Blog · 16 October 2026

9100 Relief for Missed Tax Elections: What PLR 202641003 Shows US CPA Firms

By Keshav Bansal, CA

Every firm eventually finds a missed election — a statement never attached, a form filed late. Whether it is fixable usually comes down to 9100 relief — the extensions of time the IRS can grant under Treas. Reg. §§301.9100-1 through -3. A private letter ruling released on October 9, 2026, PLR 202641003 (reported by Bloomberg Tax on October 13, 2026), shows the process working the way it should: a corporation that forgot one attachment got a 60-day window to fix it. Here is what US CPA firms should take from it, and which route a missed tax election needs.

What happened in PLR 202641003

The taxpayer was an LLC taxed as a corporation filing a calendar-year Form 1120. It was wholly owned by a partnership whose sole member was an entity the ruling describes as exempt under §115(1) as an employee benefit plan. That ownership made the LLC a “tax-exempt controlled entity” under §168(h)(6)(F)(iii): a corporation 50 percent or more (in value) of whose stock is held by one or more tax-exempt entities (other than foreign ones).

Under §168(h)(6)(F)(ii), such an entity can elect not to be treated as a tax-exempt entity for the tax-exempt use property rules. The trade-off is real: the election is irrevocable, binds every tax-exempt holder, and makes their gain on selling their interest — and certain dividends and interest they receive from the entity — unrelated business taxable income under §511.

Relying on its in-house tax staff, the taxpayer timely filed its Form 1120 intending to make the election and prepared the whole return as though it had. But it did not attach the election statement required by §301.9100-7T(a)(3)(i). An employee later caught the omission, and the taxpayer “took immediate action” to request relief. The ruling (dated July 14, 2026; PLR-104384-26) granted an extension of 60 calendar days from the date of the letter to make the election by filing an amended return with the statement attached, plus a copy of the ruling. A copy of the ruling and statement should also go on the returns of the tax-exempt shareholders, as §301.9100-7T(a)(3)(ii) requires.

Regulatory vs. statutory elections

Section 301.9100-1(b) draws the line that decides everything else. A regulatory election is one whose due date is set by a regulation published in the Federal Register or by a revenue ruling, revenue procedure, notice or announcement in the Internal Revenue Bulletin. A statutory election is one whose due date is set by the Code itself.

The §168(h)(6)(F)(ii) election qualified as regulatory because its deadline comes from §301.9100-7T(a)(2)(i): the due date, including extensions, of the return for the first year the election is to apply. Statutory elections are far more limited. Under §301.9100-1(c), any extension for a statutory election is capped at 6 months (except for a taxpayer who is abroad), and the §301.9100-3 ruling route covers regulatory elections only. Section 301.9100-1(d) also bars relief where published guidance expressly excludes it or provides alternative relief.

Route 1: automatic extensions under §301.9100-2

• 12-month automatic extension. Section 301.9100-2(a) gives 12 months from the election’s due date (the extended due date, if the return was extended) for a listed set of regulatory elections, including the §444 fiscal-year election, LIFO under §472, the §754 basis adjustment election and the §2032A special-use valuation election (where no exam has begun). It applies whether or not the return was timely filed.
• 6-month automatic extension. Section 301.9100-2(b) gives 6 months from the return’s due date excluding extensions for regulatory or statutory elections due with the return (including extensions), but only if the return was timely filed.
• How to claim it. Take the corrective action — usually an original or amended return with the election statement — and put “FILED PURSUANT TO § 301.9100-2” at the top. No ruling is needed and no user fee applies. The election and all affected returns must be filed consistently, or the IRS may invalidate the election.

Rev. Proc. 2026-1 also points to fee-free alternatives for two common misses: late S corporation and related elections under Rev. Proc. 2013-30, and late entity classification elections under Rev. Proc. 2009-41, for taxpayers who meet those procedures’ requirements.

Route 2: a letter ruling under §301.9100-3

If no automatic rule fits, §301.9100-3 relief is granted when the taxpayer shows it acted reasonably and in good faith and that relief will not prejudice the interests of the Government.

Reasonable action and good faith. A taxpayer is deemed to qualify if, among other things, it asks for relief before the IRS discovers the failure, or it reasonably relied on a qualified tax professional — “including a tax professional employed by the taxpayer” — who failed to make or advise the election. That second clause is exactly what the PLR 202641003 taxpayer represented about its in-house staff. The regulation also lists disqualifiers: seeking to change a position for which a §6662 accuracy-related penalty has been or could be imposed (see our accuracy-related penalties guide), knowingly choosing not to elect, or using hindsight.

No prejudice to the Government. The Government is prejudiced if relief would leave the taxpayer (or affected taxpayers together) with lower tax overall than a timely election, counting the time value of money. Its interests are also ordinarily prejudiced if the relevant years close under §6501(a) before the ruling arrives, and a request does not suspend that period, so the IRS may require a §6501(c)(4) consent. Accounting method and period elections face stricter deemed-prejudice rules.

Paperwork and cost. A §301.9100-3 request is a letter ruling request. It needs a detailed affidavit from the taxpayer and affidavits from the return preparer and others involved, each with a penalties-of-perjury declaration. Rev. Proc. 2026-1, Appendix A, sets the user fee for §301.9100-3 relief at $14,500, with reduced fees of $3,450 (gross income under $400,000) and $9,775 (under $10 million) where the requester certifies eligibility. Late Form 3115 and Form 1128 requests have their own fee lines.

Why you can’t cite this PLR

The ruling is directed only to the taxpayer that requested it. Under §6110(k)(3), a written determination “may not be used or cited as precedent.” It shows how the IRS applies the standard; it is not authority for another client.

Preparer checklist for a missed tax election

• Identify where the deadline comes from (statute or published guidance) and whether a specific relief procedure exists.
• Check §301.9100-2 first; calendar the 12-month or 6-month window from the right due date.
• If a ruling is needed, move before the IRS finds the problem and well before the statute of limitations runs.
• Collect affidavits early, including from the preparer — that may be your own firm.
• Confirm the return was prepared consistently with the election.
• Build election statements into review checklists, especially for new elections such as the section 1062 farmland election, and track corrective amended returns to confirmed acceptance.

Where Tax Brew fits

Missed elections are usually process failures. Tax Brew provides bookkeeping, cleanup and tax prep support for US CPA firms, including return-prep checklists and workpapers your reviewers can rely on, with the first 20 hours free for qualifying engagements. Your team keeps the advice, the ruling strategy and the sign-off. See our services, or email info@taxbrewglobal.com.

Sources: PLR 202641003 (dated July 14, 2026; released Oct. 9, 2026); Bloomberg Tax (Oct. 13, 2026); 26 CFR §301.9100-1, §301.9100-2, §301.9100-3 and §301.9100-7T (Cornell LII); 26 U.S.C. §168(h)(6)(F) and §6110(k)(3) (Cornell LII); Rev. Proc. 2026-1, I.R.B. 2026-1 (Dec. 29, 2025). General information, not tax or legal advice.