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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Estate received 120 days to make a late portability election
An estate missed the deadline to file Form 706 and elect portability of the deceased spouse's unused estate and gift tax exclusion for the surviving spouse. The executor represented that the estate wa…
Estate received 120 days to elect portability after a missed deadline
An estate failed to file Form 706 by the deadline for electing portability of the decedent's unused exclusion amount to the surviving spouse. The estate represented that its gross estate, including ta…
Mortgage settlement payments preserved REMIC status and avoided penalty taxes
A trustee asked how settlement payments for alleged breaches of mortgage representations and warranties would affect several real estate mortgage investment conduits, or REMICs. The IRS ruled that the…
Estate received 120 days to make a late portability election
An estate did not file Form 706 by the deadline for electing portability of the decedent's unused exclusion amount to the surviving spouse. The executors represented that the gross estate was below th…
Tax-exempt controlled entity received late MACRS election relief
A corporation indirectly owned by a tax-exempt entity developed residential rental property and intended to elect not to be treated as a tax-exempt controlled entity for depreciation purposes. The ele…
Rental-property company received late MACRS election relief
A rental-property corporation wholly owned by a tax-exempt entity intended to elect not to be treated as a tax-exempt controlled entity under the depreciation rules. Its transaction documents required…
Charitable remainder trust avoided split-interest trust rules because no deduction was taken
A grantor created a 20-year charitable remainder unitrust that pays the grantor during the term and then distributes the remainder to a tax-exempt charity. Although a charitable deduction could have b…
No-deduction charitable trust avoided split-interest trust rules
A charitable remainder unitrust pays the grantor, then another individual after the grantor's death, for at least 20 years before its remainder passes to a tax-exempt charity. The grantor represented …
Failure-to-pay additions could be reassessed within the original collection period
The IRS mistakenly granted a taxpayer first-time abatement of additions to tax for failing to pay the amount shown on a return. Chief Counsel advised that the IRC § 6651(a)(2) addition is not governed…
Branch-franchise applicant denied charity status over commercial and political concerns
A nonprofit applied for section 501(c)(3) status to conduct research and public education on environmental, social, and economic issues. Its website also promoted a fee-based franchise model for affil…
Captive insurer denied section 501(c)(15) exemption because most contracts were not insurance
A foreign captive insurer claimed exemption under section 501(c)(15) for four tax years after withdrawing an earlier exemption application. It issued property and casualty contracts to affiliated busi…
Civic education group denied charity status for partisan campaign activity
A volunteer civic group applied for exemption under section 501(c)(3), describing educational programs about government, public policy, and the Constitution. Its articles also allowed any lawful activ…
Charity status revoked over uncontrolled sponsorships and noncharitable activity
The IRS revoked a charity's section 501(c)(3) status after concluding that it could not show its cash disbursements were used exclusively for charitable purposes. The organization acted as fiscal spon…
Captive insurer denied exemption for insufficient insurance risk and distribution
A foreign captive company claimed exemption as a small property and casualty insurer under section 501(c)(15). The IRS found that only one of the direct-written contracts it reviewed covered an insura…
Partnership's late Form 1128 is treated as timely filed
A partnership sought to adopt an April 30 tax year but did not file Form 1128 by the required deadline. It requested an extension soon after learning that the form was required. The IRS found that the…
Corporation receives 60 days to file its late IC-DISC election
A domestic corporation was formed to operate as an interest charge domestic international sales corporation, or IC-DISC, but its Form 4876-A election was not filed for its first tax year. The corporat…
Estate receives 120 days to make a late portability election
An estate missed the Form 706 deadline for electing portability of the decedent's unused exclusion amount to the surviving spouse. The estate represented that the gross estate, including taxable gifts…
Estate receives 120 days to make a late portability election
An estate missed the Form 706 deadline for electing portability of the decedent's unused exclusion amount to the surviving spouse. The estate represented that the gross estate, including taxable gifts…
S corporation status continues after stock briefly passed to a partnership
An S corporation's sole shareholder transferred all of its stock to a partnership, which is not an eligible S corporation shareholder. The transfer terminated the corporation's S election. After disco…
S corporation status continues after stock briefly passed to a partnership
An S corporation's sole shareholder transferred all of its stock to a partnership, which is not an eligible S corporation shareholder. The transfer terminated the corporation's S election. After disco…
S corporation status continues after stock briefly passed to a partnership
An S corporation's sole shareholder transferred all of its stock to a partnership, which is not an eligible S corporation shareholder. The transfer terminated the corporation's S election. After disco…
Court reformation does not end a grandfathered trust's GST exemption
A trust created before September 25, 1985 contained drafting omissions about what would happen if a primary beneficiary died without descendants and how certain descendant shares would be administered…
Court reformation does not end a grandfathered trust's GST exemption
A trust created before September 25, 1985 contained drafting omissions about what would happen if a primary beneficiary died without descendants and how certain descendant shares would be administered…
Court reformation does not end a grandfathered trust's GST exemption
A trust created before September 25, 1985 contained drafting omissions about what would happen if a primary beneficiary died without descendants and how certain descendant shares would be administered…
County land-reclamation entity's income is excluded and donations are deductible
A county created an entity under state law to acquire, demolish, rehabilitate, and return abandoned or foreclosed property to productive use. County and state officials controlled the entity, supplied…
County land-reclamation entity's income is excluded and donations are deductible
A county created an entity under state law to reclaim, rehabilitate, and return abandoned or foreclosed property to productive use. County and other local officials controlled the entity, public bodie…
Athletic scholarship procedures receive advance approval
A private foundation proposed an annual renewable scholarship for a student accepted by a college or university. Applicants had to maintain a B average, participate in varsity sports, and submit an es…
Historic church property transfer qualifies as an unusual grant
A cemetery association proposed transferring a historic church site and native prairie to a related public charity formed to preserve the property and provide educational programs. The property's valu…
Private high school scholarship procedures receive advance approval
A private foundation proposed scholarships to help academically promising students pay tuition at private high schools. It would publicize the program through schools, churches, and electronic channel…
Performing arts scholarship and training grants receive advance approval
A private foundation proposed grants for high school juniors and seniors and college students pursuing careers in the performing arts. A knowledgeable selection committee would assess recordings, cour…
No objection to excluding tribal death-related payments from income
An IRS office asked Chief Counsel for assistance with refund claims filed by individuals who received payments from an Indian tribal government when a tribal member died. The responding Chief Counsel …
Section 6222 inconsistent-treatment assessment is an administrative proceeding
Chief Counsel considered whether an assessment based on a partner's inconsistent treatment under section 6222 is an administrative proceeding for the disclosure rule in section 6103(h)(4). The advice …
Valuation-misstatement penalties require property-by-property analysis
An S corporation claimed charitable deductions for many donated items using appraisals that valued each item and then totaled the values. The IRS concluded that the appraiser was not qualified and use…
Corporate group receives 60 days to make a late consolidated return election
A corporation left its former consolidated group and became the parent of a new affiliated group. The new group intended to file a consolidated federal income tax return, but a valid election was not …
Parties receive more time to make a section 336(e) election
An individual purchased all the stock of an S corporation, and the buyer, seller, and target intended to make a section 336(e) election to treat the stock sale as an asset disposition. They missed the…
S corporation receives 120 days to make a late QSub election
An S corporation owned all the stock of a domestic subsidiary and intended to treat it as a qualified subchapter S subsidiary from the acquisition date. The parent failed to file Form 8869 because of …
Entity receives 120 days to make a late corporate classification election
A domestic eligible entity intended to be treated as an association taxable as a corporation but failed to file Form 8832 on time. The entity represented that it acted reasonably and in good faith and…
Foreign entity receives 120 days to make a late disregarded-entity election
A domestic corporation acquired all interests in a foreign eligible entity that was classified by default as an association. The owner intended the foreign entity to become disregarded for federal tax…
Taxpayer receives 60 days to elect success-fee safe harbor
A corporation paid a success-based fee in a taxable acquisition and deducted the entire amount on its short-period return. Its accountant neither documented that the full fee was non-facilitative nor …
Six trust mergers preserve grandfathered GST tax exemptions
Six trusts derived from two trusts that became irrevocable before September 25, 1985 proposed merging into six newly created trusts. The successor trusts retained the existing income and principal dis…
Estate and spouse receive 120 days to allocate GST exemption
A decedent transferred property to an irrevocable trust for children and their families and elected with the decedent's spouse to treat the gift as made one-half by each spouse. Their accountant timel…
Pension plan's revised actuarial assumptions are approved
A pension plan requested approval to revise its retirement, withdrawal, and disability assumptions for minimum-funding purposes. The taxpayer represented that the plan had not conducted lump-sum windo…
Multiemployer plan receives an amortization extension for unfunded liabilities
A multiemployer pension plan requested more time to amortize eligible unfunded liabilities established for the plan year beginning April 1, 2015. The IRS approved an extension equal to the lesser of f…
Local college scholarship procedures receive advance approval
A private foundation proposed two scholarships each year for local residents who attended a specified school district and were pursuing undergraduate or graduate education. Applicants would be evaluat…
Local high school graduate scholarship procedures receive advance approval
A private foundation proposed six annual scholarships for graduates of a specified high school who had at least a 2.5 grade point average and wanted to attend college or university. Applicants would b…
Broad educational scholarship procedures receive advance approval
A private foundation proposed scholarships for primary and secondary students, college and graduate students, and people pursuing vocational, artistic, or other accredited training. Trustees would cho…
Project-development corporation is denied 501(c)(3) status
A corporation applied for 501(c)(3) status to design and manage educational, scientific, technological, and business projects. The IRS repeatedly requested concrete details about its activities, parti…
Facility-rental organization loses 501(c)(3) status
An organization received 501(c)(3) status to promote economic and community development and support programs serving senior citizens and people with disabilities. An IRS examination found that the org…
School health-benefit trust loses 501(c)(4) status but keeps section 115 exclusion
A trust formed by public school entities purchased and later self-insured health benefits for employees of participating school districts. The IRS concluded that the trust did not qualify under sectio…
Religious publisher is denied 501(c)(3) status
A nonprofit corporation applied for 501(c)(3) status to publish and market religious books and resources. It charged authors subvention fees, paid royalties, sold books through commercial channels, an…
Firearms organization loses 501(c)(3) status
A firearms-focused organization originally held section 501(c)(4) status and later received recognition under section 501(c)(3) after amending its stated purposes. During an examination, it reported m…
Rental activity and a for-profit asset transfer cost exemption
A trust recognized under section 501(c)(3) and classified as publicly supported under section 509(a)(2) was examined after it incorporated and later terminated. Its support came primarily from renting…
Pension plan may change its actuarial assumptions
A pension plan asked the IRS to approve changes to actuarial assumptions used for minimum funding calculations. The requested changes covered retirement, termination, and transfer rates, along with co…
Mitigation may not reach a duplicated NOL deduction
Chief Counsel considered whether the mitigation provisions in sections 1311 through 1314 could permit an assessment after a net operating loss deduction had effectively been allowed twice and the ordi…
State-law authority controls who signs for an entity TMP
Chief Counsel confirmed who may sign documents when a TEFRA partnership's tax matters partner is itself an entity. The person authorized under state law to act for that entity may sign an agreement ex…
Form SS-8 required an original signature
Chief Counsel considered whether the IRS SS-8 worker-classification program could accept a signature other than an original signature on Form SS-8. The advice concluded that existing IRS procedures al…
Tribal settlement distributions were taxable income
Chief Counsel considered payments made to tribal members from a settlement of contract litigation between the federal government and certain tribes. Based on the facts provided and the applicable law,…
Banks must consent before receiving levies by eFax
Chief Counsel addressed notices of levy sent to banks through eFax. A bank's listing in a general IRS levy-source database, even with a fax number, did not establish consent to eFax service. Because t…
Hardship was not relevant to a lien discharge request
Chief Counsel followed up on a certificate of discharge request concerning a buyer's status as a purchaser. It agreed with the recipient's stated position regarding both an income tax assessment and a…
IGRA trust distributions require income tax withholding
Chief Counsel considered distributions from trusts established under the Revenue Procedure 2011-56 safe harbor for tribal members who are minors or legally incompetent. The safe harbor defers benefici…
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.