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 1046006: corporation granted relief for late S corporation election
The IRS ruled that a corporation had reasonable cause for failing to timely file Form 2553 to elect S corporation status. The corporation's sole shareholder intended the election to be effective on…
PLR 1046005: S corporation status preserved after transfer to an ineligible shareholder
The IRS ruled that a corporation's S corporation election terminated when it inadvertently issued shares to an IRA, which was an ineligible shareholder. The corporation promptly redeemed the shares…
PLR 1045016: Relief for an inadvertent S corporation election termination
The IRS determined that a corporation's S corporation election termination was inadvertent. The termination occurred after a trust received shares and its current income beneficiary did not make a…
PLR 1045010: Inadvertent S corporation termination from shareholder loans
The IRS ruled that a corporation's S corporation election was not permanently lost even though shareholder loans and different interest rates may have created a second class of stock. The…
PLR 1045006: Rental income from an actively operated office-property business was not passive investment income
The IRS ruled for an S corporation that developed, owned, operated, and leased high-technology office buildings. The corporation provided substantial property and tenant services, including…
PLR 1045002: Inadvertent S corporation termination was corrected after an ineligible shareholder transfer
The IRS ruled that an S corporation's election had terminated when shares were transferred to an ineligible trust. Because the transfer was inadvertent, the IRS allowed the corporation to continue…
PLR 1044002: IRS allowed a late S corporation election after finding reasonable cause
The IRS ruled that a corporation had reasonable cause for failing to timely make an S corporation election. It allowed the corporation to file Form 2553 within 120 days after the ruling, effective…
Company granted relief for a late S corporation election
The IRS found reasonable cause for a company that intended to elect S corporation status but never filed Form 2553. The company may file a completed Form 2553 within 120 days after the ruling…
Company granted relief for a late S corporation election
The IRS found reasonable cause for a company that failed to timely elect S corporation status under IRC § 1362. The company may submit a properly completed Form 2553 with the ruling attached within…
Debt-restructuring warrants do not create a second stock class
The IRS ruled that warrants issued to commercial lenders as part of a debt restructuring were not treated as a second class of stock of an S corporation. The lenders were actively and regularly…
Company granted relief for a late S corporation election
The IRS found reasonable cause for a company whose sole shareholder intended an S corporation election but whose Form 2553 was not timely filed. The company may file a completed Form 2553 within 120…
Parent granted more time to make a QSub election
The IRS granted an S corporation 120 additional days to elect to treat its wholly owned domestic subsidiary as a qualified subchapter S subsidiary. The parent had acquired all of the subsidiary's…
Parent granted more time to make a QSub election
The IRS granted an S corporation 120 days to elect to treat a newly acquired domestic subsidiary as a qualified subchapter S subsidiary. The parent had intended to make the QSub election effective…
PLR 1042022: IRS grants relief for an inadvertent S election termination involving trusts
The IRS considered a corporation's request for relief after its S corporation election terminated when shares were transferred to trusts that did not make timely and valid qualified subchapter S…
PLR 1042021: IRS grants more time to make QSub elections for four subsidiaries
The IRS considered a corporation's request for more time to elect to treat four subsidiaries as qualified subchapter S subsidiaries, or QSubs. The corporation had intended to make the elections but…
PLR 1042020: IRS grants relief for an inadvertently late S election
The IRS considered a corporation's request for relief after its intended S corporation election was not timely filed. It found that the corporation had established reasonable cause for the failure…
PLR 1042017: IRS grants relief for an untimely S corporation election
The IRS considered a corporation's request for relief after its S corporation election was not timely filed. It found that the corporation had established reasonable cause for the failure and was…
PLR 1042014: IRS grants relief for a possible second class of stock
The IRS considered a corporation's request for relief after a stock purchase agreement gave a trust the right to receive up to the full value of its initial investment if a sale of the corporation…
PLR 1042011: IRS grants relief for an untimely S corporation election
The IRS considered a corporation's request for relief after its S corporation election was not timely filed. It found that the corporation had established reasonable cause for the failure and was…
PLR 1042010: IRS grants relief for passive-income and disproportionate-distribution S-election issues
The IRS considered a corporation whose S election terminated after it had accumulated earnings and profits and excessive passive investment income for three consecutive years. The corporation had…
PLR 1042006: IRS grants relief for an untimely S corporation election
The IRS considered a corporation's request for relief after its S corporation election was not timely filed. It found that the corporation had established reasonable cause for the failure and was…
PLR 1042003: IRS grants relief for disproportionate S-corporation distributions
The IRS considered a corporation that had made disproportionate distributions by failing to distribute amounts to one shareholder, even though its governing documents provided identical distribution…
PLR 1042002: IRS grants relief for missed ESBT elections
The IRS considered an S corporation whose shareholders transferred shares to fourteen trusts but whose trustees failed to make the required electing small business trust, or ESBT, elections. The…
CCA 1041040: A purported securities loan did not create indebtedness under section 1366
Chief Counsel’s advice considers whether a purported loan of securities created indebtedness for purposes of section 1366(d)(1)(B). The advice concludes that the transaction did not create that…
PLR 1041028: The IRS approved revocation of an ESBT election and a late QSST election
The IRS allowed a trust to revoke its election to be treated as an electing small business trust, or ESBT. It also granted the trust 120 additional days to file a qualified Subchapter S trust, or…
PLR 1041027: The IRS approved revocation of an ESBT election and a late QSST election
The IRS allowed a trust to revoke its election to be treated as an electing small business trust, or ESBT. It also granted the trust 120 additional days to file a qualified Subchapter S trust, or…
PLR 1041026: The IRS approved revocation of an ESBT election and a late QSST election
The IRS allowed a trust to revoke its election to be treated as an electing small business trust, or ESBT. It also granted the trust 120 additional days to file a qualified Subchapter S trust, or…
PLR 1041025: The IRS approved revocation of an ESBT election and a late QSST election
The IRS allowed a trust to revoke its election to be treated as an electing small business trust, or ESBT. It also granted the trust 120 additional days to file a qualified Subchapter S trust, or…
PLR 1041001: The IRS granted late S corporation election relief after a QSub issue
The IRS granted a corporation relief for a late election to be treated as an S corporation. The corporation had previously been a qualified subchapter S subsidiary, but an ownership change created…
PLR 1040002: Late S corporation election treated as timely
The IRS granted a corporation relief for a late election to be treated as an S corporation. The corporation intended the election to be effective on its incorporation date but did not file it on…
PLR 1040001: Inadvertent S corporation termination relief
The IRS ruled that a corporation's S corporation election terminated when a shareholder became a nonresident alien and therefore became an ineligible shareholder. Because the termination was…
PLR 1039018: IRS granted relief for a late S corporation election
A corporation asked the IRS to treat its intended S corporation election as timely, because Form 2553 had not been filed by the deadline. The IRS concluded that the corporation had reasonable cause…
PLR 1039016: IRS granted relief for a late S corporation election
A corporation that had not yet begun active business intended to elect S corporation status for a redacted tax year. Its Form 2553 was not filed on time, so it asked the IRS for relief under section…
PLR 1039010: IRS treated a trust beneficiary as owner and approved the trust as an S corporation shareholder
A company and its sole shareholder asked whether the shareholder would be treated as the owner of an irrevocable trust that gave the shareholder a limited power to withdraw gifts made to the trust.…
PLR 1039005: IRS restored S corporation treatment after an inadvertent second class of stock
A corporation discovered that its charter had created Class A and Class B shares with a possible special dividend for only one class. That structure violated the S corporation requirement that a…
PLR 1038010: IRS granted relief for a late S corporation election
A company intended to elect S corporation status for a specified effective date, but it did not timely file Form 2553. The IRS concluded that the company had reasonable cause for the late election.…
PLR 1038001: IRS disregarded an ESOP valuation rule in testing S corporation stock classes
An S corporation had an employee stock ownership plan that acquired the company's stock in two purchases, with the second purchase financed by a loan. A plan provision protected the value of the…
PLR 1037023: IRS granted relief for a late S corporation election
The IRS granted relief to a company that failed to timely file Form 2553 to elect S corporation status. The company represented that it had consistently reported its tax matters in accordance with…
PLR 1037015: IRS granted relief for a late S corporation election
The IRS granted relief to a company whose Form 2553 election to be treated as an S corporation was not filed. The company represented that its shareholders intended S corporation treatment from a…
PLR 1037004: IRS restored an S corporation election after an impermissible shareholder acquisition
The IRS ruled that a corporation's S election terminated when a C corporation acquired its stock and became an impermissible shareholder. The IRS also found that the termination was inadvertent…
PLR 1037001: IRS restored an S corporation election after trust shareholder changes
The IRS ruled that an S corporation election terminated when two trusts holding the corporation's shares were not eligible shareholders. The IRS found the termination inadvertent because the…
PLR 1036005: S corporation election restored after missed QSST election
The IRS ruled that a corporation's S corporation election terminated when stock was transferred to a qualified subchapter S trust and the trust's income beneficiary failed to file the required QSST…
PLR 1036004: 60-day relief granted for late S corporation election
The IRS concluded that a corporation had reasonable cause for failing to timely file its S corporation election. The shareholders intended the corporation to be an S corporation as of the requested…
PLR 1036003: Late S election and QSub election relief granted
The IRS granted a corporation relief to make a late S corporation election and an additional 60-day extension to elect to treat its wholly owned subsidiary as a qualified subchapter S subsidiary.…
PLR 1035012: IRS granted late-election relief for corporate and S corporation status
The IRS granted a limited liability company an extension of time to file Form 8832 to elect classification as an association taxable as a corporation. The IRS also granted relief to file a late Form…
PLR 1035010: IRS treated an S corporation election termination as inadvertent
The IRS considered a corporation whose S corporation election terminated when an electing small business trust transferred its stock to an ineligible shareholder. The corporation’s stock was later…
PLR 1035009: IRS granted relief for an S corporation election affected by trust ownership
The IRS considered an S corporation whose stock was held through trusts after the death of the deemed owner of a grantor trust. One resulting family trust was eligible to be an electing small…
PLR 1035007: IRS granted relief for a late S corporation election
The IRS considered a corporation whose shareholders intended S corporation status from the date of incorporation but whose Form 2553 was filed late. The corporation requested relief so its S…
PLR 1034016: IRS treats an inadvertently terminated S election as continuing
The IRS addressed a corporation whose S corporation election terminated after the current income beneficiary of a trust holding its stock failed to make a qualified subchapter S trust (QSST)…
PLR 1034014: IRS grants relief for a late S corporation election
The IRS considered a corporation’s request for relief after its S corporation election was not timely filed. The corporation established reasonable cause for the late election under section…
PLR 1034006: IRS grants relief for an untimely S corporation election
The IRS considered a corporation’s request for relief after its Form 2553 was not timely filed. The corporation and its sole shareholder had reported income consistently with the corporation’s…
PLR 1034003: IRS grants relief after a trust’s missed ESBT election terminated an S election
The IRS considered a corporation whose S corporation election terminated after a trust holding its stock ceased to qualify as a qualified subchapter S trust (QSST) and no election was filed to treat…
PLR 1034002: IRS grants relief for a late S corporation election
The IRS considered a corporation’s request for relief after its Form 2553 was not timely filed. The corporation’s sole shareholder intended for it to be an S corporation, and the corporation…
PLR 1033028: IRS granted relief after an inadvertent S corporation termination
The IRS concluded that a corporation’s S corporation election terminated when a grantor trust continued to hold its stock beyond the two-year period allowed after the deemed owner’s death. The IRS…
PLR 1033017: IRS granted relief for a late S corporation election
The IRS granted a corporation relief for failing to timely elect S corporation status. The corporation intended to be treated as an S corporation beginning on a specified date, but the election was…
PLR 1033006: IRS granted relief for a late S corporation election
A corporation's sole shareholder intended for it to be treated as an S corporation, but Form 2553 was not filed on time. The corporation asked the IRS to allow a late election effective from its…
PLR 1033004: IRS granted relief for late entity classification and S corporation elections
An LLC intended to be classified as a corporation and treated as an S corporation from its formation date, but it did not timely file Form 8832 or Form 2553. The IRS granted the LLC 60 days to file…
PLR 1033001: IRS approved tax treatment for separating businesses in an S corporation restructuring
A closely held S corporation planned to separate two active businesses by distributing the stock of a wholly owned qualified subchapter S subsidiary to its shareholders. The subsidiary would become…
PLR 1032034: The IRS restored an S corporation election that ended when a shareholder became a nonresident alien
The IRS ruled that a corporation's S corporation election terminated when one of its shareholders became a nonresident alien. The termination was inadvertent because the corporation and its…
PLR 1032031: The IRS granted late-election relief for an S corporation election
The IRS ruled that a corporation could be recognized as an S corporation effective on the requested date even though it did not timely file Form 2553. The corporation established reasonable cause…
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.