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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Bitcoin, Ether, and Litecoin exchanges were not like kind
Chief Counsel considered whether exchanges among Bitcoin, Ether, and Litecoin completed before 2018 qualified for nonrecognition under the former personal-property version of Section 1031. It…
Fund receives relief for two elections on a late-filed return
A regulated investment company prepared a return containing two elections: one to treat certain later distributions as paid during the prior tax year, and another to accrue market discount using a…
Fund receives relief for three elections on a late-filed return
A fund prepared its first regulated investment company return with three elections: to be treated as a RIC, to treat certain later distributions as paid during the prior tax year, and to accrue…
Acquirer receives more time for success-based fee election
A corporation paid a fee contingent on completing an acquisition treated as a statutory merger. Its advisers prepared the Revenue Procedure 2011-29 safe harbor statement, and the filed return used…
Missing ESBT elections caused an inadvertent S corporation termination
An S corporation transferred shares to four trusts that qualified to be electing small business trusts, but their trustees did not file the required ESBT elections. The trusts therefore became…
Cost-of-removal tax shortfall is not normalization-protected
A regulated electric and gas utility collected estimated asset-removal costs from customers through book depreciation before those costs could be deducted for tax purposes. The federal corporate…
Partnership-style agreement caused inadvertent S termination
A limited liability company elected S corporation status but later adopted an operating agreement containing extensive partnership-style provisions. The agreement created capital and…
Partnership shareholder made S election inadvertently ineffective
A corporation intended to elect S status while a limited liability company taxed as a partnership owned some of its stock. Because a partnership cannot be an S corporation shareholder, the election…
IRS approves career-development grants for professional artists
A private foundation proposed taking over part of a regional arts program and making one- or two-year grants to professional artists with a significant body of original work. Applicants would submit…
IRS approves last-dollar grants for alternative high school graduates
A private foundation proposed a grant program for graduates of a public alternative high school serving an underprivileged student population. Staff-referred students on track to graduate would be…
IRS approves medical education grants tied to regional service
A private foundation proposed paying the reasonable professional-school costs of physicians and, in later stages, other healthcare professionals to address a severe regional shortage of medical…
IRS approves in-kind steer training grants for local youth
A private foundation proposed an educational grant program that would give local youth hands-on experience nurturing and showing steers. Each in-kind grant would cover a steer, feed and medicine,…
IRS revokes a shooting club's exemption for public use and excess nonmember income
A Section 501(c)(7) social club operated indoor and outdoor shooting ranges and allowed the general public to use the outdoor range. A roadside sign and the club's website advertised that range as…
Restitution imposed only during supervised release is a Westbrooks case
Chief Counsel advised that a criminal restitution order was subject to the Westbrooks limitation because the judgment imposed payment to the United States only as a condition of supervised release…
Depreciation method-change adjustments enter the Section 163(j) ATI addback
A taxpayer changed the recovery period for depreciable property from seven years to five years, producing a net negative Section 481(a) adjustment of $100x in 2020. Chief Counsel advised that the…
Brief retention of de minimis formation shares does not disturb spin-off rulings
A corporate parent requested a supplemental ruling concerning a previously approved series of transactions under Sections 355 and 368. After distributing the stock of an external controlled…
IRS excuses a late Qualified Opportunity Fund self-certification
A limited liability company was formed to operate as a Qualified Opportunity Fund and invested in a business expected to qualify as a qualified opportunity zone business. Its manager hired…
Below-market arts loan is a program-related investment and qualifying distribution
A private foundation proposed an unsecured, below-market line of credit to a foreign alternative investment fund. The fund would use the money for below-market loans to museums, galleries, and other…
Nuclear decommissioning funds retain qualified status in plant transfer
A utility planned to transfer two nuclear plants, their nuclear decommissioning trusts and qualified funds, and their decommissioning liabilities to a formerly disregarded subsidiary that would…
IRS allows correction of a taxable REIT subsidiary election date
A real estate investment trust acquired an indirect interest in a corporation and intended that corporation to become its taxable REIT subsidiary on the acquisition date. The law firm filing their…
IRS denies a late election that would reverse a recent entity classification change
A foreign eligible entity was originally classified as a corporation by default. After a domestic partnership acquired an interest, the entity elected partnership status and later sought permission…
IRS approves scholarships for graduates of five participating high schools
A private foundation proposed scholarships for graduates of five participating high schools who need financial help for full-time post-secondary education. Applicants would submit academic records,…
IRS approves grants for biomedical research and surgical training models
A private foundation proposed educational grants for biomedical research and the development and validation of surgical training and testing models. Qualified applicants worldwide could seek funding…
IRS approves multi-year research grants for chemistry and physics faculty
A private foundation proposed fellowship and research grants for mid-career tenured chemistry and physics faculty. University nominees would need relevant expertise, a strong record of achievement,…
IRS approves substitute mortality tables for a defined benefit pension plan
A taxpayer asked to use plan-specific substitute mortality tables when calculating minimum funding requirements for a defined benefit pension plan. The request covered male and female participants,…
IRS denies Section 501(c)(3) status to an adjunct faculty mutual benefit group
An organization formed as a mutual benefit corporation applied for recognition as a Section 501(c)(3) charity. It promoted the professional treatment, economic welfare, and rights of adjunct faculty…
IRS denies Section 501(c)(3) status to a member golf course
An organization operating a golf course and clubhouse for members applied for recognition as a Section 501(c)(3) charity. Members and their families could use the course and reserve the clubhouse,…
IRS grants 90 days to file a late IC-DISC election
A newly formed corporation intended to elect interest charge domestic international sales corporation status and receive export commissions from related operating entities. Its owners and advisers…
IRS grants 90 days to make a late consolidated-return election
A domestic parent corporation and its affiliated group intended to elect to file a consolidated federal income tax return but did not file a valid consolidated return by the deadline. The parent…
Foreign entity gets 120 days to file a late disregarded-entity election
A foreign eligible entity intended to be treated as disregarded from its owner for U.S. federal tax purposes but inadvertently failed to file Form 8832 with the intended effective date. The IRS…
Property owner gets 120 days to make a late rehabilitation-credit election
A property owner rehabilitated a building and leased it to a tenant under a structure intended to pass the rehabilitation credit to the tenant. The owner agreed to elect under Section 50(d)(5) and…
Nuclear decommissioning funds keep qualified status through plant transfer
A utility planned to transfer two nuclear plants, their decommissioning trusts and qualified funds, and their decommissioning liabilities to a subsidiary that would elect corporate status and sell…
Nuclear decommissioning funds keep qualified status through plant transfer
A utility planned to transfer two nuclear plants, their decommissioning trusts and qualified funds, and their decommissioning liabilities to a subsidiary that would elect corporate status and sell…
Nuclear decommissioning funds keep qualified status through plant transfer
A utility planned to transfer two nuclear plants, their decommissioning trusts and qualified funds, and their decommissioning liabilities to a subsidiary that would elect corporate status and sell…
Oil and gas group gets 120 days to elect five-year IDC amortization
An affiliated oil and gas group incurred substantial intangible drilling and development costs and intended to elect to deduct a specified portion ratably over 60 months under Section 59(e). Its…
S corporation status restored after six trusts missed ESBT elections
An S corporation had a shareholder trust that was later administered as six separate trusts, each with its own tax identification number and fiduciary return. The corporation represented that all…
Taxpayer may reelect the foreign earned income exclusion within five years
A U.S. citizen working abroad had claimed the foreign earned income exclusion for earlier years but later chose a foreign tax credit when returning to the United States. That choice effectively…
Tax matters partner authority does not extend to a Section 6707A penalty
An IRS email addressed who may sign a limitations extension involving a Section 6707A penalty. The response stated that a tax matters partner signs only TEFRA statute extensions. A Section 6707A…
Distributor incentive liability arises when qualifying sales occur
An accrual-method manufacturer promised independent distributors a guaranteed minimum of sales incentives for products sold during a qualifying period in the following year. The taxpayer reduced its…
Finance company must capitalize retailer payments tied to acquired contracts
A manufacturer's captive finance subsidiary bought retail financing contracts from independent brand retailers. In addition to each contract's principal amount, it paid three program payments that…
Pipeline safety costs do not qualify for the 10-year specified-liability-loss carryback
An energy company claimed that deductible costs to repair leaks, replace natural gas pipelines, and protect pipelines under federal safety rules generated specified liability losses eligible for a…
Consolidated group gets 75 days to make a late unified-loss election
A consolidated group's subsidiary sold all the stock of its own subsidiary at a loss, ending the sold corporation's affiliation with the group. The parent intended to elect under the unified loss…
Late-filed REIT return is treated as a timely election
A newly taxable corporation intended to elect real estate investment trust status for its first short tax year. Its governing documents repeatedly stated that intent, and its manager relied on an…
Affiliated group gets 90 days to make a late consolidated-return election
A domestic parent corporation and its affiliated group failed to make a valid election to file a consolidated federal income tax return by the parent's filing deadline. The relevant assessment…
Deconsolidated corporations may file their own consolidated return
A parent corporation filed a consolidated return that included a subsidiary group for an entire tax year even though ownership had fallen below the required affiliation threshold during that year.…
Estate gets 120 days to make a late portability election
A decedent's estate was not otherwise required to file an estate tax return based on the represented gross estate and taxable gifts. The estate nevertheless needed a timely Form 706 to elect…
Taxpayer may revoke later underwriting-fee elections but not earlier ones
A consolidated group had inadvertently followed its financial accounting treatment and elected to capitalize intercompany underwriting fees paid for employees' debt-underwriting services. After…
Taxpayer gets 45 days to make a late success-based-fee election
A U.S. holding company incurred a success-based advisory fee when it acquired stock in a taxable transaction. Its newly formed, high-turnover tax department was unaware of the fee and did not elect…
IRS approves scholarships for students who lost a parent or guardian
A private foundation proposed scholarships for full-time college students and incoming students who had lost a parent, stepparent, or guardian. Applicants had to live in the specified area, maintain…
IRS approves scholarships for financially challenged students overcoming obstacles
A private foundation proposed scholarships and nonfinancial support for high school students who had overcome significant obstacles and planned full-time college study. Eligible students initially…
IRS approves one-time university scholarships
A private foundation proposed one-time academic scholarships for current or incoming students at a specified university. All such students could apply, with preferences for graduates of particular…
IRS denies social welfare exemption for political campaign activity
An organization sought exemption as a social welfare organization under Section 501(c)(4). Its activities included advertisements opposing a political candidate, highlighting elected officials and…
NOL carryback waiver bars separate ten-year liability-loss carryback
The parent of a consolidated group elected under Section 172(b)(3) to waive the entire carryback period for net operating losses in two years. It later discovered specified liability losses that…
IRS treats late opportunity-fund self-certification as timely
An S corporation formed to invest in qualified opportunity zone property intended to self-certify as a qualified opportunity fund. Its accountant mistakenly used the later filing deadline for a C…
IRS grants extension for late REIT election
A limited liability company elected corporate status and intended to elect real estate investment trust treatment for its first short tax year. A miscommunication between its manager and tax…
IRS grants more time for stock-sale asset-treatment election
A partnership bought all the stock of an S corporation, and the parties intended to treat the stock sale as an asset sale under Section 336(e). They failed to file the required election statement on…
Foreign entity receives time to elect disregarded status
A foreign eligible entity failed to timely file Form 8832 to elect treatment as an entity disregarded from its owner. The IRS found that the regulatory-election relief requirements were satisfied…
Partnership receives time for opportunity-fund certification
A partnership was formed and funded to invest in a qualified opportunity zone business, but its accounting officer believed no return was required for the first year because the partnership had no…
Partnership receives extension for Section 754 election
A partnership interest purchase caused a technical termination under the law then in effect, and the transaction documents showed that the parties intended the partnership to make a Section 754…
IRS grants S corporation and QSub election relief
A corporation intended to be an S corporation and to treat its wholly owned subsidiary as a qualified subchapter S subsidiary. It failed to file the QSub election, and three shareholder trusts…
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.