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 200945076: The IRS waived the 60-day IRA rollover deadline after financial-institution errors
The IRS waived the 60-day rollover requirement after errors by a bank and another financial company caused an IRA distribution to be transferred to a non-IRA account. The taxpayer represented that…
A private foundation's quantitative-analysis scholarship procedures were approved
The IRS approved a private foundation's procedures for awarding scholarships to qualifying students at an educational institution. The program focused on quantitative analysis and used academic…
A private foundation's two-student scholarship program was approved
The IRS approved a private foundation's procedure for awarding two annual scholarships to graduating high school seniors. Eligible students had to meet the program's geographic, enrollment, and…
A charitable trust's scholarship procedures were approved and superseded an earlier determination
The IRS approved a charitable trust's procedures for awarding renewable scholarships to graduates of a specified school. Applications were reviewed through an independent scholarship administrator…
A private foundation's nursing scholarship procedures were approved
The IRS approved a private foundation's procedure for awarding scholarships to nursing students in accredited programs. The program considered the student's course, academic record, prior…
Tax exemption was denied where programs benefited a family's private property
The IRS denied exemption under section 501(c)(3) to a nonprofit organization that held religious and recreational programs on property owned by members of its board. The organization paid property…
Tax exemption was denied for political-purpose and private-benefit activities
The IRS denied section 501(c)(3) exemption to a nonprofit membership corporation whose original articles described it as a political organization supporting a transition period for an elected state…
Exemption and supporting-organization status were denied for a donor-advised trust
The IRS denied section 501(c)(3) exemption to a trust whose governing documents directed substantial distributions to a community foundation and donor-advised fund. The trust’s donor and family…
Exemption was denied for foreign student stipends without adequate oversight
The IRS denied section 501(c)(3) exemption to a domestic organization that funded stipends for students of a foreign religious organization. The organization relied on the foreign organization and a…
TEFRA applies when a partnership return is filed, subject to the small-partnership exception
Counsel advised that the partnership should be analyzed under both TEFRA and non-TEFRA rules, although the facts most closely supported TEFRA treatment. A filed partnership return makes TEFRA…
The section 6662A penalty belongs in the FPAA for a TEFRA partnership proceeding
Counsel advised that the section 6662A penalty should be included in the FPAA because it relates to an adjustment to a partnership item. The partnership is not a party to a TEFRA proceeding, so…
The IRM may be cited, but CCAs and NSARs should not be cited
Counsel advised that the Internal Revenue Manual may be cited, but Chief Counsel Advice and NSARs should not be cited. The message offered no further substantive analysis and invited the recipient…
The FPAA statute remains open if no Form 1042 was filed
Counsel advised that, when no Form 1042 is filed, the statute of limitations remains open indefinitely for issuing an FPAA to a partnership for withholding-tax liability. Section 6229 provides a…
A listed partner's status must be determined in a TEFRA proceeding
Counsel advised that TEFRA procedures apply when a partnership lists a person as a partner and reports a contribution from that person. The person's status as a partner must be determined in a TEFRA…
Form 870-PT covers the full partnership year for the signing partner
Counsel advised that Form 870-PT is a comprehensive closing agreement for the entire partnership taxable year for the partner who signs it. Items not adjusted in that agreement remain as originally…
Amended partnership returns may not replace the original return for TEFRA adjustments
Counsel advised that amended partnership returns were likely nullities because they probably did not satisfy all the requirements of section 6227. Even if the returns were valid substituted returns,…
The six-year excise-tax limitation does not apply to this Form 990 penalty
Counsel advised that section 6501(e)(3), which can extend an assessment period from three years to six years for certain omitted excise taxes, does not apply to the section 6652(c)(1)(A)(ii)…
A one-party agreement may not support a TEFRA refund
Counsel advised that there was no agreement to refund an overassessment if the IRS did not cosign the agreement. An agreement signed by only one party would also likely not be a valid administrative…
A Form 872 requires timely signatures from both parties
Counsel advised that a Form 872, which extends the time to assess tax, is not valid when only the taxpayer has signed it. Section 6501(c)(4)(A) and its corresponding regulation require written…
Summonses to individual members must be served at their homes or directly
Counsel advised that summonses issued to individual members must either be handed directly to each person or left at that person's last and usual place of abode. If left at the home, the summons may…
Recharacterizing wages violates the accountable-plan rules
Counsel advised that the proposed treatment was an impermissible recharacterization of wages. Counsel also concluded that it violated the business-connection requirement of an accountable plan. The…
Partnership provisions cannot shorten a partner's general assessment period
Counsel advised that the IRS could rely on a partner's section 6501 limitations period in all cases. Citing Curr-Spec Partners, L.P. v. Commissioner, the advice explained that section 6501(a)…
Section 6229 does not control a section 6223 conversion
Counsel advised that section 6229 does not control a section 6223 conversion. Section 6223 operates when the IRS fails to issue a notice of beginning of administrative proceeding 120 days before the…
A TEFRA proceeding continues through the petition or appeal period
Counsel advised that a TEFRA proceeding is deemed ongoing until an FPAA is issued and the period for filing a petition expires without a petition. If the FPAA is petitioned, the proceeding continues…
The IRS cannot sell a right of redemption to a third party
Counsel advised that the Internal Revenue Code does not authorize the IRS to sell a right of redemption. Section 7425(d)(1) limits redemption to the Secretary, while the IRS may release a right of…
TEFRA procedures can apply to a foreign partnership with a disregarded entity partner
Counsel advised that TEFRA partnership audit procedures apply to a foreign partnership when one of its partners is a disregarded entity and the foreign partnership filed a partnership return. The…
An FPAA is needed to preserve assessment authority over amended partnership items
Counsel advised that the IRS should issue an FPAA. An amended partnership return is a nullity unless it complies with section 6227, and without a valid administrative adjustment request the…
Properly completed disclosure forms accomplish the same purpose
Counsel advised that both forms under consideration accomplish the same disclosure and legal purposes when properly completed. Counsel did not know whether the IRS favored one form over the other…
Section 6707A can apply when a return is filed after October 22, 2004
Counsel advised that the section 6707A penalty applies when a taxpayer actually files a return after October 22, 2004 without making a disclosure required with the return. This is so even if the…
Ignorance of DOMA alone may not show reasonable belief that benefits were excludable
Counsel stated that the Defense of Marriage Act's definition of spouse was specific and unequivocal. In considering whether benefits for a same-sex domestic partner were excludable from wages,…
A tax matters partner designation requires United States residency at designation
Counsel confirmed the questioner's assumption about a tax matters partner who later became a nonresident alien. Counsel cautioned that the designation was valid only if the person designated was a…
The TMP must receive the FPAA that suspends the assessment period
Counsel advised that an untimely notice letter did not need to be included in the package sent to the tax matters partner because the TMP had already settled the partnership items and they had…
A section 42 recapture item can be handled without a TEFRA proceeding
Counsel advised that the section 42 recapture matter was an affected item rather than a partnership item. The IRS could issue an affected-item notice of deficiency without conducting a TEFRA…
An economic stimulus payment had to be allowed and made by December 31, 2008
Counsel advised that section 6428(g)(3) barred an economic stimulus payment after December 31, 2008 unless the credit or refund had been allowed and made by that date. This remained true even when a…
Form 4549 can serve as a section 6234 adjustment notice
Counsel advised that no special template was needed for a section 6234(a) notice of adjustment. Form 4549 was sufficient if it specified the adjusted items, the adjustments, and that no deficiency…
A section 6020(b) return may support a section 6651(a)(2) penalty
Counsel advised that a return prepared under section 6020(b) might be necessary to recover a section 6651(a)(2) failure-to-pay penalty. If the IRS chose to pursue the penalty, counsel recommended…
An IRA purchase may be a prohibited transaction when it creates a fiduciary conflict
Counsel advised that an IRA's purchase of an interest in a bank would not, by itself, be a prohibited transaction under section 4975(c)(1)(A). Whether sections 4975(c)(1)(D) and (E) were violated…
Agencies must retain substantive records but may claim FOIA exemptions
Counsel advised that federal agencies have record-keeping obligations under the Federal Records Act of 1950. Agencies must retain records reflecting the evolution of a process, including drafts,…
CCA 200945038: Tangible background materials behind a final document may be subject to FOIA
Counsel addressed whether background materials behind a final document may be the subject of a Freedom of Information Act request. The advice states that tangible materials behind the final document…
TAM 200945037: Aircraft leasing arrangements did not qualify for depreciation exceptions
The IRS considered whether two related taxpayers regularly leased aircraft, and whether particular aircraft uses qualified for exceptions to the depreciation limits on listed property. The taxpayers…
PLR 200945036: Manufacturing branch rules apply to multiple foreign sales branches
The IRS ruled for a corporation asking how the manufacturing branch rules apply to a controlled foreign corporation with several manufacturing and sales branches. The ruling explains how to…
CCA 200945035: Renewable diesel may include any ASTM D975 or D396 fuel grade
Chief Counsel advised that renewable diesel is not limited to higher-grade fuels under ASTM D975 or ASTM D396. A fuel qualifies if it is derived from biomass, meets the applicable EPA registration…
CCA 200945034: Vendor allowances reduce inventory cost and defective goods may be subnormal goods
Chief Counsel advised that fixed vendor allowances for returned or defective merchandise are discounts that reduce inventory cost, rather than part of total sales. Because the allowances are not…
PLR 200945033: Extension granted for a late disregarded-entity election
The IRS granted a foreign eligible entity an extension of time to elect to be disregarded as an entity separate from its owner for federal tax purposes. The entity had intended to make the election…
PLR 200945032: Loss deductions allowed for surrender of bank-owned life insurance policies
The IRS ruled that two taxpayers may deduct losses associated with surrendering bank-owned life insurance policies, subject to the rules for claims with a reasonable prospect of recovery. A loss…
PLR 200945031: Late S corporation election may be treated as timely
The IRS ruled that a corporation established reasonable cause for failing to timely file its S corporation election. The corporation may file Form 2553 within 60 days after the ruling letter date,…
PLR 200945030: Extension granted for a late disregarded-entity election
The IRS granted a domestic limited liability company an extension of time to elect to be treated as an entity disregarded as separate from its owner. The company had changed its classification and S…
PLR 200945029: Late S corporation election may be treated as timely
The IRS ruled that a corporation established reasonable cause for failing to timely file its S corporation election. If the corporation files a completed Form 2553 within 60 days after the ruling…
PLR 200945028: Extension granted for a late consolidated-return election
The IRS granted a parent corporation and its includible subsidiaries an extension to make a consolidated federal income tax return election. The election had not been timely filed after a change in…
PLR 200945027: Late S corporation election may be treated as timely
The IRS ruled that a corporation established reasonable cause for failing to timely file its S corporation election. If the corporation files Form 2553 within 60 days after the ruling letter date,…
PLR 200945026: Currency-contract loss deferral ends when the affiliate recognizes income
The IRS ruled on currency contracts used by members of a worldwide affiliated group to manage currency risk. A loss realized by a domestic group member on a currency contract with a foreign…
PLR 200945025: Proposed REIT property sale not treated as a prohibited transaction
The IRS ruled that a real estate investment trust's proposed sale of a property would not produce income from a prohibited transaction. The REIT represented that it acquired the property for…
PLR 200945024: Late S corporation election may be treated as timely
The IRS ruled that a corporation established reasonable cause for failing to timely file its S corporation election. If the corporation files a completed Form 2553 within 60 days after the ruling…
PLR 200945023: S corporation status preserved after an inadvertent trust-related termination
The IRS ruled that a corporation's S corporation election terminated inadvertently when its shares were transferred to three trusts that did not qualify as qualified subchapter S trusts. The…
PLR 200945022: Scrip rebate retained by a charity is not income and may be deductible
The IRS considered a program in which an individual buys scrip from a charity at face value and may either receive a portion of the charity's discount in cash or allow the charity to retain it. The…
PLR 200945021: Foreign entity granted time to elect partnership status
The IRS granted a foreign eligible entity 60 additional days to file Form 8832 and elect to be treated as a partnership for federal tax purposes. The entity had intended to make that election by a…
PLR 200945020: Condemnation proceeds were not received until settlement
The IRS ruled that a taxpayer did not actually or constructively receive condemnation proceeds when the money was deposited with a state treasurer because withdrawing it would have waived the…
PLR 200945019: Revised nuclear decommissioning funding schedule approved
The IRS approved a taxpayer's revised schedule of ruling amounts for contributions to a nuclear decommissioning reserve fund. The schedule reflected an extended operating license, updated…
PLR 200945018: Subsequent nuclear decommissioning fund transfer approved
The IRS approved a taxpayer's schedule of deduction amounts for a subsequent special transfer to a qualified nuclear decommissioning reserve fund and a revised schedule of ruling amounts. The…
PLR 200945017: Subsequent nuclear decommissioning fund transfer approved
The IRS approved a taxpayer's schedule of deduction amounts for a subsequent special transfer to a qualified nuclear decommissioning reserve fund and a revised schedule of ruling amounts. 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.