Housing project receives late multiple-building election

Plain-English summary

A taxpayer intended to treat all buildings in a low-income housing development as one multiple-building project but inadvertently failed to make an effective election on the Forms 8609 issued for every building. The IRS concluded from the taxpayer's submitted facts and representations that the requirements for discretionary late-election relief were met. It granted 120 days to file amended Forms 8609 and the accompanying information statements making the section 42(g)(3)(D) election for all project buildings. The amended filings must include a copy of the ruling. The IRS did not decide whether the original Forms 8609 were timely or correct, the election's effect for closed years, or whether the buildings otherwise qualified for low-income housing credits.

Ruling snapshot

• Question: May the taxpayer make a late election to treat all project buildings as one multiple-building project?
• Outcome: Yes, by filing amended Forms 8609 and information statements within 120 days.
• Key authorities: IRC § 42; Treas. Reg. §§ 1.42-1(h), 301.9100-1, and 301.9100-3

Full text (IRS public release)

Internal Revenue Service                                        Department of the Treasury
                                                                Washington, DC 20224

Number: 201606021                                               Third Party Communication: None
Release Date: 2/5/2016                                          Date of Communication: Not Applicable
Index Number: 9100.01-00, 42.00-00
                                                                Person To Contact:
-------------------------------                                 ----------------------------, ID No. --------------
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--------------------------------------                          Telephone Number:
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In Re:                                                          Refer Reply To:
         -----------------------------------------              CC:PSI:B05
                                                                PLR-131257-15
                                                                Date:
                                                                November 09, 2015

LEGEND:

Taxpayer          =         -----------------------------------------
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Project           =        ----------------------------------

N                 =        ---

BINs              =         ----------------------------------------------------------------------------
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Address           =         ----------------------
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Agency            =        -----------------------------------------------------------------------


Dear ------------:

This letter responds to Taxpayer’s authorized representative’s letter dated September
15, 2015, and subsequent correspondence, requesting an extension of time pursuant to
§ 301.9100-1 of the Procedure and Administration Regulations to elect to identify all of
PLR-131257-15                                  2

the buildings in Project for which a building identification number (BIN) was assigned as
part of a single, multiple-building project under § 42(g)(3)(D) of the Internal Revenue
Code on Taxpayer’s IRS Forms 8609, Low-Income Housing Credit Allocation and
Certification.

Project consists of N buildings identified by BINs and located at Address. According to
information submitted, Taxpayer through inadvertence failed to make an effective
election for all N buildings in Project for which Forms 8609 were issued by Agency,
consistent with Taxpayer’s intent to treat these buildings as part of a single, multiple-
building project under § 42(g)(3)(D).

Section 42(g)(3)(D) provides that a project will consist of only one building unless, prior
to the end of the first calendar year in the project period (as defined in § 42(h)(1)(F)(ii)),
each building that will comprise the project is identified in the form and the manner that
the Secretary provides.

Section 42(l)(1) sets forth the certifications for the first year of the credit period
regarding any qualified low-income building that a taxpayer must certify to the Secretary
(at such time and in such manner as the Secretary prescribes). Section 1.42-1(h) of the
Income Tax Regulations requires that a building owner (i.e., taxpayer) must file a
completed Form 8609 with the Service in accordance with the form instructions. The
election under § 42(g)(3)(D) for a building is made on Part II of Form 8609 and requires
the inclusion of an accompanying informational statement.

Sections 301.9100-1 through 301-9100-3 provide the standards the Commissioner will
use to determine whether to grant an extension of time to make an election.
Section 301.9100-1(b) defines the term “regulatory election” as including 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 § 301.9100-1(c), the Commissioner has discretion to 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 six months except in the
case of a taxpayer who is abroad), under all subtitles of the Code, except E, G, H, and I.
Section 301.9100-2 provides automatic extensions of time for making certain elections.
Section 301.9100-3 provides extensions of time for making elections that do not meet
the requirements of §301.9100-2.

Requests for relief under § 301.9100-3(a) will be granted when the taxpayer provides
evidence to establish that the taxpayer acted reasonably and in good faith and that
granting relief will not prejudice the interests of the government.
PLR-131257-15                                  3

In the instant case, based solely on Taxpayer’s facts submitted and its representations
made, we conclude that the requirements of §§ 301.9100-1 and 301.9100-3 have been
met. Accordingly, Taxpayer is granted an extension of time to make the election under
§ 42(g)(3)(D) to treat all N buildings identified by BINs in Project for which Forms 8609
were issued by Agency as part of a single, multiple-building project by filing within 120
days from the date of this letter amended Forms 8609, and accompanying information
statement(s), that include this intended election. The amended Forms 8609 and
statement(s) (along with a copy of this letter) are to be filed with the Philadelphia
Service Center at the address provided for the Service Center in that form. A copy of
this letter is enclosed for this purpose.

No opinion is expressed or implied regarding the application of any other provisions of
the Code or regulations. Specifically, we express no opinion on whether any of the
Forms 8609 for the N buildings identified by BINs in Project were timely or correctly
filed, the effect of Taxpayer’s election under § 42(g)(3)(D) for any closed year, or
whether Project buildings otherwise qualify for low-income housing tax credits under
§ 42.

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

In accordance with the Power of Attorney on file with this office, a copy of this letter is
being sent to your authorized representatives.

                                           Sincerely,

                                           Associate Chief Counsel
                                           (Passthroughs and Special Industries)



                                           By: _____________________________
                                           CHRISTOPHER J. WILSON
                                           Senior Counsel, Branch 5
                                           Office of Associate Chief Counsel
                                           (Passthroughs and Special Industries)

Enclosures:
Copy of this letter
Copy for section 6110 purposes


cc: