IRS Grants Extension to ID Buildings as Part of Single Multi-Building Project

Facts: An owner’s site consists of multiple buildings located at a single address. The owner inadvertently failed to make an effective election for all buildings in the project for which Forms 8609 were issued, consistent with the owner’s intent to treat these buildings as part of a single, multiple-building project under Section 42(g)(3)(D).

The owner requested an extension of time to elect to identify all of the buildings in the project for which a building identification number (BIN) was assigned as part of a single, multiple-building project under Section 42(g)(3)(D) of the Internal Revenue Code on IRS Forms 8609, Low-Income Housing Credit Allocation and Certification.

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, each building that will comprise the project is identified in the form and the manner that the Secretary provides.

Section 1.42-1(h) of the Income Tax Regulations requires that a building owner must file a completed Form 8609 with the IRS in accordance with the form instructions. The election under Section 42(g)(3)(D) for a building is made on Part II of Form 8609.

Ruling: The IRS granted the owner an extension of 120 days to make the appropriate election on Form 8609 to treat all buildings at his site as part of a single, multiple-building project.

Reasoning: Under Section 301.9100-1(c), the Commissioner has the discretion to grant a reasonable extension of time under the rules set forth in Sections 301.9100-2 and 301.9100-3 to make the appropriate election. Based solely on the facts the owner submitted and the representations the owner made, the IRS concluded that the owner acted reasonably and in good faith, and that granting relief wouldn’t prejudice the interests of the government.

·         PLR 145622-12, No. 201324014 (2/11/2013)