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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Non-MSSP accountable care organization denied exemption
A tax-exempt health system formed an accountable care organization to integrate employed and independent physicians, measure performance, and negotiate incentive-based agreements with private…
Social club denied exemption because of recurring royalty income
A hunting, fishing, shooting, and boating club sought reinstatement of exemption under section 501(c)(7). Although its membership and facilities served recreational purposes, most of its revenue…
Motorcycle chapter denied social club exemption
A motorcycle owners' chapter spent most of its time on rides and social gatherings, but a sponsoring dealership and related brand organizations retained extensive control over its officers, members,…
Medical cannabis collective denied charity status
A nonprofit corporation proposed to cultivate or obtain medical cannabis and deliver it to qualified patients who joined its collective. Its business plan also called for membership growth,…
Dog-breed parent club denied charity status
A parent club for a specific dog breed hosted four to six conformation shows each year and also maintained breed standards, a registry, health information, and educational materials. Dog shows…
Dance scholarship charity denied for private benefit
A nonprofit planned scholarships, camps, workshops, and other performing-arts programs for underserved girls. Its founder also owned a related for-profit dance company, and the nonprofit would award…
Inactive small-business lender loses exemption
A nonprofit was formed to provide equity capital and loans to disadvantaged small businesses in low- and moderate-income neighborhoods. An IRS examination found that it had stopped making loans,…
Political advertising group denied social welfare exemption
A community organization sought exemption under section 501(c)(4) after spending all of its first-year expenditures on election mailers and radio advertisements that supported or opposed candidates.…
Credit counseling organization loses exemption over commercial operations and private benefits
The IRS examined a nonprofit credit counseling organization whose main operation was a call center that enrolled and serviced consumers in debt management plans. The agency concluded that the…
Automatic member death benefits prevent charitable exemption
An organization serving members of specified immigrant communities applied for section 501(c)(3) status. Its activities included counseling, cultural events, aid to people in need, and payments to…
Captive insurer denied section 501(c)(15) exemption
A foreign captive insurance company claimed exemption under section 501(c)(15) for three tax years. It issued property and casualty contracts covering affiliated businesses and also participated in…
Endowment units do not create unrelated business taxable income
A charitable remainder unitrust proposed exchanging its assets for contractual units tied to a college's endowment after the college became sole trustee. The trust would have no ownership or control…
College's endowment services do not create unrelated business income
A tax-exempt college proposed serving as trustee for charitable remainder unitrusts and issuing contractual units tied to its endowment. The trusts would receive payments based on the college's…
Social club exemption revoked for recurring public income
A tax-exempt social club regularly opened some shooting facilities to the public and also sold calendars to nonmembers. The IRS examination found that the club repeatedly received more than 15…
IRS revokes inactive charity that ignored records requests
An exempt organization did not respond to repeated IRS requests for records about its receipts, spending, and activities. The organization was inactive, with no operations or financial activities…
Charity loses exemption over property donation transactions
The IRS revoked an organization's section 501(c)(3) status effective January 1, 2009. The organization performed charitable work for schoolchildren, but it also accepted donated real estate at high…
Farm employee housing foundation loses exemption
The IRS revoked a private foundation's section 501(c)(3) status because its primary activity was providing housing exclusively to employees of its founders' family-owned farming business. The…
Captive insurer denied section 501(c)(15) exemption
A foreign captive insurance company sought exemption as a small nonlife insurance company under section 501(c)(15). The IRS examination concluded that most of its direct-written contracts covered…
Inactive charity lost its section 501(c)(3) exemption
The IRS revoked an organization's section 501(c)(3) exemption after finding that it had stopped conducting charitable work and had no regular operations or planned activities. The examination report…
Church exemption revoked for private benefit and commercial activity
The IRS revoked an organization's section 501(c)(3) exemption after concluding that it no longer operated as a church and did not operate exclusively for exempt purposes. The examination found no…
Private foundation division approved with pass-through conditions
A family private foundation proposed transferring 40 percent of its assets equally to two new private foundations so different family branches could pursue separate charitable priorities. The IRS…
Large youth-program grant qualifies as an unusual grant
A public charity expected a large grant from an independent private trust to build a youth science, technology, and health center and support related operations. The charity had an active history of…
Private foundation split receives favorable tax rulings
A private foundation whose directors disagreed about how to carry out its mission proposed transferring half of its cash and publicly traded securities to a second private foundation. The IRS ruled…
Restaurant and bar denied social-club exemption
An organization sought exemption as a social club under section 501(c)(7) while operating a bar and restaurant open to the general public. It advertised publicly, allowed anyone to buy food, and…
Business league exemption denied for member services
A cooperative health-care purchasing alliance of self-funded employers sought exemption as a business league under section 501(c)(6). It negotiated provider rates, managed provider contracts,…
Cemetery's donation of church property is a charitable activity
A tax-exempt mutual cemetery company owned a historic church building and its approximately five-acre site. After restoring the church and preserving the site, the cemetery planned to donate both to…
Terminating VEBA's member distributions avoid inurement but are wages
A voluntary employees' beneficiary association funded solely by mandatory payroll deductions voted to terminate and distribute its remaining assets to current and former employee members. Its…
Homeowners association loses social-welfare exemption
A homeowners association restricted membership to subdivision lot owners and used member assessments to maintain a lake, beaches, parks, and a tennis court, as well as limited member social…
Stock-car racing club denied charitable exemption
A stock-car racing organization already exempt under section 501(c)(4) sought charitable status under section 501(c)(3). Its governing documents expressly identified stock-car racing as its purpose…
Inactive recovery-housing charity loses exemption
The IRS revoked the exemption of an organization formed to provide housing and support for people recovering from substance abuse. The examination found that the organization was inactive, reported…
Food-bank charity loses exemption after failing to substantiate its operations
The IRS revoked the exemption of an organization formed to solicit and distribute surplus food and other items to people struggling to make ends meet. The organization reported cash and noncash…
Inactive educational organization loses exemption after bankruptcy
The IRS revoked the exemption of an educational organization that had planned supplemental programs for young people and a charter high school. The organization filed for Chapter 7 bankruptcy, and…
Gaming and property activities disqualify public charity
The IRS revoked the exemption of an organization that conducted bingo games, sold pull tabs and scratch games, and maintained property used by a related fraternal organization. Although the…
Closed private school loses exemption
The IRS revoked the exemption of a private school that had educated children from pre-kindergarten through eighth grade. The school experienced financial difficulties as enrollment declined, served…
Inactive organ-recovery organization loses exemption
The IRS revoked the exemption of an organization formed to facilitate the recovery, processing, and distribution of human organs and tissue. The organization sold its fixed and cash assets and…
Housing organization loses exemption after noncharitable operations
The IRS revoked the exemption of an organization originally formed for drug and alcohol prevention that later acquired and operated apartment complexes. The examination found that the housing…
Daycare organization loses exemption over records and insider transfers
The IRS revoked the exemption of an organization that operated three full-time daycare facilities and participated in government-subsidized child-care and food programs. After repeated document…
Private foundation may receive most of a related foundation's assets
A private foundation asked about receiving approximately 78 percent of another private foundation's net assets after the transferor's directors disagreed about how to carry out its charitable…
Foundation may transfer most assets subject to distribution safeguards
A private foundation proposed transferring approximately 78 percent of its net assets to another commonly controlled private foundation while continuing its own charitable work with the remaining…
Foundation may buy out partners in low-income housing LLC
A private foundation that managed an affordable-housing LLC proposed buying the interests of the LLC's investor and special members, leaving the foundation as sole owner. The IRS ruled that the…
Farmers’ market is denied charitable exemption
An organization sought recognition as a tax-exempt charity under IRC § 501(c)(3) for operating a weekly farmers’ market and related educational events. The IRS found that the market’s substantial…
Foundation serving one individual loses charitable exemption
A foundation operated as a microboard providing care and support for one person with disabilities. The IRS examination found that all of the foundation’s activities, expenses, and earnings benefited…
Title-holding company loses exemption for operating rental and bar services
A title-holding organization exempt under IRC § 501(c)(2) owned a building with offices and a banquet hall. It rented the hall to union members and the public and provided bar, bartender, and…
Group is denied social-welfare exemption for an insufficient activity record
An organization applied for exemption under IRC § 501(c)(4) to promote a stated viewpoint through grassroots groups, candidate vetting, and public debates. Its only described activity was a forum…
Dormant charity loses exemption for promoting a private tutoring business
A charity received exemption based on plans to help homeless and low-income people through tutoring, job support, and related programs. During examination, its representative said the organization…
IRS denies social-club exemption for alcohol venue arrangement
An organization sought IRC § 501(c)(7) social-club exemption so it could obtain a private-club alcohol permit for an event venue owned by its president. Membership requirements were minimal,…
Fee-based consulting organization denied charitable exemption
An organization sought exemption as a charity under IRC § 501(c)(3). It substantially provided consulting and administrative services for fees at or above cost. The IRS found that the organization…
Business-connection website denied charitable exemption
An organization sought charitable and educational exemption for a planned website connecting individuals and businesses. Its articles broadly stated that it would help people by enabling personal…
Curriculum-training organization denied charitable status
An organization sought recognition under IRC § 501(c)(3) to train educators and child-serving professionals in a social and educational curriculum. Its board members and other private parties…
Private foundation revoked for self-dealing and private benefit
A private nonoperating foundation owned a rental building and was managed by a corporate trustee controlled by an individual. The examination report found that the trustee's law firm occupied…
Product fundraisers impermissibly benefit a related business
An organization proposed fundraising programs in which schools, community groups, and religious organizations would sell or arrange donations of a product supplied by a for-profit company. The…
Condominium association denied social-welfare exemption
A small condominium association sought exemption as a social-welfare organization under IRC § 501(c)(4). Its members owned fewer than two dozen private units and paid dues for insurance, water,…
Computer reseller fails the charitable operational test
An organization proposed to buy refurbished computers, add software and warranties, and resell them primarily above cost to schools, educational programs, students, and families. Sales and fees…
Record label fails the charitable operational test
An organization sought recognition under IRC § 501(c)(3) for a program that would give young artists experience in the entertainment industry. It planned to spend 85 percent of its time operating a…
Children’s product sales create private benefit
An organization planned a secure social network where children would display creative work and vote on projects to be manufactured, licensed, and sold. Most profits from each winning design would go…
Patent research would benefit the founder’s business
An organization was formed to attract funding for research and development of its founder’s patented hydro-energy technology. A related for-profit company was already developing the technology,…
Charitable asset transfer does not create unrelated business income
A voluntary employees’ beneficiary association planned to terminate after all participants had been paid and no benefit claims or liabilities remained. After paying termination expenses, it would…
Bingo operator is removed from a charitable group exemption
A subordinate organization was recognized under a group exemption based on plans to educate young people about drug and substance abuse. During examination, the IRS found that it operated bingo four…
Housing organization loses exemption for inurement and noncharitable lodging operations
An organization claimed to provide temporary low-income and student housing. The IRS found that ownership of one property was transferred as a gift to an individual and that an officer used a…
Organization loses exemption for concealing an accounting business and paying private expenses
An organization was recognized as exempt based on plans to conduct social research and provide marriage counseling, lectures, seminars, workshops, and retreats. The IRS found that its creator, a…
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.