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 200725026: Waived preferred share voting rights preserve affiliate treatment
A subsidiary's preferred shares could gain limited board election rights after a dividend default. The default occurred, but majority holders had already executed a waiver that prevented those…
PLR 200725025: Rural telephone cooperative may allocate bank liquidation income
A rural telephone cooperative received a payment when the Rural Telephone Bank redeemed its stock during liquidation. The cooperative had acquired the stock in connection with loans used for its…
PLR 200725024: Telephone cooperative may allocate bank liquidation income
A rural telephone cooperative received liquidation proceeds when the Rural Telephone Bank redeemed its stock. The cooperative had acquired that stock through a lending relationship connected to its…
PLR 200725023: Late S corporation election granted for reasonable cause
A corporation's sole shareholder intended S corporation status from its formation, but the company did not file Form 2553 on time. Both the company and shareholder reported income consistently with…
PLR 200725022: S corporation status restored after trust ownership lapse
A trust owned shares of an S corporation when its deemed owner died. The trust remained an eligible shareholder for two years, but became ineligible when that period ended. Its shares were later…
PLR 200725021: Extension granted for low-income housing credit election
A taxpayer missed an election for a low-income housing project because of an external tax advisor's error. The election would exclude certain loan or tax-exempt bond proceeds from the building's…
PLR 200725020: Late low-income housing credit election allowed
A taxpayer missed an election for a low-income housing project because of an external tax advisor's error. The election under section 42(i)(2)(B) would leave certain loan or tax-exempt obligation…
PLR 200725019: Subsidiary conversion does not recapture housing credits
A corporate group planned to convert a subsidiary that held interests in partnerships claiming low-income housing credits into a single-member LLC. The conversion would shift the partnership…
PLR 200725018: Blended family's housing needs support reduced home-sale exclusion
A homeowner sold a residence before meeting the usual two-year ownership and use requirement for excluding gain from a home sale. After buying the home, the homeowner met and married a person with…
PLR 200725017: Late accounting-method application denied
A taxpayer filed Form 3115 late to change from the cash method to the accrual method and use the percentage-of-completion method for long-term contracts. The change was required, and the taxpayer…
PLR 200725016: Rulings support a corporate business spin-off
A public company planned to separate one business from its other businesses through foreign subsidiary split-offs, a domestic subsidiary liquidation, and a distribution of a new corporation's shares…
PLR 200725015: Passive conduit system qualifies as a REIT real estate asset
A company intending to elect real estate investment trust status planned to own a physically connected, passive conduit system and lease it to an unrelated operator. The operator would run and…
PLR 200725014: Executive pay limit does not reach partnership compensation
Executives of affiliated real estate investment trusts also worked for a partnership through which the group conducted most of its business. Some compensation for their partnership services exceeded…
PLR 200725013: S corporation election restored after missing trust election and consents
A corporation's S election lacked required consents from two people with community property interests in shareholder trusts. A separate trust also failed to make a qualified subchapter S trust…
PLR 200725012: Holding-company conversion preserves S election
An S corporation's shareholders planned to exchange their shares for stock in a new holding company, which would elect to treat the former corporation as a qualified subchapter S subsidiary. The IRS…
PLR 200725011: Late S corporation election accepted for a new company
A newly incorporated company's sole shareholder intended S corporation treatment from the company's formation date, but Form 2553 was filed late. The company and shareholder reported income…
PLR 200725010: Late S election accepted for two-shareholder company
Two shareholders intended their newly incorporated company to be an S corporation from its formation date, but the company did not file Form 2553 on time. The company and shareholders had reported…
PLR 200725009: Relief granted for late S election and accounting-period form
A corporation missed both its S corporation election and a Form 1128 requesting a change in its tax year. The IRS found reasonable cause for the late S election and said the corporation would…
PLR 200725008: Dividing an older trust preserves tax treatment
A trustee proposed dividing one family trust into three equal trusts for separate branches of the family, under a court order. The original trust had been irrevocable before September 25, 1985, and…
PLR 200725007: Late GST exemption allocation allowed for trust transfers
A taxpayer transferred real estate to a trust in two years without allocating generation-skipping transfer (GST) tax exemption to the transfers. The taxpayer's accountant had advised that the gifts…
PLR 200725006: Foreign entity given more time to elect disregarded status
A foreign entity intended to elect treatment as an entity disregarded from its single owner but did not file Form 8832 on time because of an oversight. The IRS found that the requirements for an…
PLR 200725005: Business split-off qualifies as a D reorganization
A company with two active businesses planned to put one business in a new corporation and transfer that corporation's shares to one shareholder in exchange for the shareholder's existing shares. The…
PLR 200725004: Bond authority gets more time for volume-cap carryforward election
A bond authority received an allocation of unused private activity bond volume cap for a proposed water and sewage project, but did not learn of the award and missed the Form 8328 filing deadline.…
PLR 200725003: Business split-off qualifies as a D reorganization
A company with two active businesses planned to put one business in a new corporation and transfer that corporation's shares to one shareholder in exchange for the shareholder's existing shares. The…
PLR 200725002: Subsidiary liquidations spare partnership from termination
A corporate group planned a two-part restructuring involving the liquidation of two subsidiaries and transfers of interests in a partnership. The IRS ruled that both specified subsidiary…
PLR 200725001: Foreign company's U.S. redomiciliation qualifies as F reorganization
A foreign holding company planned to move its corporate domicile to the United States by placing its business under a new U.S. company and exchanging its shareholders' shares. The plan also included…
PLR 200724040: IRA arbitration recovery treated as replacement payment
An IRA owner said an investment advisor made unauthorized trades that caused substantial losses to her IRA. An arbitration proceeding produced a settlement payment for the losses, and the owner…
PLR 200724039: Waiver denied for late plan-loan-offset rollover
A former employee's retirement plan treated an unpaid plan loan as an offset when distributing the employee's account balance. The employee timely rolled over the remaining balance but put the…
PLR 200724038: Excise taxes waived for pension plan liquidity shortfalls
A defined benefit pension plan had liquidity shortfalls after workforce reductions led to lump-sum benefit payments. Its former actuary did not calculate or report the shortfalls, and a later…
PLR 200724037: Multiemployer plan gets conditional funding extension
A multiemployer pension plan sought ten more years to amortize unfunded liabilities after market losses left it facing a projected funding deficiency. The trustees had raised contributions and cut…
Determination 200724036: Captive insurer denied tax exemption
An offshore captive insurer sought federal income tax exemption under section 501(c)(15). It covered a physician, the physician's spouse, and a related coroner's office in one year, then added a…
Determination 200724035: Health insurance intermediary denied charitable exemption
An organization sought charitable exemption while arranging health insurance for uninsured, low-income people and describing plans for health information and scholarships. The IRS found that its…
PLR 200724034: Health plan administration supports a federal agency's mission
A tax-exempt nonprofit administered group health insurance for trainees and other workers at a federal research agency who could not use federal employee coverage. The agency paid trainee premiums…
Determination 200724033: Charity's political campaign activity leads to revocation
An exempt organization used newspaper advertising, mass mailings, truck signs, and email to oppose one candidate and support another. An IRS examination concluded that these actions were political…
PLR 200724032: Surviving spouse may move IRA assets through a trust to an IRA in their own name
A deceased IRA owner's two accounts named a trust as beneficiary. The surviving spouse was the trust's sole trustee and current beneficiary, with unrestricted authority to distribute its assets to…
PLR 200724031: REIT retains temporary investment treatment after merger
A real estate investment trust (REIT) acquired another REIT in a merger. The acquired REIT held assets treated as temporary investments of new capital. The IRS ruled that this treatment carries over…
PLR 200724030: Late S corporation election receives conditional relief
A corporation's shareholder intended for it to be an S corporation from its incorporation date, but the corporation did not file Form 2553 on time. The corporation and its shareholder represented…
PLR 200724029: Late S corporation election treated as timely after reasonable cause finding
A corporation intended to elect S corporation status from its incorporation date but did not file the election on time. The IRS found reasonable cause for the delay and ruled that the corporation…
PLR 200724028: Real estate professional gets more time to group rental activities
An individual working in real estate relied on a tax professional who failed to include the statement needed to elect to treat all rental real estate interests as one activity. The IRS granted a…
PLR 200724027: Late S corporation election allowed after reasonable cause showing
A corporation's sole shareholder intended for it to be an S corporation from its incorporation date, but the corporation missed the Form 2553 filing deadline. The IRS found reasonable cause and…
PLR 200724026: Housing project receives more time to make section 42 election
A taxpayer's outside tax advisor failed to make an election for a low-income housing project under section 42(i)(2)(B). That election excludes certain loan principal and tax-exempt bond proceeds…
PLR 200724025: Another housing project receives time to make section 42 election
A taxpayer's outside tax advisor failed to make a section 42(i)(2)(B) election for a low-income housing project. The election excludes certain financing from the building's eligible basis so that…
PLR 200724024: Mutual insurer may revoke investment income tax election
A small mutual insurance company had elected the alternative rule under section 831(b) that taxes it only on investment income. It later experienced higher underwriting losses, repair and operating…
PLR 200724023: Corporation may file S election after service center finds no timely form
A corporation's sole shareholder intended S corporation status from a specified date, but the IRS service center had no record of a timely Form 2553. The IRS found reasonable cause for the failure…
PLR 200724022: LLC gets time to file both corporate classification and S elections
A limited liability company intended to be taxed as a corporation and an S corporation from its formation date, but its Forms 8832 and 2553 were not timely received. The IRS granted 60 days to file…
CCA 200724021: Acquiring group cannot deduct the same economic loss twice
A target consolidated group transferred loss assets into a subsidiary, sold shares in that subsidiary, and was then acquired by another consolidated group. The subsidiary later sold the loss assets,…
PLR 200724020: Dividing exempt trust preserves generation-skipping tax exemption
A trustee sought to divide one trust into two equal trusts, one for each grandson and his descendants. A court had approved the division subject to a favorable IRS ruling. The IRS concluded that the…
PLR 200724019: State injury assistance commission is a governmental instrumentality
A state created a commission to oversee a fund assisting residents with brain and spinal cord injuries. State officials appointed its members, controlled disbursements, and audited its finances; the…
PLR 200724018: Investment fund's late dividend election treated as timely
A regulated investment fund elected under section 855 to treat dividends paid after its tax year as paid during that earlier year. Confusion among its manager and service providers left its return…
PLR 200724017: Rural telephone cooperative's bank stock payment is patronage income
A taxable rural telephone cooperative received a payment when the Rural Telephone Bank redeemed stock it had acquired through borrowing from the bank. The IRS concluded that the stock and redemption…
PLR 200724016: Foreign holding entity gets time to elect disregarded status
A foreign holding entity had previously elected corporate classification for U.S. tax purposes. Following a restructuring, it intended to elect treatment as disregarded from its owner, but…
PLR 200724015: S corporation election may be filed after missing Form 2553
A corporation's sole shareholder intended S corporation status from its incorporation date, but the IRS service center had no record of a timely Form 2553. The IRS found reasonable cause for the…
PLR 200724014: Late nuclear decommissioning fund schedule request treated as timely
A utility missed the deadline to request a revised schedule of amounts for its qualified nuclear decommissioning fund after a ratemaking formula changed. It attributed the failure to accidental…
PLR 200724013: Two-shareholder corporation receives late S election relief
Two shareholders intended their corporation to be an S corporation from its incorporation date, but Form 2553 was not filed on time. The IRS found reasonable cause for the late election and said it…
PLR 200724012: Broker settlement for earlier investment loss is long-term capital gain
An investor settled a dispute with a stockbroker over losses in a taxable investment account and asked how to report the cash recovery. The IRS held that the recovery was includable in gross income…
PLR 200724011: Stock awards under amended plan qualify as performance-based pay
A company amended its stock compensation plan so awards beyond stock options could depend on specified performance goals. An outside-director committee would set the goals, certify results before…
PLR 200724010: S corporation status restored after stock options create second class
An S corporation issued no-cost options for nonvoting shares. The IRS concluded that the options constituted a second class of stock and terminated the S election when issued. It also found that the…
PLR 200724009: Seller gets more time for section 197 gain recognition election
A seller made a timely section 338(h)(10) election in a related-party stock transaction but failed to make a separate section 197 gain recognition election for acquired intangible assets. The seller…
PLR 200724008: Retiree health benefit is taxable when employee could choose cash
A public school district offered eligible early retirees a choice between limited retiree health benefits and a cash payment tied to unused sick days plus a bonus. The IRS ruled that retirees who…
PLR 200724007: Broker ownership and referral fees do not disqualify exchange intermediary
A company planning to act as an intermediary for like-kind exchanges proposed selling small ownership interests to real estate professionals, including people who might be disqualified with respect…
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.