SECTION 7. CORPORATIONS THAT

DO NOT QUALIFY FOR THE AUTOMATIC EXTENSION OF TIME

If a required filer or filers cannot qualify for the automatic extension of time pursuant to section 3 of this revenue procedure, an extension of time under § 301.9100–3 may only be obtained through a letter ruling request filed in accordance with Rev. Proc. 2003–1, 2003–1 I.R.B. 1 (or similar revenue procedure applicable to a later year). Each required filer must join in the submission of the letter ruling request. The letter ruling request must include:

.01 A detailed recitation of the facts, along with any documentary support, that:

(1) Describes the facts of the transaction or transactions claimed to constitute a qualified stock purchase, including:

(a) A representation that the acquisition of the target stock qualified as a qualified stock purchase;

(b) Information describing the purchaser of the stock, the seller(s) of the stock, and the target, whether the purchaser, the seller, and/or the target was a member of a consolidated group, and if so, information describing the common parent of the consolidated group;

(c) Whether the purchasing corporation and/or the target ceased to exist after the transaction or transactions claimed to constitute a qualified stock purchase, and if the purchasing corporation and/or the target ceased to exist after such transactions, the events that gave rise to such cessation; and

count the required filer’s or filers’ experience and the complexity of the issue), the required filer or filers were unaware of the necessity for the election; or

(4) The Internal Revenue Service has not discovered the failure to make the election.

.09 A representation that no required filer is seeking to alter a return position for which an accuracy-related penalty has been or could be imposed under § 6662 at the time of the filing of Form 8023 (taking into account any qualified amended return filed within the meaning of § 1.6664–2(c)(3)).

.10 If each required filer was informed in all material respects of the required election and related tax consequences, a representation that no required filer chose not to file the election. If any required filer was not informed in all material respects of the required election and related tax consequences, please explain.

.11 A representation that facts have not changed since the due date for making the election that make the election advantageous to any required filer and that no required filer is using hindsight in seeking to file Form 8023.

.12 A representation that the granting of an extension to file the election will not result in any taxpayer having a lower United States tax liability in the aggregate for all taxable years affected by the election than such taxpayer would have had if the election had been timely made (taking into account the time value of money).

.13 Attached to the statement must be an affidavit and declaration from each required filer, or, if the required filer is not an individual, the individual who acts on behalf of the required filer regarding tax matters, describing in detail the events that led to the failure to make a valid election and to the discovery of the failure. If the required filer relied on a qualified tax professional for advice, the affidavit must describe the engagement and responsibilities of the professional as well as the extent to which the required filer relied on the professional. The affidavit must be accompanied by a dated declaration, signed by the required filer, or, if the required filer is not an individual, the individual who acts on behalf of the required filer, which states:

“Under penalties of perjury, I declare that I have examined the attached statement, including accompanying documents, and, to the best of my knowledge and belief, the attached statement and this affidavit contain all the relevant facts, and such facts are true, correct, and complete.” The individual who signs for a required filer must have personal knowledge of the facts and circumstances at issue. If a required filer relied on another required filer or that other required filer’s tax professional to make the election, in lieu of describing the events that led to the failure to make a valid election, the discovery of the failure, and the qualified tax professional’s engagement and responsibilities, its affidavit should state that the required filer relied on the other required filer or the other required filer’s tax professional to make the election.

.14 Attached to the statement also must be an affidavit and declaration from the individuals having knowledge or information about the events that led to the failure to make a valid election and to the discovery of the failure. These individuals must include the required filer’s return preparer and/or Form 8023 preparer, any individual (including an employee of a required filer) who made a substantial contribution to the preparation of the return and/or Form 8023, and any accountant or attorney, knowledgeable in tax matters, who advised the required filer with regard to the election. The affidavit must describe the engagement and responsibilities of the individual as well as the advice that the individual provided to the required filer. Each affidavit must include the name, current address, and taxpayer identification number of the individual, and must be accompanied by a dated declaration, signed by the individual, which states: “Under penalties of perjury, I declare that I have examined the attached statement, including accompanying documents, and, to the best of my knowledge and belief, the attached statement and this affidavit contain all the relevant facts, and such facts are true, correct, and complete.”

.15 A statement regarding whether any taxpayer’s return(s) for the taxable year in which the election should have been made or any taxable years that would have been affected by the election had it been timely

April 21, 2003 805 2003–16 I.R.B.

agement and Budget (OMB) in accordance with the Paperwork Reduction Act (44 U.S.C. 3507) under control number 1545– 1820. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid OMB control number.

The collections of information in this revenue procedure are in section 5 and section 7. This information is required to determine whether a taxpayer qualifies for an automatic extension of time to file an election under this revenue procedure. The collections of information are required to obtain a benefit. The likely respondents are purchasers and sellers of stock in taxable transactions.

The estimated total annual reporting burden is 300 hours.

The estimated annual burden per respondent varies from 2 hours to 8 hours, depending on individual circumstances, with an estimated average of 5 hours. The estimated number of respondents is 60.

The estimated annual frequency of responses is on occasion.

Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue tax law. Generally tax returns and tax return information are confidential, as required by 26 U.S.C. 6103.