Ezel / IRS Rulings / 201740020
Chief Counsel Advice 201740020 Released October 6, 2017 Advice

Section 7436 employment determinations cover individuals only

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This page covers one taxpayer's ruling from 2017, which can't be cited as precedent. Ezel answers your situation under the current Code and IRS guidance, with citations.

Currency note: this determination was released in 2017
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 agreed that an IRS employment-status determination under section 7436(a)(1) can be made only with respect to individuals. The email therefore advised that entities should not be placed on the relevant employment-status table.

Ruling snapshot

  • Question: Can a section 7436 employment-status determination be made with respect to an entity rather than an individual?
  • Outcome: advice given
  • Key authorities: IRC § 7436(a)(1)

Full text (IRS public release)

ID:        CCA_2017092516125343
UILC:      7436.00-00

Number: 201740020
Release Date: 10/6/2017
From:
Sent: Monday, September 25, 2017 4:12:53 PM
To:
Cc:
Bcc:
Subject: RE: LLC as independent contractor or employee -


Right. that’s a good point too. Is this written down anywhere?

-------, for your purposes, I agree with ------------- conclusion and TEGEDC practice that
based on 7436(a)(1), a Service determination of employment status can be made only
with respect to individuals, so we should not put entities on table 1.

If this suffices, I’ll go ahead and close our WLI on the case.

Thanks-
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