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 accounting-period application is deemed timely
A taxpayer missed the filing deadline for Form 1128, which requested a change in its annual accounting period. The taxpayer filed the form and its request for discretionary relief within 90 days after…
Taxpayer may proceed with a late-filed Form 1128
A taxpayer seeking to change its annual accounting period failed to submit Form 1128 by the deadline for the short-period return. It filed the application and requested discretionary relief within the…
IRS waives Form 1128 filing deadline
A taxpayer applied to change its annual accounting period but filed Form 1128 after the applicable deadline. The application and request for discretionary relief arrived within 90 days after the misse…
Revised nuclear decommissioning fund schedule is approved
A utility with a direct ownership interest in a nuclear power plant requested a revised schedule of deductible payments to its nuclear decommissioning fund. The proposed schedule followed public utili…
Partnership gets 120 days to make a late section 754 election
An existing partner bought additional interests in a limited liability company taxed as a partnership. The partnership timely filed its federal return for the year but inadvertently omitted its intend…
Taxpayer may revoke election out of bonus depreciation
A taxpayer elected under IRC § 168(k)(7) not to claim additional first-year depreciation on its five-year property during a year involving related reorganizations. The election was made to avoid expec…
Housing project receives 120 days to make its minimum set-aside elections
A partnership owns a three-building low-income housing project and intended to make the 20-50 minimum set-aside election for each building. Its contemporaneous records reflected that intent, but the p…
Estate receives 120 days to make a late portability election
A decedent's estate was not otherwise required to file an estate tax return but failed to timely file Form 706 to elect portability of the deceased spousal unused exclusion amount. The estate submitte…
Late estate tax return may elect portability within 120 days
An estate represented that it was not required to file Form 706 but needed to file one to transfer the decedent's unused exclusion amount to the surviving spouse. The estate did not timely file the re…
Pension plan receives 10-year approval for substitute mortality tables
A pension plan sponsor requested new plan-specific mortality tables after a significant change in the plan's population. The IRS approved substitute tables for male and female annuitants and non-annui…
Fraud victim receives 60 days to complete an IRA rollover
A taxpayer withdrew money from a traditional IRA and failed to redeposit it within 60 days after being drawn into a fraud scheme. Scammers posing as a technology company and a bank persuaded the taxpa…
Charity loses exemption over gaming operations and private benefit
The IRS revoked a charity's IRC § 501(c)(3) exemption after examining its fundraising, spending, governance, and use of assets. The organization raised substantially all of its revenue through raffles…
Organization loses exemption for political campaign intervention
The IRS revoked an organization's IRC § 501(c)(3) exemption after finding repeated political campaign intervention. The organization sent mass communications to residents before local elections that p…
Organization loses exemption over insider loans and private benefits
The IRS revoked an organization's IRC § 501(c)(3) exemption after finding substantial private benefit to its officers and inadequate records. The organization reported loans receivable from its marrie…
Mineral royalties qualify as trade-or-business income for passive-loss and net-investment-income rules
A partnership that owns, operates, and manages oil, gas, and other mineral interests asked how its royalties and disposition gains should be treated under the passive-activity and net-investment-incom…
Late trust elections receive inadvertent S corporation relief
A corporation intended to elect S corporation status and to treat four subsidiaries as qualified subchapter S subsidiaries. Multiple shareholder trusts qualified to be electing small business trusts, …
Partnership receives more time to file duplicate accounting-method form
A partnership used a cost-segregation study to request automatic accounting-method changes for depreciation and qualified improvement property. It timely filed its partnership return with the original…
Foreign entity receives more time to elect partnership status
A foreign eligible entity failed to timely file Form 8832 to elect partnership classification for U.S. federal tax purposes. The IRS found that the requirements for discretionary filing relief under T…
Corporate separation qualifies for tax-free reorganization treatment
A publicly traded corporate parent proposed separating one business into a newly formed subsidiary and distributing all of the subsidiary's stock pro rata to the parent's shareholders. The subsidiary …
Partnership receives more time to make section 754 election
A limited liability company taxed as a partnership intended to make an IRC § 754 election after transactions that it represented were sales or exchanges of partnership interests, but it inadvertently …
Private foundation may divide assets among family branches
A family private foundation proposed transferring more than 25 percent of its assets to two newly formed private foundations after directors from different family branches disagreed about programs, di…
Estate receives more time to allocate GST exemption to trust
A husband created a trust for children and their descendants and later made a transfer to it in a year before 2001. He and his wife told their tax preparer that they intended to split the gift and all…
Pension surplus returned to tax-exempt club avoids reversion excise tax
A tax-exempt social club terminated its single-employer defined benefit plan and expected surplus assets to remain after all participant and beneficiary liabilities were satisfied. The club represente…
Joint filers receive more time to aggregate businesses for QBI deduction
A married couple owned interests in disregarded entities, S corporations, and partnerships conducting rental-real-estate and operating businesses. They elected to aggregate some rental businesses for …
Estate receives more time to allocate wife's GST exemption
A husband created a trust for children and their descendants and later transferred property to it in a year before 2001. He and his wife told their tax preparer that they intended to split the gift an…
Foundation's employee and community scholarship procedures receive approval
A private foundation requested advance approval for two scholarship programs administered with an independent third party. One program supports employees of a related company in pursuing degrees, cert…
Farmers' market denied charity status for vendor benefit and commercial activity
The IRS denied IRC § 501(c)(3) recognition to a nonprofit farmers' market that provided vendors a place to sell products, promoted the market, and covered shared operating expenses. The organization's…
Horse-show association denied charity status for recreational purpose
The IRS denied IRC § 501(c)(3) recognition to a state horse-breed association affiliated with a national section 501(c)(5) organization. The association's main activities were hosting breed-approved h…
Employee aid fund denied charity status for private benefit
The IRS denied IRC § 501(c)(3) recognition to a fund created to assist employees of one organization and its affiliates during disasters and other financial hardships. Only those employees and their f…
Member bereavement fund denied charity status for private benefit
The IRS denied IRC § 501(c)(3) recognition to a membership organization that pooled member payments to provide bereavement benefits. Eligibility depended on ancestry or family connection, members paid…
Dog-training club denied charity status because dogs were the primary trainees
The IRS denied IRC § 501(c)(3) recognition to a membership organization that conducted dog training, seminars, and competitive event trials for members and their dogs. Members paid a monthly fee, acti…
Farmers' market denied charity status despite SNAP and WIC programs
The IRS denied IRC § 501(c)(3) recognition to a weekly farmers' market whose vendors sold food and other products. The market participated in SNAP and WIC, offered a SNAP matching program, and perform…
Family-descendant scholarship fund denied charity status
The IRS denied IRC § 501(c)(3) recognition to an organization that provided scholarships only to descendants of one family. Applicants also had to register for and attend the family reunion and be enr…
Retiree-medical reserve cannot fund coverage before employment ends
A company funded a welfare-benefit reserve for medical coverage that began when employees reached a stated retirement age, even if they continued working. Chief Counsel advised that the additional res…
Mailing evidence may establish delivery without formal IRS procedures
Chief Counsel addressed how the IRS can prove mailing and delivery of documents in a FATCA-related penalty matter. The common-law mailbox rule creates a rebuttable presumption of receipt from proper a…
Tax Court signature-block notice applies beyond decision documents
Chief Counsel clarified the scope of Chief Counsel Notice 2025-003 for documents filed with the Tax Court. The notice applies to every document signed and dated after January 17, 2025, not only to dec…
LLC receives more time for corporate classification and S election
A limited liability company intended to be treated as an S corporation but did not timely file either Form 2553 or a separate Form 8832 for corporate classification. The IRS found that the entity sati…
Church auxiliary is excused from filing Form 990
An IRC § 501(c)(3) organization asked to be exempt from the annual Form 990 filing requirement. Based on the information submitted, the IRS classified it as an integrated auxiliary of a church under T…
Foundation's study and teaching grants receive advance approval
A private foundation requested advance approval for grants to adults committed to studying, practicing, teaching, translating, or explaining a specified body of teachings. Grants may cover travel, edu…
Business membership group denied charity status despite civic projects
The IRS denied IRC § 501(c)(3) recognition to a business membership organization that promoted local businesses, coordinated marketing, sought more customer foot traffic, and advocated for business-co…
Farmers market denied charitable exemption
A farmers market applied for exemption under IRC § 501(c)(3), saying it promoted health and wellness through local food access and education. The market accepted nutrition-assistance benefits, hosted …
Interest rate cap income excluded from REIT income tests
A real estate investment trust held properties financed with floating-rate loans whose lenders required interest rate caps. The REIT also used swaps to manage its aggregate interest-rate exposure and …
Partnership cap income excluded from REIT income tests
A real estate investment trust owned an interest in a partnership that financed real estate with floating-rate loans. Lenders required the borrowers to buy interest rate caps, while a partnership subs…
State deferred compensation plan qualifies under section 457(b)
A state adopted a nonqualified deferred compensation plan and related trust for its employees and their beneficiaries. The plan limited deferrals, permitted statutory catch-up contributions, restricte…
Foreign entities receive late classification-election relief
Two foreign eligible entities failed to timely file Form 8832 classification elections. One sought partnership status and the other sought treatment as an entity disregarded from its owner, both effec…
Community foundation and new corporation treated as one entity
A community foundation organized as a trust planned to create and fund a nonprofit corporation with substantially the same charitable purposes and governing body. Their governing documents would subje…
Foreign entity receives late disregarded-entity election relief
A foreign eligible entity intended to be classified as an entity disregarded from its owner but did not timely file Form 8832. The entity and its owner had filed tax returns consistently with the requ…
Foreign entity receives late disregarded-entity election relief
A foreign eligible entity intended to be classified as an entity disregarded from its owner but did not timely file Form 8832. The entity and its owner had filed tax returns consistently with the requ…
Late qualified opportunity fund self-certification accepted
A partnership intended to operate as a qualified opportunity fund but failed to include Form 8996 with its first-year return. Its accounting firm did not advise it of the filing requirement and later …
Partnership receives time to elect out of bonus depreciation
A partnership decided not to claim additional first-year depreciation for all classes of qualified property placed in service during a taxable year. Its adviser received that instruction, but an inter…
Educational grant procedures approved for enrichment programs
A private foundation asked the IRS to approve procedures for grants that help women and girls with a particular syndrome attend recreational, educational, and social enrichment programs. Partner organ…
Youth mental health grant procedures approved
A private foundation asked the IRS to approve two individual grant programs related to youth mental health and well-being. One program will fund travel and participation in convenings, research, learn…
Member burial-benefit organization denied exemption
An organization applied for tax-exempt status under IRC § 501(c)(3) to provide emotional support and pay funeral and burial expenses when a member or a member's family experienced a death. It paid fun…
Recreational pickleball organization denied exemption
An organization applied for exemption under IRC § 501(c)(3) to maintain community courts and offer pickleball open play, beginner clinics, tournaments, leagues, and special events. Participation was o…
Adult recreational soccer league denied exemption
An adult soccer league applied for exemption under IRC § 501(c)(3). It charged local teams registration fees and used the money to secure fields, referees, and other items needed for recreational game…
Employee social association denied exemption
A voluntary employee association applied for exemption under IRC § 501(c)(3). It organized bowling, softball, and cornhole tournaments, employee appreciation days, and picnics or parties for members' …
Artist sales festival denied exemption
An organization applied for exemption under IRC § 501(c)(3) for an annual fine arts and crafts show. Artists chosen through a jury process paid booth fees, set their own prices, handled their own sale…
Commercial manufacturer hiring abuse survivors denied exemption
A for-profit manufacturer and retailer applied for exemption under IRC § 501(c)(3). It hired women from abusive situations, paid above the federal minimum wage, and gave employees flexibility for appo…
Bonus depreciation election extension granted
An S corporation asked for more time to elect out of additional first-year depreciation for all qualified property classes placed in service during a tax year. Its return preparer did not consider or …
Late corporate classification and S elections approved
A limited liability company intended to be classified as a corporation and taxed as an S corporation from its formation date. It did not timely file either Form 8832 or Form 2553. The IRS concluded th…
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.