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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501(c)(3) revoked for failing to file Form 990 for three years and conducting no exempt activities
The IRS revoked an organization's 501(c)(3) tax exemption for two independent reasons. First, on examination the IRS found the organization normally had more than $50,000 in gross receipts (its holdin…
Pension plan may pay 401(h) retiree-medical benefits to active employees eligible for in-service retirement
A defined benefit pension plan can include a special "401(h) account" that pays medical benefits for retired employees and their dependents. The account here had a surplus, and the employer wanted to …
120-day relief for an LLC to make late corporate-classification and S corporation elections
An LLC is not a corporation by default, so to be taxed as an S corporation it must both elect to be classified as a corporation and elect S status. Here an LLC intended to be an S corporation as of a …
120-day extension to fix the effective date of an LLC's corporate-classification election
An LLC can choose to be taxed as a corporation by filing Form 8832, and it specifies on the form the date the election takes effect. Here an LLC wanted its corporate classification to be effective as …
75-day extension to make a late section 336(e) election on an S corporation stock sale
A section 336(e) election lets the sale of a corporation's stock be treated, for tax purposes, as if the company had sold its assets, which can give the buyer a stepped-up basis in those assets. Here …
Surviving spouse may roll inherited retirement plan assets paid through the estate into her own IRA
A surviving spouse usually gets favorable rollover treatment for a deceased spouse's retirement accounts, but here the accounts named the decedent's estate (not the spouse) as beneficiary, which norma…
120-day extension for an estate to make a late portability (DSUE) election
When someone dies without using up their full estate-tax exemption, a "portability" election lets the surviving spouse inherit the unused amount (the deceased spousal unused exclusion, or DSUE), but i…
120-day extension for three foreign entities to file late disregarded-entity elections
A single-owner foreign business entity can elect to be "disregarded" for U.S. tax purposes (treated as part of its owner) by filing Form 8832 on time. Here three related foreign entities, each organiz…
120-day relief for two late elections tied to a tax-exempt-owned low-income housing entity
When property is used by a tax-exempt entity, special "tax-exempt use property" rules force the owner to depreciate it slowly under the alternative depreciation system, which reduces deductions. Here …
120-day extension for a foreign entity to file a late disregarded-entity election
A foreign business entity with a single owner can choose to be "disregarded" for U.S. tax purposes (treated as part of its owner rather than a separate taxpayer) by filing Form 8832, but the election …
Partnership received 120 days to make a section 754 election after a partner's death
A partnership failed to make a section 754 election for the tax year in which one of its partners died. It requested discretionary relief to make the election late. The IRS concluded that the partners…
Estate received 120 days to make a late portability election
An estate that was not otherwise required to file Form 706 missed the deadline to elect portability of the deceased spouse's unused estate and gift tax exclusion. The estate requested relief so the su…
Housing project received 120 days to make the average-income election
The owner of a single-building low-income housing project intended to elect the average-income minimum set-aside. Contemporaneous documents supported that intent, but the owner inadvertently omitted t…
IRS approved five-year extensions for a multiemployer plan's amortization bases
A multiemployer pension plan requested automatic extensions for amortizing several unfunded liability bases. The IRS initially proposed denial because one base did not match the actuarial valuation an…
Bankruptcy trust remained a liquidating trust despite a further extension
A trust created under a Chapter 11 reorganization plan had received several court-approved term extensions because litigation remained unresolved. The trust's agreement limits its activities to liquid…
Corporation received 120 days to make a late GILTI high-tax election
A domestic corporation intended to make the GILTI high-tax exclusion election for a group of 29 controlled foreign corporations. Its timely return reported zero GILTI consistently with that intent, bu…
Corporation received 60 days to make a late success-based fee election
A corporate group used the Rev. Proc. 2011-29 safe harbor for success-based transaction fees, deducting 70 percent and capitalizing 30 percent. It reported the merger fees consistently with the safe h…
Partnership received 120 days to make a late section 754 election
A limited partnership intended to elect under section 754 after a partner died, but it inadvertently omitted a valid election from its timely partnership return. The election would allow partnership p…
Estate received 120 days to make a late QTIP election
A decedent's revocable trust became irrevocable at death and divided into family and marital trusts. The surviving spouse was entitled to all marital trust income for life, and the trust was intended …
Consolidated group received 75 days to waive a loss carryback
A consolidated corporate group generated a consolidated net operating loss and carried it forward on its returns. The group intended to waive the loss's carryback period but relied on a tax profession…
Nonprofit insurer restructuring received tax-free reorganization rulings
A nonprofit health insurance organization completed a restructuring that placed a new nonprofit holding company above it and moved several subsidiaries and disregarded entities within the group. The I…
Group trust may redeem an investor through an in-kind transfer
A collective group trust limited its investors to eligible retirement arrangements and other qualifying group trusts. It proposed satisfying a withdrawing retirement plan's interest with a pro rata in…
Land rights transfer qualified for section 351 nonrecognition
An Alaska Native Regional Corporation proposed transferring specified land rights to a newly formed corporation in exchange for stock. An unrelated corporation would also contribute assets for stock, …
Foreign holding company domestication qualified as an F reorganization
A foreign holding company domesticated under state law and became a domestic corporation. For federal tax purposes, it was treated as transferring all assets and liabilities to the domestic corporatio…
Corporation received relief for inadvertent termination of its S election
An S corporation retained accumulated earnings and profits from earlier C corporation years. For three consecutive years, more than 25 percent of its gross receipts came from passive investment income…
Supplemental ruling extended the corrective filing deadline to 60 days
The IRS supplemented and modified an earlier private letter ruling dated October 18, 2024. The public supplemental letter does not restate the facts or describe the underlying relief. It extends the d…
Parties received 75 days to make a late section 336(e) election
Purchasers acquired all stock of an S corporation from its shareholders, and the parties intended to treat the stock sale as an asset sale under section 336(e). They did not timely attach the required…
Dance scholarship and educational grant procedures approved
A private foundation proposed a one-time award program for students who have participated in dance. Recipients may use funds for books and tuition under the scholarship rules or for dance lessons, int…
Scholarship and educational grant procedures approved
A private foundation proposed two programs for United States citizens and legal residents. One program will fund undergraduate or graduate study, with payments made directly to educational institution…
Employer-related scholarship procedures approved
A private foundation proposed two scholarship programs for employees of a company. Each program will make one annual award to an employee who meets its academic and personal criteria, and an independe…
Historical research grant procedures approved
A private foundation proposed a program funding individual research projects about a city's history, culture, archaeology, architecture, and preservation. Applicants must propose defined work products…
Set-aside for domestic violence housing approved
A private foundation requested approval to set aside funds for additional transitional housing for women and children affected by domestic violence. The foundation already operates a housing program w…
International educational travel grants approved
A private foundation proposed an educational travel program for female students at rural high schools. The program will take a cohort outside the United States for cultural and educational activities,…
Multiemployer plan amortization extensions approved
A multiemployer pension plan requested automatic extensions for amortizing three unfunded liability bases beginning with its 2023 plan year. The plan submitted an actuary's certification that it met t…
Scholarships for students facing disabilities approved
A private foundation proposed scholarships for graduating seniors at one high school who face a health, physical, or learning disability. Applicants must plan to attend a college, vocational, technica…
Governmental affiliate excused from filing Form 990
A tax-exempt organization asked to be excused from filing annual Form 990 information returns. The IRS determined that the organization qualifies as a governmental unit or an affiliate of a government…
Agricultural career scholarships approved
A private foundation proposed annual scholarships for graduating students from one county who have been accepted to study for careers in agriculture. Applicants must provide contact information, proof…
Community project grant procedures approved
A private foundation proposed grants for community projects supporting economic viability, community building, and historic preservation in a town and nearby communities. Individuals, businesses, and …
Historic restoration matching-grant set-aside approved
A private foundation requested approval to set aside funds for a matching grant supporting restoration of ornamental plaster and murals at a historic property. The recipient organization must raise th…
Historic residency-site restoration set-aside approved
A private foundation requested approval to set aside funds for a matching grant to restore a historic property used as a residency site. The project includes masonry and exterior restoration, work on …
International dispute-resolution fellowships approved
A private foundation proposed fellowships for non-United States citizens to study dispute-resolution practices in the United States and apply them in their home countries. Applicants must be fluent in…
Three need-based scholarship programs approved
A private foundation proposed three programs serving students from low-income and resource-poor communities. One provides educational services and scholarship support during high school, another funds…
Church auxiliary excused from filing Form 990
A section 501(c)(3) organization asked to be exempt from filing annual Form 990 information returns. The IRS determined that it qualifies as an integrated auxiliary of a church. Treasury Regulation se…
Regional four-year university scholarships approved
A private foundation proposed four-year scholarships for graduating seniors from specified under-resourced areas to attend either of two partner universities. Selection considers financial need, first…
One-time restructuring transfer treated as unusual grant
A publicly supported organization expected to receive most of the net assets of an affiliated section 501(c)(4) organization as part of a restructuring and merger. The transferor was not disinterested…
Need-based medical school scholarships approved
A private foundation proposed one-time scholarships for students attending accredited medical schools in the United States. Applicants must document academic readiness, activities and experience, fina…
Employee-children merit scholarships approved
A private foundation proposed merit scholarships for children of employees of a company and its subsidiaries. An independent nonprofit will run the academic competition, select finalists, administer a…
Member benefit organization denied section 501(c)(3) status
An organization formed by employees and volunteers of a local government agency collected dues to provide benefits to members during hardships and celebratory life events. Benefits included assistance…
Religious recovery home denied section 501(d) status
An organization planned to operate a religious residential recovery home for people recovering from substance abuse. Although its program included prayer, Bible reading, church attendance, counseling,…
Member funeral benefit organization denied section 501(c)(3) status
A membership organization collected membership and registration fees to provide cash, material, and spiritual support when a member or a member's immediate family member died. The IRS concluded that t…
Pharmaceutical consulting organization denied section 501(c)(3) status
An organization proposed to provide paid consulting services to pharmaceutical companies concerning pediatric skin diseases and donate the net proceeds to exempt organizations supporting research and …
Carbon-free energy business denied section 501(c)(3) status
An organization planned to design, build, own, and operate carbon-free electrical generation facilities, initially using solar panels and battery storage. It expected to earn fees for installed equipm…
Veterans' public restaurant and bar denied section 501(c)(3) status
A veterans' organization operated a restaurant and bar open to the general public every day, with prices comparable to other restaurants. It also raised funds and provided assistance for veterans, and…
Exemption revoked for inadequate records, nonresponse, and private benefit
The IRS revoked an organization's section 501(c)(3) exemption after it failed to substantiate its activities, provide complete financial records, or respond to repeated information requests. The limit…
Partnership granted extension to make late section 754 election
A limited liability company treated as a partnership intended to make a section 754 election but inadvertently failed to attach a valid election to its timely partnership return. The IRS found that th…
Estate granted extension to elect portability of unused exclusion
An estate that represented it was not otherwise required to file Form 706 failed to file a timely return electing portability of the decedent's unused estate and gift tax exclusion to the surviving sp…
Extension granted for late section 336(e) election
A consolidated group's parent distributed all the stock of several target corporations and intended the qualified stock disposition to be treated as an asset sale under section 336(e), but the parties…
Artist and nonprofit-leader grant procedures approved
A private foundation proposed two educational grant programs. One makes grants to artists at different career stages for artistic exploration and growth. The other funds sabbaticals for leaders of non…
Large construction grant recognized as an unusual grant
A publicly supported charity expected a large, unexpected cash grant from a grantor with no prior connection to the organization. The charity planned to use the installments for a playground, basketba…
Exemption revoked for inadequate records and unsubstantiated operations
The IRS revoked an organization's section 501(c)(3) exemption because it did not prove that it operated exclusively for scientific, educational, charitable, or other exempt purposes. During the examin…
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.