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.
No determinations match these filters
Try a different search term or clear the filters.
Missed ESBT election did not end S corporation status
A grantor trust continued holding S corporation stock after the two-year period following one deemed owner's death. The trust qualified to be an electing small business trust, but its trustee did not …
Defective consents and missed ESBT election did not end S status
A corporation's S election was defective because trustees, instead of the grantors of several trusts, signed the shareholder consents. One trust also continued holding stock after the two-year period …
Retained powers kept trust transfers incomplete gifts
A grantor created an irrevocable trust that could distribute property to her and several charities. She retained veto powers over distributions and a testamentary limited power to appoint the remainde…
Retained powers kept trust transfers incomplete gifts
A grantor created an irrevocable trust that could distribute property to him and several charities. He retained veto powers over distributions and a testamentary limited power to appoint the remainder…
Trust division preserved tax treatment and asset basis
A trust for a daughter and her descendants proposed dividing its assets equally between two successor trusts, one for each family line. The daughter would remain a beneficiary of both trusts, and her …
Family crisis justified IRA rollover waiver
A 77-year-old IRA owner intended to transfer a maturing annuity into another IRA. While caring for his terminally ill wife, he received a confusing surrender form and directed the proceeds to a non-IR…
Missed plan distribution justified rollover waiver
An employee participated in a qualified retirement plan that was terminated after her employer was sold. She did not receive the termination notice or the original distribution check, and she discover…
Husband’s death justified IRA rollover waiver
A surviving spouse requested relief after her husband withdrew funds from his IRA while hospitalized and died before completing a rollover. She represented that she did not know about the withdrawal u…
Bank processing error justified IRA rollover waiver
A surviving spouse instructed a bank employee to roll distributions from two inherited IRAs into another IRA. The transfer failed because the bank employee did not provide a required letter of accepta…
Bank’s Roth IRA error justified rollover waiver
A taxpayer instructed a bank to move a distribution from her section 403(b) annuity into a traditional IRA. The bank instead linked the funds to her existing Roth IRA, and the error was discovered fiv…
Organization lost exemption for private benefit and political activity
An organization formed to promote changes in the legal system operated through a newsletter, a website, and unrelated business activities managed by its president. The IRS examination found substantia…
Social-venture fellowship procedures approved
A private foundation proposed an eight-month fellowship program to help young social entrepreneurs develop ventures through housing, office space, mentoring, business support, and coaching. Applicants…
Wind-credit safe harbor did not cover solar partnership
Chief Counsel considered whether a partnership owning and leasing solar generators could rely on the safe harbor in Revenue Procedure 2007-65 for its allocation of section 48 energy credits. The advic…
Corporation received late S election relief
A corporation intended to be treated as an S corporation from a specified effective date but did not timely file Form 2553. The IRS found reasonable cause for the missed election under section 1362(b)…
Foreign entity received late disregarded-entity election relief
A foreign entity with one owner intended to be treated as disregarded for U.S. federal tax purposes from its formation date but did not timely file Form 8832. Its owner had consistently filed U.S. ret…
First-line orphan-drug testing met credit timing rule
A pharmaceutical company conducted clinical testing of a drug for first-line treatment of a rare cancer after the FDA designated the drug as an orphan drug for that disease. The FDA had already approv…
Inflation-swap income qualified for RIC income test
Three regulated investment companies proposed using swaps tied to the Consumer Price Index to reduce inflation risk in portfolios of municipal bonds or preferred securities. They represented that the …
Corporation received late S election relief
A corporation intended to be treated as an S corporation from a specified effective date but did not timely file Form 2553. The IRS found reasonable cause for the missed election under section 1362(b)…
Refined-coal process and facility changes preserved credit treatment
A taxpayer leased and operated a facility that mixed chemical reagents with coal to reduce nitrogen oxide and mercury emissions. The IRS ruled that the resulting product could qualify as refined coal …
Farm Credit patronage dividends excluded from REIT income tests
A timberlands company taxed as a real estate investment trust borrowed from Farm Credit cooperatives and expected to receive patronage dividends based on its borrowing activity. The dividends would be…
Intercompany look-through supported worthless-stock deduction
A consolidated group’s holding company owned a subsidiary group that sold its operating assets, used retained assets to pay liabilities, and became insolvent. The parent requested rulings supporting a…
Ownership change allowed early entity-classification election
A foreign eligible entity had elected disregarded-entity status and later underwent an ownership change of more than 50 percent. It sought consent to elect corporate classification before the normal 6…
Ownership change allowed early corporate election
A foreign eligible entity had elected partnership status and later underwent an ownership change of more than 50 percent. It sought consent to elect corporate classification before the normal 60-month…
Adviser error justified late election out of installment method
A taxpayer sold S corporation stock for a down payment and contingent earn-out payments and consistently intended to report the entire gain in the year of sale rather than use the installment method. …
Amended return made late installment election effective
A taxpayer sold S corporation stock for a down payment and contingent earn-out payments and consistently intended to report the entire gain in the year of sale rather than use the installment method. …
Amended return made late installment election effective
A taxpayer sold S corporation stock for a down payment and contingent earn-out payments and consistently intended to report the entire gain in the year of sale rather than use the installment method. …
Amended return made late installment election effective
A taxpayer sold S corporation stock for a down payment and contingent earn-out payments and consistently intended to report the entire gain in the year of sale rather than use the installment method. …
Partnership shareholder caused inadvertent S termination
Two shareholders of an S corporation transferred their stock to a partnership, which was not an eligible S corporation shareholder. The corporation’s S election therefore terminated on the transfer da…
Parent received late consolidated-return election relief
A corporate parent and subsidiary failed to make a valid election to file a consolidated federal income tax return for their first taxable year. The parent reasonably relied on a qualified tax profess…
Ownership change enabled late disregarded-entity election
A limited liability company had elected S corporation classification after initially being treated as a partnership. A new owner later acquired all interests, terminating the S election and creating a…
Second-class-of-stock terms received inadvertent relief
An S corporation’s governing documents allowed disproportionate shareholder distributions, potentially creating a prohibited second class of stock, and its Form 2553 also listed an incorrect effective…
Spin-off cash and contingent liabilities received reorganization treatment
A public company transferred one business to a new controlled corporation, received borrowed cash and controlled-company stock, and distributed the stock to its shareholders. The IRS ruled on three di…
Spectrum-sale income was patronage sourced
Several taxable rural telephone cooperatives formed a limited liability company to pool resources and improve telecommunications services for their members. The company bought wireless spectrum intend…
Spectrum-sale income was patronage sourced
Several taxable rural telephone cooperatives formed a limited liability company to pool resources and improve telecommunications services for their members. The company bought wireless spectrum intend…
Spectrum-sale income was patronage sourced
Several taxable rural telephone cooperatives formed a limited liability company to pool resources and improve telecommunications services for their members. The company bought wireless spectrum intend…
Late Form 1128 was treated as timely
A corporation sought to change its tax year from August 31 to March 31 under the automatic procedures in Revenue Procedure 2006-45 but filed Form 1128 after the short-period return deadline. It reques…
Multiemployer plan receives five-year funding amortization extension
A multiemployer pension plan requested an automatic five-year extension for amortizing specified unfunded liabilities. Its actuary certified that without relief the plan would have an accumulated fund…
Multiemployer plan receives five-year funding amortization extension
A multiemployer pension plan requested an automatic five-year extension for amortizing specified unfunded liabilities. Its actuary certified that without relief the plan would have an accumulated fund…
Multiemployer plan receives five-year funding amortization extension
A multiemployer pension plan requested an automatic five-year extension for amortizing specified unfunded liabilities. Its actuary certified that without relief the plan would have an accumulated fund…
Multiemployer plan receives five-year funding amortization extension
A multiemployer pension plan requested an automatic five-year extension for amortizing specified unfunded liabilities. Its actuary certified that without relief the plan would have an accumulated fund…
Multiemployer plan receives five-year funding amortization extension
A multiemployer pension plan requested an automatic five-year extension for amortizing specified unfunded liabilities. Its actuary certified that without relief the plan would have an accumulated fund…
Multiemployer plan receives five-year funding amortization extension
A multiemployer pension plan requested an automatic five-year extension for amortizing specified unfunded liabilities. Its actuary certified that without relief the plan would have an accumulated fund…
Multiemployer plan receives five-year funding amortization extension
A multiemployer pension plan requested an automatic five-year extension for amortizing specified unfunded liabilities. Its actuary certified that without relief the plan would have an accumulated fund…
IRA rollover waiver denied after funds paid personal expenses
An IRA owner withdrew money intending to move it to another IRA. During the 60-day rollover period, the taxpayer, a firefighter, suffered a work injury, went on medical leave, and was also caring for …
Bank miscommunication justified late IRA rollover
An IRA owner received a distribution from a bank certificate of deposit and intended to roll part of it into an IRA at another bank. The taxpayer met with the second bank’s representative, received an…
Rejected starter check justified late IRA rollover
An IRA owner sought to consolidate retirement savings in an employer plan. Within the 60-day rollover period, she sent the plan administrator a check for the full distribution, but the administrator r…
Bishop-campaign organization denied charitable exemption
A religious organization arranged preaching engagements, distributed campaign materials, solicited donations, and held fundraisers to support its pastor and board chair’s campaign for bishop of a chur…
One-party political symposium denied charitable exemption
An organization planned an educational symposium featuring more than 15 politicians, judges, and policy experts, all apparently affiliated with one political party. Its records focused on recruiting t…
Surviving spouse could roll plan proceeds through marital trust into IRA
A deceased plan participant named his surviving spouse and their joint living trust as equal beneficiaries of his 401(k) plan. After his death, the spouse became the trust’s sole trustor and trustee a…
Interest-rate hedging income qualified for partnership income test
A publicly traded partnership used four types of financial transactions to manage interest-rate risk on its fixed-rate and floating-rate debt. It asked whether income from standard interest-rate swaps…
Alaska Native settlement trust received requested tax treatment
An Alaska Native Corporation created an irrevocable settlement trust to promote the health, education, welfare, heritage, and culture of its Alaska Native beneficiaries and to make quarterly payments …
Corrected filing preserved an inadvertent S election
A corporation attempted to elect S corporation status effective from its formation date, but its election contained errors that may have made it invalid. The corporation represented that the problem w…
Mistaken REIT filing did not start or terminate election
A real estate company intended to postpone its REIT election until a later year because it could not qualify in its first year. Miscommunication among its outside tax consultant, securities counsel, a…
Reflective roof increment qualified as solar energy property
A company planned to install bifacial solar panels that generate electricity from light striking both sides of each panel. It also planned a highly reflective roof surface that would direct additional…
Late QSub election received a 120-day extension
An S corporation owned all of a domestic subsidiary and intended to elect qualified subchapter S subsidiary status for it from the parent’s S election date. The parent missed the Form 8869 deadline th…
Inadvertently late QSub election received extra time
An S corporation owned all of a domestic subsidiary and intended to elect qualified subchapter S subsidiary status for it from the parent’s S election date. The parent inadvertently failed to file For…
Consolidated group received time for extended loss carryback election
A corporate parent wanted its consolidated group to use an extended carryback period for a consolidated net operating loss, but a qualified tax professional failed to make or advise it to make the req…
Late S corporation election received 120-day relief
A corporation intended to be treated as an S corporation from its incorporation date but did not file the required election on time. The IRS found reasonable cause for the missed deadline under sectio…
Estate received more time for 2010 carryover-basis election
The representative of an estate for a person who died in 2010 hired an attorney to prepare the required tax filings. The attorney failed to file Form 8939 by the deadline, so the estate did not timely…
Service-intensive rents were not passive investment income
A company planning to elect S corporation status owned and managed commercial real estate. Its officers, employees, and contractors provided daily cleaning and security, maintenance and repairs, commo…
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.