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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Rollover waiver denied when family issues did not cause delay
A retiree received a lump-sum distribution after missing an appointment to discuss his benefit options and then missed the 60-day rollover deadline. He cited family responsibilities and a medical issu…
Employer receives more time for separate-line notices
An employer operated two qualified separate lines of business and had timely filed its initial election. Changes to the controlled group required updated Form 5310-A notices for the 2011 and 2012 test…
Foundation's scholarship procedures receive advance approval
A private foundation asked the IRS to approve its procedures for a scholarship program serving students in a particular community. A committee of local public-school superintendents would rank applica…
Foundation's museum internship grants receive advance approval
A private operating foundation proposed an internship grant program supporting library, archival, and museum research. Interns could receive transportation reimbursements, housing allowances, or month…
Family education fund denied charitable status
An organization was formed to honor a deceased individual and raise money for his son's education, with future support limited to his descendants. Its articles also allowed purposes beyond those descr…
Candy-shop operator loses charitable exemption
The IRS revoked the exemption of an organization that said it helped poor people through cash stipends but could not document those payments. One individual controlled the organization, used a persona…
Insurance marketer loses business-league exemption
A trade association originally promoted technology-related businesses and offered group benefits. After an insurance-business owner took control, the association primarily marketed life-insurance plan…
IRS may process late telephone-excise claim despite EIN error
Chief Counsel advised that a telephone excise tax request and an amended request could be processed as timely under the IRS's administrative practice through July 27, 2012. The advice assumed that the…
Multiple frivolous refund requests may trigger return penalties
Chief Counsel identified cases supporting an IRC § 6702(a) penalty when a taxpayer makes multiple refund requests for the same tax year using frivolous arguments. The cited decisions treat documents r…
Partnership notices may go to disregarded entity's owner
Chief Counsel explained which name and address the IRS should use for partnership notices under IRC § 6223(c). The IRS generally uses the information shown on the partnership return, including the Sch…
Taxpayer disclosure authorization must identify information and recipient
Chief Counsel said taxpayer authorizations to disclose return information are case-specific and offered suggested starting language. The authorization should identify the taxpayer, the designated reci…
IRS may obtain nonliable spouse's credit report in community-property state
Chief Counsel concluded that the IRS may generally obtain a nonliable spouse's credit report when collecting tax in a community-property state. Under the Fair Credit Reporting Act definition incorpora…
Disclosure of indirect partner keeps assessment period open
Chief Counsel addressed the assessment period for source-partnership income omitted from an indirect partner's return. If the IRS timely issued a final partnership administrative adjustment, IRC § 622…
Extended bond swap avoids abusive-arbitrage treatment
A conduit borrower and bondholder entered into total-return swaps tied to fixed-rate refunding bonds and proposed extending the swaps for five years at improved pricing. The bond proceeds had been spe…
Mortgage servicer receives more time to elect safe harbor
A mortgage banking business intended to elect the Revenue Procedure 91-50 safe harbor for determining reasonable compensation under its mortgage servicing contracts. Its accountant omitted the require…
REIT subsidiary receives more time to elect servicing safe harbor
A taxable REIT subsidiary intended to elect the Revenue Procedure 91-50 safe harbor for determining reasonable compensation under its mortgage servicing contracts. Its accountant omitted the required …
Corporation receives more time to elect IC-DISC status
A domestic corporation was formed solely to operate as an interest charge domestic international sales corporation, or IC-DISC. Its accounting and law firms misunderstood which adviser would file Form…
Corporation receives relief for late S election
A corporation intended to be an S corporation from its formation date but did not timely file Form 2553. The IRS found reasonable cause for the missed deadline based on the corporation's facts and rep…
Insurer remains owner of variable-policy investment assets
A partnership owned two universal variable life insurance policies whose separate accounts invested in insurance-dedicated funds. The partnership also proposed investing seed capital in a publicly off…
Transferor receives more time to make loss-property basis election
A foreign company treated as a corporation transferred a partnership interest to a related corporation in a transaction represented to qualify under IRC § 351. The interest's tax basis exceeded its fa…
Foreign transferor receives more time for basis election
A foreign company treated as a corporation transferred a loss partnership interest to a related corporation in a transaction represented to qualify under IRC § 351. The interest's tax basis exceeded i…
Controlled group receives more time for QSLOB election
A controlled group maintained separate businesses, but its pension-plan service provider tested one subsidiary's plan without obtaining employee data for the whole group. The companies did not learn u…
IRA owner receives rollover waiver after adviser error
An IRA owner asked financial advisers to calculate required minimum distributions from an IRA and a separate retirement plan. The advisers incorrectly said both obligations could be satisfied from the…
Employer may freeze floor-offset plan accruals
An employer maintained a floor-offset retirement arrangement combining a defined benefit pension plan with a profit-sharing plan. It proposed freezing pension accruals and ending most future profit-sh…
Foundation's music education grants receive advance approval
A private foundation expanded its music grant program to pay for private lessons, workshops, and short summer programs for talented middle and high school students with financial need. Independent jud…
Foundation's historical research fellowships receive approval
A private foundation proposed fellowships for scholarly research using its historical buildings and collections. Doctoral candidates, museum and academic professionals, and independent scholars could …
Foundation's local student scholarships receive approval
A private foundation proposed scholarships for graduates of a specified school district who would continue their education in the named state, with preference for future teachers. District officials w…
Foundation's church member scholarships receive approval
A private foundation proposed nonrenewable scholarships for qualifying church members attending divinity school, younger undergraduates, and high school seniors planning further education. Seminary st…
Employer-related scholarship procedures receive approval
A private foundation proposed scholarships for children of qualifying consultants affiliated with a member company. Three retired academics independent of the foundation and company would select recip…
Foundation's nursing scholarships receive approval
A private foundation proposed scholarships for nursing students who graduated from schools in a specified county and attended an accredited nursing program in the same state. A three-person committee …
Foundation's local high school scholarships receive approval
A private foundation proposed scholarships for seniors at a specified high school who had lived in the local district for at least one school year and were accepted to college, university, or trade sc…
Charitable trust's local scholarships receive approval
A non-exempt charitable trust treated as a private foundation proposed nonrenewable scholarships for graduates of a specified school in a local district. Applicants needed at least a 3.0 grade point a…
Foundation may set aside funds for animal welfare facility
A private foundation planned to renovate a donated commercial building into an animal shelter, research and training facility, and home for its grantmaking and public education programs. Design and co…
Social club loses exemption over public event business
A social club regularly rented event rooms to nonmembers, promoted itself as a public event venue, and relied on outside functions to support its restaurant and clubhouse. The IRS calculated nonmember…
VEBA avoids UBIT on transferred retiree-benefit reserve income
A collectively bargained voluntary employees' beneficiary association planned to receive assets from a retirement funding account under a group life insurance policy and use them for retiree health be…
Offshore fund's U.S. lending and underwriting created a U.S. trade or business
Chief Counsel considered an offshore investment fund whose U.S.-based manager originated loans and underwrote stock distributions on the fund's behalf. The fund actively sought borrowers and issuers, …
Leveraged forward contract was a swaption with a circular loan
Chief Counsel analyzed a promoted leveraged forward contract that paired a purported loan with matching payments under prepaid derivative contracts. The loan and guaranteed contract payments offset ea…
Reinsurance acquisition commission must be amortized under IRC § 197
Chief Counsel considered an insurer's purchase of assets from a life reinsurance business together with a retrocession arrangement covering the seller's contracts. The taxpayer treated the arrangement…
Bargained customer incentives reduce gross sales
Chief Counsel considered a media company's program that provided customers with redacted merchandise or points as part of negotiated advertising purchases. The company and each customer bargained for …
Foreign entity gets more time for disregarded-entity election
A wholly owned foreign eligible entity intended to elect disregarded-entity status effective on a redacted date, but inadvertently failed to file Form 8832 on time. It requested relief under the regul…
Entity gets more time to elect partnership status
A domestic eligible entity with multiple members intended to be treated as a partnership for federal tax purposes but did not file Form 8832. It asked for an extension under the regulatory election-re…
Ineffective QSub election receives inadvertent-election relief
An S corporation acquired all the shares of another S corporation in a purported reorganization and later elected to treat the subsidiary as a qualified subchapter S subsidiary. The election was ineff…
Corporation gets relief for late S election
A corporation's shareholder intended the company to be an S corporation from its incorporation date, but Form 2553 was not filed on time. The corporation requested late-election relief under IRC § 136…
Housing project gets more time for low-income set-aside election
The owner of a low-income housing project began its credit period but inadvertently failed to make the intended election under IRC § 42(g)(1)(B) on Form 8609. That election requires at least 40 percen…
Foreign subsidiary gets late disregarded-entity election relief
A domestic corporation's wholly owned foreign subsidiary intended to elect disregarded-entity status from a specified date but failed to file a valid Form 8832 on time. The foreign subsidiary requeste…
Foreign subsidiary gets late disregarded-entity election relief
A domestic corporation's wholly owned foreign subsidiary intended to elect disregarded-entity status from a specified date but failed to file a valid Form 8832 on time. The foreign subsidiary requeste…
Foreign subsidiary gets late disregarded-entity election relief
A domestic corporation's wholly owned foreign subsidiary intended to elect disregarded-entity status from a specified date but failed to file a valid Form 8832 on time. The subsidiary sought relief un…
Foreign subsidiary gets late disregarded-entity election relief
A domestic corporation's wholly owned foreign subsidiary intended to elect disregarded-entity status from a specified date but failed to timely file a valid Form 8832. It requested an extension under …
Financial institution error earns IRA rollover waiver
A taxpayer tried to transfer an IRA between financial institutions. The first institution issued the distribution check to her instead of the receiving institution, and her financial advisor then mist…
Mistitled IRA receives rollover deadline waiver
A retirement plan participant intended to move his plan balance into an IRA in his own name. His spouse, acting as the plan trustee, followed the financial institution's online instructions, but the i…
Caregiving crisis excuses missed IRA rollover deadline
A taxpayer received an IRA distribution while serving as the primary caregiver for her seriously ill husband, who had always managed the couple's financial affairs. She deposited the funds into a savi…
Roth 401(k) rollover error receives deadline waiver
A former employee asked an investment company to roll his Roth 401(k) balance directly into a Roth IRA. The plan custodian sent the check to the company, but its representatives deposited the money in…
Incorrect advice excuses late IRA redeposit
A taxpayer withdrew money from his IRA to pay off a home equity loan so he could co-sign his son's mortgage. An adviser told him to replace the funds with a new home equity loan after the mortgage clo…
Misrouted IRA transfer receives rollover waiver
A taxpayer asked to transfer his IRA between financial institutions. The first institution issued the distribution check to him rather than the receiving institution, and his financial advisor then mi…
Brokerage delay earns waiver for cash-and-stock rollover
A former employee received a plan distribution consisting of cash, a check payable to the receiving brokerage, and a stock certificate issued in the brokerage's name but bearing the taxpayer's persona…
Foundation may set aside funds for science fellowships
A private foundation planned a postdoctoral fellowship program supporting research in chemistry, biochemistry, and medicine. The program required time to publicize the opportunity, select fellows, and…
Travel-booking charity denied exemption as commercial feeder
An organization proposed to operate a travel-booking website using a for-profit company's booking engine and donate its share of transaction fees to selected charities. Customers would buy travel serv…
Seller-funded down-payment program loses exemption
A housing organization operated a down-payment assistance program financed by home sellers, builders, and other real-estate businesses that benefited when assisted buyers completed purchases. In subst…
Community time bank denied exemption for serving members' private interests
A community organization matched members who needed help with members willing to provide services and tracked each hour of service as a transferable share. Members could earn shares by helping others …
Fundraising website denied exemption for commercial activity and private benefit
An organization planned to operate the unclaimed charity profiles on a fundraising website owned and maintained by a related for-profit company. It would process donations through those profiles for t…
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.