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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Chief Counsel (FIP) declines to support an examination adjustment because it would require regulations
This is a short internal Chief Counsel Advice email from the Financial Institutions and Products (FIP) branch, responding to an examiner who was weighing whether to adjust a taxpayer's return for two …
S-corporation's inadvertent termination (shares held by non-qualifying trusts) is forgiven
An S corporation can only have certain kinds of shareholders. A trust generally qualifies only if it is a "grantor trust" treated as owned by an individual. Here two shareholders each set up a trust f…
S-corporation's inadvertent termination (shares held by non-qualifying trusts) is forgiven
An S corporation can only have certain kinds of shareholders. A trust generally qualifies only if it is a "grantor trust" treated as owned by an individual. Here two shareholders each set up a trust f…
S-corporation's inadvertent termination (shares held by non-qualifying trusts) is forgiven
An S corporation can only have certain kinds of shareholders. A trust generally qualifies only if it is a "grantor trust" treated as owned by an individual. Here two shareholders each set up a trust f…
Corporation's late S-election treated as timely for reasonable cause
A corporation wanted to be taxed as an S corporation from a specific date but never filed a proper election (Form 2553) on time. Its sole shareholder had, however, filed personal returns for every yea…
Estate gets extra time to elect estate-tax "portability" for a surviving spouse
When one spouse dies without using up their federal estate-tax exemption, the estate can elect "portability" to pass the unused amount (the DSUE) to the surviving spouse. That election is normally mad…
Final denial of 501(c)(3) exemption to a vintage sports-car enthusiast club operated for social purposes
A membership club built around a particular vintage sports car (referred to only as "D") applied for charitable tax-exempt status under section 501(c)(3) using the short Form 1023-EZ. The club runs dr…
Revocation of 501(c)(3) status for failing the operational test and not keeping or producing records
The IRS revoked the tax-exempt status of a charity that had been recognized under section 501(c)(3) as a public charity. The organization's stated purpose was to help poor and underprivileged children…
Revocation of 501(c)(3) status where training-fee income passes through to a for-profit run by the director
The IRS revoked the tax-exempt status of an organization that had been recognized under section 501(c)(3) and treated as a public charity under section 509(a)(2). The group collected training fees fro…
Revocation of 501(c)(7) social-club exemption for public use of facilities and excess nonmember income
The IRS revoked the tax-exempt status of a social club recognized under section 501(c)(7). A 501(c)(7) club is meant to be supported mainly by its members and operated substantially for the pleasure a…
Revocation of 501(c)(7) social-club exemption for investment income exceeding the nonmember limit
The IRS revoked the tax-exempt status of a members' club recognized under section 501(c)(7). The club's stated purpose was educating members in the safe handling of firearms and conservation, and memb…
Revocation of 501(c)(7) social-club exemption where endowment investment income exceeded the nonmember limit
The IRS revoked the tax-exempt status of a family genealogical society recognized under section 501(c)(7). The society existed to research and publish the history and genealogy of families sharing a s…
Revocation of 501(c)(3) status for failure to produce records for audit
The IRS revoked the tax-exempt status of an organization that had been recognized under section 501(c)(3) after filing the short Form 1023-EZ. When the IRS selected the group for a routine audit to co…
Revocation of 501(c)(7) social-club exemption for living on investment income and lacking individual membership
The IRS revoked the tax-exempt status of a social club recognized under section 501(c)(7). The club ran a social hall for a fraternal society, letting members use it for meetings, lectures, and meals,…
Revocation of a 509(a)(3) supporting organization for private benefit, inflated gift-in-kind reporting, and illegal fundraising practices
The IRS revoked the tax-exempt status of a supporting organization recognized under section 509(a)(3), a type of charity that exists to support one or more specified public charities. This organizatio…
When a multi-step transaction is "entered into" for the codified economic substance doctrine
This is an informal email from IRS Chief Counsel answering a colleague's question about the codified economic substance doctrine in section 7701(o). That doctrine, added in 2010, lets the IRS disregar…
Automatic extension of time to file Form 5500 employee benefit plan returns
This is an internal IRS Chief Counsel email passing along an answer from the Procedures and Administration office about a project a colleague was working on. The specific question and the office's ful…
Section 1.1502-13 redetermines a consolidated group's extra partnership depreciation deductions to reach a single-entity result
The IRS Office of Chief Counsel issued this advice to a field attorney handling a large corporation's audit protest. A consolidated group (corporations that file one joint return) shifted interests in…
120-day extension granted for a surviving spouse's estate to make a portability (DSUE) election
A surviving spouse's representative asked the IRS for more time to make a "portability" election under section 2010(c)(5)(A), which lets a surviving spouse use the deceased spouse's unused estate-tax …
Reasonable cause found to treat a late S corporation election as timely on the intended date
A corporation's two shareholders intended it to be taxed as an S corporation starting from a specific date, but the company missed the deadline to file Form 2553 and mistakenly filed a regular C corpo…
LLC granted extensions to elect corporate (association) status and late S corporation status
An LLC intended, from its formation date, both to be treated as a corporation (an "association taxable as a corporation") and to be taxed as an S corporation, but it never filed the required Form 2553…
120-day extension granted for an estate to make a portability (DSUE) election
A deceased person's estate asked the IRS for more time to make a "portability" election under section 2010(c)(5)(A), which lets a surviving spouse use the deceased spouse's unused estate-tax exclusion…
Extension granted to make a section 336(e) election treating an S corp stock sale as an asset sale
When a buyer acquires all the stock of a corporation, the parties can elect under section 336(e) to treat the stock sale as if it were a sale of the company's assets, which can give the buyer a steppe…
120-day extension for a partnership to make a GILTI high-tax exclusion election for its CFC
US shareholders of a controlled foreign corporation (CFC) generally must include the CFC's "global intangible low-taxed income" (GILTI) in their income each year, but they can elect a "high-tax exclus…
120-day extension for a partnership to make a GILTI high-tax exclusion election for its CFC
US shareholders of a controlled foreign corporation (CFC) generally must include the CFC's "global intangible low-taxed income" (GILTI) in their income each year, but they can elect a "high-tax exclus…
120-day extension for a partnership to make a GILTI high-tax exclusion election for three CFCs
US shareholders of a controlled foreign corporation (CFC) generally must include the CFC's "global intangible low-taxed income" (GILTI) in their income each year, but they can elect a "high-tax exclus…
120-day extension for a partnership to make a GILTI high-tax exclusion election for three CFCs
US shareholders of a controlled foreign corporation (CFC) generally must include the CFC's "global intangible low-taxed income" (GILTI) in their income each year, but they can elect a "high-tax exclus…
120-day extension for a partnership to make a GILTI high-tax exclusion election for its CFC
US shareholders of a controlled foreign corporation (CFC) generally must include the CFC's "global intangible low-taxed income" (GILTI) in their income each year, but they can elect a "high-tax exclus…
120-day extension for a partnership to make a GILTI high-tax exclusion election for five CFCs
US shareholders of a controlled foreign corporation (CFC) generally must include the CFC's "global intangible low-taxed income" (GILTI) in their income each year, but they can elect a "high-tax exclus…
120-day extension for a partnership to make a GILTI high-tax exclusion election for five CFCs
US shareholders of a controlled foreign corporation (CFC) generally must include the CFC's "global intangible low-taxed income" (GILTI) in their income each year, but they can elect a "high-tax exclus…
Extension granted to make a section 338(g) election for a foreign purchaser's acquisition of a CFC
When one corporation buys all the stock of another in a "qualified stock purchase," it can make a section 338 election to treat the deal as if it had instead bought the target's assets, which resets t…
Late Form 8996 accepted as timely, letting an LLC self-certify as a Qualified Opportunity Fund
A Qualified Opportunity Fund (QOF) is an investment vehicle that gets special capital-gains tax benefits for investing in designated low-income "opportunity zones," and an entity self-certifies as a Q…
Consent granted to reelect S corporation status before the five-year waiting period, and to treat it as timely
When a corporation's S election is terminated, section 1362(g) generally bars it from electing S status again for five years unless the IRS consents. Here a company's S election ended when its sole sh…
Extension granted to make the 70/30 safe-harbor election for merger success-based fees
Fees paid to facilitate a merger or acquisition generally must be capitalized rather than deducted, and a fee that is contingent on the deal closing (a "success-based fee") is presumed to facilitate t…
Final revocation of a social club's 501(c)(7) exemption for too much investment and nonmember income
The IRS issued a final adverse determination stripping a small recreational social club of its self-declared tax-exempt status under IRC Section 501(c)(7). A 501(c)(7) club stays exempt only if member…
501(c)(3) exemption revoked for inadequate records and failing the operational test
The IRS revoked a charity's tax-exempt status under IRC Section 501(c)(3), retroactive to a stated effective date. The organization was formed to provide educational programs about the benefits of ass…
IRS revokes a purported charity that ran bargain-sale real-estate deals, kept no charitable records, and funneled excess benefits to its president through undisclosed controlled companies
The IRS revoked a nonprofit's 501(c)(3) exemption after an audit found it operated as a real-estate business, not a charity. According to the examination, the organization had obtained its exempt stat…
501(c)(7) social club revoked for recurring nonmember rental income over the threshold
The IRS revoked a recreational club's tax-exempt status as a social club under IRC Section 501(c)(7). A 501(c)(7) club must be supported substantially by its members and can take in only limited outsi…
501(c)(8) fraternal society's exemption revoked for failing to produce records
The IRS revoked the tax-exempt status of a fraternal beneficiary society described in IRC Section 501(c)(8). The reason was recordkeeping, not the group's fraternal purpose. Every exempt organization …
501(c)(3) scholarship foundation revoked for awarding scholarships to a related club's employees
The IRS revoked a scholarship foundation's tax-exempt status under IRC Section 501(c)(3). The foundation was affiliated with a social club exempt under Section 501(c)(7), and it awarded almost all of …
501(c)(3) foundation revoked because nearly all disbursements benefited private individuals
The IRS revoked a nonprofit's tax-exempt status under IRC Section 501(c)(3). The organization was set up to run a program letting people designate contributions to pre-qualified charities, and during …
120-day extension to make a late estate-tax portability (DSUE) election
When someone dies without using all of their federal estate and gift tax exclusion, the surviving spouse can inherit the unused amount, called the deceased spousal unused exclusion (DSUE), but only if…
75-day extension to make a late election waiving a consolidated group's NOL carryback
A corporate group that files a consolidated tax return had a consolidated net operating loss (CNOL) for one year. Normally a net operating loss can be carried back to earlier years, but a group can el…
75-day extension to file a late section 336(e) election for an S corporation target
When a buyer acquires at least 80 percent of a corporation's stock, the parties can elect under IRC Section 336(e) to treat the stock sale as if it were a sale of the company's assets for tax purposes…
60-day relief to treat a late Form 8996 (Qualified Opportunity Fund self-certification) as timely
A partnership was set up to invest in an Opportunity Zone, a program under IRC Section 1400Z-2 that gives tax benefits for putting capital gains into distressed areas through a Qualified Opportunity F…
Inadvertent S corporation termination relief after a trust shareholder became ineligible
A company taxed as an S corporation can lose that status if it ends up with a shareholder that is not allowed to own S corporation stock. Here, some of the company's shares were held by a trust. While…
120-day extension to make a late estate-tax portability (DSUE) election
When someone dies without using all of their federal estate and gift tax exclusion, the surviving spouse can inherit the unused amount, called the deceased spousal unused exclusion (DSUE), but only if…
Consent to revoke a section 643(e)(3) election that failed because of the related-party loss rule
An estate had elected to treat a decedent's revocable trust as part of the estate (an IRC Section 645 election). During one year the trust distributed property to the decedent's surviving spouse, who …
120-day extension to make a late estate-tax portability (DSUE) election
When someone dies without using all of their federal estate and gift tax exclusion, the surviving spouse can inherit the unused amount, called the deceased spousal unused exclusion (DSUE), but only if…
Modifying a pre-1985 grandfathered trust for a disabled beneficiary keeps its GST-tax exemption
Trusts that became irrevocable before September 25, 1985 are "grandfathered" and generally exempt from the generation-skipping transfer (GST) tax, a tax on transfers that skip a generation. This grand…
Modifying a pre-1985 grandfathered trust for a disabled beneficiary keeps its GST-tax exemption
Trusts that became irrevocable before September 25, 1985 are "grandfathered" and generally exempt from the generation-skipping transfer (GST) tax, a tax on transfers that skip a generation. This grand…
A market-rate solar-plus-storage facility is not "public utility property," so the normalization rules do not apply
A regulated electric utility is investing, through a chain of subsidiaries and a partnership that includes outside investors, in a solar project paired with a battery storage system. The tax question …
Relief treating a late Form 8996 (Qualified Opportunity Fund self-certification) as timely
A newly formed LLC, taxed as a partnership, was set up to invest in an Opportunity Zone under IRC Section 1400Z-2. To become a Qualified Opportunity Fund (QOF), it had to file Form 8996 with its first…
Retiree gets more time to convert four years of ineligible Roth IRA contributions
A taxpayer contributed to a Roth IRA for four years, then learned from her daughter that her income was above the limit that lets a person fund a Roth, so those contributions were not allowed. By then…
Married couple gets extra time to undo years of ineligible Roth IRA contributions
A married couple contributed to their Roth IRAs for eight years, but their income was too high to be eligible, so those contributions were improper. Their financial advisor never warned them about the…
IRS revokes 501(c)(3) status of an alumni support group that failed the supporting-organization responsiveness test
A charity can avoid being treated as a private foundation by qualifying as a "supporting organization" under IRC § 509(a)(3), but only if it has the right relationship with the public charity it suppo…
IRS revokes 501(c)(3) status of an advocacy group that stopped responding to the audit
To keep tax exemption under IRC § 501(c)(3), an organization must show it actually operates for charitable or educational purposes, and it must keep records and answer the IRS when audited. This organ…
IRS revokes 501(c)(7) status of a club funded almost entirely by investment income
A social club exempt under IRC § 501(c)(7) must be a real club: members who commingle for social and recreational purposes, supported mainly by dues, with no more than 35% of gross receipts coming fro…
IRS revokes 501(c)(7) status of a social club whose outside-membership income exceeded the 35% limit
A social club exempt under IRC § 501(c)(7) may take in no more than 35% of its gross receipts from sources outside its membership, a category that includes investment income. This club, which was open…
IRS revokes 501(c)(3) status of a charity that sold its operations and existed only to wind down and pay its directors
To keep tax exemption as a charity under IRC § 501(c)(3), an organization must actually operate for charitable purposes; it fails the "operational test" if more than an insubstantial part of what it 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.