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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Partner bad debt claim excluded from modification
Chief Counsel advised that an amended return modification under the centralized partnership audit rules may consider only partnership adjustments and partner tax attributes affected by those adjustmen…
Puerto Rico community property remains undivided until liquidation
Chief Counsel summarized Puerto Rico community-property law using an English translation of the Puerto Rico statutes. The default community regime begins at marriage unless the spouses choose another …
State-law representative signs for disregarded entity partner
Chief Counsel advised that a disregarded entity owning a partnership interest is itself the partner. Because a reviewed-year partner signs Form 8979, the person authorized under state law to bind the …
Non-income partnership adjustments are positive for imputed underpayment
Chief Counsel explained that an imputed underpayment is calculated from net positive partnership adjustments. Adjustments to non-income items, including distributions, self-employment earnings, and se…
Inadvertently ineffective QSub election relieved
An S corporation acquired all the stock of another S corporation in a transaction represented to be an F reorganization. The acquired corporation later converted to a limited liability company, but th…
Foreign entity granted late corporate election
A foreign entity converted from an entity classified as a corporation into an eligible entity for U.S. federal tax purposes. It intended to continue corporate treatment but inadvertently failed to fil…
Late opportunity fund certifications allowed for two years
A partnership was organized to qualify as a qualified opportunity fund and indirectly invest in opportunity-zone property. Its federal partnership returns and Forms 8996 were not filed for two consecu…
Pension funding waiver conditions modified
An employer had previously received a waiver of its pension plan's minimum required contribution for the 2020 plan year while it faced temporary substantial business hardship and Chapter 11 reorganiza…
Revised nuclear decommissioning funding schedule approved
An investor-owned electric utility requested a revised schedule of ruling amounts for the qualified fund used to pay for decommissioning its nuclear plant. The plant's operating license had been exten…
Late section 382 closing-of-the-books election allowed
A loss corporation experienced an ownership change that limited its use of pre-change losses under section 382. It missed the deadline to elect to close its books on the ownership-change date, which w…
New holding company transaction qualifies as F reorganization
A corporate parent proposed placing a newly formed holding company above itself through a merger followed by the parent's conversion into a disregarded limited liability company. Existing shareholders…
Family-owned business split-off receives nonrecognition rulings
Two related families owned a corporate group conducting two separate businesses. The group proposed distributing all stock of the subsidiary conducting one business to the second family in exchange fo…
Lodge-purchase set-aside approved
A private foundation devoted to land and wildlife preservation requested permission to set aside funds to buy a rural lodge as its operating headquarters. It was negotiating with an owner whose asking…
Student scholarship and career grants approved
A private foundation proposed one-time grants to high school seniors who completed and remained in good standing with its multiyear youth leadership program. Recipients could use the grants for post-s…
College athlete speaker program denied exemption
An organization raised donations to pay college athletes to give free motivational presentations at schools and community events. It contracted with a for-profit logistics company whose president also…
Late research expenditure elections allowed for three years
A corporation failed to make section 59(e) elections for research and experimental expenditures in three fiscal years. That election permits qualifying section 174 expenditures to be deducted ratably …
Foreign entity allowed late partnership election
A foreign limited liability partnership defaulted to corporate classification because all its members had limited liability. When a U.S. citizen became a partner, the entity and its owners intended pa…
Late taxable REIT subsidiary election allowed
A real estate investment trust wholly owned a subsidiary formed to facilitate industrial real estate investments. The parties intended to elect both corporate classification for the subsidiary and tax…
Court-approved trust construction and division preserve GST exemption
A trust became irrevocable before September 25, 1985, and therefore was exempt from the generation-skipping transfer tax. Its distribution language was ambiguous about whether a per-stirpes division s…
Late S corporation election treated as timely
A corporation intended to be treated as an S corporation but inadvertently failed to file Form 2553 by the statutory deadline. The IRS found reasonable cause for the late election under section 1362(b…
Late partnership basis election allowed after partner's death
A partnership failed to make a section 754 election on the return for the year in which one of its partners died. The election would apply the partnership-property basis adjustments required by sectio…
Descendant trust modifications preserve tax treatment
A trust created before September 25, 1985, had already been divided into separate trusts for two grandchildren. A state court approved further changes to one grandchild's trust, including retaining di…
Descendant trust modifications preserve tax treatment
A trust created before September 25, 1985, had already been divided into separate trusts for two grandchildren. A state court approved further changes to one grandchild's trust, including retaining di…
Late foreign disregarded entity election allowed
A foreign eligible entity intended to be classified as a disregarded entity but inadvertently failed to file Form 8832. The IRS found that the entity satisfied the standards for discretionary filing r…
Late QSub election allowed
An S corporation acquired all the stock of a subsidiary and intended qualified subchapter S subsidiary treatment from the acquisition date. It inadvertently failed to file Form 8869. The IRS found tha…
Missed ESBT elections treated as inadvertent termination
After a shareholder died, several grantor trusts holding S corporation stock became nongrantor trusts or transferred stock to new trusts. Trustees failed to make timely electing small business trust e…
Early undiscounted CLAT payments avoid foundation excise taxes
A charitable lead annuity trust had two required payments remaining for two private foundations before its remainder would pass to family trusts. Because the trust's investments had performed better t…
Early undiscounted CLAT payments avoid foundation excise taxes
A charitable lead annuity trust had two required payments remaining for two private foundations before its remainder would pass to family trusts. Because the trust's investments had performed better t…
Early undiscounted CLAT payments avoid foundation excise taxes
A charitable lead annuity trust had two required payments remaining for two private foundations before its remainder would pass to family trusts. Because the trust's investments had performed better t…
Early undiscounted CLAT payments avoid foundation excise taxes
A charitable lead annuity trust had two required payments remaining for two private foundations before its remainder would pass to family trusts. Because the trust's investments had performed better t…
Early undiscounted CLAT payments avoid foundation excise taxes
A charitable lead annuity trust had two required payments remaining for two private foundations before its remainder would pass to family trusts. Because the trust's investments had performed better t…
Retroactive QEF election allowed for undisclosed foreign company
A domestic partnership indirectly owned a minority interest in a foreign corporation through a foreign partnership. The foreign partnership's management did not tell the taxpayer that it had formed th…
Late average-income housing election allowed
An owner placed a low-income housing project in service but failed to make the correct irrevocable minimum set-aside election on Form 8609. Contemporaneous documents showed that the owner intended to …
Late election out of bonus depreciation allowed
A partnership claimed additional first-year depreciation on land improvements, building improvements, machinery, and equipment placed in service during a taxable year. Its accounting firm did not advi…
General education scholarships approved
A private foundation proposed at least a specified number of annual scholarships for deserving students to pursue general education, vocational training, or professional study. High school seniors, gr…
Four-year college scholarships approved
A private foundation proposed renewable four-year scholarships for graduating students at a specified high school, with possible expansion to schools in nearby counties. Applicants had to be admitted …
Employer-related scholarships approved
A private foundation proposed scholarships for an employer's workers and their dependent children to attend vocational schools, community colleges, or universities. An independent committee with no em…
Local business group denied 501(c)(3) status for serving members' private interests
A local business group applied for recognition as a tax-exempt educational organization under Section 501(c)(3). It offered networking events, professional-development programs, online listings, socia…
Cattle-breed association denied 501(c)(3) status because member sales served private interests
An association of cattle owners and breeders applied for recognition under Section 501(c)(3). It held an annual show, meeting, banquet, and member sale, advertised members' cattle, and helped buyers l…
Winery association denied 501(c)(3) status because promotion served member businesses
A regional winery association applied for recognition as an educational organization under Section 501(c)(3). It promoted member wineries through signs, brochures, maps, a website that directed consum…
Adult social club denied 501(c)(3) status because recreation was a substantial purpose
An adult social club applied for recognition under Section 501(c)(3), then asked to change its application to Section 501(c)(7). Its activities included dinners, plays, movies, picnics, winery trips, …
Seven corporations received inadvertent S election relief for missed ESBT and QSST elections
Seven related corporations requested relief after several trusts failed to make timely electing small business trust (ESBT) and qualified subchapter S trust (QSST) elections. The missed elections caus…
Foreign entity received 120 days to file a late partnership classification election
A foreign eligible entity intended to be classified as a partnership for federal tax purposes but inadvertently failed to file Form 8832 on time. The IRS found that the entity satisfied the standards …
Foreign entity received 120 days to file a late partnership classification election
A foreign eligible entity intended to be classified as a partnership for federal tax purposes but inadvertently failed to file Form 8832 on time. The IRS found that the entity satisfied the standards …
Foreign entity received 120 days to file a late partnership classification election
A foreign eligible entity intended to be classified as a partnership for federal tax purposes but inadvertently failed to file Form 8832 on time. The IRS found that the entity satisfied the standards …
Foreign entity received 120 days to file a late partnership classification election
A foreign eligible entity intended to be classified as a partnership for federal tax purposes but inadvertently failed to file Form 8832 on time. The IRS found that the entity satisfied the standards …
Foreign entity received 120 days to file a late disregarded-entity classification election
A foreign eligible entity intended to be treated as a foreign disregarded entity for federal tax purposes but inadvertently failed to file Form 8832 on time. The IRS found that the entity satisfied th…
Foreign entity received 120 days to file a late disregarded-entity classification election
A foreign eligible entity intended to be treated as a foreign disregarded entity for federal tax purposes but inadvertently failed to file Form 8832 on time. The IRS found that the entity satisfied th…
Annuity-paid advisory fees were not treated as taxable amounts received by owners
A life insurance company proposed fixed and indexed non-qualified deferred annuity contracts whose owners could authorize the insurer to pay investment advisory fees directly from a contract's cash va…
Corporation received inadvertent S termination relief for a missed QSST election
An S corporation's sole shareholder transferred its shares to a grantor trust and later died. The trust remained an eligible S corporation shareholder for two years after the death, but no qualified s…
Housing partnership received 120 days to defer a building's credit period on Form 8609
A partnership placed a low-income housing building in service in one year and intended to begin the building's ten-year credit period in the following year. Its contemporaneous records reflected that …
IRS approved an initial nuclear decommissioning fund contribution schedule
A utility with a qualifying ownership interest in a nuclear power plant requested an initial schedule of deductible contributions to its nuclear decommissioning fund under Section 468A. The proposed s…
Foundation's scholarship and neuroscience grant procedures received advance approval
A private foundation requested advance approval for two programs that make grants to individuals. One program provides scholarships for K-12, college, or graduate students' tuition and related educati…
Fraud victim received a waiver of the IRA 60-day rollover deadline
An IRA owner withdrew funds after callers impersonating government and law-enforcement officials convinced her that she was an identity-theft victim and needed to move the money to a supposed safety f…
Health-services organization lost exemption for private benefit and commercial activity
A health-services organization recognized under Section 501(c)(3) was examined after it shifted from its stated charitable, educational, and scientific purposes to providing paid services. The IRS fou…
Event organization lost exemption after failing the educational and recordkeeping tests
An organization recognized under Section 501(c)(3) primarily ran two annual public events, including one focused on commercial participants, and funded itself with admission revenue. It also described…
How the § 52 controlled-group rules apply to tax-exempt organizations claiming the Employee Retention Credit
The Employee Retention Credit (ERC), a COVID-era payroll tax credit, treats related organizations as a single employer using the "controlled group" aggregation rules in § 52. This Chief Counsel Advice…
More time granted to make the § 362(e)(2)(C) basis election for a built-in-loss property transfer
A taxpayer transferred property to a corporation in a tax-free § 351 exchange, but the property's tax basis was higher than its value (a built-in loss). To stop the same loss from being duplicated, § …
Consolidated group gets more time to make four tax elections it missed by filing its returns late
A corporate group that files a single consolidated tax return intended to make four elections on its returns for two years: to amortize research expenses over 10 years under § 59(e), to opt out of bon…
Foreign entity gets more time to elect "disregarded entity" tax treatment
A foreign company wanted to be treated as a "disregarded entity" for U.S. tax purposes, meaning it is ignored as separate from its single owner and its income flows directly to that owner. Under the "…
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.