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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IRS grants relief for a late S corporation election
The IRS granted a corporation 120 days to file Form 2553 and make a late election to be treated as an S corporation effective on a specified date. The corporation had reasonable cause for not making…
IRS grants relief for a late S corporation election
The IRS granted a corporation 120 days to file Form 2553 and make a late election to be treated as an S corporation effective on a specified date. The IRS found that the corporation had reasonable…
IRS grants relief for a late S corporation election
The IRS granted a corporation 120 days to file Form 2553 and make a late election to be treated as an S corporation effective on a specified date. The IRS found that the corporation had reasonable…
IRS restores S-corporation status after a missed QSST election
A corporation asked the IRS to restore its S-corporation status after stock was transferred to a trust whose income beneficiary did not timely file the required QSST election. The IRS concluded that…
IRS restores S-corporation status after a trust loses its two-year shareholder period
The IRS restored a corporation's S-corporation status after a trust continued holding its stock beyond the two-year period during which the trust was an eligible shareholder following the deemed…
IRS grants late-election relief for S-corporation status
The IRS granted a corporation relief for failing to timely file its election to be treated as an S corporation. The IRS found reasonable cause for the late filing under section 1362(b)(5) and…
IRS restores S-corporation status after missed ESBT elections
The IRS restored a corporation's S-corporation status after four trusts became shareholders without timely electing to be electing small business trusts. It concluded that the corporation's S…
IRS preserves S-corporation status after disproportionate distributions
The IRS ruled that disproportionate distributions by an S corporation did not create a prohibited second class of stock because the corporation's governing documents and binding agreements gave all…
PLR 1233014: IRS approves a modified trust as a qualified Subchapter S trust
The IRS ruled that a trust created under a deceased shareholder's will would qualify as a qualified Subchapter S trust (QSST) after a court modified the trust. The modification removed the trustee's…
PLR 1233012: IRS grants relief for a late S corporation election
The IRS granted a corporation relief for failing to file Form 2553 on time to elect S corporation status. The corporation had intended for the election to take effect on a specified date, but its…
PLR 1233004: IRS allows late S corporation election after reasonable cause
The IRS ruled that a newly incorporated company had reasonable cause for failing to timely file its S corporation election. The company intended the election to be effective on its incorporation…
PLR 1233003: IRS grants more time to elect qualified subchapter S subsidiary status
An S corporation acquired all of the stock of a subsidiary and intended to elect qualified subchapter S subsidiary status for the subsidiary. The election was not timely filed because of…
PLR 1233002: IRS allows late S corporation election after reasonable cause
The IRS ruled that a newly incorporated company could be treated as an S corporation from its incorporation date even though it did not timely file Form 2553. The company established reasonable…
PLR 1233001: IRS preserves S corporation status after inadvertent ESBT election failure
An S corporation had two trusts as shareholders, but the trustees did not timely file the electing small business trust elections needed for the trusts to be permissible shareholders. The IRS…
PLR 1232029: IRS restores S corporation status after an inadvertent transfer to an ineligible shareholder
The taxpayer's S corporation election terminated when a partnership that could not be an S corporation shareholder acquired the corporation's stock. The taxpayer later transferred those shares to an…
PLR 1232027: IRS restores S corporation status after late QSST elections
An S corporation's shareholder trust split into two trusts after the original trust owner died. The new trusts were eligible to qualify as Qualified Subchapter S Trusts, but their beneficiary did…
PLR 1232026: IRS restores S corporation status after a late QSST election
An S corporation's stock was transferred to a trust after the death of the trust's original owner. The trust met the requirements for a Qualified Subchapter S Trust, but its beneficiary did not…
PLR 1232023: IRS finds active rental operations did not generate passive investment income
An S corporation owned and actively managed commercial real estate. Its shareholder and officers performed extensive maintenance, tenant-management, leasing, and marketing services, while the…
PLR 1232009: IRS preserves S corporation status after missed ESBT elections
An S corporation's shareholders included two trusts whose trustees failed to timely make elections for the trusts to qualify as electing small business trusts (ESBTs). The IRS concluded that the S…
IRS preserves an S corporation election after warrants and convertible debt
The IRS ruled that a corporation's S corporation election may have terminated after it issued stock warrants and convertible debt that could have created a second class of stock. The corporation…
IRS grants late S corporation election relief
The IRS granted a corporation relief under IRC § 1362(b)(5) after it failed to timely file Form 2553, Election by a Small Business Corporation. The corporation had intended to elect S corporation…
IRS grants relief for an inadvertent S corporation termination
The IRS ruled that a corporation’s S corporation election terminated because the beneficiary of a qualified subchapter S trust did not timely file the required election. The IRS found that the…
IRS rules that QSST, not its beneficiary, reports gain from a section 338(h)(10) transaction
The IRS ruled that gain from a deemed asset sale under a section 338(h)(10) election, allocated to S corporation stock held by a qualified subchapter S trust, belongs to the trust rather than the…
PLR 1230016: IRS grants relief for a late S corporation election
The IRS granted a corporation relief for failing to timely file Form 2553, the election to be treated as an S corporation. The corporation’s shareholders intended the election to take effect on the…
PLR 1230015: IRS grants relief for a late S corporation election
The IRS ruled that a corporation could receive relief for failing to timely file Form 2553, the election to be treated as an S corporation. The corporation was intended to be an S corporation…
PLR 1229007: IRS rules rental income is not passive investment income for an S corporation election
The IRS ruled that rental income received by a corporation from commercial and rental real estate was not passive investment income under IRC § 1362(d)(3)(C)(i). The corporation provided extensive…
PLR 1228028: IRS permits late S corporation election
A corporation asked the IRS to recognize a late election to be treated as an S corporation. Its shareholders intended the S election to be effective on an earlier date, but Form 2553 was not timely…
PLR 1228027: IRS permits late S corporation election
A newly incorporated company asked the IRS to recognize a late election to be treated as an S corporation. Its sole shareholder intended the election to be effective on an earlier date, but Form…
PLR 1228025: IRS restores S corporation status after inadvertent termination
An S corporation issued stock to a partnership and a corporation, making those shareholders ineligible for S corporation status. The corporation later redeemed the partnership's shares and replaced…
PLR 1228024: IRS restores S corporation status after an inadvertent termination
An S corporation's election terminated when a trust that held its stock failed to make an electing small business trust election. The stock then passed to another trust before being transferred to…
PLR 1228022: IRS allows a late S corporation election for reasonable cause
A corporation intended to elect S corporation status effective on its incorporation date but did not timely file Form 2553. The IRS found reasonable cause for the missed filing and allowed the…
PLR 1228018: IRS restores S corporation status after an ineligible shareholder transfer
An S corporation's election terminated when an ineligible shareholder became the owner of its stock. The corporation took corrective action so that the shareholder was no longer a shareholder and…
PLR 1228010: IRS restores S corporation status after a missed QSST election
An S corporation's election terminated when a trust became a shareholder without filing the required qualified subchapter S trust election. The IRS concluded that the termination was inadvertent and…
PLR 1228009: IRS preserves S corporation status after trust election failures
An S corporation's two trust shareholders stopped qualifying as qualified subchapter S trusts after failing to distribute all their income, and additional events may have affected one trust's…
PLR 1228006: IRS allows late entity classification and S corporation elections
A newly formed limited liability company intended to be treated as a corporation and to elect S corporation status for federal tax purposes. It failed to timely file both Form 8832, the entity…
PLR 1228003: IRS recognizes a corporation as an S corporation after a late election
A corporation intended to be treated as an S corporation beginning on a specified date but did not timely file Form 2553. The IRS found reasonable cause for the late election. Provided the…
PLR 1228001: IRS grants relief for a late S corporation election
A corporation's sole shareholder intended for it to be treated as an S corporation, but the corporation did not timely file Form 2553. The IRS found reasonable cause for the late election. Provided…
PLR 1227004: IRS treats a late S corporation election as timely for reasonable cause
The IRS granted a corporation relief for failing to timely file Form 2553 to elect S corporation status. The corporation's sole shareholder intended the election to be effective on a specified date,…
PLR 1227003: IRS preserves S corporation status after an inadvertent termination
An S corporation's election terminated after stock was transferred to two trusts and the required electing small business trust elections were not properly filed. The corporation represented that…
PLR 1226019: IRS approves a voting trust as an S corporation shareholder
The IRS rules that a proposed voting trust will be classified as an investment trust for federal income tax purposes. It also rules that the trust will be a qualified voting trust and a permitted S…
PLR 1226017: IRS grants late entity-classification and S election relief
The IRS grants a limited liability company 120 days to make a late election to be treated as an association taxable as a corporation for federal tax purposes. It also grants relief for a late S…
PLR 1226016: IRS grants relief for a late S corporation election
The IRS grants relief to a corporation that failed to timely file its S corporation election. The ruling finds reasonable cause and treats the election as timely if the corporation otherwise…
PLR 1226013: IRS restores S-corporation status after an inadvertent termination
A corporation's S-corporation election terminated because it had accumulated earnings and profits at the close of three consecutive taxable years and more than 25 percent of its gross receipts in…
PLR 1226001: IRS grants late S-corporation election relief
A corporation intended to be treated as an S corporation from the date it began business, but its Form 2553 election was filed late. The corporation established reasonable cause for missing the…
PLR 1225006: IRS grants more time for two QSub elections
An S corporation asked for more time to elect to treat two wholly owned subsidiaries as qualified subchapter S subsidiaries. The elections were late because the taxpayer inadvertently failed to file…
PLR 1225005: IRS grants relief for an inadvertent S-election termination
An S corporation asked for relief after two trusts that were not initially eligible shareholders acquired its stock, and another trust did not currently distribute all of its income to its…
PLR 1225003: IRS grants relief for an ineffective and terminated S election
An S corporation asked for relief because its S election was made effective before the corporation was incorporated and later would have terminated when trust shareholders failed to make QSST…
PLR 1225001: IRS grants late entity-classification and S-election relief
An LLC asked for more time to elect corporate tax classification and for relief to make a late S corporation election. The IRS concluded that the taxpayer satisfied the reasonable-cause and…
PLR 1224026: IRS grants late S corporation election relief
The IRS granted a corporation 120 days to submit a late Form 2553 election to be treated as an S corporation. The corporation intended the election to be effective on a specified date but did not…
PLR 1224014: IRS restores S corporation status after missed ESBT elections
The IRS ruled that a corporation's S election terminated when two trusts became shareholders without timely making the required Electing Small Business Trust elections. The IRS determined that the…
PLR 1224013: IRS preserves S corporation status after eight missed ESBT elections
The IRS ruled that a corporation could continue to be treated as an S corporation after the trustees of eight shareholder trusts failed to make timely Electing Small Business Trust elections. The…
PLR 1224007: IRS restores S corporation status after a missed ESBT election
The IRS ruled that a corporation's S corporation election terminated when shares were transferred to a trust whose trustee failed to make the required Electing Small Business Trust election. The IRS…
PLR 1224004: IRS allows a late S corporation election
The IRS granted a corporation relief for failing to timely file its S corporation election. The IRS found that the corporation had reasonable cause for the late filing and allowed the election to be…
PLR 1223013: IRS allows a late S corporation election
The IRS allowed a corporation to make a late S corporation election effective on its intended date. The corporation had filed Form 1120S but had not timely filed Form 2553, and the IRS found…
PLR 1223008: IRS allows a late S corporation election
The IRS allowed a corporation to make a late S corporation election effective on its intended date. The corporation had not timely filed Form 2553, and the IRS found reasonable cause for the…
PLR 1223007: IRS preserves S corporation status after QSST and shareholder errors
The IRS ruled that a corporation's S election terminated when a trust became an ineligible shareholder after a missed QSST election, shares were issued late to other eligible shareholders, and stock…
PLR 1222034: IRS allows a late S corporation election for reasonable cause
The IRS ruled that a corporation could make a late election to be treated as an S corporation because it established reasonable cause for missing the filing deadline. The corporation intended the…
PLR 1222032: IRS lets an S corporation continue after inadvertent termination
The IRS ruled that a corporation's S corporation election terminated when a trust failed to make a timely qualified subchapter S trust election and later another trust failed to make a timely…
PLR 1222027: IRS preserves S corporation status after an inadvertent shareholder problem
The IRS ruled that a corporation's S corporation election may have terminated because an ineligible S corporation shareholder owned some of its stock. The IRS found that any termination was…
PLR 1222025: IRS allows a late S corporation election
The IRS ruled that a corporation may make a late election to be treated as an S corporation effective from its formation date. The corporation's shareholders intended to make the election but failed…
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.