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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CCA 200607018: No stated deadline to seek review of a worker status determination
An IRS office asked whether a person who received an adverse SS-8 worker status determination had a deadline to request reconsideration. Chief Counsel advised that the applicable revenue procedure…
PLR 200607017: Research training stipends are not FICA wages
A teaching hospital paid living expense stipends to fellows in research training programs modeled on federal research awards. The fellows were not medical residents or substitute laboratory staff,…
PLR 200607016: Late entity classification election denied after tax plan failed
A taxpayer formed an entity in another country as part of a planned transfer of appreciated assets to reduce capital gains tax. After the transfer, accountants advised that section 367(a) would…
PLR 200607015: Transfer to replacement trusts preserves prior tax treatment
Trustees proposed to move the assets of nine family trusts created before September 25, 1985, into nine new trusts governed by another state's law. The new trusts would retain the same beneficiaries…
PLR 200607014: Late Canadian retirement plan deferral election allowed
A U.S. permanent resident had contributed to Canadian Registered Retirement Savings Plans for years. A new accountant discovered that the prior accountant had not advised him to elect deferral of…
PLR 200607013: Holding period waived for acquisition of assisted housing
A partnership planned to acquire and rehabilitate an existing affordable housing project. Its acquisition would occur less than ten years after the project was last placed in service, so the…
PLR 200607012: Waiting period waived for a new consolidated return
A corporate parent and its subsidiaries had stopped filing a consolidated federal income tax return after an acquisition. A later acquisition brought some of those corporations into a new group…
PLR 200607011: Retirement plan holdings do not bar fund look-through
A life insurer advised investment funds used mainly for variable life insurance and annuity contracts. It wanted qualified retirement plans to hold shares in those funds without preventing the…
PLR 200607010: Nuclear decommissioning fund assets transfer without tax recognition
A utility planned to sell an interest in a nuclear plant and transfer the related decommissioning obligation to a buyer. The seller also planned to move all assets in its qualified nuclear…
PLR 200607009: Nuclear decommissioning fund assets transfer without tax recognition
A utility planned to sell an interest in a nuclear plant and transfer the related decommissioning obligation to a buyer. The seller also planned to move all assets in its qualified nuclear…
PLR 200607008: Decommissioning fund keeps its status through utility restructuring
A utility group planned to convert its plant owning company into a holding company and then transfer the nuclear plant and its qualified decommissioning trust to a new company. The IRS ruled that…
PLR 200607007: Subsidiaries treated as consenting to consolidated return
A corporate parent timely filed its first consolidated income tax return with three subsidiaries, but its accounting firm omitted each subsidiary's Form 1122 consent. The return included all three…
PLR 200607006: Board chair's merger payment avoids parachute payment rules
A former board chair became entitled to benefits after a bank holding company merger, and part of the payment was held in escrow pending an IRS ruling. The company represented that he lacked…
PLR 200607005: LLC gets time to elect corporate tax status
A company formed a wholly owned limited liability company and intended it to be taxed as a corporation. The LLC missed the deadline to file Form 8832, the entity classification election. The IRS…
PLR 200607004: Possible missing estate consent excused for S election
A corporation elected S corporation status after a shareholder died. An estate administrator consented for the deceased shareholder's estate, but the corporation later learned the administrator…
PLR 200607003: Nursing facility mold removal costs are deductible repairs
The owner of a skilled nursing facility paid to remove mold from one wing after roof leaks and condensation caused moisture damage. The work replaced affected finishes and fixtures with…
PLR 200607002: Bonus plan need not disclose a specific dollar cap
A public company's executive bonus plan tied payments to performance goals and a percentage of base salary fixed when each goal was established. The company had disclosed the bonus formula and the…
PLR 200607001: Late trust elections preserve corporation's S status
Six trusts held shares when a corporation elected S corporation status, but their trustees had not made electing small business trust elections. The trusts were therefore ineligible shareholders and…
PLR 200606055: IRA rollover deadline waived after timing error and medical care
A woman took a distribution from her IRA intending to roll it into another IRA. She misunderstood the 60 day deadline, believing a weekend or holiday extended it to the next business day, and…
PLR 200606054: IRA rollover deadline waived after bank opened wrong CD
A man withdrew funds from an IRA and asked a financial institution to place them in a rollover IRA certificate of deposit. The institution instead opened a regular certificate of deposit, and the…
PLR 200606053: Widow's late annuity rollover accepted after advisor error
A surviving spouse inherited a tax sheltered annuity and intended to roll its full balance into an IRA. Her advisor told her to request a lump sum payment instead of a direct rollover and…
PLR 200606052: Incorrect rollover deadline advice leads to IRA waiver
An IRA owner withdrew funds intending to return them to his IRA. A registered representative of the IRA company incorrectly told him that he had 90 days for the rollover, and he tried to redeposit…
PLR 200606051: Secured pension lump sum can roll into an IRA
A former executive wanted a lump sum from a defined benefit pension plan even though restrictions applied to highly compensated employees in case the plan later terminated. He proposed to roll the…
PLR 200606050: Hospitalization supports late IRA rollover waiver
A 75 year old IRA owner took a distribution while hoping to obtain a better certificate of deposit rate before rolling it back into an IRA. She was awaiting double hip replacement surgery and was…
Determination 200606049: Charity's tax exemption revoked after activity stopped
The IRS issued a final letter revoking an organization's section 501(c)(3) tax exempt status. The letter says the organization had stopped its charitable activities, had not filed Form 990 since…
Determination 200606048: Social club exemption revoked retroactively
The IRS issued a final determination revoking an organization's section 501(c)(7) tax exemption retroactive to January 1, 2001. The letter states that the organization had not established that it…
PLR 200606047: Government investment pool expansion remains charitable
An exempt education organization already helped school districts invest short term public funds through a pooled program. It formed a wholly owned limited liability company, treated as part of the…
Determination 200606046: Business league exemption revoked
The IRS issued a final determination revoking an organization's section 501(c)(6) exemption retroactively to a redacted date. The letter says the organization had not established that it continued…
Determination 200606045: Charity exemption revoked for lack of exempt activity
The IRS issued a final letter revoking an organization's section 501(c)(3) exemption retroactively to a redacted date. It found that the organization had not been operated exclusively for an exempt…
Determination 200606044: Debt settlement organization denied charity exemption
A nonprofit debt settlement company sought recognition as a section 501(c)(3) charity. It charged clients substantial fees to collect funds and negotiate credit card debts, selected clients with…
Determination 200606043: Housing assistance group denied charity exemption
An organization seeking section 501(c)(3) status proposed to help low and moderate income people become homeowners through seminars, housing projects, and grants. The IRS found that its amended…
PLR 200606042: Hospital's physician insurance investment preserves exemption
A tax exempt hospital needed several staff physicians to maintain liability insurance so they could continue providing care. It proposed to buy shares in an insurance company holding company, a…
Determination 200606041: Credit counseling group denied charity exemption
A credit counseling organization sought recognition as a section 501(c)(3) charity for seminars and services related to bankruptcy and debt management. The IRS found that its articles did not limit…
Determination 200606040: Charity exemption revoked over bingo and member expenses
The IRS revoked an organization's section 501(c)(3) exemption after an examination found that its primary activity was operating bingo games and paying members' personal expenses. The organization…
Determination 200606039: Charity exemption revoked after compliance finding
The IRS retroactively revoked an organization's section 501(c)(3) exemption because it had not established that it was observing the conditions required to keep exempt status. The letter cites…
TAM 200606038: Added tag axle makes truck chassis subject to excise tax
A reseller bought a truck chassis rated at 33,000 pounds and arranged to add a tag axle before selling the completed propane delivery truck. It argued that the chassis qualified for the section 4051…
TAM 200606037: Converting preferred securities produces debt discharge income
A corporation used a trust to issue convertible preferred securities that holders later exchanged for the corporation's common stock under the securities' original terms. At conversion, the stock's…
CCA 200606036: Business ceased to be a railroad tax employer
The Railroad Retirement Board told the IRS that a business had ceased to be an employer under the Railroad Retirement Act and the Railroad Unemployment Insurance Act. Chief Counsel reviewed the…
CCA 200606035: Product distribution agreement did not create a partnership
A U.S. importer bought a foreign producer's product for resale under an agreement that gave the producer a share of resale profit and required it to reimburse some marketing costs. An IRS field…
PLR 200606034: Couple granted time to allocate GST exemption to trust
A married couple funded a trust for their descendants but did not file gift tax returns allocating their generation skipping transfer (GST) exemption to the transfers. Their attorney had not advised…
PLR 200606033: Late S corporation election allowed from incorporation
A corporation intended to elect S corporation status from the date it was incorporated, but did not file its election on time. The IRS found reasonable cause for the late filing and granted relief…
PLR 200606032: Sole shareholder granted relief for late S election
The sole shareholder of a newly incorporated company intended it to be an S corporation from its incorporation date, but the company did not file Form 2553 on time. The IRS concluded that the…
PLR 200606031: Late accounting period application treated as timely
A corporation sought to change its tax year end from December 31 to June 30 but filed Form 1128 after the deadline for the short period return. It soon requested more time under Treasury Regulation…
PLR 200606030: Late Form 1128 accepted for tax year change request
A corporation missed the Form 1128 deadline for requesting a change from a December 31 to a June 30 tax year end, then promptly sought an extension. The IRS found that the corporation acted…
PLR 200606029: Late tax year change application treated as timely
A corporation's representative missed the extended deadline for Form 1128 because of an administrative oversight. The form sought permission to change the corporation's tax year under the automatic…
PLR 200606028: Inadvertently missed S election deadline excused
A corporation's shareholders intended to elect S corporation status from its incorporation date, but the company inadvertently failed to file Form 2553 on time. The IRS found reasonable cause for…
PLR 200606027: Policy exchange between grantor trusts ignored for income tax
Two trusts created by the same person proposed to exchange four life insurance policies, with extra assets or a note to make up any difference in value. The person represented that both trusts were…
PLR 200606026: Inadvertent invalid S election cured for trust shareholders
A corporation elected S status, but one shareholder trust had not made an electing small business trust (ESBT) election, making the corporation's S election invalid. A second ineligible trust later…
PLR 200606025: LLC given time for corporate classification and S elections
A limited liability company intended to be taxed as an S corporation from its formation date, but missed both the Form 8832 entity classification election and the Form 2553 S corporation election.…
PLR 200606024: Foreign entity allowed late corporate classification election
A foreign entity wholly owned by a domestic corporation was meant to be taxed as a corporation when an affiliated group reorganized. It inadvertently missed the Form 8832 deadline for that…
PLR 200606023: Late S corporation election granted from incorporation
A corporation's sole shareholder intended it to be an S corporation from its incorporation date, but Form 2553 was not filed on time. The IRS found reasonable cause for the missed election deadline…
PLR 200606022: Four corporate separations receive reorganization rulings
A corporation owned by 25 shareholders proposed to split its business among itself and four new corporations to resolve shareholder disputes and reduce liability exposure. It would transfer assets…
PLR 200606021: Registered foreign shares meet dividend trading test
A foreign company with shares listed on a U.S. exchange asked whether both registered shares and restricted, unregistered shares met the trading test for qualified dividend treatment under section…
PLR 200606020: Business appraisal firm is not a personal service corporation
A C corporation that prepared business valuation reports asked whether it was a qualified personal service corporation under section 448. At least 95 percent of its work was determining values and…
PLR 200606019: Foreign business given time to elect corporate tax treatment
A foreign company intended to be taxed as a corporation from the date it began doing business in the United States, but did not file Form 8832 on time. The IRS found that it met the requirements for…
PLR 200606018: Single owner LLC granted late corporate classification election
A domestic limited liability company wholly owned by a corporation sought to elect corporate tax classification from a redacted date. Its tax advisor had not told it to make the election, so it…
PLR 200606017: Late rental real estate grouping election permitted
A taxpayer in a real property business said a tax preparer had failed to advise about the election to treat all rental real estate interests as one activity for the passive loss rules. The taxpayer…
PLR 200606016: Couple given time for rental real estate grouping election
A married couple said their tax preparer failed to advise them about electing to treat all their rental real estate interests as one activity for the passive loss rules. They filed their joint…
PLR 200606015: Late S election accepted from incorporation date
A corporation intended to elect S status from the date it was incorporated but missed the filing deadline. The IRS found reasonable cause for the late election and granted relief under section…
PLR 200606014: Missed trust elections do not permanently end S status
An S corporation had stock held through a grantor trust that became eleven separate trust shares after its owner died. When the temporary period allowing the postdeath trust to hold S stock ended,…
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.