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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501(c)(6) denied to a farmers'-market group that serves its own vendors, not a whole line of business
An organization that runs a weekly summer farmers' market (plus a one-day festival) applied to be recognized as a tax-exempt business league under section 501(c)(6), and the IRS denied it. To qualify …
501(c)(3) revoked because its charter gives assets to members on dissolution (fails the organizational test)
A regional association that coordinates member-club shows and awards an annual scholarship, recognized as a 501(c)(3) public charity (classified under 509(a)(2)), lost its exemption on a technical but…
IRS may offset COVID-19 employment tax credits against a PEO's own tax debts, even for credits tied to client wages
This Chief Counsel Advice, issued as an internal email, addresses whether the IRS can apply (offset) refundable COVID-19 employment tax credits, such as the employee retention credit (ERC) and the cre…
Late election to waive the NOL carryback period granted to a consolidated group (9100 relief)
A parent company that files a consolidated tax return for its corporate group asked the IRS for extra time to make a missed election. When a consolidated group has a net operating loss (a "CNOL"), it …
Cloud-software company is not a "reputation or skill" business, so its stock can qualify for the section 1202 gain exclusion
A founder who sold his stock in an enterprise cloud-software company asked the IRS to confirm that the company is not the kind of business disqualified from the section 1202 tax break for "qualified s…
S corporation's inadvertent termination forgiven under section 1362(f) after ineligible LLC shareholders bought in
A company that had elected to be taxed as an S corporation accidentally lost that status when three limited liability companies (one taxed as a partnership, two owned by corporations) bought shares. A…
Late Form 1128 to change an accounting period allowed under 9100 relief
A taxpayer wanted to change its tax year (accounting period) and needed to file Form 1128 to get IRS permission, but missed the filing deadline. Under Rev. Proc. 2002-39, Form 1128 must be filed by th…
Partnership allowed to revoke an accidental election out of the installment method
A partnership sold property and took back promissory notes payable over several years, so the gain qualified to be reported under the "installment method," which spreads the taxable gain over the year…
Credit union must file Forms 1099-C for debt written off in a class-action settlement (an "identifiable event")
A credit union asked the IRS to rule that it did not have to file Forms 1099-C (the information return for cancelled debt) when it wrote off deficiency balances as part of a class-action settlement. T…
S corporation's inadvertent termination forgiven where a trust shareholder missed its ESBT election
A company taxed as an S corporation had a shareholder that was a trust. The trust started out as a grantor trust (treated as owned by an individual, which is an eligible S corporation shareholder), bu…
Late check-the-box election to be taxed as a corporation allowed under 9100 relief
A limited liability company wanted to be classified as a corporation for federal tax purposes (an "entity classification," or "check-the-box," election) effective on a chosen date, but it missed the d…
Late QSub election allowed under 9100 relief
An S corporation bought another corporation as a wholly owned subsidiary and meant to treat it as a qualified subchapter S subsidiary (a "QSub"), which lets the IRS ignore the subsidiary as a separate…
Inadvertent S-corp termination relief after trust missed its ESBT election
A corporation was taxed as an S corporation, which passes its income through to shareholders instead of paying corporate tax. S corporations can only have certain kinds of shareholders. When the compa…
Inadvertent S-corp termination relief after trust missed its ESBT election
A corporation was taxed as an S corporation, which passes its income through to shareholders instead of paying corporate-level tax. S corporations may only have certain kinds of shareholders. When the…
Inadvertent invalid S election relief where an IRA held the stock
A company elected to be taxed as an S corporation, which passes income through to its shareholders. S corporations may only have eligible shareholders. From the very start, though, some of the company…
9100 relief for a late Section 59(e) election to amortize R&D costs over 10 years
A consolidated group of corporations wanted to spread the deduction for its research and experimental (R&D) costs over 10 years rather than take them all at once, an option Code § 59(e) allows if the …
Consent to a retroactive QEF election after an advisor missed the foreign company's PFIC status
A U.S. taxpayer owned an interest in a foreign company that was a passive foreign investment company (a "PFIC"). PFIC ownership triggers unfavorable U.S. tax rules unless the shareholder makes a "qual…
IRS revokes a fraternity chapter-house club's 501(c)(7) exemption for leasing its house to nonmembers and losing member fellowship
A tax-exempt social club, described in the record as a fraternity or sorority chapter-house corporation, lost its federal income tax exemption. To qualify under IRC Section 501(c)(7), a club must exis…
IRS denies 501(c)(7) exemption to a club funded by hall rentals, catering, and a bar that also pays member death benefits
An organization applied to be recognized as a tax-exempt social club under IRC Section 501(c)(7), and the IRS turned it down. A qualifying social club must be run mainly for the pleasure and recreatio…
IRS denies 501(c)(3) status to a fee-based health care sharing membership program as serving private, commercial interests
An organization that runs a health care sharing program applied for charitable tax-exempt status under IRC Section 501(c)(3), and the IRS denied it. Members pay a monthly fee and, in return, get telem…
IRS denies 501(c)(3) status to a homeowners association operated for the private benefit of its residents
A homeowners association applied for charitable tax-exempt status under IRC Section 501(c)(3) using the streamlined Form 1023-EZ, and the IRS denied it. The association maintains common areas, enforce…
IRS revokes a dormant Type I supporting organization's 501(c)(3) exemption for years of no exempt activity
A charity that had been recognized as a Type I supporting organization under IRC Section 501(c)(3) lost its exemption because it stopped doing anything. To keep 501(c)(3) status, an organization must …
IRS grants a partnership 120 more days to make a late Section 754 basis-adjustment election after a partner's death
A partnership asked the IRS for extra time to make a late election under Section 754 of the tax code, and the IRS agreed. A Section 754 election lets a partnership adjust the tax basis of its assets w…
IRS grants a lower-tier partnership 120 more days to make a late Section 754 basis-adjustment election after a partner's death
A partnership asked the IRS for extra time to make a late Section 754 election, and the IRS granted it. A Section 754 election lets a partnership adjust the tax basis of its assets when a partner dies…
IRS grants a corporate parent 75 more days to make a late election to file a consolidated return
A parent corporation that heads a group of affiliated companies wanted to file one combined ("consolidated") federal income tax return for the whole group, but it missed the deadline to make that elec…
IRS grants an LLC 120 more days to make a late Section 754 basis-adjustment election after new members bought in
A limited liability company taxed as a partnership meant to make a Section 754 election but missed the filing deadline. A Section 754 election lets a partnership adjust the tax basis of its assets whe…
Settling a grandfathered trust's ambiguous per-stirpes clause keeps its GST-exempt status and triggers no gift or income tax
A family trust created before September 25, 1985 is "grandfathered," meaning it is exempt from the generation-skipping transfer (GST) tax. The trust's will language directed that, when the last of cer…
Settling a grandfathered trust's ambiguous per-stirpes clause keeps its GST-exempt status and triggers no gift or income tax
A family trust created before September 25, 1985 is "grandfathered," meaning it is exempt from the generation-skipping transfer (GST) tax. The trust's will language directed that, when the last of cer…
Settling a grandfathered trust's ambiguous per-stirpes clause keeps its GST-exempt status and triggers no gift or income tax
A family trust created before September 25, 1985 is "grandfathered," meaning it is exempt from the generation-skipping transfer (GST) tax. The trust's will language directed that, when the last of cer…
Settling a grandfathered trust's ambiguous per-stirpes clause keeps its GST-exempt status and triggers no gift or income tax
A family trust created before September 25, 1985 is "grandfathered," meaning it is exempt from the generation-skipping transfer (GST) tax. The trust's will language directed that, when the last of cer…
Settling a grandfathered trust's ambiguous per-stirpes clause keeps its GST-exempt status and triggers no gift or income tax
A family trust created before September 25, 1985 is "grandfathered," meaning it is exempt from the generation-skipping transfer (GST) tax. The trust's will language directed that, when the last of cer…
IRS treats a late Form 8996 as timely, letting an LLC self-certify as a Qualified Opportunity Fund
An investment LLC set up to develop real estate in Qualified Opportunity Zones wanted to be treated as a Qualified Opportunity Fund (QOF), which requires filing Form 8996 with a timely tax return each…
IRS rules a facility-relocation reimbursement deal is a long-term construction contract accounted for under the percentage-of-completion method
A company provides services to a customer at facilities the company owns on land the customer owns, under an easement that lets the customer force a relocation of those facilities. The customer exerci…
9100 relief to treat a late Form 8996 QOF self-certification as timely
A limited partnership was formed to be a qualified opportunity fund (a "QOF"), the vehicle investors use to defer capital gains by investing in low-income "opportunity zones" under Code § 1400Z-2. To …
9100 relief to treat a late Form 8996 QOF self-certification as timely
A limited liability company, taxed as a partnership, was formed to be a qualified opportunity fund (a "QOF"), the vehicle that lets investors defer capital gains by investing in low-income "opportunit…
Late corporate-classification and S-corporation elections allowed for an LLC
A limited liability company wanted to be taxed as an S corporation. To get there, an LLC normally has to take two steps: first elect (on Form 8832) to be treated as a corporation, then elect S-corpora…
FCC spectrum-clearing payments and replacement satellites qualify for Section 1033 nonrecognition
A satellite communications company held FCC licenses to use part of the radio spectrum called the "C-band." The FCC ordered satellite operators to vacate the lower portion of the C-band so it could be…
9100 relief to file a late Form 8996 QOF self-certification
A limited liability company, taxed as a partnership, was formed to operate as a qualified opportunity fund (a "QOF"), the vehicle investors use to defer capital gains by investing in low-income "oppor…
9100 relief for a foreign entity's late check-the-box election to be a partnership
A foreign business entity wanted to be treated as a partnership for U.S. federal tax purposes. Under the "check-the-box" rules (Treas. Reg. § 301.7701-3), an eligible entity can choose its tax classif…
IRS revokes, going forward only, part of an earlier ruling on a taxpayer's 6041 reporting duty
The IRS had earlier issued a private letter ruling (PLR 202016001) to this taxpayer that, in part, addressed whether the taxpayer had to file information returns under Code § 6041 for payments it make…
IRS revokes a charity's 501(c)(3) exemption after it would not let the agency examine its records
This is a final adverse determination letter revoking an organization's tax-exempt status under Section 501(c)(3). The organization ran an annual performing and visual arts festival and had been recog…
IRS revokes a 501(c)(3)'s exemption after it would not produce records to prove it met the organizational and operational tests
This is a final adverse determination revoking an organization's tax-exempt status under Section 501(c)(3). The group had obtained recognition by filing a streamlined Form 1023-EZ and was later select…
IRS revokes a swim club's 501(c)(7) exemption for excess nonmember income from renting its parking lot
This is a final adverse determination revoking a social club's tax-exempt status under Section 501(c)(7). The club was formed to run a swimming pool for its members, but the pool closed for lack of pa…
IRS revokes a 501(c)(3)'s exemption, finding it ran a commercial behavioral-health business, was not a church, and let earnings inure to its officers
This is a final adverse determination revoking an organization's 501(c)(3) exemption after a church tax inquiry and examination under Section 7611. The group was recognized as a charity but later repo…
IRS denies 501(c)(4) status to an economic-development corporation that buys, develops, and sells land like a for-profit
An organization applied for tax-exempt status as a social welfare group under Section 501(c)(4). It was an economic-development corporation for a small rural town, formed to attract businesses and res…
Every FSA claim must be substantiated by an independent third party, or the whole cafeteria plan's benefits become taxable
This Chief Counsel Advice tells IRS employment tax policy staff how strict the substantiation rules are for health and dependent care flexible spending arrangements (FSAs) inside a Section 125 cafeter…
IRS grants a corporate parent 60 more days to make a late consolidated-return election
A corporate parent wanted its affiliated group of corporations to file a single consolidated federal income tax return, with itself as the common parent, for a particular tax year. That choice, the co…
Independent retirement living facilities are not "health care facilities," so a REIT's TRS may run them and resident services keep the rents qualifying
A subsidiary of a real estate investment trust (REIT) owns age-restricted "independent retirement living" facilities and asked the IRS three related questions about the special REIT rules. REITs get f…
Independent retirement living facilities are not "health care facilities," so a REIT's TRS may run them and resident services keep the rents qualifying
A real estate investment trust (REIT) that invests in senior housing, post-acute communities, and outpatient medical properties asked the IRS the same three questions posed in a companion ruling (2023…
IRS grants 90 more days to make a late IC-DISC election after a defective Form 4876-A
A company was set up to be an interest charge domestic international sales corporation (IC-DISC), a special export-incentive entity that earns commissions on a related company's exports and gives its …
Inadvertent S-corp termination relief after a trust missed its QSST election following the owner's death
A corporation was taxed as an S corporation, which passes income through to eligible shareholders. One shareholder held his stock through a grantor trust (treated as owned by him for tax purposes, so …
Inadvertent S-corp termination relief after a trust missed its QSST election following the owner's death
A corporation was taxed as an S corporation, which passes income through to eligible shareholders. One shareholder held his stock through a grantor trust (treated as owned by him, so it was a permitte…
Estate gets extra time to make a late portability election
When one spouse dies without using all of their federal estate tax exemption, the leftover amount (the "deceased spousal unused exclusion," or DSUE) can be passed to the surviving spouse. But this "po…
Buyer gets late-election relief to treat an S-corp stock purchase as an asset purchase
A partnership bought all the stock of an S corporation through a disregarded subsidiary. The parties intended to treat the deal, for tax purposes, as if the S corporation had sold its assets rather th…
Court-approved settlement of an ambiguous trust term triggers no GST, gift, or income tax
An old trust, created and made irrevocable before September 25, 1985 (so it is grandfathered as exempt from generation-skipping transfer, or GST, tax), had a will provision that was ambiguous about wh…
Court-approved settlement of an ambiguous trust term triggers no GST, gift, or income tax
An old trust, created and made irrevocable before September 25, 1985 (so it is grandfathered as exempt from generation-skipping transfer, or GST, tax), had a will provision that was ambiguous about wh…
Foreign entity gets late-election relief to be taxed as a corporation
A foreign business entity meant to be treated as a corporation for U.S. tax purposes from the day it was formed, which requires filing Form 8832 (an "entity classification" or "check-the-box" election…
Laid-off startup employee gets more time to make a QSBS gain-rollover election
An early startup employee held qualified small business stock (QSBS), sold some of it after being laid off, and within 60 days used the proceeds to buy more stock in the same company. Section 1045 let…
Partnership gets late-election relief to deduct demolished building components
A partnership renovated a building it owned, demolishing parts of it (walls, windows, roofing, plumbing, HVAC, wiring). When you demolish part of a depreciable building, tax rules let you make a "part…
Fund gets late-election relief to self-certify as a Qualified Opportunity Fund
Investors rolled capital gains into an LLC intending it to be a Qualified Opportunity Fund (QOF), a vehicle that lets taxpayers defer (and potentially reduce) tax on gains reinvested in economically d…
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.