PLRs Grant Extensions Related to Surety Bond Filing

Tuesday, December 2, 2003 - 11:15am

In two identical private letter rulings (PLRs), the Internal Revenue Service (IRS) granted an extension of time to file bond disposition form and post surety bonds (PLRs 200348017-018). In each of the rulings, the taxpayer intended to file a Form 8693 and to post low-income housing tax credit (LIHTC) surety bonds under §42(j)(6) for various properties disposed of during Year 1. However, the taxpayer in each case inadvertently failed to file the Form 8693 or post the surety bonds. The failure to post the surety bonds would lead to recapture of the LIHTC, but acting pursuant to Treas. Reg. §301.9100-1 and Treas. Reg. §301.9100-3, the IRS granted an extension of the time allowed by IRS announcement 94-97 to file the Forms 8693 in order to make the election to post surety bonds under §42(j). Click here for copies of the PLRs.