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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PLR 1313018: No-fault insurance benefits for an injured ward excluded from gross income
A court-appointed guardian asked whether no-fault automobile insurance benefits received on behalf of an injured adult daughter were taxable. The benefits paid for care, recovery, and…
PLR 1313013: Late election allowed for qualified dividends and net capital gain
The IRS granted individual taxpayers an extension of time to elect to treat qualified dividends and net capital gain as investment income for purposes of the investment-interest deduction. The…
PLR 1313012: Electric utility facility qualified for additional first-year depreciation
The IRS ruled that section 1245 property at an electric utility's self-constructed generation facility qualified for the 50-percent additional first-year depreciation deduction under section 168(k),…
CCA 1312034: electric-vehicle credit eligibility and claim years could differ
Chief Counsel advised that the year in which a plug-in vehicle qualified for the credit and the year in which the taxpayer could claim the credit could differ. Eligibility was determined by when the…
CCA 1312032: counsel may participate in post-Appeals mediation
Chief Counsel advised that counsel may participate in a post-Appeals mediation. The advice relied on Rev. Proc. 2009-44, which provides procedures for post-Appeals mediation, and Rev. Proc. 2012-18,…
Prepaid FDIC assessments are not currently deductible
The Office of Chief Counsel considered whether a consolidated group could deduct prepaid FDIC assessments for two taxable years. It concluded that the prepaid assessment was part of a capital…
PLR 1311007: IRS allows correction of a low-income housing project location
The IRS allowed a state housing credit agency and a project developer to correct the location listed in a low-income housing credit carryover allocation agreement. The agreement identified the…
PLR 1311006: IRS excludes physical-injury settlement distributions from reporting and withholding
The IRS ruled that damages distributed to victims of a described incident were excluded from the recipients' gross income because they arose from physical injuries or physical sickness. The damages…
PLR 1311003: IRS allows a wind project to qualify as placed in service with a temporary grid connection
A renewable-energy developer asked whether a wind project could be treated as placed in service during a particular year even though its permanent transmission line would not yet be complete. The…
PLR 1311002: IRS treats federal agency commissioners as employees for wage reporting
A federal agency asked how mandatory payments to six commissioners should be treated for federal tax purposes. The commissioners were appointed by the Secretary, performed agency business…
CCA 1310039: Refund retained after an NOL carryback is treated as income
Chief Counsel considered the tax treatment of a refund generated by net operating losses of subsidiaries sold to another consolidated group. The seller received the refund and paid part of it to the…
CCA 1310031: Department of Commerce funding initially characterized as a bona fide loan
Chief Counsel gave preliminary advice on whether an amount received from a Department of Commerce program should be treated as a loan, grant, or award. Based on the available facts, the amount…
CCA 1310029: California fire-prevention fees are not deductible real property taxes
Chief Counsel considered whether California residents could deduct a state fire-prevention fee as a real property tax under IRC § 164. The advice concluded that the fee was not a tax under…
CCA 1310028: Exterior HVAC units are not qualified leasehold improvement property
Chief Counsel considered whether a lessee's replacement HVAC units qualified for the 15-year depreciation treatment available to qualified leasehold improvement property. The units were installed on…
CCA 1310027: Exchangeable debentures formed a straddle with the referenced stock
Chief Counsel analyzed a taxpayer's exchangeable debentures that referenced stock the taxpayer continued to hold. The advice concluded that the debentures were a position with respect to…
PLR 1310026: Retiree health-benefit trust income is excluded under IRC § 115
The IRS ruled that income earned by a trust established by a public entity to fund retiree health benefits is excluded from gross income under IRC § 115(1). The trust's assets were used solely for…
PLR 1310025: Consolidated group granted extra time to elect an extended NOL carryback
The IRS granted a consolidated group 60 days to make an election for an extended carryback period for a consolidated net operating loss. The election was missed because the group reasonably relied…
PLR 1310010: Public power authority's income remains excluded under § 115(1)
The IRS considered a nonprofit public power authority that coordinates electricity generation, purchasing, and sales for public utility members. The authority also planned to provide certain…
PLR 1310001: Indian tribe may pass renewable-energy investment credits to its lessee
The IRS considered a federally recognized Indian tribe that planned to lease renewable energy assets to an unrelated lessee. The tribe represented that the assets would qualify as energy property…
CCA 1309013: IRS explains how section 382 limits recognized built-in losses
Chief Counsel advised that a recognized built-in loss is not treated as a separately determined net operating loss for the year. Instead, the loss is taken into account as a deduction in the annual…
PLR 1309012: IRS extends the expenditure period for qualified school construction bonds
A state public authority asked for more time to spend the available project proceeds from qualified school construction bonds. Most participating localities had spent their allocated proceeds, but…
PLR 1309004: PILOT payments qualify as deductible real property taxes
The IRS considered payments in lieu of taxes, or PILOT payments, for a condominium project built on leased public land. It ruled that the payments were real property taxes for purposes of section…
CCA 1308030: Chief Counsel rejected a retroactive election to exclude disability benefits
Chief Counsel considered an S-corporation shareholder-employee who had excluded employer-paid disability insurance premiums from income and later received disability benefits. The advice concluded…
CCA 1308027: IRS analyzes whether a settlement payment is a nondeductible penalty
This Chief Counsel Advice analyzes whether part of a taxpayer's payment under a settlement agreement with a state attorney general was a fine or similar penalty under IRC § 162(f). The visible…
CCA 1308025: IRS identifies the discovery year for a Ponzi-scheme theft loss
This Chief Counsel Advice addresses which year an investor should use as the discovery year for a theft-loss claim involving a fraudulent investment arrangement. Applying Rev. Proc. 2011-58, the IRS…
PLR 1308021: IRS permits a renewable-energy credit without reducing it for project loans
The IRS ruled that loans from a binational environmental-finance bank for wind projects were not subsidized energy financing under section 45(b)(3)(A)(iii). The bank was funded by the United States…
PLR 1308016: IRS says adding discretionary trust beneficiaries does not trigger gain or loss
The IRS considered proposed modifications to two irrevocable trusts that made discretionary distributions to charitable organizations. The modifications would add the settlor's two children as…
PLR 1308011: IRS approves section 115 exclusion for municipal economic-development corporations
The IRS ruled that the anticipated income of two corporations formed to carry out a city's economic-development functions would be excluded from gross income under IRC § 115(1). The corporations…
PLR 1308010: IRS approves municipal instrumentality, retirement-system, and section 115 rulings
The IRS ruled that a nonprofit corporation formed to carry out a city's economic-development program would be a wholly owned instrumentality of the city for FICA purposes. The IRS also allowed the…
PLR 1308005: IRS rules on investment credit for solar-system batteries
The IRS ruled that a battery used with a solar photovoltaic system is part of the system's energy property under IRC § 48(a)(3)(A)(i), so the taxpayer could claim an investment credit on the…
PLR 1307008: IRS treats a community trust and affiliated corporation as one entity
The IRS ruled that a community trust and a nonprofit corporation formed by its governing body could be treated as a single entity for federal tax purposes. The ruling accepted that the two…
CCA 1307005: EHR incentive payments are generally taxable and reportable
Chief Counsel Advice considers electronic health record incentive payments made by the Centers for Medicare and Medicaid Services to eligible health care providers. It concludes that a provider…
CCA 1306018: CCA denies deductions for closing-agreement taxes and treats a settlement as income
Chief Counsel advice considered taxpayers who paid federal income taxes, penalties, and interest under a closing agreement resolving an abusive employee stock ownership plan transaction. The IRS…
CCA 1306017: CCA addresses the timing and form of a disaster-loss election
Chief Counsel advice considered whether a corporation could elect under § 165(i) to deduct disaster casualty losses in the preceding tax year through an informal refund claim. The advice states that…
IRS guidance on testimony by an employee using a pseudonym
An IRS employee asked what language should be used when an employee testifies in court under a pseudonym. Chief Counsel advised that no special language was required, but suggested pointing to the…
Revoking an election not to claim bonus depreciation requires consent
Chief Counsel advised that the bonus depreciation regulations specifically govern revocation of an election not to deduct bonus depreciation. A taxpayer seeking to revoke that election must obtain…
PLR 1303008: Retiree health trust income qualifies for a section 115 exclusion
A governmental employer asked whether income earned by a trust funding retiree health benefits would be excluded from gross income under IRC § 115. It also asked whether the trust had to file an…
Shipping fees for employee transit passes may be excludable commuting costs
Chief Counsel advice addressed shipping fees paid by employees to obtain transit passes. The advice concluded that the fees should be treated as a commuting cost and may be excluded from income when…
CCA 1302024: Advice on bank charge-offs of partially worthless debts
Chief Counsel Advice considers whether a bank's placement of partially worthless debts into a specific valuation allowance qualifies as a charge-off under IRC § 166(a)(2). The IRS examiner had…
CCA 1302023: Work-college tuition payments remain excludible scholarships
Chief Counsel Advice addresses the continued validity of Rev. Rul. 64-54 for learning-through-working programs at work colleges. The advice states that the revenue ruling remains the IRS's published…
CCA 1302021: Non-prescription drugs are not qualified Indian health care benefits
Chief Counsel Advice considers whether payments from an Indian tribe to a tribal member for non-prescription drugs qualify for the gross-income exclusion for qualified Indian health care benefits…
CCA 1302018: A retail sale is on-site if the customer is present at any point
Chief Counsel Advice interprets the on-site sale rules for resellers under Treas. Reg. § 1.263A-3(c)(5)(ii)(D). It concludes that a sale is on-site when the retail customer is physically present at…
CCA 1302017: Guidance on when outdoor advertising displays are inherently permanent structures
Chief Counsel Advice addresses when an outdoor advertising display is an inherently permanent structure and therefore real property for purposes of the domestic production activities deduction. The…
PLR 1302007: IRS approves placed-in-service treatment for wind turbines
A utility holding company asked when wind turbine generators in a new wind project would be considered placed in service for depreciation. The project could begin commercial operations before a…
PLR 1252008: IRS ruled on stock sales, distributions, and a planned corporate liquidation
The IRS ruled on a series of completed and proposed transactions among a parent company and foreign and domestic subsidiaries. The ruling addressed the tax treatment of cross-chain stock sales, a…
PLR 1252005: IRS ruled that a public rehabilitation program did not create reportable income for property owners
The IRS ruled that a political subdivision did not have to file information returns for property owners whose privately owned infrastructure was rehabilitated through a government program. The…
CCA 1250022: Chief Counsel addresses stock-for-debt exchanges and unpaid loss deductions
Chief Counsel advice addressed the federal tax treatment of insolvent insurance subsidiaries that exchanged stock for debt in state insolvency proceedings. The advice concluded that…
PLR 1250009: IRS approves cooperative grain payments as per-unit retains
The IRS ruled that a farmers cooperative's planned cash payments to members and participating patrons for grain would qualify as per-unit retain allocations paid in money. The cooperative planned to…
PLR 1249013: IRS revokes a wind facility basis ruling
The IRS revoked an earlier private letter ruling about the tax basis of wind energy facilities acquired with facility-specific power purchase agreements. The earlier ruling had concluded that no…
PLR 1249004: IRS grants more time for an extended net operating loss carryback election
The IRS granted a consolidated group 60 more days to make an election for an extended carryback period for a consolidated net operating loss. The group missed the deadline for the election, which…
PLR 1249003: IRS grants more time for a tax-exempt controlled entity election
The IRS granted a tax-exempt controlled entity 30 more days to elect to be treated as a taxable entity for purposes of the depreciation rules. The entity was a co-general partner in a low-income…
PLR 1249002: IRS approves charitable transfers involving a remainder unitrust
The IRS ruled that a surviving donor could transfer an undivided portion of a charitable remainder unitrust payment and the related trust remainder to the charitable remainder beneficiary. The donor…
CCA 1248019: Chief Counsel says proceeds for unwanted medical procedures qualify for exclusion
Chief Counsel advised that proceeds received by individuals who underwent unwanted medical procedures qualify for exclusion from gross income under section 104(a)(2). The memorandum based that…
CCA 1248018: Chief Counsel addresses a missed cancellation-of-debt election
Chief Counsel advised that a taxpayer generally must make the election required to use the cancellation-of-debt income deferral provision under Revenue Procedure 2009-37. If the taxpayer misses the…
PLR 1248015: IRS grants more time for an oil and gas intangible drilling cost election
The IRS granted an oil and gas joint venture 60 more days to elect to deduct intangible drilling costs. The partnership had not timely made the section 263(c) election for a taxable year, and it…
PLR 1248014: IRS grants more time for an oil and gas intangible drilling cost election
The IRS granted an oil and gas joint venture 60 more days to elect to deduct intangible drilling costs. The partnership had not timely made the section 263(c) election for a taxable year, and it…
PLR 1248011: IRS approves tax treatment for a public retiree health trust
The IRS ruled that a trust established by a political subdivision to fund retiree health benefits would have income excluded from gross income under IRC § 115(1). The trust's assets would come from…
CCA 1247010: IRS advises that escrow-funded litigation payments are deductible and do not redeem stock
The IRS Office of Chief Counsel considered a corporate restructuring in which a parent company placed funds in escrow to pay litigation liabilities connected with a subsidiary and certain former…
ATNOL carryback reduces later minimum tax credit
Chief Counsel advised that a corporation must recompute its minimum tax credit carryover when it carries back an alternative tax net operating loss, or ATNOL. The ATNOL deduction reduces alternative…
PLR 1246032: IRS finds lease revenue bonds do not fail the private loan financing test
The IRS ruled that proposed lease revenue bonds financing a new convention-center hall would not fail the private loan financing test under IRC § 141(c). A city and county authority would finance…
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.