IRS PLR: Form 970 LIFO Election Extension Granted (IRC §472)

Taxpayer, a former disregarded entity of company A (“A”), granted an extension of time to file a Form 970, Application to Use LIFO Inventory Method, after becoming a C corporation and acquiring assets that previously were held by A as inventory using the LIFO method. The IRS stated that Taxpayer’s previous accounting firms did not advise it that it was required to file a Form 970 with its federal income tax return in order to properly continue to use the LIFO method for its inventory. Upon Taxpayer’s second accounting firm realizing its mistake, Taxpayer contacted a third accounting firm ...