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 200627004: Group gets more time to file dual consolidated loss certifications
A consolidated corporate group had dual consolidated losses attributable to an interest in a hybrid entity. It missed annual certifications for one loss and filed a certification with the wrong loss…
PLR 200627003: Project operator owns groundwater mitigation trust for tax purposes
A project operator funded a trust to meet its legal duty to monitor and mitigate potential groundwater impacts. Trust income and principal could be used for that duty, and any assets left when the…
PLR 200627002: Donated health software serves charitable care and counts toward public support
A charity planned to receive donated health care software and pass it to nonprofit clinics and hospitals serving medically underserved patients. The IRS ruled that this use furthered the charity's…
PLR 200627001: Corporation gets relief for late S election
A corporation with one shareholder intended to be taxed as an S corporation from its formation date but missed the election deadline. The IRS found reasonable cause for the late filing and agreed to…
TAM 200626044: Utility must allocate service costs to custom built assets
An electric utility used a simplified method to allocate mixed service costs among electricity and assets it built for its network. The IRS found that its representative generation, transmission,…
PLR 200626043: Second home parcel qualifies as a personal residence
A property owner planned to subdivide land around a second home and transfer one parcel to a proposed qualified personal residence trust. The parcel included the house, a garage, an artist studio,…
PLR 200626042: Late tax year change application treated as timely filed
A taxpayer filed Form 1128 late to change its tax year end from March 31 to December 31. It attributed the delay to an error or misunderstanding and requested discretionary filing relief within 90…
PLR 200626041: Group gets 60 days for missed dual consolidated loss filings
A consolidated group had dual consolidated losses from a dual resident corporation and interests in hybrid entities. Its advisers did not identify all required elections, agreements, and annual…
PLR 200626040: Late S corporation election may take effect on intended date
A corporation's sole shareholder intended S corporation treatment from a specified date, but the corporation did not file Form 2553 on time. The IRS found reasonable cause for the missed deadline…
PLR 200626039: Late S election receives effective date relief
A corporation's shareholder wanted S corporation treatment beginning when the company was incorporated, but the election was not filed on time. The IRS found reasonable cause for the missed deadline…
PLR 200626038: Rental business may reverse bonus depreciation election
A rent to own business elected out of additional first year depreciation after relying on its tax preparer's advice. A later review showed that the preparer had not accounted for the alternative…
PLR 200626037: Foreign company's reincorporation qualifies as an F reorganization
A corporate group planned to move a foreign subsidiary's place of incorporation from one country to another through a new company and entity classification elections. The IRS ruled that the steps…
PLR 200626036: Donated leave remains taxable wages of donor employees
A state let employees donate accrued leave to a deceased correctional or highway patrol employee's leave bank, then paid its cash value to a survivor. The state asked to treat the donated leave as…
PLR 200626035: Taxpayer gets 30 days to submit missed Form 3115 copies
A taxpayer timely attached two accounting method change applications to its consolidated return but failed to send signed duplicate Forms 3115 to the IRS national office. It said the person assigned…
PLR 200626034: Trust annuities treated as held for natural person beneficiaries
An irrevocable trust owned an annuity, later exchanged for another, for the benefit of the settlor's four children. After the settlor died, the children became entitled to their shares and the…
PLR 200626033: Two corporations get time for dual consolidated loss elections
A corporation missed an election for dual consolidated losses from a foreign entity treated as disregarded for U.S. tax purposes. After another corporation acquired it, the new parent also missed a…
PLR 200626032: Company may file late S election for its first tax year
A new corporation's sole shareholder intended S corporation treatment from the incorporation date, but no Form 2553 was filed by the deadline. The IRS found reasonable cause for the missed election.…
PLR 200626031: Corporation gets 60 days to file late S election
A corporation's sole shareholder intended S corporation status beginning when the corporation was formed, but Form 2553 was filed late. The IRS found reasonable cause for the missed deadline. It…
PLR 200626030: Foreign entity gets more time to elect partnership treatment
A foreign entity said it was eligible to elect partnership treatment from the date it was formed, but it inadvertently missed the Form 8832 filing deadline. The IRS found that it met the…
PLR 200626029: Three shareholder company gets late S election relief
Three shareholders intended their corporation to elect S corporation treatment from a specified date, but the company did not file Form 2553 on time. The IRS found reasonable cause for the missed…
PLR 200626028: Group gets time to file years of dual consolidated loss documents
A consolidated group's foreign branches and a hybrid entity generated dual consolidated losses over several years. Its tax department failed to file required elections and annual certifications for…
PLR 200626027: Public corporation's retiree health trust gets federal tax exclusions
A state public corporation set up a trust to fund health insurance for retirees and eligible family members. The IRS ruled that the trust's income was excluded under section 115 because the…
PLR 200626026: Trust may revoke qualified dividend investment income election
A trust elected to count qualified dividends as investment income for its investment interest deduction, using amounts reported on a partnership Schedule K-1. The partnership later issued a…
PLR 200626025: Missing trust election receives inadvertent S status relief
A corporation filed its S election on time, but a shareholder trust failed to file the separate election to be an electing small business trust. That made the corporation's S election ineffective.…
PLR 200626024: Home sale for family member's care qualifies for reduced gain exclusion
A homeowner sold a residence before meeting the two year ownership and use period after his spouse's mother, who needed special care, moved into the household. The family bought another home to…
PLR 200626023: Late national office copy of Form 3115 gets filing relief
A company attached an accounting method change application for advance payments to its timely filed return but failed to send the required signed duplicate Form 3115 to the IRS national office. It…
PLR 200626022: Foreign entity gets time to elect corporate classification
A foreign entity initially elected to be disregarded as separate from its owner. It later intended to elect treatment as an association taxable as a corporation but missed the filing deadline. The…
PLR 200626021: Trust gets time for charitable payment timing elections
A trust claimed charitable deductions for amounts set aside from income in two tax years, then paid the charities in the following years. It failed to file the elections needed to treat those later…
PLR 200626020: Taxpayer gets time to file dual consolidated loss elections
A taxpayer had dual consolidated losses attributable to an interest in a hybrid entity in two tax years. Its returns omitted elections for both losses and an annual certification for the first loss…
PLR 200626019: Foreign entity gets late disregarded entity election relief
A foreign entity intended to be treated as disregarded from its formation date but did not file Form 8832. It represented that it was eligible to make that classification election. The IRS found…
PLR 200626018: Foreign entity may file late disregarded entity election
A foreign entity intended to be treated as disregarded for U.S. tax purposes from its formation date but did not file Form 8832. It represented that it was eligible to make the election. The IRS…
PLR 200626017: LLC gets late disregarded entity election relief
A limited liability company intended to elect disregarded entity treatment from its formation date, but Form 8832 was not filed on time. The company was owned by another limited liability company,…
PLR 200626016: Business sale proceeds can fund partial liquidation before a spinoff
A parent corporation sold the assets of one business and planned to distribute qualifying sale proceeds and a promissory note to two estate shareholders in exchange for some of their stock. It then…
PLR 200626015: County union plan qualifies as governmental deferred compensation plan
A county adopted a collectively bargained deferred compensation plan for employees of three unions. The plan provided for elective salary deferrals, contribution limits, permitted distributions and…
PLR 200626014: Filing relief granted for a late entity classification election
A foreign entity described as X was owned by a domestic limited liability company described as Y. The letter says X was eligible to elect disregarded entity treatment from its formation date but…
PLR 200626013: Late entity classification election receives filing relief
A foreign entity described as X was wholly owned by a domestic limited liability company described as Y. The facts say X was eligible to elect disregarded entity treatment from its formation date,…
PLR 200626012: Separate compensation policy does not disqualify performance bonus plan
A company proposed an administrative policy defining which payments to senior managers were outside its performance bonus plan. It represented that outside payments would not replace bonuses lost…
PLR 200626011: Spun off company may head a consolidated tax group
The IRS supplemented an earlier letter ruling about a proposed distribution of one corporation's stock by another. It ruled that after the distribution, the distributed corporation would not be…
PLR 200626010: Estate gets time to divide marital trust and allocate GST exemption
An estate made a qualified terminable interest property election for a marital trust but did not divide the trust, make a reverse election for generation skipping transfer tax, or allocate the…
PLR 200626009: U.K. subsidiary insertion preserves treaty dividend ownership test
A U.K. parent had long owned a U.S. corporation and then moved the shares to a wholly owned U.K. subsidiary that was disregarded for U.S. tax purposes. The U.S. corporation declared a dividend less…
PLR 200626008: Spouses may allocate GST exemptions to two trusts late
A husband funded separate trusts for his daughter and son, and he and his wife elected gift splitting on their gift tax returns. Their accounting firm omitted allocations of both spouses' generation…
PLR 200626007: Gift tax returns effectively allocated GST exemption despite filing errors
A taxpayer made gifts to a trust over six years and reported them on gift tax returns. Some returns put the generation skipping transfer (GST) exemption allocation on the wrong line, and none…
PLR 200626006: Two foreign entities receive more time for classification elections
A foreign entity and its wholly owned foreign subsidiary intended to file separate entity classification elections but inadvertently missed both Form 8832 filings. The IRS found that each entity met…
PLR 200626005: Two foreign entities receive more time for classification elections
A foreign entity and its wholly owned foreign subsidiary intended to file separate entity classification elections but inadvertently missed both Form 8832 filings. The IRS found that each entity met…
PLR 200626004: Foreign subsidiary receives more time to elect disregarded status
A foreign entity wholly owned by another entity intended to elect treatment as a disregarded entity, but it did not file Form 8832. The IRS found that the entity met the standards for discretionary…
PLR 200626003: Partnership denied late basis election but may adjust basis under estate rule
A family's real estate was transferred to an LLC taxed as a partnership. After a member died, the LLC deliberately did not make a section 754 basis adjustment election because it considered the…
PLR 200626002: Family disclaimers qualify and pass trust property to surviving spouse
A decedent's children and several grandchildren proposed to disclaim their interests in the family share of a trust. A court appointed a guardian for the minor grandchildren and approved their…
PLR 200626001: Corporation receives relief for a late S election
A corporation's shareholder intended to elect S corporation treatment when the business began operating, but the IRS did not timely receive the election. The IRS found reasonable cause for the late…
PLR 200625044: Merger of two private foundations preserves exemption and avoids excise taxes
Two private foundations controlled by the same people planned to merge after one stopped operating a youth camp and held only investment assets. The IRS ruled that the merger qualifies as a transfer…
Revocation 200625043: Credit counseling organization loses tax exemption
The IRS revoked a debt counseling organization's exemption under section 501(c)(3). Its examination found that the organization largely referred clients to a related for-profit debt services…
Revocation 200625042: Public bingo games cost a social club its tax exemption
A social club held bingo games open to the public. It kept no records separating receipts from members and nonmembers, and its officers said most players were not members. The IRS concluded that…
PLR 200625041: Spouses get 60 days to recharacterize Roth IRA transactions
A married couple made annual Roth IRA contributions, and one spouse converted a traditional IRA to a Roth IRA. Their income exceeded the limits for those transactions, but they relied on their…
PLR 200625040: Credit union error qualifies for late retirement rollover relief
A taxpayer asked a credit union to roll a distribution from a tax sheltered annuity into an IRA. Although she completed IRA rollover forms, the credit union opened a regular savings account instead.…
PLR 200625039: IRA certificate mix-up gets late rollover relief
A taxpayer moved money from two maturing IRA certificates of deposit into new certificates at other banks. He believed the new certificates were IRAs, but a misunderstanding with the banks about the…
PLR 200625038: Medical impairment excuses late retirement plan rollover
A taxpayer received a distribution from an employer retirement plan while a medical condition impaired her ability to manage financial matters. She deposited the check into a rollover IRA shortly…
PLR 200625037: Adviser error permits a late Roth IRA rollover
A taxpayer withdrew money from two Roth IRAs to invest through a fund, believing the new investment would remain in a Roth IRA. The fund was not an approved IRA trustee or custodian, and its adviser…
Determination 200625036: IRS denies exemption to seller-funded down payment program
An organization sought tax exemption for a program that gave homebuyers down payment assistance funded by home sellers. Sellers paid an amount tied to the buyer's gift, plus a fee, only after a sale…
PLR 200625035: Guest housing tied to a school's mission avoids unrelated business tax
A tax-exempt school providing theological education asked whether income from lodging in its buildings was unrelated business taxable income. The IRS ruled that housing for students and faculty,…
PLR 200625034: Fraternity alumni club may set aside income for education and housing
A fraternity alumni club asked whether its projected income would preserve its social club tax exemption and whether proceeds from selling its fraternity house could be set aside for educational and…
PLR 200625033: Discounted early payment of cooperative credits preserves tax exemption
An electric cooperative wanted to pay current and former members their allocated capital credits earlier than its usual 18 to 20 year cycle, at a discount reflecting present value. It asked whether…
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.