Ezel / IRS Rulings / 200851098

CCA 200851098: VEBA status does not determine whether contributions are taxable to employees

Number
200851098
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Treatment of Funded Welfare Benefit Plans
Topics
Retirement plans, IRAs, and annuities Tax-exempt organizations
Code sections
§ 501(c)(9)
Ruling dated
September 16, 2008
Publicly released
December 19, 2008
Source
View Official PDF

Apply this to your situation

This page covers legal advice the IRS Office of Chief Counsel wrote for IRS staff, issued in 2008, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.

Currency note: this determination was released in 2008
Statutory amendments, regulation changes, court decisions, or later IRS guidance may have changed the analysis since then. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, threshold, or position mentioned here.
Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It is advice from the IRS Office of Chief Counsel to IRS personnel on the facts they presented, and identifying details were redacted by the IRS before release. The official IRS release (linked on this page as a PDF) is the authoritative source.
About this page: The plain-English summary and ruling snapshot below were written by Ezel based on the official IRS release. The full text is the IRS's own document.
View official IRS release (PDF)

Plain-English summary

The writer says there is no rule requiring contributions to a VEBA to be tax free. A VEBA's status does not determine whether contributions are taxable to employees; applicable exclusions must be examined. The email does not decide whether the particular contributions are taxable. The writer also requests missing attachments and explains which branch handles section 501(c)(9) matters.

Ruling snapshot

  • Question: Does VEBA status determine whether contributions are taxable to employees?
  • Outcome: Advice given: no. The applicable exclusions must be considered. The email does not decide the contributions' tax treatment.
  • Key authorities: IRC section 501(c)(9) is mentioned for branch jurisdiction.

Full text (IRS public release)

ID: CCA-916102-08 Number: 200851098
Office: ------------------------ Release Date: 12/19/2008

UILC: 419.00-00; 501.09-00

From: -------------------
Sent: Tuesday, September 16, 2008 10:23 AM
To: --------------------
Cc: --------------------------------
Subject: RE: Mandatory Employee Contributions to a VEBA ---------

Hi--------To answer some of the questions below, there is certainly no rule that says contributions to a VEBA must be tax free. And VEBA status does not affect the taxability of contributions to employees. You have to look to applicable exclusions. -----
--------should be able to provide input on that.

You did not forward the attachments. If you are working the case, we should discuss. If it is -----------, then they can coordinate with us.

Note we are in the ----- branch (not ---- branches) – ----- has jurisdiction with respect to 501(c)(9), and I handle that area. Once I have a better idea of what the field atty wants to do, I can assign to an attorney. Thanks

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