Category: Tax Returns, Examinations & IRS Procedure Copyright 1998, The Tax Resource Group. All rights reserved. Telephone 800-578-3498. Internet: www.taxresourcegroup.com The guidelines and procedures for requesting relief under Regs. Section 301.9100-1 are contained in Rev. Proc. 92-85, 1992-2 C.B. 490, as modified by Rev. Proc. 93-28, 1993-25 I.R.B. 17. Rev. Proc. 92-85. There is no prohibition against securing 9100 relief for a taxpayer under examination. There are two noteworthy examples under Section 7 of Rev. Proc. 92-85. In the first, the taxpayer prepared his own return in which he failed to make an election. The taxpayer hired a professional to prepare subsequent returns, and the professional discovered the error. If the extension of time for the election is granted, the taxpayer would not pay a lower tax than would have been the case if the election had been filed on time. The Rev. Proc. says permission to extend time would routinely be granted in this situation. In the second example, the taxpayer hired a tax attorney who failed to advise that taxpayer to make an election. The error was discovered on audit. The taxpayer would not pay a lower tax than would have been the case if the election had been filed on time. The Rev. Proc. says permission to extend time would routinely be granted in this situation. What we need is sort of a combination of both these examples. 9100 relief requires what amounts to a private letter ruling. There is a user fee in the neighborhood of $2,000. Also, someone must prepare the request. I have done the filings on a few of these, and it is a labor-intensive task. All together, it would probably cost in the neighborhood of $4,000 or even $5,000 to make this happen. If we can find that the IRS routinely grants relief in this type of situation, I wonder if the agent would force us to make the application. I will look and see what is out there. |
