IRS PLR: Discharge of Indebtedness Income Election Extension Granted (IRC §108)

The owners of two partnerships whose debt to another entity was forgiven received extra time to elect under tax code Section 108(c)(3)(C) and Treasury Regulations Section 1.108-5(b) to exclude the related income from gross income after attributing to inadvertence the omission of the required Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment), from their return for “Year 1.” According to the representation: (1) the debt was incurred after January 1, 1993, in connection with the acquisition of real property used in a trade or business; (2) Taxpayers’ return reflected ...