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 1033025: IRS ruled that pro rata severance of two trusts would not trigger gain or loss
The IRS ruled that dividing two family trusts into ten new trusts would not cause the trusts, the new trusts, or their beneficiaries to recognize gain or loss. The proposed division would give each…
PLR 1033024: IRS granted extra time to elect partnership classification
The IRS granted a foreign eligible entity an additional 60 days to file Form 8832 and elect to be treated as a partnership for federal tax purposes. The company intended the election to be effective…
PLR 1033023: IRS denied late-election relief for an estate's alternate valuation election
The IRS denied an estate's request for additional time to make an alternate valuation election under IRC § 2032. The estate's representatives filed the estate tax return on time, but the preparer…
PLR 1033022: IRS approved a REIT's foreclosure-property election and lodging-facility rent treatment
The IRS ruled that a real estate investment trust could treat a resort property acquired after a tenant defaulted as foreclosure property. The REIT's acquisition or lease of related resort property…
PLR 1033021: IRS approved a proposed split-up distributing two businesses to separate shareholders
The IRS ruled favorably on a holding company's plan to distribute the stock of two controlled corporations to separate shareholders in exchange for their holding company stock, followed by…
PLR 1033020: IRS granted more time to elect deductions for intangible drilling costs
The IRS granted taxpayers an extension of time to make an election under IRC § 263(c) to deduct intangible drilling and development costs for a specified taxable year. The taxpayers did not make the…
PLR 1033019: IRS approved a tax-free reorganization and distribution of a controlled corporation
The IRS ruled favorably on a corporation's plan to convert a wholly owned limited liability company into a corporation, contribute additional business assets to it, and distribute the new…
PLR 1033018: IRS approved tax-free treatment for converting a subsidiary to a disregarded LLC
The IRS ruled that a subsidiary's conversion into a single-member limited liability company, disregarded for federal tax purposes, would not cause gain or loss to the parent or subsidiary. The…
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 1033016: IRS approved a Type F reorganization for a subsidiary becoming a joint venture business
The IRS ruled that a subsidiary's restructuring into a new holding-company chain would qualify as a Type F reorganization. The transaction would convert the existing operating entity into a wholly…
PLR 1033015: IRS granted more time for a rental real estate election
Married taxpayers who filed a joint return were eligible to elect to treat all their rental real estate interests as one rental real estate activity. They filed the return without the statement…
PLR 1033014: IRS approved the carryover of deferred research expenditures in a corporate reorganization
A publicly traded corporation planned to transfer two businesses and related intellectual property to a wholly owned subsidiary as part of a separation and distribution. The corporation had elected…
PLR 1033013: IRS allowed a regulated investment company to use a distribution procedure
A regulated investment company intended to maintain its qualification and regularly distribute its earnings and profits. It had one class of common stock that was not publicly traded on an…
PLR 1033012: IRS allowed a regulated investment company to use a distribution procedure
A regulated investment company intended to maintain its qualification and regularly distribute its earnings and profits. It had one class of common stock that was not publicly traded on an…
PLR 1033011: IRS allowed a regulated investment company to use a distribution procedure
A regulated investment company intended to maintain its qualification and regularly distribute its earnings and profits. It had one class of common stock that was not publicly traded on an…
PLR 1033010: IRS allowed a regulated investment company to use a distribution procedure
A regulated investment company intended to maintain its qualification and regularly distribute its earnings and profits. It had one class of common stock that was not publicly traded on an…
PLR 1033009: IRS granted more time to file a consolidated return election
An acquired corporation and its subsidiaries failed to make a timely election to file a consolidated federal income tax return. The successor parent requested relief after discovering the missed…
PLR 1033008: IRS ruled that officers were not covered employees after a merger
A corporation merged into a wholly owned subsidiary of an acquiring company before the end of its taxable year, creating a short taxable year. The corporation later terminated its securities…
PLR 1033007: IRS approved internal and external corporate spin-offs and a Type F reincorporation
A foreign parent planned a complex separation of two business lines from a third business through internal contributions, distributions, a subsidiary reincorporation, and an external spin-off. The…
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 1033005: IRS approved a multi-step corporate spin-off and reorganization
A parent corporation proposed separating two businesses from a third through subsidiary conversions, asset contributions, internal distributions, mergers, and a final distribution of a new…
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 1033003: IRS granted more time for a foreign entity to elect partnership classification
A foreign entity with two members intended to be treated as a partnership for federal tax purposes, but it did not timely file Form 8832. The IRS granted the entity 60 days from the ruling date to…
PLR 1033002: IRS granted more time to elect ADS depreciation
The taxpayer owned and operated a residential rental property with related 5-year and 15-year property. The taxpayer intended to elect the alternative depreciation system, or ADS, but filed its…
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…
1032053: IRS revoked an organization's tax-exempt status and alternatively reclassified it as a private foundation
The IRS revoked an organization's recognition as exempt under section 501(c)(3), effective January 1, 2004. The IRS concluded that the organization was not operated exclusively for exempt purposes…
1032052: IRS revoked an organization's exemption for failure to file returns and provide records
The IRS revoked an organization's recognition as exempt under section 501(c)(3), effective January 1 of the specified year. The organization failed to file required Form 990-PF returns and did not…
1032051: IRS revoked an organization's exemption for failure to file returns and provide records
The IRS revoked an organization's recognition as exempt under section 501(c)(3), effective January 1 of the specified year. The organization failed to file required Form 990 returns and did not…
1032050: IRS revoked a mental-health organization's exemption for operating as a private practice
The IRS revoked the organization's recognition as exempt under section 501(c)(3), effective January 1 of the specified year. The IRS concluded that the organization operated a mental-health practice…
1032049: IRS revoked an organization's exemption for private benefit and bankruptcy-related issues
The IRS revoked the organization's recognition as exempt under section 501(c)(3), effective on the date of the final determination letter. The IRS concluded that the organization did not serve a…
1032048: IRS revoked an organization's exemption after raffle proceeds were diverted to private uses
The IRS revoked the organization's recognition as exempt under section 501(c)(3), effective January 1 of the specified year. The organization conducted raffles promoted as charitable activities, but…
1032047: IRS revoked an organization's exemption after it failed to provide records and respond to examination requests
The IRS revoked the organization's recognition as exempt under section 501(c)(3), effective July 1 of the specified year. The organization did not provide requested information, failed to keep…
1032046: IRS revoked a social club's exemption after nonmember receipts exceeded the permitted limits
The IRS revoked the organization's recognition as exempt under section 501(c)(7), effective April 1 of the specified year. The organization operated a restaurant and other facilities for members,…
1032045: IRS approved a social club's liquidating sale of real estate without revoking its exemption
The IRS ruled that a social club could sell its real estate, liquidate its assets, and dissolve without losing its section 501(c)(7) tax exemption. The club had operated recreational facilities for…
1032044: IRS approved a private foundation's transfer of half its assets to another private foundation
The IRS approved a proposed transfer of approximately half of one private foundation's assets to another private foundation. The transferor and transferee had similar charitable purposes, and the…
1032043: IRS approved a private foundation's scholarship grant procedures
The IRS approved a private foundation's procedures for awarding scholarships to students who are children of customers of a power company. The applicant pool was described as a broad, open-ended…
1032042: IRS approved scholarships and scholarship loans for county students, including medical students who commit to practice locally
The IRS approved a private foundation's scholarship procedures for graduating seniors at all high schools in a specified county. The foundation planned to use objective and nondiscriminatory…
CCA 1032041: An unrestricted consent extended the assessment period for affected partnership items
Chief Counsel Advice addresses whether an extension of the assessment period was valid when gain from the sale of a partnership interest was an affected item. The advice concludes that the consent…
CCA 1032040: Notice of a partnership adjustment should go to partners with open statutes
Chief Counsel Advice addresses a partnership proceeding in which the assessment period had expired for some partners but remained open for others. It advises that the IRS should link and issue the…
CCA 1032039: Partnership items are subject to partner-level assessment periods, not a separate partnership statute
Chief Counsel Advice explains that there is no separate partnership statute of limitations for the issue under review. Section 6229(a) provides a minimum period during which a partner's section 6501…
CCA 1032038: Solar-energy equipment generally receives five-year MACRS treatment, with limits on pool-heating property
Chief Counsel Advice addresses the recovery period for solar-energy equipment and the status of bonus depreciation. It states that qualifying equipment using solar energy to generate electricity,…
CCA 1032037: A Dutch BV generally defaults to corporate classification because its members have limited liability
Chief Counsel Advice considers the U.S. tax classification of a French SA and a Dutch BV. It states that a French SA is a per se corporation and discusses the Dutch BV as an entity whose members…
CCA 1032036: A China Business Trust may be an eligible business entity for classification purposes
Chief Counsel Advice discusses whether a China Business Trust is a business entity eligible to elect its federal tax classification. It explains that a business entity is an entity recognized for…
CCA 1032035: Target and acquiring corporations' earnings and profits can affect the tax treatment of restructuring cash
Chief Counsel Advice analyzes whether cash distributed in a series of section 368(a)(1)(D) reorganizations has the effect of a dividend under section 356(a)(2). The advice treats two subsidiary…
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 1032033: A closed-end investment company's tender-offer distributions will not be preferential dividends
The IRS ruled that distributions under a closed-end investment company's proposed tender offer would not be preferential dividends. The fund, which had elected regulated investment company…
PLR 1032032: The IRS approved a hold-constant method for measuring ownership changes under section 382
The IRS approved a taxpayer's method for measuring increases in the ownership percentage of 5-percent shareholders on testing dates under section 382. The method holds each share's relative value…
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…
PLR 1032030: The IRS preserved an S corporation election after trusts failed to make ESBT elections
The IRS ruled that a corporation's S corporation election was ineffective because three shareholder trusts had not made the required elections to qualify as electing small business trusts. The…
PLR 1032029: The IRS granted relief for a late S corporation election
The IRS ruled that a corporation's late S corporation election could be treated as timely made because the corporation established reasonable cause for missing the filing deadline. The relief…
PLR 1032028: The IRS granted late-election relief for an LLC seeking S corporation status
The IRS ruled that a limited liability company could be recognized as an S corporation effective on the requested date. The LLC had timely elected to be classified as an association taxable as a…
PLR 1032027: The IRS granted relief for a late S corporation election
The IRS ruled that a corporation's late S corporation election could be treated as timely made because the corporation established reasonable cause for missing the filing deadline. The relief…
PLR 1032026: Division of exempt trusts will not trigger generation-skipping transfer tax
The trustees asked whether two continuing trusts could each be divided into two successor trusts without losing their exemption from generation-skipping transfer tax. The trusts were irrevocable…
PLR 1032025: Incentive payments under supply agreements receive different capitalization treatment
The taxpayer, a manufacturer, paid customers one-time incentive payments to enter into or extend supply agreements. The IRS analyzed whether those payments were capital expenditures under section…
PLR 1032024: Estate granted more time to allocate generation-skipping transfer tax exemption
The taxpayer created an irrevocable trust and made transfers to it, but the required gift tax returns did not allocate the taxpayer's generation-skipping transfer tax exemption. No taxable…
PLR 1032023: Marketing and termination payments are deductible business expenses
An investment-management company paid marketing agents to promote investment funds and paid some agents to terminate additional-compensation agreements. The company asked whether the payments had to…
PLR 1032022: Trustee granted more time to certify spouse's citizenship for QDOT
An estate elected to treat a trust as a qualified domestic trust for a surviving spouse who was not a U.S. citizen when the decedent died. The spouse later became a U.S. citizen and had continuously…
PLR 1032021: Foreign stock gifts with retained usufruct are not subject to gift or GST tax
The donor, a nonresident and noncitizen, planned to transfer bare ownership of foreign corporation stock to children and grandchildren while retaining a lifetime usufruct interest. The IRS treated…
PLR 1032020: S corporation election reinstated after inadvertent trust election failures
An S corporation's stock was transferred to a trust that was intended to qualify as a QSST, but the beneficiary did not make a timely QSST election. After the beneficiary's death, the stock was…
PLR 1032019: LLC granted extra time to elect corporate tax classification
The taxpayer was a limited liability company that intended to elect classification as a corporation for federal tax purposes but inadvertently failed to file Form 8832. The IRS explained 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.