Ezel / IRS Rulings / 200950039

CCA 200950039: IRS points to prior guidance on crab license buybacks

Number
200950039
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Capital Asset v. Not a Capital Asset
Topics
Property transactions and exchanges
Code sections
§ 1221
Ruling dated
September 1, 2009
Publicly released
December 11, 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

This Chief Counsel Advice concerns a program to buy back Oregon fishing permits to reduce fishing capacity on the Pacific Coast. It states that a proposed Virginia crab license buyback program was very similar based on the submitted materials and internet research. The memorandum points to an attached information letter that thoroughly discusses the federal income tax issues related to the buyback program. It also states that the information letter had been redacted and released publicly in 2004 and was fully disclosable.

Ruling snapshot

  • Question: Could prior IRS guidance on an Oregon fishing permit buyback program inform a similar Virginia crab license buyback program?
  • Outcome: Advice given
  • Key authorities: IRC § 1221

Full text (IRS public release)

ID: CCA-911207-09 Number: 200950039
Release Date: 12/11/2009
Office: ----------------
UILC: 1221.00-00

From: ---------------------
Sent: Tuesday, September 1, 2009, 12:07 PM
To: ---------------------
Cc: ----------------------------
Subject: Crab License Buy-Back Program

The attached information letter was issued with respect to a program to buy back certain Oregon fishing permits in order to reduce fishing capacity on the Pacific Coast. The crab license buy back program in Virginia as described by the materials you sent and from research on the internet is very similar. The attached information letter contains a thorough discussion of the federal income tax issues related to the buy-back program.

This information letter was redacted and released to the public in 2004. Therefore, it is fully discloseable to the public. Should you have further questions with respect to this matter, feel free to contact me by email or phone.

--------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------

Attachment 1: IRS Info 2004-0001

What does the Code say today, for your facts?

This advice was written for IRS staff and cannot be cited. Ezel checks the current Internal Revenue Code and IRS guidance against your situation, with citations.

Opens in Ezel Pro.

  • Checks the law as it stands today, not only this page
  • Cites every source it relies on, so you can verify it
  • Chat, drafting and research in one workspace