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 1237006: IRS grants late IC-DISC election relief
The IRS granted a corporation 60 days to file Form 4876-A to elect IC-DISC status for its first taxable year. The corporation had filed the form one day late because of a clerical error and argued…
Extension granted for a late foreign-currency election
A U.S. corporation requested more time to make a foreign-currency gain or loss election for a controlled foreign corporation. The election had been omitted from a consolidated return even though the…
PLR 1231006: IRS permits early reelection of the foreign earned income exclusion
An individual who had previously elected the foreign earned income exclusion asked to elect it again before the normal waiting period had ended. The individual had revoked the earlier election after…
PLR 1228020: IRS rules on the tax treatment of government-allocated carbon credits
A real estate investment trust with a controlled foreign corporation that operated timber plantations asked about government-allocated carbon credits. The IRS ruled that the foreign corporation…
PLR 1228013: IRS allows net operating loss carryovers across residency changes
A resident alien planned to move abroad, become a nonresident alien, and later return to live in the United States while continuing a U.S. business through disregarded entities. The IRS ruled that…
PLR 1226011: IRS permits revocation of a foreign-currency election
A U.S. corporation asked to revoke an election made for its controlled foreign corporation under Treas. Reg. § 1.954-2(g)(4). The election affected how the corporation's foreign-currency gains and…
PLR 1224025: IRS grants extra time to elect IC-DISC status
The IRS granted a corporation 60 days to file Form 4876-A and make a late election to be treated as an interest charge domestic international sales corporation, or IC-DISC. The corporation formed…
PLR 1223006: IRS approves expansion of an existing 80/20 company's business
The IRS ruled that a foreign manufacturing and infrastructure company's planned expansion would not add a substantial new line of business under IRC § 871(l)(1)(A)(iii). The expansion involved…
PLR 1223001: IRS allows a change to the tax-book-value method for interest apportionment
The IRS permitted a domestic corporation that filed a consolidated federal return to change to the tax-book-value method for valuing assets when apportioning interest expense. The change applies for…
PLR 1222002: IRS permits a corporation to use tax book value for interest apportionment
The IRS permitted a domestic corporation filing a consolidated federal return to change from the fair market value method to the tax book value method for valuing assets when apportioning interest…
PLR 1221003: IRS grants extra time to elect IC-DISC status
The IRS granted a taxpayer 60 additional days to file Form 4876-A and make an election to be treated as an interest charge domestic international sales corporation, or IC-DISC. The taxpayer had been…
PLR 1216006: IRS grants extra time to make an IC-DISC election
A domestic corporation asked for more time to file Form 4876-A, the form used to elect IC-DISC status, effective from its incorporation date. The corporation believed the form had been timely filed,…
CCA 1212012: IRS advises when vessel service income is transportation income
The Office of Chief Counsel gave general advice about when income from personal services performed onboard a vessel may be treated as transportation income. It stated that this treatment applies…
PLR 1210020: Tax book value method permitted for interest expense apportionment
The IRS permitted a domestic consolidated-group corporation to use the tax book value method to value assets when apportioning interest expense. The taxpayer had been using the fair market value…
PLR 1210019: Tax book value method approved for interest expense apportionment
The IRS allowed a consolidated group to change from the fair market value method to the alternative tax book value method for valuing assets used to apportion interest expense. The change applied…
PLR 1206003: Same-country manufacturing exception applies to related-party sales
The IRS ruled that income earned by a controlled foreign corporation from reselling products bought from an unrelated manufacturer to related distribution entities would not be foreign base company…
CCA 1205007: Credit card interest follows the customer’s residence, while overseas ATM processing fees are U.S.-source income
The Office of Chief Counsel analyzed the source of credit card interest, certain fees treated as original issue discount, and fees for processing withdrawals on foreign ATMs. It concluded that…
PLR 1203010: Offshore barge excluded from controlled foreign corporation U.S. property
The IRS considered a controlled foreign corporation that owned a foreign-flagged combination barge used in offshore oil and gas work. The barge was a flat-bottom, surface-floating structure with…
PLR 1201016: IRS approves active-financing treatment for most sale gain
The IRS ruled on the treatment of gain recognized by a controlled foreign corporation when it sold a disregarded subsidiary that operated an active lending or finance business. The IRS concluded…
PLR 1152012: IRS permits reelection of the foreign earned income exclusion
The IRS permitted a taxpayer to reelect the IRC § 911 foreign earned income exclusion for a specified year and later tax years. The taxpayer had previously revoked the election after moving between…
PLR 1151019: IRS permits revocation of a foreign-tax safe-harbor election
The IRS consented to a corporation's revocation of its election to use a safe-harbor method for determining the foreign tax credit amount of qualifying levies imposed by a foreign country. The…
PLR 1151008: IRS approves foreign insurance reserve measurements
The IRS ruled that certain underwriting and loss reserves required by a foreign insurance regulator are an appropriate means of measuring income under IRC § 954(i)(4)(B)(ii). The reserves were…
PLR 1147022: IRS grants extra time to make an IC-DISC election
A corporation asked the IRS for more time to file Form 4876-A, the election required for IC-DISC treatment. The corporation had intended to operate as an IC-DISC, but its accounting and law firms…
PLR 1147003: IRS permits reelection of the foreign earned income exclusion
A taxpayer who had revoked a prior foreign earned income exclusion election asked the IRS for permission to elect the exclusion again before the normal waiting period ended. The taxpayer had changed…
Proposed foreign-tax redetermination regulations could guide periods after temporary rules expired
Chief Counsel's Office advice addressed which regulations applied to foreign tax redeterminations under IRC § 905(c). It explained that the 2007 temporary regulations included effective-date rules…
PLR 1143016: IRS consents to revoke foreign-tax safe harbor elections
The IRS consented to a corporation's revocation of safe harbor elections used to determine the foreign tax credit treatment of qualifying levies in eight countries. The consent applied to the…
PLR 1141003: IRS grants more time to elect IC-DISC status
A domestic corporation intended to elect interest charge domestic international sales corporation status for its first taxable year but did not timely file Form 4876-A. The corporation relied on its…
PLR 1140015: Taxpayer may switch to tax book value for interest-expense apportionment
A domestic corporation asked to change how it values assets when allocating and apportioning interest expense for federal income tax purposes. The corporation and its affiliated group had used the…
PLR 1138020: IRS grants extra time to file a branch profits tax waiver
A foreign corporation that had completely terminated its U.S. business was required to file Form 8848 to extend the assessment period for branch profits tax. Confusion among the corporation's tax…
PLR 1138019: IRS grants extra time to file a branch profits tax waiver
A foreign corporation that had completely terminated its U.S. business was required to file Form 8848 to extend the assessment period for branch profits tax. Confusion among the corporation's tax…
PLR 1132014: IRS grants 60 days to file an IC-DISC election
The IRS granted a domestic corporation 60 additional days to file Form 4876-A and elect to be treated as an interest charge domestic international sales corporation, or IC-DISC, for its first…
PLR 1132001: Late IC-DISC election granted after adviser oversight
The IRS granted a corporation 60 more days to file Form 4876-A and elect IC-DISC status for its first taxable year. The corporation had been formed for that purpose, but its accounting firm missed…
PLR 1131023: Factoring receivables did not convert ordinary business income into subpart F income
A taxpayer asked whether a controlled foreign corporation's factoring of certain receivables would create foreign personal holding company income under section 954. The IRS concluded that the…
PLR 1130006: IRS approves a private foundation’s transfer of assets to another foundation
A private foundation planned to transfer about half of its assets, consisting of cash and securities, to another private foundation established to pursue separate charitable objectives. The IRS…
PLR 1119026: corporation may change its interest-allocation valuation method prospectively
A domestic corporation asked to change the method it uses to value assets when apportioning interest expense for foreign tax credit purposes. The IRS did not permit the requested retroactive change…
PLR 1119011: IRS grants time to elect the foreign earned income exclusion
A taxpayer who lived and worked abroad for 345 full days asked for more time to elect the foreign earned income exclusion under IRC § 911. The taxpayer had not filed a timely United States tax…
PLR 1119010: IRS grants time to make a section 953(d) election
A foreign insurance company asked for more time to elect treatment as a domestic corporation for U.S. tax purposes under IRC § 953(d). The company missed the election deadline because its accountant…
PLR 1118010: IRS grants extra time to make an IC-DISC election
The IRS considered a domestic corporation that intended to be treated as an interest charge domestic international sales corporation, or IC-DISC, from its first taxable year. The corporation did not…
Section 965 taxable-income floor applies when computing the minimum tax credit limit
Chief Counsel Advice addressed whether the section 965 taxable-income floor applies when calculating the section 53(c) limit on minimum tax credits. The advice concludes that the floor applies to…
IRS grants extra time to elect IC-DISC status
The IRS granted a domestic corporation 60 additional days to file Form 4876-A, the election to be treated as an interest charge domestic international sales corporation. The corporation intended to…
CCA 1114021: Advice weighs whether a promissory note represented genuine debt
Chief Counsel Advice considered a foreign currency loss claimed by a taxpayer after a promissory note was exchanged for two notes denominated in another currency. The advice stated that whether the…
CCA 1112019: Foreign tax credit may be claimed for contested foreign taxes
Chief Counsel advised that when a taxpayer pays taxes to a foreign government while contesting its liability for those taxes, the taxpayer may claim a foreign tax credit for them under the cited…
PLR 1112005: Taxpayer received more time to make an IC-DISC election
A domestic corporation asked for more time to file Form 4876-A and shareholder consents so it could be treated as an interest charge domestic international sales corporation, or IC-DISC, for its…
CCA 1111009: foreign tax credit carrybacks, carryovers, and refund period
Chief Counsel advice addressed foreign tax credit carrybacks, carryovers, and a refund claim. It stated that excess foreign taxes carried forward under section 904(c) may generally be carried…
PLR 1108022: PFIC overlap rule applies to a controlled foreign corporation owned through a partnership
The IRS ruled on the application of the PFIC overlap rule to a foreign corporation owned through a domestic partnership. The foreign corporation was expected to be both a passive foreign investment…
PLR 1108021: PFIC overlap rule applies to a controlled foreign corporation owned through a partnership
The IRS ruled on the application of the PFIC overlap rule to a foreign corporation owned through a domestic partnership. The foreign corporation was expected to be both a passive foreign investment…
PLR 1108020: PFIC overlap rule applies to specified owners of a controlled foreign corporation
The IRS ruled on the application of the PFIC overlap rule to a foreign corporation owned through a domestic partnership. The foreign corporation was expected to be both a passive foreign investment…
PLR 1108013: Late IC-DISC election receives an extension
A domestic corporation intended to be treated as an interest charge domestic international sales corporation, or IC-DISC, from its formation. Its representative failed to file Form 4876-A within the…
PLR 1107009: PFIC overlap rule applies to a partnership's controlled foreign corporation
The IRS ruled for a partnership that wholly owns a foreign corporation through a disregarded entity. The foreign corporation was expected to be both a passive foreign investment company and a…
PLR 1107008: PFIC overlap rule applies to a partnership's controlled foreign corporation
The IRS ruled for a partnership that wholly owns a foreign corporation through a disregarded entity. The foreign corporation was expected to be both a passive foreign investment company and a…
PLR 1107007: PFIC overlap rule applies to a partnership's controlled foreign corporation
The IRS ruled for a partnership that wholly owns a foreign corporation through a disregarded entity. The foreign corporation was expected to be both a passive foreign investment company and a…
PLR 1107006: PFIC overlap rule applies to a partnership's controlled foreign corporation
The IRS ruled for a partnership that wholly owns a foreign corporation through a disregarded entity. The foreign corporation was expected to be both a passive foreign investment company and a…
PLR 1107005: PFIC overlap rule applies to a partnership's controlled foreign corporation
The IRS ruled for a partnership that wholly owns a foreign corporation through a disregarded entity. The foreign corporation was expected to be both a passive foreign investment company and a…
PLR 1107004: PFIC overlap rule applies to a partnership's controlled foreign corporation
The IRS ruled for a partnership that wholly owns a foreign corporation. The foreign corporation was expected to be both a passive foreign investment company and a controlled foreign corporation.…
CCA 1106007: Software-copy sales by a CFC do not themselves create a new § 956 investment
Chief Counsel advice considered a controlled foreign corporation that acquired rights to exploit U.S. copyrights under a cost sharing arrangement and then reproduced and sold software copies to U.S.…
PLR 1106003: PFIC overlap rule applies while a foreign subsidiary is a CFC
The IRS considered a domestic partnership that wholly owned a foreign corporation through a disregarded entity. The foreign corporation was expected to be both a controlled foreign corporation and a…
PLR 1105011: IRS permits an early reelection of the foreign earned income exclusion
A taxpayer who had revoked a prior IRC § 911 election asked to make the foreign earned income exclusion election again before the usual waiting period ended. The taxpayer had moved between foreign…
CCA 1104034: Informal voting control can make a foreign corporation a CFC
Chief Counsel advised that nominal or title ownership of foreign corporation stock does not control whether a person is a U.S. shareholder of a controlled foreign corporation. An informal…
CCA 1103041: Counsel considers whether Algeria's surplus tax is a creditable foreign income tax
Chief Counsel considered whether an Algerian surplus tax was the same as a petroleum exceptional profits tax and whether that levy could qualify for a foreign tax credit. The analysis states that a…
PLR 1103022: Corporation may revoke a foreign currency election for its controlled foreign corporations
A U.S. corporation asked to revoke an election that affected how its controlled foreign corporations treated net foreign currency gains and losses for foreign personal holding company income…
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.