Supplemental letter re-dating an earlier grant of extra time to make the success-based-fee safe harbor election

Plain-English summary

A taxpayer had earlier won an extension of time under Treasury Regulations §§ 301.9100-1 and 301.9100-3 to make the safe harbor election for success-based fees in Revenue Procedure 2011-29, which lets a business deduct 70 percent of certain transaction fees instead of proving how much was for facilitating the deal. The original grant letter went out with the wrong date because of a clerical error. This short supplemental letter fixes that: it modifies and corrects the effective date of the earlier ruling and restarts the clock, giving the taxpayer 60 days from the date of this new letter to make the election. It also corrects one date entry in the earlier letter's Legend. The IRS did not revisit whether the taxpayer qualified for relief; it only cleaned up the dating so the taxpayer would not lose the election window to the office's own error.

Ruling snapshot

• Question: Should the effective date of a prior 9100 relief letter be corrected after it was issued under an incorrect date?
• Outcome: Approved (effective date and Legend corrected; election window restarted at 60 days from this letter).
• Key authorities: Treas. Reg. §§ 301.9100-1, 301.9100-3; Rev. Proc. 2011-29; IRC § 263.

Full text (IRS public release)

 Internal Revenue Service                               Department of the Treasury
                                                        Washington, DC 20224

 Number: 202209011                                      Third Party Communication: None
 Release Date: 3/4/2022                                 Date of Communication: Not Applicable
 Index Number: 263.00-00, 9100.00-00
                                                        Person To Contact:
 ------------------------                               ---------------------, ID No. -----------------
 ---------------------------                            Telephone Number:
 ------------------------------                         --------------------
 -----------------------------------                    Refer Reply To:
 --------------------------------                       CC:ITA:B01
                                                        PLR-123819-21
                                                        Date:
                                                        December 06, 2021

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

On February 28, 2020, --------------------------- (Taxpayer) submitted a request for an
extension of time, under §§ 301.9100-1 and 301.9100-3 of the Procedure and
Administration Regulations, to make the safe harbor election for success-based fees
described in Rev. Proc. 2011-29, 2011-18 I.R.B. 746. In a letter dated July 28, 2021
(PLR-107578-20), this Office granted Taxpayer's request and extended Taxpayer's time
to make the election to 60 days from the date of PLR-107578-20.

Due to a clerical error, PLR-107578-20 was issued under an incorrect date. This
supplemental letter modifies and corrects the effective date of PLR-107578-20 and
extends the time for Taxpayer to make the election to 60 days from the date of this
letter. This supplemental letter also corrects an error in the Legend of PLR-107578-20.
The Legend is corrected as follows:

        Date 3:           ---------------------

In accordance with the power of attorney on file with this office, we are sending a copy
of this letter ruling to Taxpayer's authorized representative.

                                        Sincerely,

                                        /S/

                                        Sean M. Dwyer
                                        Senior Technical Reviewer, Branch 1
                                        Associate Office of Chief Counsel
                                        Income Tax & Accounting
PLR-123819-21                                             2

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