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 200206002: Counsel advises against prematurely closing related lease stripping audits
Examination teams auditing lease stripping transactions sometimes needed to close related parties' tax years before resolving whether the main taxpayer's deductions were allowable. Chief Counsel…
CCA 200206001: Chapter 12 plan may pay administrative taxes alongside other claims
Counsel considered whether a Chapter 12 bankruptcy plan could distribute money to prepetition unsecured creditors while an administrative tax expense remained unpaid. It advised that Bankruptcy Code…
PLR 200205050: Foreign subsidiary employees may join parent company's ESOP
A U.S. company asked whether two U.S. citizen employees of its wholly owned foreign subsidiary could participate in the company's employee stock ownership plan while receiving foreign earned income.…
PLR 200205049: Transfers of two foundations' assets to a third foundation
A charitable trust and a charitable corporation planned to transfer all their assets to a third private foundation controlled by the same people. The corporation would merge into the recipient, and…
PLR 200205048: Partial transfers between private foundations require oversight
A private foundation planned to transfer about two-thirds of its assets to two other private foundations. The IRS ruled that the transfers qualified under section 507(b)(2), would not terminate the…
Other 200205047: December 2001 collection and bankruptcy bulletin
This December 2001 IRS Chief Counsel bulletin collects court decisions and previously released advice about tax collection, bankruptcy, and summonses. It discusses Tax Court jurisdiction in…
CCA 200205046: Agency requesting a refund offset bears automatic stay risk
Chief Counsel considered whether the IRS could be sued when a tax refund offset requested by another agency violated a bankruptcy automatic stay. The question arose after a state sought to apply a…
CCA 200205045: Priority of interest on tax claims after bankruptcy conversion
A debtor's Chapter 11 bankruptcy case was converted to a Chapter 7 liquidation while administrative tax liabilities remained unpaid. Chief Counsel advised that interest accrued on those taxes before…
PLR 200205044: ESOP share purchase right does not create a second stock class
An S corporation's employee stock ownership trust acquired all of its outstanding shares. A stock purchase agreement gave the company's previously allocated ESOP shares a minimum purchase price…
PLR 200205043: More time to file dual consolidated loss statements
A taxpayer missed the deadline to file statements and annual certifications concerning dual consolidated losses of two entities. It requested an extension under the discretionary relief rules in…
PLR 200205042: Fund may revoke its distribution timing election
A regulated investment company had elected to use its calendar tax year instead of the period ending October 31 when calculating part of its required distributions under section 4982. It asked to…
PLR 200205041: Late S corporation election granted from incorporation
A corporation's sole shareholder intended to elect S corporation status from the company's incorporation date, but the election was not filed on time. The IRS found reasonable cause for the missed…
PLR 200205040: Estate receives time for a reverse QTIP election
An estate's tax return claimed marital deductions for two trusts but omitted the reverse QTIP election and generation-skipping transfer (GST) exemption allocation. The executor said he relied on a…
PLR 200205039: S election effective from incorporation despite missed filing
A corporation's shareholder intended S corporation treatment from the company's incorporation date, but no election was filed on time. The IRS found reasonable cause for the missed deadline and…
PLR 200205038: Shareholders' late S election receives relief
A corporation's shareholders wanted S corporation status effective when the company was incorporated, but the election was not filed on time. The IRS found reasonable cause for the missed filing and…
PLR 200205037: Late section 338 election for foreign stock purchase
An S corporation, acting through a disregarded foreign subsidiary, acquired all the stock of a foreign corporation but did not file a valid section 338(g) election by its deadline. The IRS found…
PLR 200205036: More time to elect qualified S subsidiary status
An S corporation acquired all the stock of another corporation and intended to elect qualified S subsidiary (QSub) treatment from the acquisition date. It failed to file Form 8869 on time. The IRS…
PLR 200205035: Earlier acquisitions and preferred stock do not derail spin-off
A company sought supplemental rulings about a planned distribution of stock in a controlled company to its shareholders. The IRS ruled that stock issued in four earlier acquisitions would not count…
PLR 200205034: Pro rata business separation qualifies as tax-free spin-off
A corporate group planned to move one of its two businesses into a wholly owned subsidiary and distribute all of that subsidiary's stock pro rata to the parent's shareholders. The IRS ruled that the…
PLR 200205033: Unused pre-1942 trust powers excluded from estate
Two trusts created before October 22, 1942 gave a beneficiary broad powers to direct where trust principal would go after her death. She did not exercise or release those powers during life and…
PLR 200205032: Late S election effective from incorporation
A corporation's shareholders wanted S corporation status effective when the company was incorporated, but the election was not filed on time. The IRS found reasonable cause for the missed filing and…
CCA 200205031: Parent's prepaid security purchase treated as equity
A parent company prepaid two unrelated banks for securities issued by its foreign subsidiary. Chief Counsel advised that the transaction could be separated into a net loan from the banks to the…
CCA 200205030: Business ceased to be a railroad employer on August 3, 2000
After reviewing an opinion from the Railroad Retirement Board, IRS Counsel agreed that the redacted business ceased to be an employer under the Railroad Retirement Act and Railroad Unemployment…
PLR 200205029: Late S corporation election accepted for intended effective date
A corporation's shareholders intended to elect S corporation treatment from the date it was incorporated, but the election was filed late. The IRS found reasonable cause for the delay and granted…
PLR 200205028: Sales of minerals mined after S election avoid built-in gains tax
A quarry operator planned to convert from a C corporation to an S corporation while some minerals remained unmined. It asked whether sales of crushed minerals mined and processed after the…
CCA 200205027: One spouse's gift tax fraud does not extend the other's assessment period
A husband gave stock to his children, and he and his wife filed separate gift tax returns electing to split the gift. The husband supplied a false stock value, but the IRS had no evidence that the…
PLR 200205026: Late S corporation election treated as timely if filed within 60 days
A corporation's shareholders intended S corporation treatment from its first tax year and recorded that intent in organizational minutes. The corporation filed S corporation returns, and its…
PLR 200205025: LLC granted 60 days to make a section 754 election
An LLC filed its return without an IRC § 754 election after one of its members died. It asked for more time to elect an adjustment to the basis of partnership property. The IRS found that the…
PLR 200205024: S corporation status preserved after missing consents and ineligible shareholder
A corporation omitted some shareholder consents from its S election and issued shares to a partnership, which could not be an S corporation shareholder. After discovering the problems, it corrected…
CCA 200205023: Lease-in, lease-out power plant deal lacks economic substance
A taxpayer sold an interest in one power plant and used a lease-in, lease-out arrangement involving another plant to claim like-kind exchange treatment. Chief Counsel concluded that the arrangement…
PLR 200205022: Parent S corporation gets more time to elect QSub treatment
An S corporation bought all the stock of a subsidiary through an LLC and intended to elect qualified subchapter S subsidiary (QSub) treatment. It missed the deadline to file Form 8869, saying its…
CCA 200205021: Partnership anti-abuse rule does not apply to project venture
Two U.S. corporations developed a foreign project through a venture held by foreign affiliates. The IRS field office asked whether the partnership anti-abuse rule could treat a U.S. developer's…
PLR 200205020: Late S election allowed for corporation's first tax year
Two shareholders intended their newly incorporated business to be an S corporation from its first tax year. An officers' resolution and affidavits documented that intent, but the corporation did not…
PLR 200205019: Managed commercial rents are not passive investment income
An S corporation with accumulated earnings and profits leased commercial properties and provided tenants with extensive maintenance, cleaning, construction oversight, and management services. It…
PLR 200205018: Buyer receives extension to file section 338 election
A corporation intended to elect IRC § 338(g) treatment for its purchase of a foreign target's stock, but a valid election was not filed by the deadline. The IRS found that the corporation had…
PLR 200205017: Buyer receives extension to file section 338 election
A corporation intended to elect IRC § 338(g) treatment for its purchase of a foreign target's stock, but a valid election was not filed by the deadline. The IRS found that the corporation had…
PLR 200205016: Buyer receives extension to file section 338 election
A corporation intended to elect IRC § 338(g) treatment for its purchase of a foreign target's stock, but a valid election was not filed by the deadline. The IRS found that the corporation had…
PLR 200205015: Buyer receives extension to file section 338 election
A corporation intended to elect IRC § 338(g) treatment for its purchase of a foreign target's stock, but a valid election was not filed by the deadline. The IRS found that the corporation had…
PLR 200205014: Foreign company gets more time to elect partnership classification
A foreign company with members who all had limited liability intended to be classified as a partnership for U.S. federal tax purposes. It did not file the required Form 8832 on time. The IRS found…
PLR 200205013: Buyer receives extension to file section 338 election
A corporation intended to elect IRC § 338(g) treatment for its purchase of a foreign target's stock, but a valid election was not filed by the deadline. The IRS found that the corporation had…
PLR 200205012: Sole shareholder's corporation receives late S election relief
The sole shareholder of a newly incorporated business intended to elect S corporation treatment from the business's first tax year, but the election was not made on time. The IRS found reasonable…
PLR 200205011: Corporation allowed to file late S election for first tax year
A corporation's president said it was intended to be an S corporation from its first tax year. Correspondence from a former accountant showed that the president had been advised to make the…
PLR 200205010: Late S election accepted from incorporation date
A corporation's shareholders intended it to be an S corporation from its incorporation date, but the election was filed late. The IRS found reasonable cause for the delay under IRC § 1362(b)(5) and…
PLR 200205009: Vessel ferry management agreement meets bond safe harbor
A tax-exempt organization financed a vessel with bond proceeds and planned to use it for public ferry service during months when it was not conducting its regular expeditions. It proposed a short…
PLR 200205008: Gift of a fractional unitrust interest qualifies for charitable deductions
After her spouse died, a beneficiary proposed to give an undivided fraction of her lifetime payments from a charitable remainder unitrust to one of its charitable remainder beneficiaries. She…
PLR 200205007: Government deferred compensation plan qualifies under section 457
A governmental employer asked whether its deferred compensation plan qualified under IRC § 457. The plan limited deferrals, held assets in trust for participants, and provided for distributions and…
PLR 200205006: Corporation receives relief for a late S election
A corporation intended to be treated as an S corporation from its incorporation date but did not file its election on time. It asked the IRS for relief under IRC § 1362(b)(5). The IRS found…
PLR 200205005: LLC receives more time to elect corporate tax status
A business reorganized from a corporation into an LLC and intended to keep corporate tax treatment. It missed the deadline to file Form 8832, which elects an entity's federal tax classification. The…
PLR 200205004: Missed trust elections receive inadvertent S termination relief
Four trusts received all the stock of an S corporation, but their beneficiaries did not file the required qualified subchapter S trust (QSST) elections. That omission terminated the corporation's S…
CCA 200205003: Counsel analyzes duplicate losses from transferred property
Chief Counsel advised IRS field attorneys about property transferred to a corporation in a tax deferred exchange. The property had a tax basis above its value, and the transferor also held shares…
CCA 200205002: Counsel analyzes omitted assets in a decedent's estate
IRS field counsel asked which assets omitted from a decedent's estate tax return should be included in her gross estate. The decedent and her spouse had created a revocable trust, and additional…
PLR 200205001: Family business split-off qualifies as a tax-free reorganization
A family owned S corporation proposed to divide its business after two shareholders disagreed over management. It would transfer about half its assets to a new corporation and distribute the new…
PLR 200204053: Private foundation may transfer all assets to another foundation
The trustee of two private foundations proposed to transfer all assets of one foundation to the other, then terminate the transferring foundation. The trustee sought to avoid duplicate…
IRS determination 200204052: Conditional waiver of pension funding excise tax
An employer requested waivers of the 100% excise tax on accumulated funding deficiencies in its money purchase pension plan for two plan years. The employer said its revenue fell after changes in…
PLR 200204051: Emergency ferry service is related to charity's public purpose
An exempt aquarium organization proposed to use its whale watching vessel as a temporary commuter ferry after terrorist activities damaged a metropolitan transportation system. It planned to charge…
PLR 200204050: Municipality may pick up elected pension contributions
A municipality asked whether it could pay mandatory employee contributions to its pension plan for employees who made a one time irrevocable election. It would reduce those employees' current…
PLR 200204049: State college pension pickups qualify as employer contributions
A state college asked about its plan to pay required employee contributions to two state pension plans under a board resolution. The resolution required the college to pay the contributions in place…
PLR 200204048: Inherited IRA transfers do not create taxable distributions
A son inherited his mother's IRA and arranged to move its funds into two other IRAs for his benefit. He asked whether the moves were trustee to trustee transfers, rather than taxable distributions…
PLR 200204047: Two successor foundations may receive a private foundation's assets without termination tax
A private foundation planned to transfer all its assets in equal shares to two newly created private foundations with the same purposes. The IRS ruled that the transfer qualifies under section…
PLR 200204046: Two successor foundations may receive a private foundation's assets without termination tax
A private foundation planned to transfer all its assets in equal shares to two newly created private foundations with the same purposes. The IRS ruled that the transfer qualifies under section…
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.