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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Stock transfer limits and an employer repurchase right do not defeat § 83(i) deferral
A privately held corporation wanted eligible employees to elect under IRC § 83(i) to defer income from exercising stock options granted before 2018. Employees could not transfer the shares during…
Foreign entity receives 120 days to file a late disregarded-entity election
A foreign single-owner business entity was eligible to elect disregarded status for federal tax purposes but did not timely file Form 8832. It sought relief under Treas. Reg. § 301.9100-3 to make…
LLC receives inadvertent S corporation relief after operating agreements created multiple stock classes
An LLC intended to be an S corporation, but its operating agreement required capital-account-based liquidating distributions and special allocations that created more than one class of stock. Later…
QTIP trust may reimburse an estate with stock without private-foundation self-dealing
A private foundation was a residuary beneficiary of a trust whose assets were included in a deceased spouse's taxable estate. The trust instrument and a probate-court order required the trust to…
Parties receive late-election relief to treat an S corporation stock sale as an asset sale
A purchaser acquired all the stock of an S corporation, and the parties intended to elect under IRC § 336(e) to treat the stock sale as an asset sale. They did not timely execute the required…
Tax-rate adjustment does not make a solar facility public utility property
A regulated electric utility agreed to sell power from a new solar facility at a fixed rate negotiated from comparable market prices rather than through traditional cost-of-service, rate-of-return…
Nuclear plant owner receives a special-transfer deduction and revised funding schedule
An owner of a shut-down nuclear power plant asked for a schedule allowing a special transfer to its qualified nuclear decommissioning fund and for a revised annual funding amount. The owner had…
FCC spectrum-license exchange occurred under threat of condemnation
Members of a communications group held radio licenses in the 39 GHz spectrum band when the Federal Communications Commission reorganized the band for uses including 5G services. Licensees could…
Partnership's FCC spectrum-license exchange occurred under threat of condemnation
A partnership and affiliated companies held radio licenses in the 39 GHz spectrum band when the Federal Communications Commission reorganized the band for uses including 5G services. Licensees could…
LLC receives inadvertent S corporation relief for partnership-style operating provisions
A husband and wife elected to treat their LLC as a corporation and then as an S corporation. The LLC's operating agreement still contained partnership-style allocation and liquidation provisions…
IRS denies exemption where a proposed charity would develop a pistachio farm for an insider-owned business
An organization sought § 501(c)(3) status as a Type I supporting organization for a charity serving youth and families affected by human trafficking. Its main financial plan was to use a large grant…
IRS approves scholarships from preschool through college plus enrichment grants
A private foundation proposed renewable scholarships for at-risk and underserved students to attend preschool through college. It also proposed educational grants for tutoring and subject-matter…
IRS approves a nationwide college scholarship for young women with financial need
A private foundation proposed a nationwide scholarship competition for young women pursuing college education who demonstrate financial need. Applicants must meet academic and enrollment…
IRS approves grants and professional mentoring for young playwrights
A private foundation proposed an educational grant initiative for public high school students in one city who submit original one-act plays. Selected young playwrights would receive cash awards,…
IRS approves global leadership grants and scholarships for teenagers
A private foundation proposed a global competition to identify teenagers with leadership potential from diverse regions and backgrounds. Winners would attend a residential leadership program, join a…
IRS approves musician residency grants for artistic development
A private foundation proposed a residency grant program for individual musicians and bands. Grantees would receive a stipend, housing, workspace, equipment, instruction, and performance…
IRS approves leadership grants for day-school administrators
A private foundation proposed grants for administrators at day schools with a specified educational and religious mission. Fellows would complete summer leadership training and a year-long school…
IRS denies exemption to an investment adviser managing impact funds
A nonprofit investment adviser proposed to organize and manage private funds that financed social-service, affordable-housing, and clean-energy projects. It planned to raise capital from impact…
IRS denies exemption for an insufficiently documented greenspace project
A nonprofit proposed to plan, develop, and operate a public greenspace above a transportation corridor in a densely populated urban area. The project was intended to add recreational space, connect…
IRS denies exemption because a related business received substantial private benefit
A nonprofit planned to mentor and support males through online and individual mentoring, after-school programs, school and church partnerships, sports, and community service. It used a character and…
IRS grants late mark-to-market elections for passive foreign investment company funds
A taxpayer invested through multiple funds that were passive foreign investment companies, or PFICs. Its accounting firm failed to identify the funds as PFICs and did not advise the taxpayer to make…
Insurer remains owner of pension separate-account assets after restructuring
An insurance company funded group pension annuity contracts through a separate account holding real estate investments. It proposed contributing most of those assets to an operating partnership that…
IRS gives mixed rulings on elections into governmental hybrid retirement plans
A state retirement system for judges and legislators proposed a one-time, irrevocable election allowing certain members to move from defined benefit plans into hybrid cash balance plans. For members…
IRS grants late election for the success-based fee safe harbor
A corporation incurred success-based fees in connection with two stock acquisition transactions. Its tax professional prepared the return using the safe harbor in Rev. Proc. 2011-29, deducting 70…
IRS confirms insurer ownership of pension separate-account assets
This supplemental ruling modified a 2012 private letter ruling concerning a pension-contract separate account. The separate account would generally keep more than a redacted percentage of its assets…
IRS approves nuclear decommissioning fund deduction and ruling schedules
A corporation owned a direct interest in a nuclear power plant that had ceased operations and was largely decommissioned, apart from a remaining facility. A regulatory commission accepted updated…
IRS denies social-welfare exemption to a private condominium association
A condominium association sought recognition as a tax-exempt social-welfare organization under IRC § 501(c)(4). It maintained the development's common areas and building exteriors, collected…
IRS denies charitable status for a fund paying bonuses to retirement-community staff
Residents of a retirement community formed an organization to collect gifts and distribute year-end bonuses to the community's support staff. Every support worker received a bonus, with no…
Government retiree-benefit trust income is excluded and no annual return is required
Political subdivisions created a trust to invest irrevocably contributed funds for retiree health and other post-employment welfare benefits. Each participating government retained a separate…
IRS grants conditional relief for an ineffective and terminated S corporation election
A business elected S corporation status while organized as a limited partnership, creating a possible violation of the one-class-of-stock rule. Even if the election was initially valid, it later…
Foreign reorganization avoids FIRPTA gain when other nonrecognition rules apply
A foreign partnership proposed separating its home-country operations from its worldwide management business through a distribution and contribution involving stock of a U.S. real property holding…
Foreign insurer gets more time for domestic-corporation and small-insurer elections
A foreign insurance company hired a tax professional to make elections to be treated as a domestic corporation under IRC § 953(d) and as a small insurance company under § 831(b). The adviser filed…
Surviving spouse may roll over an IRA left through her revocable trust
A decedent named a trust as the sole beneficiary of his IRA, and his surviving spouse was the trust's sole trustee and beneficiary. She could amend or revoke the trust and distribute all income and…
Private foundation gets five more years to dispose of illiquid company stock
A private foundation received company stock worth more than twice its prior total assets, creating excess business holdings under IRC § 4943. During the initial five-year disposal period, an…
REIT gets 90 days to file three missed taxable-subsidiary elections
A hotel REIT and three operating subsidiaries intended to make taxable REIT subsidiary elections when the REIT acquired interests in the subsidiaries. The company's tracking spreadsheet showed that…
IRS approves a private foundation's set-aside to buy land and build transitional housing for abused women
Private foundations normally have to pay out a minimum amount each year, but they can "set aside" money for a specific long-term project and still get credit for it as a qualifying distribution,…
IRS treats a large alumnus gift to a fraternity-linked charity as an "unusual grant" that won't sink its public-support status
A publicly supported charity has to keep getting enough small, broad-based donations to pass the "public support" test; one huge gift can distort that math and jeopardize its status. The tax rules…
IRS denies 501(c)(3) status to a group that leases advertising vehicles to disabled individuals, finding it runs a commercial business
An organization applied to be recognized as a tax-exempt charity under § 501(c)(3), saying its purpose was to help disabled people earn a living. Its actual plan was to lease outdoor advertising…
An exempt society's online job-board income is taxable business income, not a tax-free royalty
A tax-exempt professional and academic society (a 501(c)(3) public charity) runs an online job board that connects employers with job seekers for a fee, using an outside for-profit vendor to host…
IRS grants a foreign entity extra time to elect disregarded-entity status (late Form 8832 relief)
A foreign business entity, wholly owned by a foreign partnership, was eligible to elect to be treated as a "disregarded entity" (ignored as separate from its owner) for U.S. federal tax purposes,…
IRS grants a foreign entity extra time to elect partnership classification (late Form 8832 relief)
A foreign business entity, majority-owned by a foreign partnership, was eligible to elect to be treated as a partnership for U.S. federal tax purposes, but it missed the deadline to file the…
IRS grants a foreign entity extra time to elect disregarded-entity status (late Form 8832 relief)
A foreign business entity, wholly owned by a foreign partnership, was eligible to elect to be treated as a "disregarded entity" (ignored as separate from its owner) for U.S. federal tax purposes,…
IRS grants a foreign entity extra time to elect disregarded-entity status (late Form 8832 relief)
A foreign business entity, wholly owned by a foreign partnership, was eligible to elect to be treated as a "disregarded entity" (ignored as separate from its owner) for U.S. federal tax purposes,…
IRS grants a foreign entity extra time to elect disregarded-entity status (late Form 8832 relief)
A foreign business entity, wholly owned by a foreign partnership, was eligible to elect to be treated as a "disregarded entity" (ignored as separate from its owner) for U.S. federal tax purposes,…
IRS grants a foreign entity extra time to elect disregarded-entity status (late Form 8832 relief)
A foreign business entity, wholly owned by a foreign partnership, was eligible to elect to be treated as a "disregarded entity" (ignored as separate from its owner) for U.S. federal tax purposes,…
IRS grants a foreign entity extra time to elect disregarded-entity status (late Form 8832 relief)
A foreign business entity, wholly owned by a foreign partnership, was eligible to elect to be treated as a "disregarded entity" (ignored as separate from its owner) for U.S. federal tax purposes,…
IRS grants a foreign entity extra time to elect disregarded-entity status (late Form 8832 relief)
A foreign business entity, wholly owned by a foreign partnership, was eligible to elect to be treated as a "disregarded entity" (ignored as separate from its owner) for U.S. federal tax purposes,…
IRS grants a foreign entity extra time to elect partnership classification (late Form 8832 relief)
A foreign business entity, majority-owned by a foreign partnership, was eligible to elect to be treated as a partnership for U.S. federal tax purposes, but it missed the deadline to file the…
IRS grants a foreign entity extra time to elect disregarded-entity status (late Form 8832 relief)
A foreign business entity, wholly owned by a foreign partnership, was eligible to elect to be treated as a "disregarded entity" (ignored as separate from its owner) for U.S. federal tax purposes,…
IRS grants a foreign entity extra time to elect partnership classification (late Form 8832 relief)
A foreign business entity, majority-owned by a foreign partnership, was eligible to elect to be treated as a partnership for U.S. federal tax purposes, but it missed the deadline to file the…
IRS grants a foreign entity extra time to elect disregarded-entity status (late Form 8832 relief)
A foreign business entity, wholly owned by a foreign partnership, was eligible to elect to be treated as a "disregarded entity" (ignored as separate from its owner) for U.S. federal tax purposes,…
IRS grants a foreign entity extra time to elect disregarded-entity status (late Form 8832 relief)
A foreign business entity, wholly owned by a foreign partnership, was eligible to elect to be treated as a "disregarded entity" (ignored as separate from its owner) for U.S. federal tax purposes,…
IRS grants an S corporation extra time to elect QSub treatment for its subsidiary (late Form 8869 relief)
An S corporation can elect to treat a wholly owned subsidiary as a "qualified subchapter S subsidiary" (QSub), which makes the subsidiary invisible for tax purposes so its assets and income are…
IRS rules a VEBA may offer members whole life insurance as a permissible "life benefit"
A voluntary employees' beneficiary association (VEBA) is a member-funded organization, tax-exempt under section 501(c)(9), that pays life, sick, accident, and similar benefits to its members. This…
Splitting a deceased owner's estate-beneficiary IRA into separate inherited IRAs is not a taxable distribution
When an IRA owner dies and names his estate (not individuals) as the IRA beneficiary, the estate's personal representatives sometimes want to divide the account so each estate beneficiary can manage…
Interests in a pooled loan-investment partnership can qualify as obligations in registered form under § 163(f)
Federal tax law generally denies an interest deduction, and withholds certain foreign-investor benefits, unless a debt-like obligation is held in "registered form" (ownership tracked through the…
IRS approves a private foundation's college scholarship procedures for high-achieving young women with financial need
A private foundation proposed renewable college scholarships for high-achieving young women who attended high school in a specified city, planned to attend an accredited four-year institution in the…
Section 530 worker-classification relief can cover state and local government workers under Social Security Act agreements
A Chief Counsel office considered whether state and local governments can receive Section 530 worker-classification relief for workers whose positions are included in Social Security Act § 218…
State-required license holders do not disrupt a REIT's health-care-property leasing structure
A publicly traded health-care REIT wanted to use the statutory structure that permits a taxable REIT subsidiary to lease qualified health-care property when an eligible independent contractor…
IRS grants a foreign entity 120 days to make a late disregarded-entity election
A foreign eligible entity wholly owned by a foreign partnership intended to be disregarded for U.S. federal tax purposes from its formation date but failed to timely file Form 8832. It requested…
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.