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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Nuclear unit buyer could assume the unfunded decommissioning liability
A partnership proposed selling a shut-down nuclear generating unit, its qualified nuclear decommissioning fund, and the related decommissioning liability to a buyer through a disregarded entity. The I…
S election survived a wrong effective date and unauthorized shares
A corporation timely filed Form 2553 but mistakenly listed an effective date before the corporation was formed. It nevertheless acted as an S corporation from its formation date. The corporation later…
Taxpayer received 120 days for two late drilling cost elections
A taxpayer held interests in two oil exploration and production partnerships and incurred intangible drilling costs in two tax years. An accounting firm advising the taxpayer failed to explain that Se…
New group received 60 days to perfect its consolidated return election
A corporation became the common parent of a new affiliated group after another corporation distributed its stock. The group filed a consolidated return, but the return and related election were not ti…
Parent received 60 days to waive the consolidated NOL carryback period
A newly formed affiliated group intended to relinquish the carryback period for its consolidated net operating loss, and it filed all returns consistently with that intent. A qualified tax professiona…
Companies received 60 days for a protective Section 336(e) election
A consolidated group's parent distributed all the stock of a target corporation in a transaction intended to qualify under Section 355 and potentially described in Section 355(d) or (e). The parties i…
Estate received 120 days for a late alternate valuation election
An estate's co-executors hired an attorney to prepare a timely Form 706, but the attorney failed to make the Section 2032 alternate valuation election. The executors later filed a supplemental return …
Welfare trust amendment triggered income but not a disqualified-benefit tax
An employer had an overfunded welfare benefit trust originally used for retiree health benefits under a collective bargaining agreement. It proposed amending the trust so its assets could also pay hea…
Foreign entity received 120 days for a late partnership election
A foreign eligible entity defaulted to association status because all of its members had limited liability, but its partners intended partnership treatment from formation. A qualified tax professional…
Foreign entity could elect partnership status from formation
A foreign entity with multiple limited-liability members defaulted to association status even though its partners intended partnership treatment from the date of formation. The entity relied on a qual…
Late Form 8832 relief preserved intended foreign partnership status
A foreign eligible entity intended to be treated as a partnership from formation, but its limited-liability members caused corporate default classification unless it filed Form 8832. A qualified tax p…
Foreign partnership election received 120-day filing relief
A foreign eligible entity intended partnership treatment from the day it was formed, but its members' limited liability caused it to default to corporate classification. Its tax professional failed to…
Unitrust conversion preserved a grandfathered trust's GST exemption
A trust created by a decedent who died before December 26, 1985, remained exempt from generation-skipping transfer tax because it was irrevocable before the grandfathering date and had received no lat…
Captive insurer received 90 days for a late Section 831(b) election
A captive insurer had filed property and casualty insurance company returns without electing the alternative tax available to qualifying small insurers under Section 831(b). Its accounting firm told a…
Foreign single-member entity received late disregarded-status relief
A foreign eligible entity was formed with one owner that had limited liability. The owner intended the entity to be disregarded for federal tax purposes from formation, but the entity failed to file F…
Foundation conversion allowed beneficiary payments and split-year reporting
A non-functionally integrated Type III supporting organization planned to become a private foundation and combine two asset funds after a court-approved trust modification. Under a settlement, smaller…
Artwork remainder transfer would be a completed gift
A surviving spouse proposed transferring legal title, naked ownership, and the remainder interest in a valuable art collection to two foreign museums while retaining possession, a life interest, and a…
New parent received 60 days to waive a consolidated NOL carryback
A newly formed corporation acquired the old common parent of a consolidated group in a reverse acquisition and became the group's new common parent. The group later sustained a consolidated net operat…
Taxpayer received 60 days for the success-based fee safe harbor
A target company incurred a contingent financial-adviser fee when an acquirer completed a taxable reverse subsidiary merger. The target's final short-period return omitted the fee because its accounti…
Artist alumni scholarship and project grants receive approval
A private foundation proposed four grant programs for alumni of an arts organization who had completed high school and participated in the organization for at least two years. One program would provid…
Historic preservation matching-grant set-aside receives approval
A private foundation proposed setting aside a matching grant equal to one-third of the estimated cost of restoring the exterior of a historically and culturally significant building listed on the Nati…
Farmers' market denied Section 501(c)(5) status
A nonprofit operated a year-round farmers' market where member vendors paid membership and stall fees to sell locally produced food, crafts, and other goods. The organization argued that its members a…
Marina social club lost exemption over leasing and nonmember income
A marina organization had been recognized as a Section 501(c)(7) boating social club. Members owned boat slips, and the organization actively arranged rentals of unused slips and storage space to nonm…
Online gaming community denied Section 501(c)(3) status
An organization operated online game servers, moderated chat, contests, radio shows, and occasional in-person meetups intended to connect LGBTQ people and allies in a supportive environment. Its artic…
Parties received 45 days to make a late Section 336(e) election
An individual bought all the stock of an S corporation from its shareholder for cash. The parties intended to elect under Section 336(e) to treat the qualified stock disposition as an asset dispositio…
S corporation status preserved after five trusts missed elections
Shareholders transferred S corporation stock to five trusts on three different dates. Three trusts qualified to elect as qualified subchapter S trusts, and two qualified to elect as electing small bus…
Foreign entity received 120 days for a late disregarded-entity election
A foreign eligible entity intended to be treated as disregarded from its owner for federal tax purposes but did not file Form 8832 on time. The IRS concluded that the entity met the standards for disc…
Foreign entity received 120 days for a late disregarded-entity election
A foreign eligible entity formed under the laws of a U.S. territory intended to be treated as disregarded from its owner for federal tax purposes but did not file Form 8832 on time. The IRS concluded …
S status preserved and late QSub election allowed
An S corporation owned all the stock of a subsidiary and consistently treated it as a qualified subchapter S subsidiary, but failed to file Form 8869. Separately, three trusts holding all of the paren…
Utility's post-exchange liability accounting met normalization rules
Two regulated electric utilities planned to exchange transmission and distribution assets in a transaction expected largely to qualify for tax deferral under Section 1031. Each utility would remove fr…
Utility's post-exchange liability accounting met normalization rules
Two regulated electric utilities planned to exchange transmission and distribution assets in a transaction expected largely to qualify for tax deferral under Section 1031. Each utility would remove fr…
S status preserved and late ESBT and QSub elections allowed
An S corporation's election terminated when a trust inherited shares and its trustee failed to make a timely electing small business trust election. The corporation had also consistently treated one w…
S status preserved after trust missed its ESBT election
A grantor trust held stock in an S corporation. After the grantor died, the trustee intended the trust to remain an eligible shareholder but failed to make a timely electing small business trust elect…
S status preserved after trust missed its ESBT election
A grantor trust held stock in an S corporation. After the grantor died, the trustee intended the trust to remain an eligible shareholder but failed to make a timely electing small business trust elect…
S status preserved after trust missed its ESBT election
A grantor trust held stock in an S corporation. After the grantor died, the trustee intended the trust to remain an eligible shareholder but failed to make a timely electing small business trust elect…
Wildlife habitat property set-aside receives approval
A private foundation devoted to wildlife, nature conservation, and balanced ecology wanted to acquire property near important waterways to protect habitat from commercial development. It had tried uns…
Historic theater matching-grant set-aside receives approval
A private foundation proposed a matching grant equal to about one-third of the estimated cost of restoring a historic theater listed on the National Register of Historic Places. The recipient public c…
Private foundation scholarship procedures receive advance approval
A private foundation proposed a scholarship program for qualifying students pursuing post-high-school education. Awards could cover tuition, required fees, books, supplies, equipment, and room and boa…
Architecture travel-research grant procedures receive approval
A private foundation proposed an annual, nonrenewable travel and research grant for graduate students in architecture, historic preservation, and urban design. Applicants had to attend one of a specif…
Employer-related scholarship procedures receive approval
A private foundation proposed college scholarships for children and certain other relatives of employees of a company and its subsidiaries. An outside organization would select recipients through a hi…
Organization denied exemption after incomplete application
An organization applied for Section 501(c)(3) status and described fundraising at professional sporting events, services for children seeking their first jobs, and benefits for families affected by a …
Informal refund claim may matter for identity-theft levy repayment
Chief Counsel advised on repaying levy proceeds to an identity-theft victim when the normal refund claim deadline might be a problem. The applicable Internal Revenue Manual provision says repayment fa…
Mitigation may permit NOL carryback refunds for closed years
Two taxpayers carried net operating losses forward without electing to waive the required carryback periods. Examination of an open year uncovered the errors, but the earlier years that should have re…
S status preserved after three trusts missed QSST elections
Three trusts received shares in an S corporation, but their beneficiaries failed to make timely qualified subchapter S trust elections. The trusts were therefore ineligible shareholders and the corpor…
S status preserved after three trusts missed QSST elections
Three trusts received shares in an S corporation, but their beneficiaries failed to make timely qualified subchapter S trust elections. The trusts were therefore ineligible shareholders and the corpor…
Lower-tier partnership received 120 days for late Section 754 election
A partner in an upper-tier partnership died. The upper-tier partnership timely elected under Section 754, but a lower-tier partnership in which it held an interest inadvertently failed to make the sam…
Pension plan receives five-year amortization extension
A pension plan requested an extension of the periods for amortizing specified unfunded liabilities. Its actuary certified that without relief the plan would have an accumulated funding deficiency, tha…
60-day rollover deadline waived after reliance on spouse
A retiree received a lump-sum distribution from an employer's employee stock ownership plan. She deposited the check in a joint credit union account, then moved the portion intended for an IRA into an…
Taxi-driver member benefit plan denied exemption
An organization for taxi drivers offered networking, road-test guidance, driving-application help, and free finance courses. It also operated a paid social plan described as life insurance for partici…
High school scholarship procedures receive advance approval
A private foundation proposed annual scholarships for high school students attending public or private schools in a specified county. Awards would pay tuition and fees, and the program would be public…
Cattle breeders' show chapter did not serve a charitable public purpose
A local chapter of cattle breeders sought recognition as a Section 501(c)(3) charity. It was formed so a small group of members could participate in an annual national show and exhibit their own cattl…
Hunting and fishing organization denied Section 501(c)(3) status
A hunting and fishing organization promoted sportsmanship and supported programs for young people, disabled people, and women. Its activities included hunter safety, trapper education, archery and tra…
Employment tax adjustment may be filed after year-end if same-year conditions are met
Chief Counsel clarified when an employer may correct overwithheld income tax and Additional Medicare Tax. A refund claim generally is unavailable for tax actually withheld, except to correct an admini…
Identity-theft refund claim is limited to two years from payment
Taxpayers affected by identity theft sought a refund after the IRS offset one refund against a balance connected to a return filed by the thief. Because the taxpayers had no filing requirement, Chief …
Settlement Trust disposition increase is a tax, not a penalty
Chief Counsel addressed an Alaska Native Settlement Trust election under Section 247(g). It concluded that the additional 10 percent due when contributed property is disposed of is a tax, not a penalt…
Taxpayer may revoke elections against additional first-year depreciation
A parent corporation and its subsidiaries elected not to claim additional first-year depreciation for several classes of qualified property in three tax years. The tax department had focused on slowin…
Developer receives extension to file alternative cost method request
A real estate developer used Revenue Procedure 92-29's alternative cost method for common improvements and attached the required request and limitations consent to its timely return. Its employee comp…
Developer receives extension to file alternative cost method request
A real estate developer used Revenue Procedure 92-29's alternative cost method for common improvements and attached the required request and limitations consent to its timely return. Its employee comp…
Developer receives extension to file alternative cost method request
A real estate developer used Revenue Procedure 92-29's alternative cost method for common improvements and attached the required request and limitations consent to its timely return. Its employee comp…
Developer receives extension to file alternative cost method request
A real estate developer used Revenue Procedure 92-29's alternative cost method for common improvements and attached the required request and limitations consent to its timely return. Its employee comp…
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.