examples.
(a) In general.
(b) Reasonable action and good faith.
(1) In general.
(2) Reasonable reliance on a qualified tax professional.
(3) Taxpayer deemed to have not acted reasonably or in good faith.
(c) Prejudice to the interests of the Government.
(1) In general.
(i) Lower tax liability.
(ii) Closed years.
(2) Special rules for accounting method regulatory elections.
(3) Special rules for accounting period regulatory elections.
(d) Effect of amended returns.
(1) Second examination under section 7605(b).
(2) Suspension of the period of limitations under section 6501(a).
(e) Procedural requirements.
(1) In general.
(2) Affidavit and declaration from taxpayer.
(3) Affidavits and declarations from other parties.
(4) Other information.
(5) Filing instructions.
(f) Examples.
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Treas. Reg. §301.9100-0(a)In general.
In general.
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Treas. Reg. §301.9100-0(b)Reasonable action and good faith.
Reasonable action and good faith.
(1) In general.
(2) Reasonable reliance on a qualified tax professional.
(3) Taxpayer deemed to have not acted reasonably or in good faith.
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Treas. Reg. §301.9100-0(c)Prejudice to the interests of the Government.
Prejudice to the interests of the Government.
(1) In general.
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Treas. Reg. §301.9100-0(d)Effect of amended returns.
Effect of amended returns.
(1) Second examination under section 7605(b).
(2) Suspension of the period of limitations under section 6501(a).
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Treas. Reg. §301.9100-0(e)Procedural requirements.
Procedural requirements.
(1) In general.
(2) Affidavit and declaration from taxpayer.
(3) Affidavits and declarations from other parties.
(4) Other information.
(5) Filing instructions.
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Treas. Reg. §301.9100-0(f)Examples.
Examples.
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Treas. Reg. §301.9100-0(i)Lower tax liability.
Lower tax liability.
(ii) Closed years.
(2) Special rules for accounting method regulatory elections.
(3) Special rules for accounting period regulatory elections.
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Treas. Reg. §301.9100-1Extensions of time to make elections
(a) Introduction. The regulations under this section and §§ 301.9100-2 and 301.9100-3 provide the standards the Commissioner will use to determine whether to grant an extension of time to make a regulatory election. The regulations under this section and § 301.9100-2 also provide an automatic extension of time to make certain statutory elections. An extension of time is available for elections that a taxpayer is otherwise eligible to make. However, the granting of an extension of time is not a determination that the taxpayer is otherwise eligible to make the election. Section 301.9100-2 provides automatic extensions of time for making regulatory and statutory elections when the deadline for making the election is the due date of the return or the due date of the return including extensions. Section 301.9100-3 provides extensions of time for making regulatory elections that do not meet the requirements of § 301.9100-2.
(b) Terms. The following terms have the meanings provided below—
Election includes an application for relief in respect of tax; a request to adopt, change, or retain an accounting method or accounting period; but does not include an application for an extension of time for filing a return under section 6081.
Regulatory election means 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 (see § 601.601(d)(2) of this chapter).
Statutory election means an election whose due date is prescribed by statute.
Taxpayer means any person within the meaning of section 7701(a)(1).
(c) General standards for relief. The Commissioner in exercising the Commissioner's discretion may 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 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.
(d) Exceptions. Notwithstanding the provisions of paragraph (c) of this section, an extension of time will not be granted—
(1) For elections under section 4980A(f)(5); or
(2) For elections that are expressly excepted from relief or where alternative relief is provided by a statute, a regulation published in the Federal Register, or a revenue ruling, revenue procedure, notice, or announcement published in the Internal Revenue Bulletin (see § 601.601(d)(2) of this chapter).
(e) Effective dates. In general, this section and §§ 301.9100-2 and 301.9100-3 apply to all requests for an extension of time submitted to the Internal Revenue Service (IRS) on or after December 31, 1997. However, the automatic 12-month and 6-month extensions provided in § 301.9100-2 apply to elections for which corrective action is taken on or after December 31, 1997. For other requests for an extension of time, see §§ 301.9100-1T through 301.9100-3T in effect prior to December 31, 1997 (§§ 301.9100-1T through 301.9100-3T as contained in the 26 CFR part 1 edition revised as of April 1, 1997).
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Treas. Reg. §301.9100-1(a)Introduction.
Introduction. The regulations under this section and §§ 301.9100-2 and 301.9100-3 provide the standards the Commissioner will use to determine whether to grant an extension of time to make a regulatory election. The regulations under this section and § 301.9100-2 also provide an automatic extension of time to make certain statutory elections. An extension of time is available for elections that a taxpayer is otherwise eligible to make. However, the granting of an extension of time is not a determination that the taxpayer is otherwise eligible to make the election. Section 301.9100-2 provides automatic extensions of time for making regulatory and statutory elections when the deadline for making the election is the due date of the return or the due date of the return including extensions. Section 301.9100-3 provides extensions of time for making regulatory elections that do not meet the requirements of § 301.9100-2.
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Treas. Reg. §301.9100-1(b)Terms.
Terms. The following terms have the meanings provided below—
Election includes an application for relief in respect of tax; a request to adopt, change, or retain an accounting method or accounting period; but does not include an application for an extension of time for filing a return under section 6081.
Regulatory election means 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 (see § 601.601(d)(2) of this chapter).
Statutory election means an election whose due date is prescribed by statute.
Taxpayer means any person within the meaning of section 7701(a)(1).
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Treas. Reg. §301.9100-1(c)General standards for relief.
General standards for relief. The Commissioner in exercising the Commissioner's discretion may 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 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.
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Treas. Reg. §301.9100-1(d)Exceptions.
Exceptions. Notwithstanding the provisions of paragraph (c) of this section, an extension of time will not be granted—
(1) For elections under section 4980A(f)(5); or
(2) For elections that are expressly excepted from relief or where alternative relief is provided by a statute, a regulation published in the Federal Register, or a revenue ruling, revenue procedure, notice, or announcement published in the Internal Revenue Bulletin (see § 601.601(d)(2) of this chapter).
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Treas. Reg. §301.9100-1(e)Effective dates.
Effective dates. In general, this section and §§ 301.9100-2 and 301.9100-3 apply to all requests for an extension of time submitted to the Internal Revenue Service (IRS) on or after December 31, 1997. However, the automatic 12-month and 6-month extensions provided in § 301.9100-2 apply to elections for which corrective action is taken on or after December 31, 1997. For other requests for an extension of time, see §§ 301.9100-1T through 301.9100-3T in effect prior to December 31, 1997 (§§ 301.9100-1T through 301.9100-3T as contained in the 26 CFR part 1 edition revised as of April 1, 1997).
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Treas. Reg. §301.9100-10TElection by certain family-owned bank holding companies to divest all banking or nonbanking property
(a) In general. For purposes of sections 1101 through 1103 and 6158 of the Code, a bank holding company may elect under section 1103(h) to have the determination of whether property is prohibited property or is property eligible to be distributed without recognition of gain under section 1101(b)(1) made under the Bank Holding Company Act (12 U.S.C. 1841 et seq.) as if the Act did not contain clause (ii) of section 4(c) thereof.
(b) Manner of making election. The election under section 1103(h) shall be made in a written statement filed with the Federal Reserve Board indicating that by resolution of its board of directors, the bank holding company is electing to apply, the provisions of section 1103(h). In addition, the bank holding company shall indicate on its income tax return for each taxable year in which the election applies to a distribution or sale of property (in the manner specified in the Internal Revenue Service's instructions for the preparation of the return) that it has made the election under section 1103(h). The election shall be considered to be made on the date on which the written statement is received by the Federal Reserve Board.
(c) Scope of election. The election under section 1103(h) applies to all determinations of whether property is prohibited property or is property eligible to be distributed without recognition of gain under section 1101(b)(1).
(d) Election; binding effect. An election made under section 1103(h) is irrevocable.
(e) Final certification. An election under section 1103(h) shall not apply unless the final certification referred to in section 1101(e) or section 6158(c)(2), as the case may be, includes a certification by the Federal Reserve Board that the bank holding company has disposed of either all banking property or all nonbanking property.
(f) Conditional certification. A certification by the Federal Reserve Board under section 1101 (a)(1)(B), 1101 (b)(1)(B), 1101 (c)(2)(C), 1101 (c)(3)(C), or 6158(a) that is conditioned upon the bank holding company's making an election under section 1103(h) shall note considered to be made before the distribution or sale unless the certification and the election are made before the distribution or sale.
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Treas. Reg. §301.9100-10T(a)In general.
In general. For purposes of sections 1101 through 1103 and 6158 of the Code, a bank holding company may elect under section 1103(h) to have the determination of whether property is prohibited property or is property eligible to be distributed without recognition of gain under section 1101(b)(1) made under the Bank Holding Company Act (12 U.S.C. 1841 et seq.) as if the Act did not contain clause (ii) of section 4(c) thereof.
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Treas. Reg. §301.9100-10T(b)Manner of making election.
Manner of making election. The election under section 1103(h) shall be made in a written statement filed with the Federal Reserve Board indicating that by resolution of its board of directors, the bank holding company is electing to apply, the provisions of section 1103(h). In addition, the bank holding company shall indicate on its income tax return for each taxable year in which the election applies to a distribution or sale of property (in the manner specified in the Internal Revenue Service's instructions for the preparation of the return) that it has made the election under section 1103(h). The election shall be considered to be made on the date on which the written statement is received by the Federal Reserve Board.
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Treas. Reg. §301.9100-10T(c)Scope of election.
Scope of election. The election under section 1103(h) applies to all determinations of whether property is prohibited property or is property eligible to be distributed without recognition of gain under section 1101(b)(1).
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Treas. Reg. §301.9100-10T(d)Election; binding effect.
Election; binding effect. An election made under section 1103(h) is irrevocable.
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Treas. Reg. §301.9100-10T(e)Final certification.
Final certification. An election under section 1103(h) shall not apply unless the final certification referred to in section 1101(e) or section 6158(c)(2), as the case may be, includes a certification by the Federal Reserve Board that the bank holding company has disposed of either all banking property or all nonbanking property.
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Treas. Reg. §301.9100-10T(f)Conditional certification.
Conditional certification. A certification by the Federal Reserve Board under section 1101 (a)(1)(B), 1101 (b)(1)(B), 1101 (c)(2)(C), 1101 (c)(3)(C), or 6158(a) that is conditioned upon the bank holding company's making an election under section 1103(h) shall note considered to be made before the distribution or sale unless the certification and the election are made before the distribution or sale.
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Treas. Reg. §301.9100-11TElection by a qualified bank holding corporation to pay in installments the tax attributable to sales under the Bank Holding Company Act
(a) In general. Under section 6158(a) of the Code, a qualified bank holding corporation may elect to pay in installments the tax under chapter I of the Code attributable to the sale of bank property or prohibited property (as those terms are defined in section 6158(f) (2) and (3)) if—
(1) It meets the conditions described in paragraph (b) of this section, and
(2) It files an election in accordance with the rules set forth in paragraph (c) of this section.
(b) Conditions. (1) The sale of bank property or prohibited property must take place after July 7, 1970.
(2) The Federal Reserve Board must certify before the sale of the bank property or prohibited property that the divestiture of such property is necessary or appropriate to effectuate section 4 or the policies of the Bank Holding Company Act (12 U.S.C. 1841 et seq.).
(3) If bank property is sold, the qualified bank holding corporation (or a corporation having control of it or a subsidiary of it) must not have—
(i) Previously elected to apply section 6158 to a sale of prohibited property, or
(ii) Previously distributed prohibited property under section 1101(a).
(4) If prohibited property is sold, the qualified bank holding corporation (or a corporation having control of it or a subsidiary of it) must not have—
(i) Previously elected to apply section 6158 to a sale of bank property, or
(ii) Previously distributed bank property under section 1101(b).
(5) The qualified bank holding corporation must not have elected to return the income from the sale under the installment provisions of section 453.
(c) Time and manner of making election. (1) Except as provided in paragraph (c)(2) of this section, a qualified bank holding corporation shall make the election under section 6158(a) by—
(i) Attaching a statement to its income tax return for the taxable year in which the prohibited property or bank property is sold showing the tax computation under paragraph (f) of this section and the amount of the installment paid with the return, and
(ii) Entering the amount of the installment payment followed by the words “computed under section 6158” in the appropriate place on the tax return.
(2) If the qualified bank holding corporation filed its income tax return for the year of sale before February 6, 1979 (without electing under section 6158(a)), then it shall make the election under section 6158(a) by attaching a statement to its claim for credit or refund (amended tax return) for its overpayment of income tax attributable to the application of section 6158 showing the tax computation under paragraph (f) of this section and entering the amount of the credit or refund followed by the words “attributable to the application of section 6158” in the appropriate place on the claim. In order for the election to be effective, the claim must be filed before the earlier of—
(i) The expiration of the period of limitation for the filing of the claim, or
(ii) February 6, 1979.
(d) Scope of election. An election under section 6158 will apply only to the particular sale or sales of property with respect to which the election is being made.
(e) Special rule for certifying sales. For purposes of section 6158(a) and paragraph (b)(2) of this section, in the case of a sale which takes place after July 7, 1970, and before January 1, 1977, a certification by the Federal Reserve Board shall be treated as made before the sale if application for such certification was made before January 1, 1977.
(f) Tax attributable to sales. The tax under chapter I of the Code attributable to sales with respect to which an election under section 6158 has been made shall be the amount, if any, by which the tax under chapter I on the taxable income of the qualified bank holding corporation (computed without regard to section 6158) for the taxable year during which the sales occur exceeds the greater of—
(1) The tax under chapter I for such year on the taxable income of the corporation exclusive of gains on sales of property with respect to which an election under section 6158 has been made, or
(2) The tax under chapter I for such year on the taxable income of the corporation exclusive of gains and losses on all sales of the type of property (either bank property or prohibited property) with respect to which an election under section 6158 has been made.
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Treas. Reg. §301.9100-11T(a)In general.
In general. Under section 6158(a) of the Code, a qualified bank holding corporation may elect to pay in installments the tax under chapter I of the Code attributable to the sale of bank property or prohibited property (as those terms are defined in section 6158(f) (2) and (3)) if—
(1) It meets the conditions described in paragraph (b) of this section, and
(2) It files an election in accordance with the rules set forth in paragraph (c) of this section.
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Treas. Reg. §301.9100-11T(b)Conditions.
Conditions. (1) The sale of bank property or prohibited property must take place after July 7, 1970.
(2) The Federal Reserve Board must certify before the sale of the bank property or prohibited property that the divestiture of such property is necessary or appropriate to effectuate section 4 or the policies of the Bank Holding Company Act (12 U.S.C. 1841 et seq.).
(3) If bank property is sold, the qualified bank holding corporation (or a corporation having control of it or a subsidiary of it) must not have—
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Treas. Reg. §301.9100-11T(c)Time and manner of making election.
Time and manner of making election. (1) Except as provided in paragraph (c)(2) of this section, a qualified bank holding corporation shall make the election under section 6158(a) by—
10 Citing Cases
Inc. v. Commissioner, 87 T.C. 116, 122 (1986), aKd, 843 F.2d 224 (6th Cir. 1988). "The Commissioner may grant administrative reliefto a securities trader with regard to an improper mark-to-market election ifthe trader, among other things, requests sec. 9100 reliefand demonstrates that he acted reasonably and in good faith in failing to make a timely election under sec. 475(f). See Vines v. Commissioner, 126 T.C. 279, 290-291 (2006); sec. 301.9100-3, Proced. & Admin. Regs. A taxpayermust request
Martin submitted to respondent a "Revenue Ruling Submission Applicationtfor Reliefunder Regulations.§ 301.9100-1" (section 9100 reliefrequest) dated April 24, 2008.
nd remanding T.C. Memo. 1988-264. 9Under sec. 301.9100-3, Proced. & Admin. Regs., the Commissioner may grant administrative relief to a securities trader with regard to an improper mark-to-market election if the trader, among other things, requests sec. 9100 relief and demonstrates that he acted reasonably and in good faith in failing to make a timely election under sec. 475(f). A trader has not acted reasonably and in good faith if the trader uses hindsight in requesting relief by attempting to
Regs ., he should qualify for an extension of time to make the section 475'(f) election (section 9100 relief) .
14 -8- Availability of Section 9100 Relief Mr .
Consequently, we hold that respondent would be prejudiced under section 301.9100-3(c)(1)(i), Proced.
(section 9100 relief), from the timely election requirements of section 475(f) . OPINION Section 475(f) provides generally that a taxpayer engaged i n business as a securities trader may elect to use the mark-to- market method of accounting for securities held in a business . Under the mark-to-market method of accounting a trader generally recognize
Because we hold, for reasons stated below, that petitioner is entitled to sec.
Petitioners filed their Form 3115 in October 2001, and SPK filed its Form 3115 in September 2001 . Neither petitioners nor SPK submitted any other document to respondent seeking to elect the mark-to-market method of accounting . Tax Returns for 2000 and 2001 Petitioners and SPK each timely filed their tax returns for 2000 and 2001 .
Regs, (section 9100 relief). Mr. Sellers recommended that petitioner hire other tax counsel to make the section 475(f) election and to request section 9100 relief. Petitioner hired the Washington, D.C., law firm of Caplin & Drysdale to prepare and file the section 475(f) election and request for section 9100 relief. On July 21, 2000, Caplin & Drysdale, on