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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Community pickleball club denied section 501(c)(3) status
A community pickleball club applied for section 501(c)(3) recognition while describing its mission as providing healthy, recreational, competitive, and social activity and growing the sport locally.…
Running and yoga group denied section 501(c)(3) status
An organization applied for section 501(c)(3) status to promote physical fitness and healthy lifestyles among people in the restaurant and service communities. Its activities consisted mainly of…
Single-owner farm denied section 501(c)(5) status
A single-owner limited liability company sought exemption as an agricultural organization under section 501(c)(5). It operated a farm on property owned by its president and the president's spouse,…
Retiree medical account contribution satisfies the section 401(h) subordination limit
An employer maintained a qualified pension plan with a section 401(h) account that paid retiree medical benefits. It proposed an additional contribution to that medical account and asked whether the…
Supplemental ruling preserves S status after six trusts missed ESBT elections
This supplemental ruling modifies an earlier private letter ruling about a corporation's S election. Six shareholder trusts were eligible to be electing small business trusts, but their trustees did…
Supplemental rulings approve changes to a corporate separation
A distributing corporation requested supplemental rulings after changing parts of a previously approved corporate separation. The revised transaction used a series of share exchanges, redemptions,…
Late qualified opportunity fund self-certification is treated as timely
A partnership limited liability company was formed to invest in qualified opportunity zones and operate as a qualified opportunity fund. One manager believed a liaison would engage an accounting…
Revised nuclear decommissioning fund contribution schedule approved
A utility subsidiary that owned a qualifying interest in a nuclear plant requested a mandatory revised schedule of deductible payments to its nuclear decommissioning reserve fund. The requested…
Prior insurance-company ruling revoked for roadside assistance contract
The IRS revoked a 1999 ruling that had treated a roadside assistance provider as an insurance company based on one vehicle manufacturer's contract. The contract refunded part of its per-vehicle fee…
Estate receives 120 days to make a late portability election
An estate did not timely file Form 706 to elect portability of the deceased spouse's unused estate and gift tax exclusion to the surviving spouse. The estate represented that its value and adjusted…
Company receives 60 days to make a late tax-exempt controlled entity election
A wholly owned limited liability company elected corporate tax status and intended to elect not to be treated as a tax-exempt controlled entity under section 168(h)(6)(F)(ii). Its later dissolution…
Estate receives 120 days to make a late portability election
An estate failed to timely file Form 706 to elect portability of the deceased spouse's unused estate and gift tax exclusion to the surviving spouse. It represented that its value and adjusted…
Climate infrastructure authority receives governmental income and contribution rulings
A county and city formed a state-law authority to undertake and support infrastructure projects that mitigate climate-change effects, including flood barriers, stormwater remediation, coastal…
State public-records system receives governmental income and contribution rulings
A state created a corporation to operate an electronic system that gives the public access to records required to be available under state open-records law. The corporation contracts with state…
Foreign entity receives 120 days to make a late corporate classification election
A foreign eligible entity intended to elect association status so it would be taxed as a corporation for U.S. federal tax purposes, but it did not timely file Form 8832. The entity represented that…
Foreign entity receives 120 days to make a late corporate classification election
A foreign eligible entity intended to be treated as an association taxable as a corporation for U.S. federal tax purposes but inadvertently failed to timely file Form 8832. The IRS found that the…
Statutory product-liability escrows qualify as settlement funds and deposits are deductible
A manufacturer that was not a defendant in product litigation was required by multiple jurisdictions to deposit amounts into escrow accounts based on its sales of the redacted product. The accounts…
S status preserved after two trusts missed QSST elections
Two grantor trusts held stock in an S corporation when their grantor died. The trusts remained eligible S corporation shareholders for the two-year period after the owner's death, but they continued…
Estate receives 120 days to make a late portability election
An estate did not timely make a portability election that would allow the surviving spouse to use the deceased spouse's unused estate and gift tax exclusion. The estate represented that its value…
Partnership receives 60 days to make a success-based-fee safe-harbor election
A partnership sought extra time to elect the Revenue Procedure 2011-29 safe harbor for a success-based advisory fee connected with its acquisition. The partnership intended to deduct 70 percent of…
Foundation scholarship procedures receive advance approval
A private foundation requested advance approval for a scholarship program serving graduating high school seniors from a particular community. Applicants must meet residency, school, financial-need,…
Psychiatry research fellowship procedures receive advance approval
A private foundation requested advance approval for two fellowship programs supporting research in child and adolescent psychiatry. One program supports early-career clinician-scientists, while the…
Business networking group denied 501(c)(3) for member private benefit
A membership organization applied for 501(c)(3) status to help local startups and veteran-owned businesses through networking, education, referrals, discounts, promotional events, and grants for…
Religious loss-sharing plans denied 501(c)(3) as private insurance-like activity
A religiously affiliated organization applied for 501(c)(3) status while operating two loss-sharing programs for members' property and vehicles. Participants enrolled property, paid assessments…
Youth-golf fundraiser denied 501(c)(7) social-club status
An organization formed to raise money for youth golf programs applied for exemption as a 501(c)(7) social club. It planned to buy equipment for children, hold camps and events, and support golf…
Fundraising charity loses exemption after founder diverted revenue for personal use
The IRS revoked a fundraising charity's 501(c)(3) status after an examination found that its founder and sole active officer controlled its operations and used charity revenue for personal expenses.…
Purported church loses exemption for founder inurement and unsubstantiated activities
The IRS revoked the 501(c)(3) status of an organization that claimed to operate as a church. The organization did not substantiate regular religious services, a regular congregation, an established…
Estate receives 120 days to make a late portability election
An estate did not timely make a portability election that would allow the surviving spouse to use the deceased spouse's unused estate and gift tax exclusion. The estate represented that its value…
Estate receives 120 days to make a late portability election
An estate did not timely make a portability election that would allow the surviving spouse to use the deceased spouse's unused estate and gift tax exclusion. The estate represented that its value…
Qualified opportunity fund receives 60 days to make late self-certification
A partnership limited liability company was formed and funded to invest in qualified opportunity zone property and serve as a qualified opportunity fund. Its accounting firm advised that a…
S corporation receives inadvertent termination relief after entity conversions
An S corporation converted to a state limited partnership while electing to remain classified as a corporation for federal tax purposes, a change that may have created a prohibited second class of…
Successor receives early S corporation and QSub election consent after ESOP acquisition
A parent corporation owned all of a subsidiary that had previously elected S corporation status, later became a qualified subchapter S subsidiary, and then lost its QSub status. The parent…
Heavy-construction scholarship procedures approved
A private foundation proposed two scholarship programs for undergraduate engineering or construction-management students interested in heavy civil construction. The first program is open to eligible…
Fraud victim received relief for a late IRA rollover
A taxpayer withdrew money from a traditional IRA after scammers falsely claimed that her identity had been stolen and directed her to move and send funds. She recovered part of the money and…
Regional research scholarship and grant procedures approved
A private foundation proposed one scholarship program for doctoral candidates and three grant programs supporting social science research and historical preservation in a specified region. The…
An IRS substitute return does not prevent a failure-to-file penalty
Chief Counsel advised that a taxpayer who does not file a return may still owe the section 6651(a)(1) failure-to-file penalty after the IRS prepares a substitute for return. Section 6651(g)(1) says…
Nuclear decommissioning fund special transfer schedule approved
A corporate group that owns an unregulated nuclear power unit requested an initial schedule of deduction amounts for a special transfer to its qualified nuclear decommissioning fund. The taxpayer…
Nuclear decommissioning fund ruling amount schedule approved
A corporate energy group requested a schedule of ruling amounts for the qualified nuclear decommissioning fund associated with an unregulated nuclear power plant. The request used a decommissioning…
Business separation and merger received nonrecognition rulings
A public company proposed separating one business from its retained businesses and combining the separated business with an unrelated public acquirer. An internal subsidiary would contribute the…
Late success-based-fee safe harbor election allowed
A partnership paid a success-based fee when an acquirer purchased a majority interest. Its return deducted 70 percent and capitalized 30 percent of the fee, consistent with the safe harbor in…
Late qualified opportunity fund self-certification accepted
A partnership was formed to invest in qualified opportunity zone property and intended to operate as a qualified opportunity fund. Its accounting firm did not file partnership returns for its first…
Late section 336(e) stock-disposition election allowed
A partnership acquired more than 80 percent of an S corporation through a disregarded entity, and the parties intended to treat the stock sale as an asset sale under section 336(e). They failed to…
Late section 336(e) agreement and election allowed
An individual bought the stock of an S corporation, and the parties intended to treat the stock disposition as an asset sale under section 336(e). They reasonably relied on a tax professional who…
Estate received more time to make a QTIP election
A decedent's trust directed property subject to a qualified terminable interest property election into a marital trust that paid all net income to the surviving spouse at least quarterly. The estate…
Late opportunity fund self-certification treated as timely
A limited liability company classified as a partnership was organized to be a qualified opportunity fund and invest in qualified opportunity zone property. It relied on another party to prepare its…
Three partnerships received late section 754 election relief
An individual held interests in three partnerships through two trusts. After the individual died, the partnerships intended to elect under section 754 to adjust the basis of partnership property,…
Partnership received late section 754 election relief
A partner held an interest in a partnership through a grantor trust and later died. The partnership inadvertently failed to file a section 754 election for the tax year of the resulting transfer.…
Inadvertent S corporation termination relief granted
An S corporation shareholder transferred shares to a trust instrument that created a separate trust to hold S corporation stock. The separate trust qualified to make a qualified subchapter S trust…
A large one-time grant to a community nonprofit is treated as an "unusual grant" that will not cost it public-charity status
A nonprofit that maintains parkland and runs community programs for residents of a large affordable-housing project asked the IRS to treat a big incoming grant as an "unusual grant." To keep…
Exemption denial became final after no protest
An organization applied for recognition as tax-exempt under section 501(c)(3). The IRS had sent a proposed adverse determination explaining the facts, law, and basis for denial, but the organization…
Late entity classification and tax-exempt controlled entity elections allowed
A limited liability company wholly owned by a section 501(c)(3) organization served as general partner of a partnership that owned an affordable housing project. The operating agreement required the…
Affordable housing partner received late election relief
A limited liability company owned by a section 501(c)(3) organization was the general partner of a partnership formed to acquire, rehabilitate, own, lease, and manage a qualified low-income housing…
Trust received five more years to sell excess business holdings
A split-interest charitable lead annuity trust received voting and nonvoting stock in a large international company through a bequest, creating excess business holdings under section 4943. The trust…
Late qualified subchapter S subsidiary election allowed
A corporation hired a tax adviser to obtain S corporation status for itself and qualified subchapter S subsidiary status for its wholly owned subsidiary. Acting on incorrect advice, the corporation…
Zero income and assets did not defeat REIT qualification tests
A corporation filed a REIT return for its first tax year even though delays prevented it from receiving investment proceeds, acquiring real estate interests, or earning income until the next year.…
Estate received more time to elect portability
A decedent left a surviving spouse and an unused estate and gift tax exclusion amount, but the estate did not timely file Form 706 to elect portability. Based on the represented estate value and…
Acquisition currency option received special hedge integration treatment
A U.S.-dollar subsidiary bought a foreign-currency option to hedge the anticipated cost of acquiring a foreign target's shares. Ordinary integration rules did not apply because the public offer was…
Opportunity fund received 60 days to file Form 8996
A two-member limited liability company was formed to operate as a qualified opportunity fund and invest in qualified opportunity zone property. Its return preparer mistakenly classified the…
Late election out of automatic GST exemption allocation allowed
A taxpayer's spouse funded a grantor retained annuity trust, and the spouses elected to split the gift on their timely gift tax returns. They did not intend to allocate generation-skipping transfer…
Late GST allocation opt-outs allowed for twelve GRATs
A taxpayer created and funded twelve grantor retained annuity trusts over several years, with each remainder passing to a trust for descendants. The taxpayer did not intend to allocate…
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.