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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Music and book activities served commercial and private interests
An organization sought section 501(c)(3) status for educational activities built around a book written by its sole director, free podcasts and online sessions, and fee-based custom music with commerci…
Third-party contact reports should be provided only on request
Chief Counsel advised that the IRS should give a taxpayer reports of third parties contacted during an examination only when the taxpayer requests them. The email rejected periodic issuance of those r…
Federal and territorial returns do not violate the SCRA single-jurisdiction rule
Chief Counsel considered whether requiring a servicemember to file both a federal return and a Puerto Rico return would conflict with the Servicemembers Civil Relief Act. The email concluded that the …
Adding grantor tax reimbursement power caused beneficiary gifts
An irrevocable grantor trust did not originally permit the trustee to reimburse the grantor for income tax attributable to the trust's income. The trustee later obtained a court-approved modification,…
Late ESBT election did not end S corporation status
A grantor trust held stock in an S corporation and remained an eligible shareholder for two years after the grantor's death. When that period ended, the trust met the substantive requirements for an e…
Estate received more time to elect QTIP treatment for two marital trusts
An estate timely filed Form 706 after both the decedent and surviving spouse had died, but the return omitted two marital trusts from Schedule M and did not make qualified terminable interest property…
Parties received more time to make a section 336(e) election
An individual, acting through a disregarded trust, acquired all the stock of an S corporation from its shareholder. The parties intended to treat the stock sale as an asset sale under section 336(e), …
Partnership received 120 days to make a late section 754 election
A limited liability company treated as a partnership failed to make a timely section 754 election for the year in which an owner died. The partnership represented that it acted reasonably and in good …
Opportunity fund received more time to file its self-certification
A limited liability company intended to operate as a qualified opportunity fund and received capital-gain contributions during its first year. Its partnership representative believed no partnership re…
Annuity-paid advisory fees were not distributions to contract owners
A life insurer proposed three types of nonqualified deferred annuity contracts designed for owners receiving ongoing advice about the contracts' investment options. Owners could authorize the insurer …
A transaction's amount realized included the present value of a guarantee
A corporation proposed admitting another corporation as its member and giving that member control rights, while the member would provide future services and guarantee a stated level of cost savings. T…
A transaction's amount realized included the present value of a guarantee
Two corporations proposed a transaction in which one would become the other's member and receive control rights, provide future services at arm's-length prices, and make a cost-savings guarantee. The …
Temporary staffing business qualified under the small-business-stock rules
A shareholder sold stock in a C corporation that matched experienced executives and managers with clients needing temporary staff or permanent executives. For temporary placements, clients identified …
Late opportunity-fund self-certification was treated as timely
A partnership formed to invest in qualified opportunity-zone property knew it needed to file Form 8996 for its first year and hired advisers to handle the filing. An administrative oversight among the…
Foreign entity received more time to elect disregarded status
A foreign entity represented that it was eligible to be disregarded as separate from its owner for federal tax purposes but failed to file Form 8832 on time. The IRS concluded that the requirements fo…
Foreign entity received 120 days to elect disregarded status
A foreign entity represented that it was eligible to be treated as disregarded from its owner but failed to file Form 8832 by the deadline. The IRS concluded that the requirements for regulatory filin…
Foreign entity received 120 days to elect disregarded status
A foreign entity represented that it was eligible to be treated as disregarded from its owner but failed to file Form 8832 by the deadline. The IRS concluded that the requirements for regulatory filin…
LLC received more time to elect disregarded status after an ownership change
A limited liability company had elected S corporation status and was therefore treated as an association taxable as a corporation. A new owner later acquired all of the company's outstanding interests…
LLC received more time to elect disregarded status after an ownership change
A limited liability company had elected S corporation status and was therefore treated as an association taxable as a corporation. A new owner later acquired all of the company's outstanding interests…
LLC could change classification after new ownership and file a late election
A limited liability company had elected S corporation status and was therefore treated as an association taxable as a corporation. Before 60 months had passed, a new owner acquired all of the company'…
Subsidiary received QSub relief after the parent corrected incomplete ownership
An S corporation elected to treat a subsidiary as a qualified subchapter S subsidiary, but the election was ineffective because the parent did not own all of the subsidiary's stock. After discovering …
Shooting range denied section 501(c)(3) status for recreational activity
An organization already exempt under section 501(c)(4) operated a shooting range open to members, the public, families, and law enforcement personnel. It offered firearms education and safety training…
Private family cemetery denied section 501(c)(3) status
An unincorporated association applied for section 501(c)(3) status to maintain a privately operated family cemetery for cremated remains. Its bylaws limited plots and scattering rights to designated f…
Community festival denied section 501(c)(3) status
An organization held a free annual community festival with live music, games, inflatables, crafts, and food vendors. It collected booth fees and sponsorships, used the proceeds to pay festival costs, …
Student-aid group serving a for-profit school denied exemption
An organization formed by an employee of a for-profit school proposed paying books, supplies, class fees, and other education-related expenses for the school's students. Assistance was available to ev…
Classic-car club denied section 501(c)(3) status
An organization brought classic-car enthusiasts together for car shows, cruises, and social gatherings. It also planned a toy drive, shows at retirement homes, and drive-by cruises for sick and elderl…
Corporation received 60 days to make a section 59(e) election
A corporation serving the energy industry failed to timely elect under section 59(e) to amortize qualified expenditures for a fiscal year. The election can apply to research and experimental expenditu…
Estate received 120 days to make a portability election
An estate represented that it was not otherwise required to file Form 706 but had failed to timely file the return needed to transfer the decedent's unused estate and gift tax exclusion to the survivi…
Corporate separation qualified as a tax-free reorganization and spin-off
A foreign public company's U.S. corporate group proposed separating one business from another. The distributing corporation would form a new controlled corporation, contribute subsidiaries and certain…
Parties received more time to make a section 336(e) election
Purchasers acquired more than 80 percent of an S corporation's stock, and the parties intended to treat the stock sale as an asset sale under section 336(e). They did not timely enter the required wri…
U.S. and global business separations received tax-free treatment
A foreign public company proposed separating one category of businesses from another through preliminary internal restructurings, a U.S. contribution and spin-off, and a global spin-off. The steps inc…
Late opportunity-fund self-certification was treated as timely
A partnership was formed to invest in qualified opportunity-zone property, but its accounting firm misunderstood when the entity and initial contributions had been created. Because of that misundersta…
Estate received more time to allocate the wife's GST exemption
A husband transferred property to an irrevocable trust for the couple's children, and the spouses elected to treat the gift as made one-half by each of them. Their tax preparer knew they intended to a…
Husband received more time to allocate GST exemption to trust transfers
A husband transferred property to an irrevocable trust for the couple's children, and the spouses elected to treat the first-year gift as made one-half by each of them. Their tax preparer knew they in…
Late opportunity-fund self-certification was treated as timely
A partnership formed to invest in qualified opportunity-zone property hired an accounting firm to prepare and file the returns and elections needed for qualified-opportunity-fund treatment. The firm k…
Late S corporation election was treated as timely
A corporation intended to be treated as an S corporation from a specified date but did not timely file Form 2553. The IRS found reasonable cause for the late election and granted relief under section …
Partnership received 60 days to self-certify as an opportunity fund
A partnership was formed to invest in qualified opportunity-zone property, but a miscommunication between a member's family office and the manager left its return preparer unaware that the entity exis…
Music scholarship procedures approved
A private foundation asked the IRS to approve a scholarship program for high school seniors who demonstrate talent as vocal or instrumental performers in a specified type of music. Applicants must be …
Exemption revoked after prolonged inactivity
The IRS revoked the section 501(c)(3) status of a supporting organization that had been inactive for approximately 12 years. The organization reported no bank account, general ledger, income, expenses…
Independent strike fund denied labor-organization exemption
An organization sought exemption under section 501(c)(5) so it could operate a national strike fund for workers who lacked access to other strike funds. It planned to raise donations digitally and dis…
Retroactive qualified electing fund election approved
A U.S. taxpayer indirectly owned shares of a foreign corporation through a foreign grantor trust but did not make a timely qualified electing fund election. Two accounting firms with international tax…
Earlier GST exemption relief letter corrected
The IRS corrected and modified an earlier private letter ruling concerning generation-skipping transfer tax exemption. The earlier ruling incorrectly said the executor proposed to sever a marital trus…
Late average-income housing elections allowed
The owner of a multi-building housing project intended to choose the average-income minimum set-aside for the low-income housing credit. Contemporaneous documents showed that intent, but the owner ina…
More time granted to file duplicate accounting-method form
A parent corporation's accounting firm prepared a Form 3115 for two subsidiaries to change their accounting methods under section 263A. The firm timely filed the consolidated return with the original …
Estate received more time to elect portability
An estate was not otherwise required to file an estate tax return because of the value of the decedent's gross estate and taxable gifts. It nevertheless needed to file Form 706 to elect portability, w…
Multi-step corporate separation received nonrecognition rulings
A publicly traded parent planned a multi-step transaction to separate one business from another through domestic and foreign subsidiary restructurings. A subsidiary would contribute the separated busi…
Late GILTI high-tax exclusion election allowed
A domestic parent and its consolidated group intended to make a retroactive GILTI high-tax exclusion election for their controlled foreign corporation group. The tax department and its accounting firm…
Late election to treat stock sale as asset sale allowed
A purchaser acquired all the shares of an S corporation, which later converted into a limited liability company disregarded for federal tax purposes. The parties intended to elect under section 336(e)…
Late accounting-method change request denied
A taxpayer's accounting firm prepared a Form 3115 to change the accounting method of a disregarded subsidiary under section 263A. Shortly before the return deadline, the manager handling the return re…
Late opportunity fund self-certification allowed
A partnership was formed to qualify as a qualified opportunity fund and hold interests in a qualified opportunity zone business. Its accounting firm knew of that intention and extended the partnership…
Late tax-exempt controlled entity election allowed
A corporation wholly owned by a nonprofit held an indirect interest in a partnership that developed low-income housing. The partnership agreement showed that the corporation always intended to elect u…
Late partnership classification election allowed
A foreign private company represented that it was an eligible entity that could elect partnership classification for U.S. federal tax purposes. It inadvertently failed to file Form 8832 on time for th…
Incomplete accounting-method application could be corrected
A consolidated group acquired several engineering and architectural services companies that had used the cash method as qualified personal service corporations. Its accounting firm advised changing th…
Partnership received more time to change its tax year
A partnership used a calendar tax year because its tax firm mistakenly believed the majority-interest partner also used a calendar year. After learning that the majority partner used a different year-…
Condemned utility assets' deferred tax reserves had to be removed
A city condemned the regulated utility assets of two subsidiaries, and the taxpayer deferred gain under section 1033 by investing the proceeds in replacement utility property. After the condemnation, …
Large museum grant recognized as unusual
A publicly supported museum expected a very large grant and potential gift from an unrelated private operating foundation. The funds would build a new museum wing, improve the existing museum, renovat…
STEM scholarships for high school athletes approved
A private foundation proposed scholarships for high school athletes in its operating area who planned to pursue postsecondary education in a science, technology, engineering, or mathematics field. Eli…
Scientific conference presentation grants approved
A private foundation proposed travel grants for graduate students, postdoctoral fellows, and faculty members presenting research in a specified field at scientific conferences. Awards had separate cap…
Four-year fellowship procedures approved
A private foundation proposed a four-year fellowship for local high school graduates and GED recipients who attend a four-year university and want work experience in a city's business community. The f…
Campus construction and equipment set-aside approved
A tax-exempt private foundation asked the IRS to approve a set-aside under section 4942(g)(2). The foundation planned to reserve a redacted amount for construction projects and equipment purchases sup…
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.