Ezel / IRS Rulings / 200934043

CCA 200934043: Isle of Man company classification under the entity rules

Number
200934043
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Associations v. Corporations; Kintner-Type
Topics
Entity classification
Code sections
§ 7701
Ruling dated
April 29, 2009
Publicly released
August 21, 2009
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 2009, 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 2009
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

Chief Counsel Advice discusses whether an Isle of Man company is an eligible entity under the entity-classification rules. It states that there are no Isle of Man companies that are not per se C corporations under Treas. Reg. § 301.7701-2, and therefore states that they are eligible entities. The advice asks for more facts about the type of company because the default classification depends on whether all members have limited liability or at least one member has unlimited liability.

Ruling snapshot

  • Question: How should an Isle of Man company be classified under the entity-classification rules?
  • Outcome: Advice given
  • Key authorities: IRC § 7701; Treas. Reg. § 301.7701-2

Full text (IRS public release)

ID: CCA-42913-09 Number: 200934043
Release Date: 8/21/2009
Office: ----------
UILC: 7701-01.00

From: ----------------
Sent: Wednesday 4/29/09 1:19 PM
To: -----------------
Cc: ------
Subject:

There are no Isle of Man companies that are not per se C corps under section 301.7701-2, thus, they are eligible entities.

I could not find any information on "limited companies" but see the attached link and tell me what type of Isle of Man company you are referring to. http://www.lawandtax- news.com/html/iom/jimlatcos.htmlassuming

The company would default into corporate status if all of its members have limited liability. If at least one member has unlimited liability it would default into partnership status.

Let me know what your facts are and I will try and help more.

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