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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IRS approves a foundation's set-aside for a matching grant to a community fund's historic restoration
A private foundation asked the IRS to approve a "set-aside," which lets it earmark money now for a specific project and still count it toward its required annual distributions, as long as it pays with…
IRS approves a foundation's set-aside for phase three of a historic building restoration
A private foundation asked the IRS to approve a "set-aside," which lets it earmark money now for a specific project and still count it toward the minimum amount it must distribute each year, as long a…
IRS approves a private foundation's set-aside for a historic restoration matching grant
A private foundation asked the IRS for permission to "set aside" money for a specific project instead of paying it out right away. Private foundations must distribute a minimum amount each year, and n…
IRS denies 501(c)(3) status to a cemetery organization
An organization whose only purpose is to hold title to and preserve a cemetery applied to be recognized as a tax-exempt charity under § 501(c)(3), using the streamlined Form 1023-EZ. The IRS denied th…
Late relief for a surviving spouse's estate-tax portability election
When someone dies, any unused portion of their federal estate-tax exclusion can be passed to a surviving spouse, but only if the estate makes a "portability" election on a timely filed estate tax retu…
Late relief to elect disregarded-entity status for a foreign company
A foreign company wholly owned by a single owner wanted to be treated as a disregarded entity for U.S. federal tax purposes, meaning it would be ignored as separate from its owner. To get that treatme…
S corporation gets relief after a shareholder's exempt status changed and disqualified it
A company had elected to be taxed as an S corporation. One of its shareholders was a charity described in § 501(c)(3), which the tax law allows to hold S corporation stock. Later the IRS retroactively…
S corporation gets inadvertent-termination relief after eleven trusts missed their ESBT elections
An S corporation's special tax status can terminate automatically if its stock is held by an ineligible shareholder. A trust can hold S corporation stock only if it qualifies as an Electing Small Busi…
Estate gets extra time to make a QTIP marital-deduction election after preparer's Schedule M error
When one spouse dies leaving property in a marital trust, the estate can defer estate tax by making a "QTIP" election under IRC § 2056(b)(7), which treats the trust property as passing to the survivin…
Corporate group gets extra time to elect to file a consolidated return
A parent corporation and its affiliated group wanted to file one combined (consolidated) federal income tax return, an election made under Treas. Reg. § 1.1502-75(a)(1) by timely filing that consolida…
Pension plan may keep using its substitute mortality tables after a change in plan sponsor
A company's pension plans had been approved to use their own experience-based "substitute" mortality tables (instead of the IRS standard tables) for funding calculations under IRC § 430. A problem aro…
IRS denies 501(c)(3) status to a group whose only activity is renting out a community center
An unincorporated association applied for § 501(c)(3) charity status using the streamlined Form 1023-EZ, stating it maintains a community center that residents can rent for meetings, parties, and gath…
IRS revokes a charity's 501(c)(3) status after it failed to produce records substantiating its exempt purpose
A § 501(c)(3) organization (which appears to run gaming, raffle, and meal fundraisers connected to youth sports) was selected for audit. The IRS made repeated attempts by mail and phone to obtain its …
IRS finds a self-declared social-welfare group does not qualify under 501(c)(4)
An organization incorporated in its state and began filing annual returns with the IRS without ever applying for exempt status. Because a § 501(c)(4) social welfare organization does not need a formal…
IRS revokes a charity's 501(c)(3) status after it went silent during an audit
The IRS selected a § 501(c)(3) charity for examination and repeatedly tried to reach it by mail and phone, but the organization never produced its records. The group appeared to have dissolved with th…
IRS revokes a social club's tax exemption for excessive non-member income
A tax-exempt social club (IRC § 501(c)(7)) owned a building with two halls it rented to both member and non-member groups. On audit, the IRS found the club's income from non-members exceeded the limit…
No estate-tax deduction for a charitable-remainder-trust payout the trustee can split between spouse and charity at will
This is internal Chief Counsel advice to an IRS area counsel, not a ruling to a taxpayer. A decedent left part of his estate to a charitable remainder unitrust (CRUT) paying 5% a year for his survivin…
Advisory fees pulled from an annuity's cash value are not a taxable distribution to the owner
A life insurance company (which files consolidated returns with a parent) plans to sell deferred annuity contracts designed to work alongside an investment adviser, who helps the owner choose among th…
Advisory fees pulled from an annuity's cash value are not a taxable distribution to the owner
A life insurance company plans to sell deferred annuity contracts designed to work alongside an investment adviser, who helps the owner choose among the contract's interest-crediting options. The advi…
Late Opportunity-Zone fund self-certification allowed after tax preparer missed the deadline
An LLC taxed as a partnership meant to certify itself as a Qualified Opportunity Fund (QOF), the vehicle that lets investors defer capital gains by reinvesting them in Opportunity Zones under IRC § 14…
Late portability election allowed so surviving spouse can use decedent's unused estate-tax exclusion
When someone dies without using all of their federal estate-tax exclusion, the leftover ("deceased spousal unused exclusion," or DSUE) can pass to the surviving spouse, but only if the estate makes a …
Extra time granted to elect 10-year write-off of research costs
A corporation that heads a consolidated group of companies wanted to spread its research and experimental (R&E) costs for one tax year as a deduction over 10 years, an option allowed by IRC § 59(e). T…
Fund gets more time to file the forms for a deficiency dividend deduction after its accountant missed the filing
Two regulated investment companies (RICs, essentially mutual funds) run by the same management firm combined when one merged into the other in a tax-free reorganization, closing the absorbed fund's ta…
Fund gets more time to file the forms for a deficiency dividend deduction after its accountant missed the filing
Two regulated investment companies (RICs, essentially mutual funds) run by the same management firm combined when one merged into the other in a tax-free reorganization, closing the absorbed fund's ta…
S corporation preserved after a trust missed its ESBT election
An S corporation's stock passed through a chain of trusts after its sole shareholder died. While that shareholder was alive, a grantor trust held the shares and qualified as an eligible S corporation …
S corporation preserved after a trust missed its QSST election
An S corporation's stock passed through a chain of trusts after its sole shareholder died. While that shareholder was alive, a grantor trust held the shares and qualified as an eligible S corporation …
S corporation saved after three trusts filed defective QSST elections
An S corporation's shares moved through a series of trusts after its original shareholder died. When that shareholder died, a grantor trust holding the stock stopped qualifying automatically, and the …
Estate gets extra time to make a late portability election for the surviving spouse
When one spouse dies without using up the full estate-and-gift tax exclusion, the leftover amount (the "deceased spousal unused exclusion," or DSUE) can be transferred to the surviving spouse, but onl…
Estate gets more time to steer its GST tax exemption to the grandchild's charitable trust
When a donor died, the residue of her revocable trust was split equally among three charitable remainder annuity trusts (CRATs), one each connected to her son, daughter, and grandson. All three trusts…
S corporation's accidental termination excused after a trust missed its ESBT election deadline
An S corporation had a trust as one of its shareholders. While the trust's original owner was alive, the trust was a grantor trust wholly owned by that person, which made it a permissible S corporatio…
High school scholarship procedures approved
A private foundation asked the IRS to approve, in advance, the way it awards a scholarship, so that the payments would not count as "taxable expenditures" that trigger excise tax under section 4945. T…
IRS denies 501(c)(6) business-league status to a common-area maintenance association for a development
An association was set up under a development's declaration of easements, covenants, conditions, and restrictions to own and maintain the common areas of one area (Area 4) of the development. Its memb…
IRS denies 501(c)(6) business-league status to a common-area maintenance association for a development
An association was set up under a development's declaration of easements, covenants, conditions, and restrictions to own and maintain the common areas of one area (Area 3) of the development. Its memb…
IRS denies 501(c)(6) business-league status to a common-area maintenance association for a development
An association was set up under a development's declaration of easements, covenants, conditions, and restrictions to own and maintain the common areas of one area (Area 2) of the development. Its memb…
IRS denies 501(c)(6) business-league status to a common-area maintenance association for a development
An association was set up under a development's declaration of easements, covenants, conditions, and restrictions to own and maintain the common areas of one area of the development. Its members are t…
IRS denies 501(c)(4) status to an ethnic mutual-aid society that pays members' funeral costs
A mutual-aid society formed by a group of friends of the same ethnic background, all immigrants from one country, applied to be recognized as a 501(c)(4) social welfare organization. Its main activity…
IRS denies 501(c)(3) status to a high school class fund set up to pay for reunions
A group formed by a high school graduating class's student government committee applied for 501(c)(3) status using the short Form 1023-EZ, claiming an educational purpose. During high school the class…
IRS denies 501(c)(12) status to a statewide insurance risk-sharing pool for water companies
An unincorporated association whose members are mutual water companies in one state applied to be recognized as tax-exempt under section 501(c)(12). That section exempts benevolent life insurance asso…
IRS revokes a cultural membership group's 501(c)(3) status for running only social activities and failing to keep records
A membership-based cultural and social organization had been recognized as a 501(c)(3) charity in 2009. On examination, the IRS found that the group operated almost entirely as a social club for its m…
How the section 6700 penalty for promoting abusive tax shelters applies to false statements and gross valuation overstatements
This is internal Chief Counsel advice, written as an email answering a question about case guidance. It explains how the penalty in section 6700 works. That penalty applies to a person who organizes, …
An estate too small to require a return gets 120 days to make a late portability election passing the deceased spouse's unused exclusion to the survivor
When someone dies, any unused portion of their federal estate-and-gift-tax exclusion can be passed to a surviving spouse, but only if the estate makes a "portability" election on a timely filed estate…
Investment advisory fees pulled from an annuity's cash value are not an "amount received" by the owner under section 72(e)
A life insurance company wanted to offer three kinds of deferred annuity contracts (variable, fixed-indexed, and hybrid) designed to be managed with the help of an investment adviser. The owner would …
Investment advisory fees pulled from an annuity's cash value are not an "amount received" by the owner under section 72(e)
A life insurance company wanted to offer three kinds of deferred annuity contracts (variable, fixed-indexed, and hybrid) designed to be managed with the help of an investment adviser. The owner would …
An S corporation gets 120 days to make late check-the-box elections for five foreign subsidiaries
An S corporation owned five foreign entities and wanted to set how each is classified for U.S. tax purposes. Under the "check-the-box" rules, an eligible entity picks its classification by filing Form…
A foreign entity gets 120 days to file a late check-the-box election to be taxed as a partnership
A business entity formed under foreign law wanted to be treated as a partnership for U.S. tax purposes. Under the "check-the-box" rules, an eligible entity can choose its classification by filing Form…
A foreign entity gets 120 days to file a late check-the-box election to be treated as a disregarded entity
A business entity formed under foreign law wanted to be treated as a disregarded entity for U.S. tax purposes, meaning it would not be treated as separate from its single owner. Under the "check-the-b…
A foreign entity gets 120 days to file a late check-the-box election to be treated as a disregarded entity
A business entity formed under foreign law wanted to be treated as a disregarded entity for U.S. tax purposes, meaning it would not be treated as separate from its single owner. Under the "check-the-b…
A foreign entity gets 120 days to file a late check-the-box election to be taxed as a partnership
A business entity formed under foreign law wanted to be treated as a partnership for U.S. tax purposes. Under the "check-the-box" rules, an eligible entity can choose its classification by filing Form…
A foreign entity gets 120 days to file a late check-the-box election to be taxed as a partnership
A business entity formed under foreign law wanted to be treated as a partnership for U.S. tax purposes. Under the "check-the-box" rules, an eligible entity can choose its classification by filing Form…
Investment advisory fees paid out of an annuity's cash value are not a taxable distribution to the owner
A life insurance company wanted to offer deferred annuity contracts designed to be managed with the help of an investment adviser. The owner would authorize the company to pull the adviser's fees (cap…
Investment advisory fees paid out of an annuity's cash value are not a taxable distribution to the owner
A life insurance company wanted to offer deferred annuity contracts designed to be managed with the help of an investment adviser. The owner would authorize the company to pull the adviser's fees (cap…
An estate too small to require a return gets 120 days to make a late portability election passing the deceased spouse's unused exclusion to the survivor
When someone dies, any unused portion of their federal estate-and-gift-tax exclusion can be passed to a surviving spouse, but only if the estate makes a "portability" election on a timely filed estate…
An estate too small to require a return gets 120 days to make a late portability election passing the deceased spouse's unused exclusion to the survivor
When someone dies, any unused portion of their federal estate-and-gift-tax exclusion can be passed to a surviving spouse, but only if the estate makes a "portability" election on a timely filed estate…
A parent company gets 75 days to file a late election waiving the net-operating-loss carryback into its former consolidated group
A group of companies left one consolidated tax group (their former parent's) and began filing their own consolidated return under a new common parent. When a corporation that carries net operating los…
IRS denies 501(c)(3) status to an adult volleyball club that mainly runs a recreational league
A club applied for recognition as a 501(c)(3) charity using the short Form 1023-EZ. Its stated purpose was to promote volleyball in its region by fielding teams, running local and regional leagues, ho…
The surviving company in a merger is the default agent that must sign consents extending the time to assess tax for a terminated consolidated group
When a group of related corporations files a single consolidated tax return, one entity, the "agent for the group," handles all dealings with the IRS for that year, including signing Form 872, the con…
A public company's plan to split off one business into a new company through an IPO and exchange offer qualifies as a tax-free divisive reorganization
A publicly traded parent company wanted to separate one of its business lines into a standalone public company. To do it, the parent formed a new subsidiary ("Controlled"), contributed that business t…
An estate too small to require a return gets 120 days to make a late portability election passing the deceased spouse's unused exclusion to the survivor
When someone dies, any unused portion of their federal estate-and-gift-tax exclusion can be passed to a surviving spouse, but only if the estate makes a "portability" election on a timely filed estate…
An S corporation gets 120 days to file the late QSub elections it forgot for two subsidiaries
An S corporation owned two lower-tier subsidiaries and intended to treat both as qualified subchapter S subsidiaries (QSubs). A QSub election makes a wholly owned subsidiary invisible for tax purposes…
A private foundation gets 60 days to make late elections its preparer forgot, treating grants from another foundation as distributions out of corpus
A private foundation regularly received grants from another private foundation under agreements that required it to pass the money along and to make a specific tax election each year. That election, u…
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.