Rev. Proc. 76-14

Section 1. Purpose.

The purpose of this Revenue Procedure is to amplify Rev. Proc. 74-35, 1974-2 C.B. 490, with respect to the application for consent not to defer gain or loss on any deferred intercompany transactions under section 1.1502-13(c)(3) of the Income Tax Regulations.

Sec. 2. Background.

.01 Rev. Proc. 74-35 sets forth the information necessary to be included in a request under section 1.1502-13(c)(3) of the regulations for consent to a taxpayer's election not to defer gain or loss on deferred intercompany transactions during consolidated return years with respect to all property or any class or classes of property. Such consent must be filed with the Commissioner on or before the due date of the consolidated return (not including extensions of time) for the taxable year to which the election is to apply.

.02 It has been brought to the attention of the Internal Revenue Service that due to the complexity of some affiliated group's consolidated returns, certain detailed information required under Rev. Proc. 74-35 will not be known with any certainty until after the consolidated tax returns for the year in question have been filed. As a result, some taxpayers are not able to file an application for consent not to defer gain or loss on any deferred intercompany transactions on or before the original due date for filing the Federal income tax return (not including extensions of time) as required by section 1.1502-13(c)(3) of the regulations.

Sec. 3. Procedure.

The requirements of section 1.1502-13(c)(3) of the regulations and Rev. Proc. 74-35 will be deemed satisfied where the election not to defer is timely filed with the Commissioner with an attachment containing all available information and stating that any omitted information has not been finalized and will be forwarded; and such omitted information is submitted not later than the earlier of the following two dates: (1) 90 days after the original due date of the return, or (2) the date the consolidated return is filed with the Internal Revenue Service Center where the taxpayer is required to file such return.

Sec. 4. Effect on Other Documents.

Rev. Proc. 74-35 is amplified.