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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Grants late partnership election for foreign entity
A foreign entity owned through foreign and domestic entities intended to be treated as a partnership for U.S. federal tax purposes from its formation date. Its domestic S corporation owner communicate…
Denies exemption to commercial billboard network
An organization sought section 501(c)(3) status for a network of outdoor digital displays that would carry commercial advertising, nonprofit messages, and political-candidate messages. It planned to c…
Approves employer scholarship procedures
A private foundation requested advance approval for scholarships to employees of a company and their dependent children. It initially planned four awards for employees and two awards for dependents, w…
Approves ancestry-based scholarship procedures
A nonexempt charitable trust treated as a private foundation requested advance approval for a scholarship program serving students with one of two specified ancestries. Awards could cover tuition, fee…
Approves research grants for medical trainees
A private foundation requested advance approval for grants to promising physician residents and fellows at tax-exempt hospitals in specified cities. The grants would support research and training in a…
Approves scholarship and study-abroad grant procedures
A private foundation requested advance approval for both scholarships and educational fellowships. Scholarships would support study at accredited colleges, universities, vocational schools, and trade …
Approves arts-campus construction set-aside
A private foundation requested approval to set aside a redacted amount for an arts campus centered on rehabilitating a vacant historic church. The set-aside would fund infrastructure and tenant improv…
Revokes inactive organization's exemption
An organization had previously lost exemption automatically for failing to file returns, then reapplied and received retroactive reinstatement under section 501(c)(3). Its stated plans included commun…
Revokes commercialized social club exemption
The IRS revoked the section 501(c)(7) exemption of a social club that operated alongside a taxable restaurant and bar. The public could purchase alcohol without becoming members or paying dues, the cl…
Revokes work-unit morale organization's exemption
An organization received section 501(c)(3) status after filing Form 1023-EZ, but its bylaws focused on improving the health, welfare, and morale of members of a specified work unit and their families.…
Revokes firefighter member-benefit charity's exemption
An organization formed a charity to accept contributions for members' families when a firefighter died in the line of duty or members experienced other catastrophic events. The IRS found that the orga…
Revokes inactive fire association's section 501(c)(4) status
An organization had been recognized under section 501(c)(4) for volunteer fire protection and related civic purposes, but it disbanded after the fire chief stopped using volunteer firefighters. Its on…
Revokes dual-status hospital's section 501(c)(3) exemption
A county-owned hospital also held section 501(c)(3) status, making it a dual-status governmental hospital. The hospital was not required to file Form 990 because of its governmental status, but it sti…
Revokes noncompliant county hospital's charitable exemption
A county-created regional hospital was both a governmental entity and a section 501(c)(3) organization. Although its governmental status excused it from filing Form 990, it still had to comply with se…
Revokes energy-referral charity for private benefit
An organization said its mission was to inform consumers about possible savings on electric and gas bills. In practice, it called consumers and sent interested prospects to two related energy business…
Denies exemption for high school class reunions
An unincorporated association applied for section 501(c)(3) status to organize periodic high school class reunions for classmates and their families. It planned annual or twice-yearly fundraisers to r…
Revokes inactive aromatherapy foundation's exemption
A foundation was recognized under section 501(c)(3) to provide aromatherapy education, public seminars, professional training, and research support. After a county changed its transient-occupancy lice…
Grants inadvertent S corporation termination relief for late QSST election
An S corporation shareholder died, and the shareholder's estate transferred stock to a trust under the will. The trust was an eligible shareholder for two years and met the substantive requirements fo…
Approves partition of grandfathered trust into family-line trusts
An irrevocable trust created before September 25, 1985, benefited a granddaughter and her descendants. A court ordered that, at the granddaughter's death, the trust be divided pro rata into separate t…
Allows overfunded retiree trust assets to fund active employee health benefits
A public utility subsidiary maintained a collectively bargained welfare benefit trust that funded retiree health benefits. After plan changes left the trust overfunded, the company proposed creating a…
Preserves VEBA exemption and avoids UBTI for health benefit subaccount
A voluntary employees' beneficiary association funded retiree health benefits for collectively bargained employees. It proposed transferring assets once to a new internal subaccount that would pay hea…
Approves student loan repayment-linked retirement plan contributions
An employer proposed amending its 401(k) plan to make nonelective contributions for employees who repay student loans. Participating employees could still make elective plan contributions, but general…
Treats spin-off debt exchange and cash distribution under section 361
A publicly traded parent planned to separate one business into a newly formed controlled corporation and distribute that corporation's stock to its shareholders. The controlled corporation would issue…
Grants relief for late QSST election that terminated S status
An estate transferred S corporation shares to a trust that could hold them for two years without a special election. The trust continued holding the shares after that period, but its beneficiary did n…
Late election to file a consolidated return is allowed after a missed filing
A corporation became the parent of a new affiliated group after acquiring another company and its subsidiaries. The group meant to file a single consolidated federal income tax return for the year, bu…
Treats bulk nitrogen fertilizer income as qualifying partnership income
A corporation planned to form a limited partnership that would produce and market ammonia, urea, and urea ammonium nitrate in bulk. The partnership's interests could be publicly traded, making the sec…
Grants extension for omitted section 754 election
A partnership failed to include a section 754 election with its return for the year an individual partner died. The partnership represented that the omission was inadvertent, that it acted reasonably …
Grants late partnership classification election for foreign entity
A foreign entity intended to be classified as a partnership for federal tax purposes from its formation date but inadvertently failed to file Form 8832 on time. The IRS found that the entity satisfied…
Grants late disregarded entity election for foreign entity
A foreign entity intended to be classified as disregarded from its owner for federal tax purposes from its formation date but inadvertently failed to file Form 8832 on time. The IRS found that the ent…
Grants late disregarded entity election for foreign entity
A foreign entity intended to be classified as disregarded from its owner for federal tax purposes from its formation date but inadvertently failed to file Form 8832 on time. The IRS found that the ent…
Grants late disregarded entity election for foreign entity
A foreign entity intended to be classified as disregarded from its owner for federal tax purposes from its formation date but inadvertently failed to file Form 8832 on time. The IRS found that the ent…
Grants late disregarded entity election for foreign entity
A foreign entity intended to be classified as disregarded from its owner for federal tax purposes from its formation date but inadvertently failed to file Form 8832 on time. The IRS found that the ent…
Grants extension for missed IC-DISC election
A domestic corporation was formed to operate as an interest charge domestic international sales corporation for its parent. A misunderstanding over which adviser would file Form 4876-A caused the corp…
Makes pension funding extension revocation prospective with a make-whole charge
A pension plan had received a conditional 10-year extension for amortizing unfunded liabilities but later failed two conditions. The IRS approved modifying its earlier rulings so the extension would c…
Denies exemption to market-rate veterinary practice
A professional service limited liability company applied for section 501(c)(3) status to provide veterinary services and eventually find homes for abandoned animals. Its sole member shared in profits …
Denies business league exemption to farmers' market
A farmers' market sought exemption as a business league under section 501(c)(6). It provided member vendors with physical and online selling venues, advertising, electrical access, and other market se…
Denies social welfare exemption to commercial property association
An association of commercial property owners sought exemption as a social welfare organization under section 501(c)(4). It planned to maintain privately owned common areas, parking, landscaping, utili…
Denies social welfare exemption to condominium association
A condominium owners' association sought exemption as a social welfare organization under section 501(c)(4). It collected assessments to maintain the complex's exterior structures, grounds, pool, tenn…
Denies exemption to member-focused internet exchange
An organization sought section 501(c)(3) status to establish and operate a neutral regional internet exchange. Members would pay port fees, receive below-market access, and exchange local internet tra…
Denies social welfare exemption to member-owned well and dock association
A homeowners' association collected mandatory annual fees to pay expenses for a well and boat dock owned in common by its member households. It did not own the facilities, restricted their use and ass…
Denies exemption to organization serving one family lineage
An organization formed to improve the educational and economic prospects of the descendants of two individuals and their siblings applied for exemption under section 501(c)(3). It planned family-linea…
Grants more time to file a loss-property basis election statement
A corporate parent requested extra time to file the statement required for a joint election under section 362(e)(2)(C). A subsidiary had transferred stock with a tax basis above fair market value to a…
Grants more time for a foreign subsidiary's loss-property basis election
A corporate parent requested extra time to file the statement required for a joint election under section 362(e)(2)(C). A controlled foreign corporation had transferred stock with a tax basis above fa…
Approves revised nuclear decommissioning fund contribution schedule
A partnership that owned a permanently shut down nuclear power plant requested a revised schedule of deductible contribution amounts for its qualified nuclear decommissioning fund. It based its projec…
Defines income, gift, and estate tax treatment of family trust powers
A grantor created an irrevocable domestic trust for himself, his spouse, descendants, parents, and another individual. A committee that included the grantor and other beneficiaries or their representa…
Defines income, gift, and estate tax treatment of family trust powers
A grantor created an irrevocable domestic trust for himself, his spouse, descendants, parents, and another individual. A committee that included the grantor and other beneficiaries or their representa…
Defines income, gift, and estate tax treatment of family trust powers
A grantor created an irrevocable domestic trust for himself, his spouse, descendants, parents, and another individual. A committee that included the grantor and other beneficiaries or their representa…
Defines income, gift, and estate tax treatment of family trust powers
A grantor created an irrevocable domestic trust for himself, his spouse, descendants, parents, and another individual. A committee that included the grantor and other beneficiaries or their representa…
Defines income, gift, and estate tax treatment of family trust powers
A grantor created an irrevocable domestic trust for himself, his spouse, descendants, parents, and another individual. A committee that included the grantor and other beneficiaries or their representa…
Restores two S elections after trusts missed ESBT filings
Two corporations lost their S corporation status after the owner of a grantor trust died and the trustee did not timely elect electing small business trust status when the post-death eligibility perio…
Grants time to divide a trust and make a QTIP election
A decedent's revocable trust became irrevocable at death and held the residuary estate, including a retirement account, for the surviving spouse during life with the remainder going to charities. The …
Late election to defer a low-income housing credit period
A partnership placed a single-building low-income housing project in service but inadvertently failed to elect to begin its 10-year credit period in the following taxable year. It asked the IRS for an…
Late success-fee safe-harbor election granted
A corporation acquired another company and treated its success-based investment banking fees under the safe harbor in Revenue Procedure 2011-29. It deducted 70 percent of the fees and capitalized 30 p…
Study-abroad fellowship procedures approved
A private foundation proposed a two-week study-abroad fellowship program for undergraduate and graduate students from one country. The program would develop participants' leadership and entrepreneuria…
Innovation grant procedures approved under § 4945(g)(3)
A private foundation asked the IRS to approve in advance the procedures for an educational grant program it planned to run. The program would make small grants to individuals (open to applicants 18 or…
A members-only funeral benefit society is denied 501(c)(3) status
A mutual-aid society applied for tax-exempt charitable status using the streamlined Form 1023-EZ, and the IRS denied it under § 501(c)(3) after a technical review. The group works like a members-only …
A "church" organized as a for-profit LLC with a paid recruiting scheme is denied 501(c)(3) status
An organization applied for recognition as a tax-exempt religious charity but the IRS denied it under § 501(c)(3). Two problems doomed the application. First, it failed the organizational test: the gr…
An animal sanctuary run out of the founders' home is denied 501(c)(3) status for inurement
A husband and wife formed a nonprofit to run a permanent sanctuary for previously ill, abused, or neglected animals, which lived in the couple's own home. The IRS denied the organization recognition a…
A charity formed to aid one boat crew's families is denied 501(c)(3) status
An organization was formed to collect donations and hand them out to the families of the deceased crew of a fishing vessel, a group of fewer than ten identified individuals. Its own directors and offi…
A malpractice settlement that just restores lost capital is not taxable income
A driver caused a fatal accident and lost a large wrongful-death judgment after the insurer's defense law firm failed to settle the case within the auto policy limits. The driver went bankrupt, and th…
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.