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 200020036: Feeder funds may look through partnership master funds for RIC tests
Several feeder funds planned to invest in master funds treated as partnerships while seeking regulated investment company status. The IRS ruled that a feeder fund that qualified as a RIC and was a…
CCA 200020035: Stock transfer to a foreign company lacked a shown business purpose
A former U.S. citizen transferred stock in a domestic company to a newly formed foreign corporation in exchange for all its stock. He said the structure would protect his assets, but the advice…
PLR 200020034: Estate may deduct charitable remainder after trust reformation
A will directed payments to two lifetime beneficiaries and left the remainder of a trust for charity. The original trust did not qualify for an estate tax charitable deduction. The executor proposed…
PLR 200020033: Holding company receives time to file S corporation and QSub elections
Two shareholders exchanged their stock in an S corporation for stock in a new holding company. The holding company intended to elect S corporation status and elect qualified subchapter S subsidiary…
PLR 200020032: Separation of two businesses qualifies as a tax-free reorganization
An S corporation operated two businesses whose key employees wanted ownership interests in the businesses they managed. It proposed transferring one business to a new corporation and distributing…
PLR 200020031: Cooperative's acquisition proceeds may use proposed patronage allocation
A company proposed acquiring a farm marketing cooperative and paying holders of its written allocation notices their face value. Additional acquisition proceeds would be apportioned among patrons…
PLR 200020030: Corporate separation before a planned IPO qualifies as a reorganization
A corporation said its mix of business and other assets, along with its common and preferred stock structure, had hindered an earlier public offering. To prepare for another offering, it proposed…
PLR 200020029: State economic development entity qualifies as an instrumentality
A statewide economic development corporation was created by an agreement between a state agency and a local development corporation. It asked whether it owed federal unemployment tax on wages and…
PLR 200020028: Former citizen rebuts expatriation tax avoidance presumption
A former U.S. citizen born abroad sought a ruling after losing her citizenship. Her net worth exceeded the threshold that normally triggered a presumption that expatriation had a principal purpose…
PLR 200020027: Corporation receives relief for a late S election
A buyer acquired all the shares of a corporation and intended S corporation treatment to begin on the purchase date. The required election was filed late. The IRS found reasonable cause for the…
PLR 200020026: Late S corporation election may take effect on intended date
A corporation's shareholder intended S corporation treatment from a specified date, but the election was not filed on time. The IRS found reasonable cause for the delay and granted relief under IRC…
PLR 200020025: Former citizen rebuts expatriation tax avoidance presumption
A former U.S. citizen born abroad asked the IRS to rule that avoiding U.S. tax was not a principal purpose of his expatriation. His net worth exceeded the threshold that normally triggered a…
PLR 200020024: Merging family trusts preserves specified tax treatment
Grantors proposed moving three older trusts for their daughters into corresponding new trusts with similar benefit terms. The new trusts would let each daughter manage investments while an…
PLR 200020023: Merging family trusts preserves specified tax treatment
Grantors proposed moving three older trusts for their daughters into corresponding new trusts with similar benefit terms. The new trusts would let each daughter manage investments while an…
PLR 200020022: Missing trust elections treated as an inadvertent S termination
An S corporation's shares were transferred to four trusts, but their trustees failed to file electing small business trust elections on time. That failure terminated the corporation's S election on…
PLR 200020021: Proposed expatriation will not carry a tax avoidance presumption
A U.S. citizen living abroad asked about a proposed loss of U.S. citizenship. The person's net worth would exceed the statutory threshold that normally raises a presumption of a principal tax…
PLR 200020020: Merging family trusts preserves specified tax treatment
Grantors proposed moving three older trusts for their daughters into corresponding new trusts with similar benefit terms. The new trusts would let each daughter manage investments while an…
PLR 200020019: Merging family trusts preserves specified tax treatment
Grantors proposed moving three older trusts for their daughters into corresponding new trusts with similar benefit terms. The new trusts would let each daughter manage investments while an…
PLR 200020018: Foreign share exchange qualifies for a section 367 exception
A foreign corporation planned to acquire a U.S. public company through a merger in which U.S. shareholders could receive foreign shares and cash. The U.S. company sought an exception to the rule…
PLR 200020017: Former citizen rebuts expatriation tax avoidance presumption
A former U.S. citizen born abroad asked the IRS to rule that avoiding U.S. tax was not a principal purpose of his expatriation. His net worth exceeded the threshold that normally triggered a…
PLR 200020016: Former citizen's submission rebuts expatriation presumption
A naturalized U.S. citizen born abroad renounced U.S. citizenship. His net worth exceeded the statutory threshold that normally raises a presumption of a principal tax avoidance purpose. He asked…
PLR 200020015: Merging family trusts preserves specified tax treatment
Grantors proposed moving three older trusts for their daughters into corresponding new trusts with similar benefit terms. The new trusts would let each daughter manage investments while an…
PLR 200020014: Merging family trusts preserves specified tax treatment
Grantors proposed moving three older trusts for their daughters into corresponding new trusts with similar benefit terms. The new trusts would let each daughter manage investments while an…
PLR 200020013: Managed rental income is not passive investment income for S election rule
A corporation planning to elect S status owned residential rental property and interests in partnerships holding commercial rental properties. A manager and contractors provided property…
PLR 200020012: Merging family trusts preserves specified tax treatment
Grantors proposed moving three older trusts for their daughters into corresponding new trusts with similar benefit terms. The new trusts would let each daughter manage investments while an…
PLR 200020011: Estate may deduct interest on loan used to pay deferred estate tax
An estate had elected to pay estate tax attributable to a shopping center in installments. It later borrowed from a commercial lender to pay the deferred tax in full, saying the tax lien impeded…
PLR 200020010: Merging family trusts preserves specified tax treatment
Grantors proposed moving three older trusts for their daughters into corresponding new trusts with similar benefit terms. The new trusts would let each daughter manage investments while an…
CCA 200020009: Proxy tax does not trigger plan contribution excise tax on these facts
An exempt organization had made pension plan contributions above the otherwise deductible limit and also owed a lobbying proxy tax under IRC § 6033(e)(2). Field Service Advice considered whether…
PLR 200020008: Proposed employee stock option plan meets specified ISO rules
A company proposed a plan allowing employees to receive incentive stock options and other options. The IRS ruled that the plan would meet IRC § 422(b)(1). If the statutory holding period and…
PLR 200020007: Chemical coal conversion process produces qualified synthetic fuel
A company planned to make solid fuel from coal using a licensed chemical process. It submitted test results and represented that the process significantly changed the coal's chemical composition,…
PLR 200020006: Buyer receives economic interest and potential fuel credits from gas properties
A buyer agreed to acquire interests in oil and gas properties, paying cash, two notes, and a production payment retained by the seller. The IRS ruled that the buyer acquired the entire economic…
CCA 200020005: Sheltered work program participants may be employees for tax purposes
A tax exempt organization provided training and sheltered work for people with developmental disabilities. Participants were paid by the piece and received no vacation, bonuses, or employee…
CCA 200020004: Sheltered work participants treated as employees on stated activities
A tax exempt organization provided training and sheltered work for people with developmental disabilities. Participants were paid by the piece, received no fringe benefits, and generally stayed in…
PLR 200020003: Foreign entity receives more time to elect partnership classification
A foreign entity intended to be treated as a partnership for U.S. federal tax purposes but did not file Form 8832 on time. The IRS found that it met the standards for discretionary election relief.…
PLR 200020002: Business spin-off qualifies as a Type D reorganization
A public corporation said two business lines faced competitive disadvantages while affiliated. It proposed transferring one business to a new corporation, having that company conduct an IPO, and…
PLR 200020001: Chemical coal conversion process produces qualified synthetic fuel
A company planned to make solid fuel from coal using a licensed chemical process. It submitted test results and represented that the process significantly changed the coal's chemical composition,…
PLR 200019048: Outsourced workers did not separate from service for plan distributions
A company's data processing employees were discharged with severance, then some were hired by an outside provider to continue much the same work for the company. The plan sponsor asked whether the…
PLR 200019047: Sale of electricity business permits plan distributions to transferred workers
An energy company sold power generating facilities representing more than 85 percent of that business's assets to an unrelated buyer. About 160 employees moved to the buyer, while their former…
PLR 200019046: Business school's annuity plan meets section 403(b) form requirements
A nonprofit business school asked whether its employee annuity arrangement met IRC § 403(b). The plan allowed salary reduction contributions, possible employer matching contributions, annuity…
PLR 200019045: Discharged employees may receive 401(k) distributions after separation from service
A company discharged employees who had worked on a joint legal services arrangement. An unrelated company hired them to do similar work for a new joint arrangement. The IRS ruled that the discharge…
PLR 200019044: Foundation may indemnify a distributing trust against later claims
A private foundation was due to receive the remaining assets of a decedent's living trust. The trust could still face unknown valid claims, so the foundation proposed to indemnify the trust and its…
PLR 200019043: Private foundation may transfer all assets to another family foundation
A private foundation planned to transfer all its assets to another foundation controlled by the same family. The IRS ruled that this was a § 507(b)(2) transfer. The transfer itself would not end the…
CCA 200019042: Treaty residency certificate belongs to owner of disregarded LLC
An IRS certification unit asked whether it could certify a single-owner LLC, disregarded for U.S. federal income tax purposes, as a U.S. resident for treaty benefits. Chief Counsel advised that it…
CCA 200019041: Policyholder loan prepayments create discount accrued over time
An IRS life insurance group asked when insurers must include prepaid interest on policyholder loans in income. Chief Counsel advised that the final original issue discount regulations treat the…
PLR 200019040: Late election allowed for Canadian retirement plan earnings
A U.S. resident had not elected to defer U.S. tax on earnings in Canadian Registered Retirement Savings Plans for earlier years. The taxpayer requested more time to make the election under Revenue…
PLR 200019039: Late agreement and certifications allowed for consolidated group losses
A consolidated group's return included losses generated by a member, but its adviser inadvertently missed the election and filings required by Treas. Reg. § 1.1503-2(g). The parent asked for more…
PLR 200019038: Late filing allowed for dual consolidated loss agreements
A taxpayer deducted losses of separate units that it represented were dual resident corporations. Its accounting firm discovered that the required agreements and certifications had not been attached…
PLR 200019037: Late election allowed for entity loss on consolidated return
A taxpayer included an entity's net operating loss in consolidated taxable income. Its adviser inadvertently omitted the election statement, agreement, and certifications required by Treas. Reg. §…
PLR 200019036: Reciprocal insurer conversion meets continuity of interest test
A reciprocal insurer proposed to convert to a stock insurer by merging into a subsidiary, while eligible members received shares in the holding company. The IRS held that the merger would satisfy…
PLR 200019035: Foreign corporate split-off qualifies as a reorganization
A foreign holding company proposed to separate one subsidiary from two others after differences arose between its owners. It would transfer the first subsidiary's stock to a new foreign corporation…
PLR 200019034: Investment fund mergers qualify as reorganizations
Two regulated investment companies planned to transfer their assets and liabilities to a third fund in exchange for its voting shares, then dissolve and distribute those shares to their investors.…
PLR 200019033: Late S corporation election accepted for a new business
A corporation's shareholders intended to elect S corporation status from the day the business began, but the election was not filed on time. The IRS found reasonable cause for the delay and granted…
PLR 200019032: Late S corporation election accepted from incorporation
A corporation's shareholders intended S corporation status from its incorporation date, but the election was filed late. The IRS found reasonable cause for the missed deadline and granted relief…
PLR 200019031: Late S election accepted after a filing mix-up
A corporation's shareholders intended to elect S corporation status for its first tax year. They relied on attorneys to handle the filing, but the attorneys believed a shareholder would prepare Form…
PLR 200019030: Green card surrender lacked a principal tax avoidance purpose
A former U.S. permanent resident surrendered his green card after his employer transferred him back to his birth country. His net worth exceeded the threshold that would normally create a…
PLR 200019029: Partnership gets more time to make a Section 754 election
A trust that held a partnership interest terminated when its beneficiary died, but the partnership filed returns for two years without a § 754 basis adjustment election. The partnership asked for…
PLR 200019028: S election relief granted when IRS had no Form 2553 record
A corporation said it filed a timely S election for its first tax year, but the IRS had no record of Form 2553. The corporation had initially filed a corporate income tax return on an accountant's…
PLR 200019027: Subsidiaries treated as joining a consolidated return without Forms 1122
After a corporate spin off, a parent filed a consolidated federal income tax return that included seven subsidiaries. It listed them on Form 851 and included their income and deductions, but the…
CCA 200019026: Counsel examines U.S. trademark rights and related party royalties
U.S. subsidiaries used and promoted a trademark for years before agreeing to pay their foreign parent a royalty for its U.S. use. Chief Counsel advised examiners that, depending on further factual…
PLR 200019025: Former resident's green card surrender lacked a tax avoidance purpose
A former long-term U.S. resident returned her green card while living in the country where she was born. Her net worth exceeded the threshold that could trigger a tax avoidance presumption under the…
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.