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 200004022: Homeowners count the period a partnership held title toward residence ownership
Homeowners asked whether they owned their residence for purposes of the § 121(a) home sale exclusion while a partnership held title. They directly held 2% of the partnership, and a trust they…
CCA 200004021: The IRS cannot recover a late erroneous refund through a paid assessment
The IRS had fully collected a tax assessment, then abated it after incorrectly believing a bankruptcy discharge covered the debt and issued a refund. Chief Counsel advised that the payment…
PLR 200004020: Corporation receives relief for a late S election
A corporation's sole shareholder wanted S corporation status from the date of incorporation, but the corporation did not file the election on time. The IRS found reasonable cause for the missed…
PLR 200004019: Corporation receives relief for a late S election
A corporation's two shareholders wanted S corporation status from the date of incorporation, but the corporation did not file the election on time. The IRS found reasonable cause for the missed…
PLR 200004018: Late accounting period change application treated as timely filed
A taxpayer filed Form 1128 to request a change in its tax year after the filing deadline, citing an error or misunderstanding. The form arrived within 90 days of its due date. The IRS found that the…
CCA 200004017: Deficiency notice valid despite a recently filed return
The IRS issued a deficiency notice based on third party reports of a taxpayer's wages, interest, and stock sales without accounting for a return she had filed 25 days earlier. Chief Counsel advised…
CCA 200004016: Most advance corporation tax was not creditable in its payment year
A U.S. parent claimed a Year 1 foreign tax credit for U.K. advance corporation tax paid by a U.K. entity treated as a partnership for U.S. tax purposes. Chief Counsel advised that only the…
CCA 200004015: IRS calls for more facts before testing a consolidated stock loss
A consolidated group claimed a loss when one member sold stock of a subsidiary after transferring valuable trademarks within the group. A revenue agent questioned the group's basis and loss…
PLR 200004014: Trust settlement preserves transfer tax treatment on stated facts
Beneficiaries proposed to settle a dispute over an irrevocable trust's terms after the primary beneficiary died. The IRS found that the agreement fairly reflected the parties' claims under state law…
CCA 200004013: Treaty protects a pension, while foreign work income needs allocation
A nonresident taxpayer claimed treaty protection for a distribution from a U.S. qualified pension plan and excluded compensation for services performed abroad. Chief Counsel concluded that the…
PLR 200004012: Corporation receives relief for a late S election
A corporation's shareholders intended S corporation status from the start of a tax year but missed the election deadline. The IRS found reasonable cause and granted late election relief under §…
CCA 200004011: Related party advances need more facts before interest and withholding adjustments
A U.S. corporation recorded advances from foreign related companies as debt but later argued they were equity, which would avoid an imputed interest adjustment. Chief Counsel said the corporation…
PLR 200004010: Prepared but unfiled S election receives deadline relief
A corporation's shareholders prepared Form 2553 to elect S corporation status but never filed it. The IRS ruled that the election would be treated as timely for the tax year beginning on the…
CCA 200004009: Stock buyout treated as a contingent installment sale
A departing shareholder exchanged stock for a note and payments tied to the company's future earnings, then later settled the agreement and gave interests in it to charitable trusts. Chief Counsel…
CCA 200004008: Retailer may weight inventory indexes by ending costs
A retailer using the inventory price index computation (IPIC) method asked how to combine category indexes for its dollar value LIFO pools. Chief Counsel advised that the retailer could weight the…
CCA 200004007: Corporation recognizes no gain on its stock sale or cash redemption
Under a proposed Chapter 11 plan, a buyer would purchase shares from a corporation, and the purchase money would go to a trust to pay creditors and redeem the remaining shareholders for cash. Chief…
CCA 200004006: Foreign currency expenses use the spot rate when accrued
A group claimed deductions for expenses paid in a foreign currency under IRS closing agreements and had translated them using the exchange rate at year end. Chief Counsel advised using the spot rate…
CCA 200004005: Golf facilities can count as common improvements for homesite basis
A developer was required to build a golf course and related facilities as part of a residential subdivision and had elected the alternative cost method under Revenue Procedure 92-29. Chief Counsel…
CCA 200004004: Aircraft reclassification followed a change in business facts
A company had leased aircraft, then adopted a plan to end leasing and sell aircraft instead. It reclassified planes from depreciable assets to inventory and asked whether this required advance…
CCA 200004002: IRS lacks facts to decide lease down payment income issue
An automobile lessor asked whether a lessee's cash down payment or trade-in value received by a dealer had to be included in the lessor's income when the lease began. The dealer could retain the…
TAM 200004001: Stadium ticket right may be deductible when the S corporation pays
An S corporation paid a university foundation for a skybox package that included the right to buy football tickets, the tickets, skybox use, parking, and guest passes. The IRS advised that 80% of…
PLR 200003059: Corrected page accompanies a charitable lead trust ruling
The IRS sent a corrected first page for an earlier ruling about a proposed charitable lead trust. In the attached ruling, it concluded that the charities' annuity interest qualified for a gift tax…
PLR 200003058: Employer stock distribution and IRA rollover form one lump sum distribution
A retired employee planned to receive all employer stock from a qualified retirement plan while moving the rest of the account to an IRA. The IRS ruled that the stock distribution and the rollover…
PLR 200003057: Employer's pension arrangement qualifies as a simplified employee pension
An employer asked whether its individually designed pension arrangement met the rules for a simplified employee pension (SEP). The IRS concluded that Plan Z qualified under § 408(k) based on the…
PLR 200003056: Private foundation asset transfer carries tax attributes to its successor
Two private foundations controlled by the same people proposed that one transfer all its assets to the other, then notify the IRS of its intent to terminate and dissolve. The IRS ruled that the…
PLR 200003055: Pension and IRA proceeds passing to a foundation are not investment income
A private foundation expected to receive an individual's interests in pension plans and individual retirement accounts after his death. The IRS ruled that the proceeds passing to the foundation…
PLR 200003054: Welfare fund return avoids retroactive revocation and the employer excise tax
A former hospital operator planned to end its voluntary employees' beneficiary association (VEBA). After paying claims, the fund would send 33 percent of its assets through the current hospital…
PLR 200003053: Supplemental medical fund receives favorable welfare benefit rulings
A union and an employers' association agreed to fund supplemental benefits through a health and welfare fund, but the trustees decided to provide only medical benefits. The IRS ruled that the…
PLR 200003052: Public school health insurance trust income is excluded under section 115
A trust created by organizations affiliated with public schools pooled health care risks and provided coverage for school entities' employees and dependents. It expected ongoing funding from…
PLR 200003051: Hospital grant does not cause indirect self-dealing
A private foundation pledged a grant to a public charity raising money for a new medical facility. The facility operator was considering land owned by a person disqualified with respect to the…
PLR 200003050: Late tax year change application treated as timely filed
A taxpayer filed its federal income tax return on time but missed the deadline for Form 1128, its application to change its tax year. The IRS found that the taxpayer acted reasonably and in good…
PLR 200003049: Foundation asset transfer does not trigger termination tax or self-dealing
A private foundation proposed to transfer all its net assets to a new private foundation in another state. The new foundation would pursue the same charitable work under the same managers, and the…
PLR 200003048: Titleholding company's note proceeds do not change its exempt status
An exempt titleholding company sold two properties for cash and a note, then acquired another property for use by its exempt affiliates. It asked whether using the note proceeds to repay debt,…
PLR 200003047: Endowment grants to supporting charity qualify as distributions
Two private foundations proposed annual grants over ten years to build the endowment of a supporting charity. The IRS ruled that the grants would preserve the recipient's § 509(a)(3) public charity…
PLR 200003046: Endowment grants to supporting charity qualify as distributions
Two private foundations proposed annual grants over ten years to build the endowment of a supporting charity. The IRS ruled that the grants would preserve the recipient's § 509(a)(3) public charity…
PLR 200003045: Endowment grants to supporting charity qualify as distributions
Two private foundations proposed annual grants over ten years to build the endowment of a supporting charity. The IRS ruled that the grants would preserve the recipient's § 509(a)(3) public charity…
PLR 200003044: Five-year QSUB waiting period waived for S election
A corporation sought to elect S corporation status after a merger and stock distribution ended a qualified subchapter S subsidiary arrangement. Section 1361(b)(3)(D) ordinarily prevents a former…
PLR 200003043: Correction to a deferred compensation ruling's Code citation
The IRS corrected a Code citation in an earlier ruling about an employer's deferred compensation plan and related trust. The earlier letter's description of the employer cited § 457(e)(1)(A), and…
CCA 200003042: Bankruptcy court jurisdiction over joint liability relief
A debtor in bankruptcy claimed relief from joint tax liability under § 6015 without first asking the IRS for it. Chief Counsel advised that the bankruptcy court could consider the debtor's claims…
PLR 200003041: Late S election relief requires filing within 60 days
A corporation's sole shareholder intended to elect S corporation status for its first tax year, but the accountant and attorney each thought the other would file Form 2553. The IRS found reasonable…
PLR 200003040: Late S election relief requires filing within 60 days
A corporation's sole shareholder intended to elect S corporation status for its first tax year, but the accountant and attorney each thought the other would file Form 2553. The IRS found reasonable…
PLR 200003039: Vehicle rental and franchise receipts meet affiliate income test
A domestic company owned a foreign subsidiary that rented vehicles and licensed vehicle rental franchises. The parent asked whether three kinds of the subsidiary's receipts would count as passive…
CCA 200003038: Landfill removal costs fall outside section 468 reserve
A landfill operator used § 468 reserves to deduct expected reclamation, closing, and excess waste removal costs before paying them. Chief Counsel advised that removing stockpiled material and…
PLR 200003037: Foreclosure placement date ignored for housing credit waiting period
A taxpayer bought a low-income housing project after an intervening owner acquired it through foreclosure and placed it in service. The taxpayer asked whether that intervening placement date reset…
PLR 200003036: Thirty days granted to file a late LIFO election
A partnership used the LIFO inventory method but failed to attach Form 970 to its first partnership return after receiving inventory from another business. It discovered the omission while preparing…
PLR 200003035: Former resident's departure lacked a tax avoidance purpose
A former long-term U.S. resident surrendered her green card and became subject to tax on worldwide income in her country of birth. Her net worth exceeded the threshold that ordinarily created a…
PLR 200003034: S election can be filed within 60 days after ruling
A corporation intended to elect S corporation status for its first tax year, as reflected in its meeting minutes and employer identification number application. Its attorney and accountant each…
PLR 200003033: Late first-year S election allowed with timely Form 2553
A corporation's sole shareholder intended to elect S corporation status for its first tax year, and its employer identification number application reflected that intent. Its attorney and accountant…
PLR 200003032: Late S election recognized from incorporation date
A corporation intended to be treated as an S corporation from its incorporation date but did not file its election on time. The IRS found reasonable cause for the delay under § 1362(b)(5). It…
PLR 200003031: Late S election treated as timely if filed within 60 days
A corporation intended to elect S corporation status from the taxable year beginning on its incorporation date. Its representatives failed to file Form 2553 on time. The IRS found reasonable cause…
PLR 200003030: Late S election treated as timely for first taxable year
A corporation with two shareholders intended to be an S corporation from incorporation and operated that way. It discovered after its first taxable year that its S election had not been filed on…
PLR 200003029: Late S election recognized from incorporation date
A corporation's shareholders intended S corporation treatment to begin on its incorporation date, but the election was filed late. The IRS found reasonable cause for the delay and granted relief…
PLR 200003028: Extension granted to file a joint section 338(h)(10) election
A purchaser acquired all the stock of a target corporation, but the parties missed the deadline for a joint § 338(h)(10) election. The IRS found that they acted reasonably and in good faith and that…
PLR 200003027: Submission rebuts expatriation tax avoidance presumption
A former long-term U.S. resident planned to give up permanent resident status and requested a ruling that tax avoidance was not a principal purpose. The person's net worth and average tax liability…
PLR 200003026: Late S election recognized from requested effective date
A corporation intended to be treated as an S corporation from a specified date, but its election was not filed on time. The IRS found reasonable cause for the delay and granted relief under §…
PLR 200003025: Extension granted for dual consolidated loss filings
A taxpayer's consolidated returns included losses from a dual resident corporation. Its tax return preparer had not researched the dual consolidated loss rules, and the taxpayer missed required…
CCA 200003024: Chief Counsel reports withdrawal of accounting method request
A taxpayer withdrew its Form 3115 request to change the accounting treatment of part of a building and to correct deductions for retired and replaced roof components. Chief Counsel informed the…
PLR 200003023: Surviving spouse's proposed disclaimers qualify if timely delivered
A surviving spouse proposed to disclaim powers over a trust and portions of jointly held Treasury and bank accounts attributable to the deceased spouse. The IRS treated the spouse's powers to…
PLR 200003022: Housing credit agency may correct missing building numbers in a carryover allocation
A partnership planned a low-income apartment project, but its site plan changed after it applied for housing credits. The partnership did not tell the state housing credit agency about the final…
CCA 200003021: Taxpayer may waive a collection hearing during the 30-day levy notice period
Chief Counsel advised North Central District Counsel on whether a taxpayer may waive a Collection Due Process hearing before the 30-day period following a final levy notice ends. Counsel concluded…
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.