IRS PLR: Taxable REIT Subsidiary Election Filing Relief Granted (IRC §856)

Dec. 3, 2021, 5:00 AM

In two PLRs, a real estate investment trust (REIT) (“Taxpayer”) and subsidiary received relief as to the timeliness of an election to treat the latter as a taxable REIT subsidiary under tax code Section 856(l), effective “Date 3.” According to the representation, Taxpayer and Subsidiary each elected to be classified as an association taxable as a corporation effective Date 3, and Taxpayer’s owner’s (“Fund”) intent was that the entities qualify for the REIT classifications during their first taxable year and thereafter, but Fund and “Law Firm” missed the filing deadline for Form 8875, Taxable REIT Subsidiary Election, ...

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