Ezel / IRS Rulings / 1142024
Chief Counsel Advice 1142024 Released October 21, 2011 Advice

CCA 1142024: Changing the business form does not accelerate the section 6166 election

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This page covers one taxpayer's ruling from 2011, 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 2011
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 resolved one taxpayer's situation on its specific facts, 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 advised that changing the form of the business holding a closely held interest would not accelerate the section 6166 election. Although section 6166(g) covers interests that are distributed, sold, exchanged, or otherwise disposed of, a change in the form of the business would not be a true divestment from the gross estate.

Ruling snapshot

  • Question: Does changing the form of a business holding a closely held interest accelerate the section 6166 election?
  • Outcome: Advice given
  • Key authorities: IRC § 6166(g)

Full text (IRS public release)

ID: CCA_2011101110042947 Number: 201142024
Release Date: 10/21/2011
Office: -------------
UILC: 6166.00-00

From: -----------------------
Sent: Tuesday, October 11, 2011 10:04:31 AM
To: -------------------
Cc:
Subject: FW: 6166 question

Hi -----------I would not think this would accelerate the section 6166 election. 6166(g) applies where the interest in a closely held business is "distributed, sold, exchanged, or otherwise disposed of". This is broad language meant to encompass different ways that interest ceases to form a part of the gross estate. A change in the form of business holding the subject property would not qualify as a true divestment of the interest in the property from the gross estate.

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