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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120-day extension for a foreign entity to file a late check-the-box election to be disregarded
A foreign business entity wanted to be treated as a disregarded entity for U.S. tax purposes, meaning it is ignored as separate from its single owner (so the owner reports the entity's income directly…
Late S-corp election relief plus 9100 extension for an LLC's corporate-classification election
A state LLC intended to be taxed as an S corporation from a certain date. To get there, an LLC normally must both elect to be classified as a corporation (via Form 8832) and elect S-corporation status…
Inadvertent-termination relief for two S corporations after a trust missed its QSST election
Two S corporations (X and Y) had a shareholder, A, who died. Under A's will, the shares passed to a trust. A trust can hold S-corporation stock only in limited ways; one path is for the trust's benefi…
Parent treated as owning "friendly PC" stock, so the professional corporations must join its consolidated return
State licensing laws often require a professional corporation (PC) to be owned only by licensed professionals, which stops an ordinary corporate parent from holding the PC's shares directly. This ruli…
Triple S-corp relief for an LLC (late classification, late S election, and second-class-of-stock termination)
An LLC intended to be taxed as an S corporation from the day it was formed and had always filed that way, but it hit three separate problems. First, it never filed the forms to be classified as a corp…
60-day extension to elect out of bonus depreciation under § 168(k)(7)
Bonus depreciation under § 168(k) lets a business immediately deduct a large percentage of the cost of qualifying property in the year it is placed in service. A taxpayer can instead elect out of bonu…
75-day extension to file a late § 336(e) election treating an S-corp stock sale as an asset sale
A § 336(e) election lets certain sales of a corporation's stock be treated, for tax purposes, as if the corporation had sold its assets. Buyers often want this because it gives the assets a stepped-up…
120-day extension for an entity to file a late check-the-box election to be taxed as a corporation
A business entity wanted to be taxed as a corporation rather than under the default classification (partnership or disregarded entity). To do that, it had to file Form 8832, the "check-the-box" entity…
Relief accepting a late Form 8996 to self-certify as a qualified opportunity fund
A qualified opportunity fund (QOF) is an investment vehicle that lets investors defer and reduce tax on capital gains they roll into designated low-income "opportunity zones" under § 1400Z-2. To be a …
Consent for a cost-sharing arrangement to switch to the elective method for valuing stock-based compensation
When a U.S. company and its foreign subsidiary share the cost of developing intangibles under a cost sharing arrangement (CSA), the transfer pricing rules require them to include the cost of stock-bas…
120-day extension to file a late Section 754 election to adjust partnership property basis
A Section 754 election lets a partnership adjust the tax basis of its property when a partner's interest changes hands or property is distributed, so the new numbers line up with what partners actuall…
Late-filed Form 8996 treated as timely so an LLC can self-certify as a qualified opportunity fund
A qualified opportunity fund (QOF) is an investment vehicle that gets tax breaks for putting money into designated low-income "opportunity zones." To become one, an entity must self-certify each year …
Tax treaty exempts a foreign corporation's branch profits tax on the dividend equivalent amount from its U.S. LLCs
When a foreign corporation runs a U.S. branch, the U.S. charges a "branch profits tax" (Section 884) on top of the regular corporate income tax. The idea is to mimic the tax that would apply if a U.S.…
Mutual fund reorganization qualifies as tax-free under Section 368 even though sanctioned foreign stock transfers later
Two mutual funds organized as separate series of the same investment company want to merge, with the Target Fund folding into the Acquiring Fund. Both are regulated investment companies (RICs) with ne…
Advance approval of a private foundation's scholarship and vocational-grant procedures
A private foundation that makes grants to individuals must get the IRS to approve its grant procedures in advance. Otherwise, under Section 4945, the grant counts as a "taxable expenditure" and trigge…
Approval to change a pension plan's retirement-rate actuarial assumptions under Section 430(h)(5)
Single-employer defined benefit pension plans must be funded to a legal minimum, and the required contribution depends on actuarial assumptions like how likely participants are to retire at each age. …
Advance approval of a foundation's scholarship program and specific-objective grant program
A private foundation that gives grants to individuals needs the IRS to approve its grant-making procedures in advance, or the grants count as taxable expenditures under Section 4945 and trigger an exc…
501(c)(3) exemption denied to an off-road motorsport event organization
An organization applied for tax-exempt charitable status under Section 501(c)(3), but the IRS denied it. The group's sole activity was an annual off-road vehicle event: a multi-day gathering of enthus…
501(c)(3) exemption denied to a family-reunion and family-scholarship organization
An organization applied for charitable exemption under Section 501(c)(3), but the IRS denied it. The group was formed to plan and run reunions for one family, providing the location, transportation, m…
501(c)(3) exemption denied to an employee mutual-benefit association
An organization applied for charitable exemption under Section 501(c)(3), but the IRS denied it. The group is a mutual-benefit association open to full-time permanent employees of one employer who pay…
501(c)(3) exemption denied to a parade-participation organization
An organization applied for charitable exemption under Section 501(c)(3), but the IRS denied it on both required tests. Its articles of incorporation stated its purpose as "to enjoy the season of D" (…
501(c)(3) exemption denied to a college-athlete NIL collective
An organization applied for charitable exemption under Section 501(c)(3), but the IRS denied it. The group is a "name, image, and likeness" (NIL) collective tied to one school: it raises money to pay …
501(c)(7) social-club exemption denied to a homeowners association
An organization applied for tax-exempt status as a social club under Section 501(c)(7), but the IRS denied it. A 501(c)(7) club is exempt only if substantially all of its activities are for the pleasu…
501(c)(3) exemption denied to a cultural mutual-aid membership organization
An organization applied for charitable exemption under Section 501(c)(3), but the IRS denied it. The group is a cultural community organization whose members share a common cultural background. Its ma…
IRS pre-approves a private foundation's procedures for a new disease-related scholarship program
A private foundation asked the IRS to approve, in advance, the procedures for a new scholarship program. Under IRC Section 4945, money a private foundation grants to individuals for study is a "taxabl…
IRS pre-approves a foundation's scholarship procedures for graduating seniors in one county
A private foundation runs a scholarship for graduating high school seniors from a particular county who are entering college. It asked the IRS to approve its award procedures in advance under IRC Sect…
IRS excuses a governmental-unit affiliate from filing Form 990
An organization exempt under IRC Section 501(c)(3) asked the IRS to be relieved of the requirement to file the annual Form 990 information return. Section 6033(a)(3)(B) gives the IRS discretion to exc…
IRS denies 501(c)(7) social-club status to a homeowners association
A homeowners association for a single-family residential development applied to be recognized as a tax-exempt social club under IRC Section 501(c)(7). The IRS denied it. Section 501(c)(7) covers clubs…
IRS denies 501(c)(3) status to a counseling-subsidy charity that funnels funds to its directors' for-profit practice
A new nonprofit was formed to raise money and subsidize mental-health counseling for individuals, couples, and families who cannot afford full-cost care. The catch: its three directors own a for-profi…
IRS pre-approves a foundation's multi-county academic scholarship procedures
A private foundation asked the IRS to approve, in advance, the procedures for an academic scholarship program serving students in several named counties across two areas. Under IRC Section 4945, a pri…
IRS pre-approves a trust's scholarship procedures for graduating seniors at one school
A private foundation (a charitable trust) asked the IRS to approve, in advance, the procedures for a scholarship program for students graduating from a particular secondary school who will face financ…
IRS pre-approves scholarship procedures for students at one named school
A private foundation asked the IRS to approve, in advance, the procedures for a scholarship program for full- and part-time students enrolled at one named school (itself an exempt educational instrume…
IRS excuses a church's integrated auxiliary from filing Form 990
An organization exempt under IRC Section 501(c)(3) asked the IRS to be relieved of the requirement to file the annual Form 990 information return. Treasury Regulation Section 1.6033-2(g)(1)(i) provide…
IRS excuses a church-affiliated school from Form 990 (but Form 5578 still required)
A church-affiliated school exempt under IRC Section 501(c)(3) asked the IRS to be relieved of the requirement to file the annual Form 990. Treasury Regulation Section 1.6033-2(g)(1)(vi) provides that …
IRS pre-approves a family-funded foundation's scholarship procedures
A private foundation asked the IRS to approve, in advance, the procedures for a scholarship program that helps recipients pursue higher education or technical training toward a career, funded by money…
IRS pre-approves scholarship procedures for a sustainability-leadership award tied to equestrian sports
A private foundation asked the IRS to approve, in advance, the procedures for a scholarship program recognizing exceptional leadership by young people in sustainability and green initiatives in their …
IRS pre-approves a foundation's research-grant procedures under 4945(g)(3)
A private foundation asked the IRS to approve, in advance, the procedures for an educational grant program under IRC Section 4945(g)(3), the "purpose grant" branch (as opposed to the scholarship branc…
IRS pre-approves grant procedures for youth archery competition and travel stipends (4945(g)(3))
A private foundation asked the IRS to approve, in advance, the procedures for an educational grant program under IRC Section 4945(g)(3). Under IRC Section 4945, a private foundation's grants to indivi…
IRS pre-approves a foundation's merit scholarship procedures despite a family selection committee
A private foundation asked the IRS to approve, in advance, the procedures for a scholarship program under IRC Section 4945(g)(1). Under IRC Section 4945, a private foundation's grants to individuals f…
IRS excuses a foreign-focused mission society from filing Form 990
An organization exempt under IRC Section 501(c)(3) asked the IRS to be relieved of the requirement to file the annual Form 990. Treasury Regulation Section 1.6033-2(g)(1)(iv) provides that a mission s…
IRS denies 501(c)(4) social-welfare status to a neighborhood hall-rental association
A neighborhood association (membership is automatic for everyone living in its boundaries) applied to be recognized as a tax-exempt social-welfare organization under IRC Section 501(c)(4). The IRS den…
IRS denies 501(c)(8) fraternal status to a lodge dominated by public bingo
A fraternal organization that operates under the lodge system and pays death benefits to its members applied to be recognized as a tax-exempt fraternal beneficiary society under IRC Section 501(c)(8).…
IRS excuses a church's integrated auxiliary from filing Form 990
An organization exempt under IRC Section 501(c)(3) asked the IRS to be relieved of the requirement to file the annual Form 990 information return. Treasury Regulation Section 1.6033-2(g)(1)(i) provide…
IRS excuses a 501(c)(12) governmental-unit affiliate from filing Form 990
An organization exempt under IRC Section 501(c)(12) asked the IRS to be relieved of the requirement to file the annual Form 990 information return. Section 6033(a)(3)(B) gives the IRS discretion to ex…
IRS excuses a foreign-focused mission society from filing Form 990
An organization exempt under IRC Section 501(c)(3) asked the IRS to be relieved of the requirement to file the annual Form 990. Treasury Regulation Section 1.6033-2(g)(1)(iv) provides that a mission s…
Final adverse determination denying 501(c)(3) exemption to an organization that facilitates loan syndications for a select group of minority-owned banks
An organization applied to be recognized as a tax-exempt charity under Code section 501(c)(3). Its stated mission was to strengthen a specific category of minority-owned banks and the disadvantaged co…
Final adverse determination denying 501(c)(7) social-club exemption to a private road-maintenance association
A homeowners' group applied to be recognized (retroactively reinstated) as a tax-exempt social club under Code section 501(c)(7), the category for clubs organized for pleasure and recreation. Its memb…
Final adverse determination denying 501(c)(3) exemption to a single-family DNA genealogy project
An organization applied (using the streamlined Form 1023-EZ) to be recognized as a tax-exempt charity under Code section 501(c)(3). Its activity is a genealogical project that uses DNA testing, record…
Conditional approval of a 5-year extension to amortize a multiemployer plan's unfunded liabilities under section 431(d), tied to correcting prior amortization-base errors
A multiemployer defined benefit pension plan asked the IRS for an automatic 5-year extension of the time it has to pay off (amortize) certain unfunded liabilities under Code section 431(d). Reviewing …
10-year approval to use plan-specific substitute mortality tables under section 430 for a seven-plan aggregated group's annuitant populations
A pension plan sponsor that runs an aggregated group of seven defined benefit plans asked the IRS to keep using its own "substitute" mortality tables, built from its participants' actual death experie…
Advance approval of a private foundation's evangelical Christian scholarship procedures under section 4945(g)(1)
A private foundation asked the IRS to bless its scholarship program in advance under Code section 4945(g)(1). This matters because grants a private foundation makes to individuals for study are normal…
5-year approval of plan-specific base substitute mortality tables under section 430 for two aggregated defined benefit plans, despite an immaterial benefit-dispersion-factor error
A pension plan sponsor asked the IRS to let it use its own "base substitute" mortality tables, built from its participants' actual death experience, in the minimum-funding calculations that Code secti…
Organization determined to be an integrated auxiliary of a church and therefore not required to file Form 990
A tax-exempt organization asked the IRS to be excused from filing Form 990, the annual information return that most exempt organizations must file. The IRS determined that the organization qualifies a…
Final adverse determination denying 501(c)(3) exemption to a business-networking group that serves its members' private commercial interests
An organization that describes itself as a "chamber of commerce" applied to be recognized as a tax-exempt charity under Code section 501(c)(3). It runs monthly workshops and networking events to help …
A "divide and donate" split and early termination of a charitable remainder unitrust to fund the settlors' private foundations is not self-dealing and yields income and gift tax charitable deductions
A married couple created a charitable remainder unitrust (CRUT), a trust that pays them 5% a year for life and leaves whatever remains to charity. They now want to accelerate part of the gift so money…
A mortgage REIT's income from interest-rate hedges and from "counteracting" hedges used to unwind them is excluded from the REIT gross-income tests
A real estate investment trust (REIT) must earn most of its income from real-estate sources to keep its favorable tax status: 95% from a broad list and 75% from real-property sources. This taxpayer is…
An S corporation's transfer of stock to a publicly traded corporation followed by its conversion to a partnership qualifies as a tax-free Type C reorganization
A closely held S corporation ("Target") holds mostly an interest in a partnership, which in turn owns shares of a publicly traded corporation ("Acquiring"). In a restructuring, the partnership first d…
9100-3 relief granting 120 days to file a late QSub election so a subsidiary is treated as a qualified subchapter S subsidiary retroactively
An S corporation ("X") owns all of the stock of another corporation ("Y") and wanted Y to be a qualified subchapter S subsidiary (QSub), a subsidiary that is ignored as a separate corporation and fold…
9100-3 relief granting 120 days to make a late section 754 election so a partnership can adjust the basis of its property after a partner's death
A partnership had a partner die, an event that (with a section 754 election in place) lets the partnership step up the inside basis of its assets to match the value the deceased partner's successor no…
Further extending a bankruptcy liquidating trust's term to resolve pending litigation will not cost it liquidating-trust (grantor trust) status under § 301.7701-4(d)
When a company reorganizes in Chapter 11 bankruptcy, its plan often creates a "liquidating trust" to sell off remaining assets and pay creditors. Such a trust is taxed as a grantor trust (its benefici…
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.