IRS Written Determinations
Free IRS private letter rulings, technical advice memoranda, and Chief Counsel advice with plain-English summaries and the official IRS release on every page.
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Late § 853 and § 1296 elections allowed for a mutual fund after a missed return deadline
A mutual fund taxed as a regulated investment company (RIC) needed to make two elections on its return: a § 853 election to pass foreign tax credits through to shareholders, and a § 1296 election to…
Late § 853 foreign-tax-credit pass-through election allowed for a mutual fund after a missed deadline
A mutual fund taxed as a regulated investment company (RIC) invests in foreign companies and pays foreign taxes, and each year it elects under Internal Revenue Code § 853 to pass those foreign tax…
Late § 853 and § 1296 elections allowed for a mutual fund after a missed return deadline
A mutual fund taxed as a regulated investment company (RIC) needed to make two elections on its return: a § 853 election to pass foreign tax credits through to shareholders, and a § 1296 election to…
Late § 853 and § 1296 elections allowed for a mutual fund after a missed return deadline
A mutual fund taxed as a regulated investment company (RIC) needed to make two elections on its return: a § 853 election to pass foreign tax credits through to shareholders, and a § 1296 election to…
Two charitable remainder unitrusts with a flexible charity-designation power qualify under § 664
An individual planned to create two charitable remainder unitrusts (CRUTs), a type of trust that pays a fixed percentage to the donor (and here, in one trust, a surviving spouse) each year and…
Late S-corporation election excused for reasonable cause under § 1362(b)(5)
A corporation intended to be taxed as an S corporation from the day it was incorporated but never filed the required election (Form 2553) on time. It asked the IRS for relief under Internal Revenue…
Late Section 1022 carryover-basis election allowed for a 2010 decedent's estate
For people who died in 2010, a one-year quirk in the law let an estate choose between the reinstated estate tax and a special "carryover basis" regime under Internal Revenue Code § 1022, which is…
IRS consents to an early S-corporation re-election after an ESOP restructuring
When a company's S-corporation election is terminated, tax law normally bars it from electing S status again for five years unless the IRS consents. Here an S corporation accidentally terminated its…
Late "reverse QTIP" election allowed so a marital trust keeps the decedent's GST exemption
When a person leaves property to a marital ("QTIP") trust for a surviving spouse, the spouse is normally treated as the transferor of that trust for generation-skipping transfer (GST) tax purposes.…
Tax-free spin-off ruling for a public company separating two business groups
A publicly traded corporation wanted to split its operations into two separate business groups by contributing one group's subsidiaries and assets into a newly formed subsidiary ("Controlled") and…
S-corporation status preserved after trusts missed their ESBT elections
An S corporation can only have certain kinds of shareholders. When a trust becomes a shareholder, it usually must file an "electing small business trust" (ESBT) election to remain a permitted owner;…
Late relief to split a marital trust and make a "reverse QTIP" election so the estate's GST exemption sticks
When a wealthy person dies and leaves property in a marital trust for a surviving spouse, the estate can make a "reverse QTIP" election so that, for generation-skipping transfer (GST) tax purposes,…
Adding a way to appoint an independent trustee will not trigger gift, estate, or GST tax
An old irrevocable family trust gave certain sensitive powers (including the power to narrow or cancel a beneficiary's future control over where trust assets go) only to a trustee who was not also a…
S-corporation status preserved after five trusts missed their ESBT elections
An S corporation may only be owned by certain kinds of shareholders. When a trust receives S-corporation shares, it generally must file an "electing small business trust" (ESBT) election to remain a…
S-corporation status preserved after three trusts missed their ESBT elections
An S corporation may only be owned by certain kinds of shareholders. When a trust receives S-corporation shares, it generally must file an "electing small business trust" (ESBT) election to remain a…
S-corporation status preserved after three trusts missed their ESBT elections
An S corporation may only be owned by certain kinds of shareholders. When a trust receives S-corporation shares, it generally must file an "electing small business trust" (ESBT) election to remain a…
Disclaiming a contingent share of two old family trusts is not a taxable gift
When you give up a right to receive property, tax law sometimes treats that "disclaimer" as if you had made a gift to whoever gets the property instead, which could trigger gift tax. Special rules…
State brownfield-cleanup tax credits count as a good REIT asset and good REIT income
Real estate investment trusts (REITs) get their special tax treatment only if they stay heavily invested in real estate and earn mostly passive, real-estate-type income: at least 75% of assets must…
IRS approves a pension plan's change to its retirement and withdrawal assumptions
A single-employer pension plan must set aside enough money each year to fund the benefits it promises, and its required contribution depends on actuarial assumptions such as how likely workers are…
IRS pre-approves a private foundation's scholarship program, so the grants are not taxable expenditures
Private foundations normally owe a penalty excise tax when they hand money to individuals for study or similar purposes, unless the IRS approves the grant-making procedures in advance. Here a…
IRS denies 501(c)(3) status to a commercial-style dispute-resolution organization
To be a tax-exempt charity under Internal Revenue Code § 501(c)(3), an organization must be both organized and operated exclusively for charitable or educational purposes. This organization, a…
IRS revokes a social club's 501(c)(7) status for too much nonmember (public) golf revenue
A social or recreational club can be tax-exempt under Internal Revenue Code § 501(c)(7) only if it is supported mainly by member dues and keeps income from outsiders modest: no more than 35% of…
IRS revokes a fraternal society's 501(c)(8) status because it does not operate under the lodge system
A "fraternal beneficiary society" can be exempt from federal income tax under Internal Revenue Code § 501(c)(8) only if it meets two requirements: it must operate under the "lodge system" (local,…
IRS revokes a golf/social club's 501(c)(7) status for excessive public (nonmember) use of its facilities
A social or recreational club is tax-exempt under Internal Revenue Code § 501(c)(7) only if it is supported mainly by members and keeps outside income modest: no more than 35% of gross receipts from…
A life insurer must use its updated morbidity tables (not the original ones) to compute tax reserves for long-term care policies
Life insurance companies get tax deductions for the reserves they must hold to pay future claims, and Internal Revenue Code § 807(d) sets rules for how those tax reserves are computed, including…
Late relief lets a REIT make missed "taxable REIT subsidiary" elections for two subsidiaries
A real estate investment trust (REIT) and a corporation it owns can jointly elect, on Form 8875, to treat that corporation as a "taxable REIT subsidiary" (TRS) under Internal Revenue Code § 856(l),…
Late relief lets a REIT treat acquired subsidiaries as "taxable REIT subsidiaries"
A real estate investment trust (REIT) and a corporation it owns can jointly elect, on Form 8875, to treat that corporation as a "taxable REIT subsidiary" (TRS) under Internal Revenue Code § 856(l),…
IRS lets a partnership undo its election to skip bonus depreciation after a preparer error
When a business buys qualifying equipment, § 168(k) normally lets it deduct a big chunk of the cost in the first year ("bonus depreciation"), but a taxpayer can instead elect under § 168(k)(7) not…
A VEBA may count insurance premiums in its medical-benefit reserve when figuring taxable income
A voluntary employees' beneficiary association (VEBA) is a tax-exempt trust under § 501(c)(9) that funds benefits like health, life, and disability coverage for workers. A VEBA can set money aside…
A widow who inherited an IRA through her revocable trust may roll it into her own IRA
When someone inherits an IRA, they normally cannot roll it over into their own IRA, but a surviving spouse gets special treatment. Here a husband died naming his revocable living trust, rather than…
A REIT's sale of its apartment portfolios in a liquidation is not a taxable "prohibited transaction"
A real estate investment trust (REIT) faces a punishing 100 percent tax under § 857(b)(6) on profits from "prohibited transactions," meaning sales of property the REIT holds primarily for sale to…
Late relief lets a merged company make the 70/30 safe-harbor election for its deal fees
When a company pays "success-based fees" (advisory fees owed only if a deal closes) in an acquisition, the tax rules generally require it to capitalize those fees as costs of the transaction unless…
A state retirement system's benefits trust owes no federal income tax on its earnings
Internal Revenue Code § 115(1) excludes from federal gross income any earnings that come from performing an "essential governmental function" and that accrue to a state or its political…
Private foundation may set aside funds to recruit and train a charter school leader
A private foundation that funds education initiatives (pre-K through 12 schooling, charter school formation, teacher and leadership development, and after-school programs) asked the IRS to approve a…
201843016: Revokes an eco-tourism nonprofit's 501(c)(3) exemption for commercial services and private benefit
This is a final IRS determination revoking the section 501(c)(3) exemption of a nonprofit that promoted sustainable travel and eco-tourism. The organization sold certifications, assessments,…
IRS revokes a heritage club's 501(c)(8) status for having no lodge system and paying no member benefits
A "fraternal beneficiary society" qualifies for tax exemption under Internal Revenue Code § 501(c)(8) only if it both operates under the "lodge system" (local, largely self-governing branches…
IRS revokes a nonprofit's 501(c)(3) status after it ignored an audit
A charity exempt under Internal Revenue Code § 501(c)(3) must keep adequate records and, when the IRS examines it, provide enough information to show it is still organized and operated for exempt…
IRS denies 501(c)(3) status to a charity formed mainly to fund its founder's medical costs
To be tax-exempt under Internal Revenue Code § 501(c)(3), an organization must operate exclusively for public purposes, and none of its earnings may benefit private individuals (the "inurement" and…
201843012: Revokes a motorcycle club's 501(c)(7) exemption for running a public motocross park
This is a final IRS determination revoking the tax-exempt status of a nonprofit motorcycle/off-road club that had been recognized under section 501(c)(7) as a social and recreation club. On audit,…
201843011: Revokes 501(c)(3) status of a shell nonprofit that fronted for a for-profit fundraising platform
This is a final IRS determination revoking the 501(c)(3) exemption of a nonprofit that had been recognized as a public charity to educate the public about amateur athletics and to fund school,…
201843010: Revokes a children's-cancer charity's 501(c)(3) for private inurement, inflated gift-in-kind reporting, and fundraising against public policy
This is a final IRS determination revoking the 501(c)(3) exemption of a nonprofit organized to help children suffering from cancer and their families. On audit, the IRS found the organization was…
Tax-exempt bonds may advance refund defeased Build America Bonds that had become non-tax-advantaged taxable bonds
This Chief Counsel Advice addresses a wrinkle created by the 2017 Tax Cuts and Jobs Act, which amended section 149(d) to end tax-exempt "advance refundings" (issuing new tax-exempt bonds more than…
Reformation of a trust's Crummey withdrawal error avoids general powers of appointment; 120-day extension to allocate GST exemption
A settlor set up an irrevocable trust for his descendants, wanting the trust assets to stay out of his children's estates and to use up his and his spouse's generation-skipping transfer (GST) tax…
Reformation of a trust's Crummey withdrawal error avoids general powers of appointment; 120-day extension to allocate GST exemption
A settlor set up an irrevocable trust for his descendants, wanting the trust assets to stay out of his children's estates and to use up his and his spouse's generation-skipping transfer (GST) tax…
Reformation of a trust's Crummey withdrawal error avoids general powers of appointment; 120-day extension to allocate GST exemption
A settlor set up an irrevocable trust for his descendants, wanting the trust assets to stay out of his children's estates and to use up his and his spouse's generation-skipping transfer (GST) tax…
Reformation of a trust's Crummey withdrawal error avoids general powers of appointment; 120-day extension to allocate GST exemption
A settlor set up an irrevocable trust for his descendants, wanting the trust assets to stay out of his children's estates and to use up his and his spouse's generation-skipping transfer (GST) tax…
90-day extension to make a late taxable-REIT-subsidiary (TRS) election under § 856(l)
A real estate investment trust (REIT) that owns medical-office, senior-housing, student-housing, and self-storage properties set up a wholly owned subsidiary and meant to jointly elect (on Form…
Approves a revised schedule of ruling amounts for a nuclear decommissioning fund under § 468A
A state public utility that owns and operates a nuclear power plant (now shut down and slated for decommissioning) asked the IRS to approve a revised schedule of "ruling amounts" for its qualified…
Consent for a consolidated-group subsidiary to switch to a calendar taxable year while still filing consolidated
The common parent of a corporate consolidated group uses an unusual "52-53 week" tax year that ends on the last Saturday in December. One member of the group (Sub) owns foreign subsidiaries…
90-day extension to make a late § 831(b) small-insurance-company election
A newly formed small non-life ("property and casualty") insurance company meant to elect under section 831(b)(2) to be taxed only on its taxable investment income, a favorable election available to…
Approves a five-year extension for amortizing a multiemployer plan's unfunded liabilities
This ruling approves a multiemployer pension plan's request for an automatic extension of the periods used to amortize specified unfunded liabilities. The extension applies beginning with the plan…
Approves a private foundation's scholarship procedures for students in a specialty field
A private foundation asked the IRS to approve its procedures for awarding nonrenewable scholarships to students studying in a specialty field at accredited U.S. post-secondary institutions.…
Approves renewable need-based scholarships for students from a financially depressed community
A private foundation asked the IRS to approve a scholarship program for high-school graduates who live in a financially depressed community and previously attended specified primary or middle…
A politically active 501(c)(4) can be a section 271 political party, barring a bad-debt deduction
A taxpayer lent money to a section 501(c)(4) organization that later dissolved without repaying the loan, then claimed a worthless-debt deduction under section 166. The organization had reported…
Grants 60 days to file a late IC-DISC election after advisers miscommunicated
A domestic corporation was formed to operate as an interest charge domestic international sales corporation (IC-DISC) for its parent company's export sales. The corporation relied on two accounting…
Grants 120 days for a late section 1022 election and basis allocation for a 2010 estate
The executor of an estate for a person who died in 2010 hired an attorney to prepare the estate's tax filings, but the attorney failed to file Form 8939 by the January 17, 2012 deadline. That form…
Grants 60 days to file an omitted safe-harbor election for success-based acquisition fees
A corporate group acquired a healthcare company and paid contingent fees to two financial advisers. Its tax adviser recommended the Rev. Proc. 2011-29 safe harbor, prepared the required election…
Grants late section 336(e) election relief for an S corporation stock acquisition
A disregarded purchaser acquired all the stock of an S corporation for its regarded owner, and the purchase agreement said a section 336(e) election would be made. The election was not timely…
Unreceived bonus-depreciation refunds cannot reduce a utility's rate base through ADIT
A rate-regulated electric utility made estimated federal tax payments before Congress retroactively extended bonus depreciation for two tax years. Electing bonus depreciation created overpayments,…
Approves cultural project and travel grants to individuals
A private foundation proposed two nonrenewable grant programs to promote understanding and preservation of a particular culture and its history. One program funds research, scholarship, artwork,…
What these documents are
- Private letter rulings (PLRs): A taxpayer asked the IRS to rule on a planned transaction before doing it. The ruling shows exactly how the IRS applied the Code to those facts.
- Technical advice memoranda (TAMs): The IRS National Office answering a question raised during an audit or other proceeding.
- Chief Counsel advice (CCAs): IRS lawyers advising their own field staff on how to apply the law.
- Determination letters: Rulings on exempt-organization matters, such as whether an organization qualifies under § 501(c)(3) or a foundation's grant procedures pass § 4945.
- Not precedent, still useful: Under 26 U.S.C. § 6110(k)(3) none of these can be cited as precedent. They remain the best public window into how the IRS actually rules on facts like yours, and practitioners read them for exactly that.