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.
Late opportunity fund self-certification election allowed
A partnership was formed to invest in qualified opportunity zone property and serve as a qualified opportunity fund. Its accounting firm timely filed Form 1065 but omitted Form 8996 because the firm d…
QOF election relief granted after engagement-letter omission
A partnership was created to operate as a qualified opportunity fund, and its members discussed opportunity zone gain deferrals with their long-time accounting firm. A miscommunication caused the new …
County land bank income excluded and contributions deductible
A county created a corporation under state law to acquire abandoned real estate, clear title, and return nonproductive land to useful development. County and municipal officials control its board, sta…
IRS approves a company foundation's employer-related scholarship procedures
A private foundation asked the IRS to approve, in advance, the procedures it uses to award scholarships to the children of employees of a related company. This advance sign-off matters because IRC Sec…
IRS approves scholarship procedures for a foreign-education grant program
A private foundation asked the IRS to approve, in advance, the procedures it uses to award scholarships to disadvantaged children attending an accredited school in a foreign country. The advance appro…
IRS approves grant procedures for a program funding underrepresented entrepreneurs
A private foundation asked the IRS to approve, in advance, the procedures for a grant program that funds underrepresented and early-stage entrepreneurs. Under IRC Section 4945, a private foundation's …
IRS approves scholarship and grant procedures for three women's-education programs
A private foundation focused on advancing equity for women and girls asked the IRS to approve, in advance, the procedures for three programs: one set of career-development grants and two scholarship p…
IRS revokes a fraternal society's 501(c)(8) exemption for not responding or keeping records
The IRS revoked the tax-exempt status of an organization that had been recognized as a fraternal beneficiary society under IRC Section 501(c)(8) through a group ruling. During an examination, the orga…
IRS revokes an inactive supporting organization's 501(c)(3) status
The IRS revoked the tax-exempt status of an organization that had been recognized as a public charity under IRC Section 509(a)(3), specifically a Type III non-functionally integrated supporting organi…
IRS denies 501(c)(3) status to a class-reunion organization
The IRS denied tax-exempt status under IRC Section 501(c)(3) to an organization formed to plan and hold class reunions and small gatherings for the members of a graduating class. To qualify as a chari…
IRS revokes exemption of a charity that stopped providing dialysis and now only rents its building
The IRS revoked the 501(c)(3) exemption of an organization that had originally been recognized as a charity because it promised to provide dialysis services and medical equipment at no cost to a rural…
IRS revokes a radio broadcaster's 501(c)(3) for inactivity and inurement to its officers
The IRS revoked the tax-exempt status of an organization that had been recognized as a 501(c)(3) public charity to run noncommercial educational radio broadcasting. Two problems drove the revocation. …
How a partnership contribution adjustment is handled under the BBA audit rules
This is an internal Chief Counsel email answering how the IRS should handle an adjustment to a partnership contribution under the BBA centralized partnership audit regime. If the IRS adjusts contribut…
A partnership audit notice is valid if mailed to the last known address, even if not received
This internal Chief Counsel email addresses whether the notices the IRS sends during a BBA centralized partnership audit (the Notice of Administrative Proceeding, or NAP; the Notice of Proposed Partne…
A controlled foreign corporation cannot claim the section 245A dividends-received deduction
This Office of Chief Counsel memorandum gives general legal advice on the section 245A dividends-received deduction (DRD), which lets a U.S. corporation deduct 100% of the foreign-source portion of di…
Overseas services to the U.S. government may qualify as FDDEI
Chief Counsel considered a domestic corporation that provides consulting services to Department of Defense employees located at an overseas military base. Section 250 focuses on where a service recipi…
Affiliated group received late consolidated return election relief
A domestic parent and its subsidiary intended to elect for their affiliated group to file a consolidated federal income tax return, but they did not timely file a valid consolidated return. The parent…
Indexed structured settlement payments met section 130 requirements
A structured settlement assignee proposed assuming an insurer's obligation to make lifetime periodic payments to a person injured in a car accident. An affiliated life insurer would issue an annuity w…
Late QSub elections allowed for three subsidiaries
An S corporation owned all the stock of three subsidiaries and intended to treat each as a qualified subchapter S subsidiary from the same effective date as its S election. Through inadvertence, it di…
Late section 754 election allowed after partnership interest sales
Interests in a partnership were sold, and the partnership intended to elect under section 754 to adjust the basis of partnership property for that tax year. It inadvertently omitted the election. The …
Partnership received late section 754 election relief after interest purchase
A buyer purchased a partnership interest from existing partners, and the partnership intended to elect under section 754 to adjust the basis of partnership property. It inadvertently failed to file th…
Foreign entity received late corporate classification election relief
A foreign eligible entity intended to elect corporate classification for U.S. federal tax purposes but inadvertently failed to file Form 8832 on time. The entity represented that it acted reasonably a…
Late S corporation and section 336(e) elections allowed
Multiple purchasers acquired all the stock of a target, and the parties intended to treat the stock sale as an asset sale under section 336(e). They also intended for the target to have S corporation …
Late IC-DISC election allowed after law firm oversight
A domestic corporation was formed to serve as an interest charge domestic international sales corporation for its owner. Its chief financial officer signed Form 4876-A and sent it to the law firm hand…
Local college scholarship procedures approved
A private foundation proposed a scholarship program for residents of a specified county and state pursuing undergraduate, graduate, or vocational education. An outside administrator will publicize the…
Three subsidiaries deemed to join consolidated returns
A parent corporation filed Forms 1120 that included all income, deductions, assets, and liabilities of three wholly owned subsidiaries. It did not identify the subsidiaries on Form 851, attach Forms 1…
Late entity classification and S corporation elections allowed
A limited liability company intended from its formation date to be classified as a corporation and taxed as an S corporation. It inadvertently failed to properly and timely file Form 2553. The IRS fou…
Filed Form 8996 treated as timely for first QOF year
A six-member partnership was formed to invest in qualified opportunity zone property. Its tax group incorrectly concluded that no first-year Form 1065 was required and did not know that the partnershi…
Late estate tax portability election allowed
A decedent left a surviving spouse and an unused exclusion amount, but the estate did not timely file Form 706 to elect portability. Based on the represented estate value and taxable gifts, the estate…
Late corporate classification and S elections allowed
A limited liability company intended to be classified as a corporation and treated as an S corporation from a specified date. It failed to file Form 2553, which could have supplied a deemed corporate …
Late GST exemption allocations allowed for two trusts
Before 2001, a grantor transferred corporate stock to two trusts for the grantor's children, with descendants receiving the property after each child's death unless a limited appointment was exercised…
Late GST exemption allocations approved for child trusts
Before 2001, a grantor transferred corporate stock to two trusts for the grantor's children. The trustee could support the child and the grantor's spouse, and after the grantor and spouse died, each c…
Estate received 120 days to elect portability
A decedent's estate was not otherwise required to file Form 706 based on the represented gross estate, adjusted taxable gifts, and filing threshold. The estate had not timely filed the return needed t…
Replacement plan qualified and final reversion taxed at 20 percent
An employer transferred all surplus assets from a terminated defined benefit plan to a suspense account in a defined contribution plan. The IRS ruled that the receiving plan was a qualified replacemen…
Pension funding waiver approved with conditions
An employer asked the IRS to waive unpaid minimum required contributions for two pension plans for one plan year. The IRS found a temporary substantial business hardship under section 412(c), citing r…
Craft distillery was not a prohibited liquor store
A property owner planned to lease space to a craft distillery that would produce, store, and sell spirits. The owner sought the ruling because a qualified opportunity zone business cannot be a store w…
Late success-based fee election allowed
A corporate group deducted 70 percent and capitalized 30 percent of represented success-based acquisition fees, consistent with the safe harbor in Revenue Procedure 2011-29. Its timely return omitted …
Late duplicate Form 3115 filing allowed
A partnership timely filed its federal return with an original Form 3115 requesting an automatic accounting-method change for depreciation. It reflected the change and the related section 481(a) adjus…
Late opportunity fund certification allowed
A partnership was formed to invest in qualified opportunity zone property and operate as a qualified opportunity fund. Its accounting firm timely filed the first partnership return but omitted Form 89…
Late opportunity fund certification allowed
A partnership was formed to invest in qualified opportunity zone property and operate as a qualified opportunity fund. Its accounting firm timely filed the first partnership return without Form 8996, …
Late section 382 apportionment election allowed
Subsidiaries left a consolidated group when the group had a consolidated section 382 limitation. The former parent and subsidiaries missed the deadline to elect under Treasury Regulation section 1.150…
Five scholarship programs approved
A private foundation asked the IRS to approve procedures for five scholarship programs serving students connected with two schools. The programs use academic, enrollment, school, community-involvement…
Scholarship and teacher grant procedures approved
A private foundation proposed a scholarship program for members of a federal credit union and a grant program for teachers nominated by students they had inspired. Scholarship applicants must document…
Need-based scholarship procedures approved
A private foundation proposed scholarships primarily for disadvantaged students from a specified central area of a state. Applicants must show financial hardship, educational commitment, state residen…
Employee social organization denied exemption
An employee activity organization sought recognition as a charitable organization under section 501(c)(3). It sold coffee and snacks slightly above cost and used fundraising proceeds to subsidize holi…
Condominium association denied exemption
A condominium owners' association sought exemption as a social welfare organization under section 501(c)(4). It used member dues and assessments to maintain shared building systems, gated parking, sec…
Member benefit pool denied exemption
An organization sought charitable exemption under section 501(c)(3) and stated a purpose of helping poor, hungry, homeless, and underprivileged people. Its primary current activity, however, was colle…
Punitive regulatory costs disallowed but corrective costs not barred
A subsidiary incurred several categories of costs after a state regulator found civil violations and imposed a package of fines, remedies, and corrective orders. The IRS advised that section 162(f) ba…
Late GST exemption allocation allowed
A married couple created trusts with generation-skipping transfer tax potential before 2001. Their accountant failed to prepare the required gift tax returns for either spouse, so the wife's GST exemp…
Late GST exemption allocations allowed
A married couple created several trusts with generation-skipping transfer tax potential before 2001. Their accountant failed to prepare the required gift tax returns for either spouse, so the husband'…
Late tax-exempt controlled entity election allowed
A nonprofit wholly owned a limited liability company that elected corporate tax status and indirectly invested in a partnership operating low-income housing. The company intended to elect under sectio…
Foreign entity allowed late partnership election
A foreign eligible entity intended to elect partnership status for federal tax purposes but did not timely file Form 8832. The IRS found that the requirements for discretionary filing relief were sati…
Flexible employer benefit allocation approved
An employer proposed letting eligible employees make an annual irrevocable choice to allocate an additional employer contribution among its 401(k) plan, retiree health reimbursement arrangement, healt…
Foreign entity granted late partnership election
A foreign eligible entity intended to elect partnership status for federal tax purposes but inadvertently failed to file Form 8832 on time. The IRS found that the entity met the standards for discreti…
Pension medical account may cover eligible active employees
An employer maintained a defined benefit pension plan with an overfunded section 401(h) account for retiree medical benefits. It proposed allowing employees age 59½ or older to begin pension distribut…
Late branch profits tax election allowed
A foreign corporation reported that an increase in its U.S. net equity fully offset effectively connected earnings and profits for branch profits tax purposes. It later determined that the reported ne…
Late opportunity fund self-certification allowed
A partnership was formed to qualify as a qualified opportunity fund, but its tax adviser mistakenly filed the partnership return without Form 8996. The adviser discovered the omission while preparing …
Late opportunity fund self-certification allowed
A partnership was formed to qualify as a qualified opportunity fund, but its tax adviser mistakenly filed the partnership return without Form 8996. The adviser discovered the omission while preparing …
Family private-banking organization denied exemption
An organization sought exemption under section 501(c)(3) for activities it described as processing family transactions and providing private banking to identify one family's birthright and heritage. P…
Imputed underpayment used for penalty threshold
Chief Counsel advised that, when a partnership has an imputed underpayment under the centralized partnership audit rules, section 6233 treats that amount as the underpayment or understatement for calc…
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.