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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New affiliated group received time for consolidated-return election
A parent corporation created a new affiliated group through an acquisition and intended to file a consolidated return, but did not timely make a valid election under Treas. Reg. § 1.1502-75(a)(1). The…
Governmental deferred-compensation plan met Section 457 requirements
A city board requested rulings on a deferred-compensation plan for employees and independent contractors of the city and participating agencies. The plan included designated Roth contributions, deemed…
REIT received time for taxable-subsidiary election
A REIT owned a foreign company and foreign property companies whose intercompany interest deductions were affected by new foreign tax rules. Relying on its tax adviser's analysis, the REIT did not tim…
Partnership received time for election after technical termination
A limited liability company taxed as a partnership underwent a technical termination under former Section 708(b)(1)(B) when one owner sold membership interests to two buyers. The partnership intended …
Police line-of-duty benefits were partly tax-exempt
A public employer's plan paid police officers disability benefits for line-of-duty injuries and paid survivor benefits for line-of-duty deaths. Each benefit generally equaled 50 percent of final avera…
Partnership-style agreement did not defeat S corporation relief
A limited liability company's operating agreement retained partnership-style capital-account, allocation, and liquidation provisions after the company elected S corporation status. Those binding provi…
Late ESBT election received conditional S corporation relief
A trust acquired S corporation shares from an estate but failed to make a timely electing small business trust election, terminating the corporation's S status. The IRS found the termination inadverte…
Transition-tax income did not end partnership treatment
A publicly traded partnership owned controlled foreign corporations that provided natural gas compression services. The one-time Section 965 transition-tax inclusion could cause the partnership to fal…
Multiemployer plan received five-year amortization extensions
A multiemployer pension plan requested automatic extensions for amortizing 71 listed unfunded-liability charge bases. The plan's actuary certified that, without relief, the plan would have an accumula…
Public arts grant procedures received advance approval
A private foundation proposed small grants for artists and performers to create public-minded fine and performing arts projects, initially in two counties of a metropolitan area. Applicants would subm…
Computer science scholarship procedures received approval
A private foundation proposed scholarships for underprivileged students enrolled full-time in a computer science bachelor's degree program at a specified school. Applicants had to meet a minimum high-…
Energy research venture primarily served commercial interests
An organization sought Section 501(c)(3) exemption for energy research, prototype development, marketing, and licensing activities. Its founder and chief executive owned a patent-pending technology th…
Farmers market did not qualify as a business league
An organization sought exemption as a business league under Section 501(c)(6). It operated a farmers market, charged vendors fees, and used some market revenue for improvements and promotion in the su…
Third-party victims had priority over IRS restitution collection
Chief Counsel considered two criminal cases with separate docket numbers but linked judgment and restitution orders. After consulting with the Tax Division, Counsel recommended treating them as one co…
Internet domain names are intangible personal property
Chief Counsel confirmed how an internet domain name is classified for federal tax levy purposes. It advised that a domain name is intangible personal property under the provisions governing property e…
Exam teams may share information needed for tax administration
Chief Counsel addressed whether IRS examination teams could share information and documents with one another. It advised that Section 6103(h)(1) permits internal disclosure when the receiving examinat…
Appraisal disclosure may satisfy the Section 6103 item test
An IRS employee asked whether an appraisal could be disclosed in a tax proceeding. Chief Counsel treated the appraisal as a third party's return information because the IRS had received it in connecti…
Technical advice request could be returned unanswered after consultation
Chief Counsel discussed the procedure for ending a technical advice request involving a variable annuity. The referenced revenue procedure required a director to notify the taxpayer before withdrawing…
Affiliated entities received more time to elect alternative depreciation
An individual owned several pass-through entities that used the general depreciation system for property placed in service during a redacted tax year. Using the alternative depreciation system instead…
IRS issued targeted rulings for a complex corporate spin-off
A publicly traded parent planned a multi-step separation of a business into a spun-off corporation, with internal transfers, preferred-stock sales, borrowing, cash distributions, retained stock, and p…
Municipal retiree health trust could fund a VEBA
A city used a trust to fund retiree health and welfare benefits, and the trust's income was excluded under Section 115(1). After settling litigation over retirement-benefit changes, the city created a…
Retiree health trust payment to a VEBA satisfied Section 115
A city funded retiree health and welfare benefits through a trust whose income was excluded under Section 115(1). A lawsuit settlement led to creation of a voluntary employees' beneficiary association…
Partnership received 120 days to make a late Section 754 election
A limited partnership failed to include a Section 754 election with its return for the year in which one partner sold its interest to another party. The partnership represented that the omission was i…
Late election out of bonus depreciation was treated as timely
A partnership intended to elect out of additional first-year depreciation for every class of qualified property placed in service during its initial tax year. Its partnership agreement required that c…
Court-approved trust partition caused no income, gift, or GST tax
A trust that became irrevocable before September 25, 1985 had previously been divided along family lines. A court later approved modifying one resulting trust so that, after the current beneficiary's …
Landlord received more time for a tenant-improvement disposition election
A partnership owned an office building and removed an earlier tenant's improvements while preparing the space for a new tenant. Its accounting firm knew about the tenant change and build-out but did n…
Partnership received relief for a late Section 754 election
A limited liability company treated as a partnership underwent a technical termination after a transfer of ownership interests. It intended to make a Section 754 election in connection with that trans…
Pass-through entities could make a late bonus depreciation opt-out
An individual wholly owned several pass-through entities that claimed additional first-year depreciation on qualified property. Those deductions flowed through to the owner, contributed to a net loss,…
One-time foreign income inclusion would not end partnership treatment
A publicly traded partnership indirectly owned a substantial noncontrolling interest in a foreign partnership whose group included foreign corporations. The partnership expected the newly amended Sect…
Foundation's social-impact grant procedures were approved
A private foundation proposed annual grants to individuals or teams pursuing projects involving civil rights, humanitarian concerns, environmental protection, and related social issues. Staff, outside…
Exemption revoked after organization failed to provide records
The IRS repeatedly asked an exempt organization for documents concerning its receipts, expenditures, activities, governing purpose, financial statements, and minutes. The organization received at leas…
Partnership received 120 days for a late Section 754 election
A partner died, causing that partner's interest and a terminating trust's separate interest in a partnership to pass to new owners. The partnership relied on its tax adviser and did not know that it c…
Consolidated group could file a late waiver of its loss carryback
A corporate parent intended to waive the entire carryback period for its consolidated group's net operating loss. The group's returns consistently treated the waiver as effective, but the required ele…
Family trust could divide into seventeen separate trusts without tax
An irrevocable family trust created before September 25, 1985 proposed dividing into seventeen equal trusts, one for each grandchild's family line. Each new trust would retain materially similar distr…
IRA ownership caused an inadvertent S corporation termination
An S corporation shareholder transferred company stock to individual retirement accounts, which were not eligible S corporation shareholders. That transfer terminated the company's S election. After d…
Trust could divide into four family-line trusts without tax
An irrevocable trust created before September 25, 1985 benefited a grandchild's descendants, their spouses, and selected charities. Its trustees proposed dividing the trust equally into four trusts, o…
Four-way family trust division preserved tax treatment
An irrevocable pre-1985 trust benefited a grandchild's descendants and spouses, as well as charities chosen by the trustees. The trustees proposed creating four equal trusts, each centered on one grea…
Five-way family trust division produced no tax
A pre-1985 irrevocable trust for family members and selected charities proposed dividing into five equal trusts, one for each great-grandchild's family line. The divided trusts would use materially si…
Foreign entity received more time for a disregarded-entity election
A foreign entity and its sole owner had been unaware that an entity-classification election was needed to obtain disregarded-entity treatment. The entity requested permission to file Form 8832 late wi…
Late check-the-box election received 120-day relief
A foreign entity and its sole owner did not realize that they needed an entity-classification election to treat the entity as disregarded for U.S. federal tax purposes. They sought a late Form 8832 el…
Foreign entity could retroactively elect disregarded status
A wholly owned foreign entity and its owner had not known that a Form 8832 election was required to obtain disregarded-entity treatment. The entity asked to make the classification election late with …
VEBA could offset member contributions against promissory notes
A voluntary employees' beneficiary association had required extra contributions from participating employers when first-year premiums were insufficient to meet a state minimum fund balance. Many of th…
Export commission company received more time to elect IC-DISC status
A domestic corporation was formed to operate as an interest charge domestic international sales corporation, selling its owner's industrial products to foreign buyers on commission. Its accounting fir…
Utility had to prorate deferred taxes for interim rates
A regulated natural-gas utility used forecasted test periods to set interim and final rates, reducing rate base by accumulated deferred federal income taxes from accelerated depreciation. It had not u…
Estates could make late GST exemption allocations to family trusts
A married couple made gifts to two irrevocable trusts for their sons and descendants in three years before 2001. They timely filed gift tax returns and elected to split the gifts equally, but their ta…
State deferred compensation plan qualified under Section 457(b)
A state board adopted a deferred compensation plan for state and local government employees. The plan included automatic enrollment with an opt-out period, standard and catch-up deferral limits, requi…
Beneficiary could serve as co-trustee without a general power
A pre-1985 trust had divided into separate trusts for two grandchildren, and one trust needed a successor co-trustee. The trustees proposed appointing the beneficiary or one of her descendants. The tr…
Successor beneficiary co-trustee did not create appointment power
A trust created before September 25, 1985 later divided into separate trusts for two grandchildren. For the second trust, the serving trustees proposed adding its beneficiary or one of her descendants…
IRS resolved seven issues in a spin-off followed by a foreign merger
A public company separated one business into a newly public controlled corporation, which was then acquired through a merger involving an unrelated foreign corporation. The IRS addressed seven discret…
Foundation lost exemption for substantial insider benefits
A public charity that provided addiction counseling and transitional housing gave one executive control over its bank accounts and debit card. The examination found numerous unsubstantiated cash withd…
Housing applicant failed to establish charitable operation
An organization applied for Section 501(c)(3) status to operate accessible apartment housing for homeless and disabled veterans and civilians. The IRS asked for details about tenant eligibility, affor…
Tip-box cash required FICA notice and demand procedures
A taxpayer treated service providers as volunteers even though customers left cash for them in tip boxes. After determining that the workers were employees, the IRS considered how to assess the employ…
Media producer could integrate currency hedges with production costs
A media producer budgeted foreign production costs in local currencies and used forward contracts to lock in their U.S. dollar cost. The anticipated expenses were not yet supported by binding purchase…
FCC spectrum sale qualified as an involuntary conversion
A television broadcaster sold a station's spectrum rights to the FCC through an incentive auction rather than face likely forced relocation to a different channel through the FCC's repacking process. …
Health authority qualified as a political subdivision
A public corporation formed under state law to provide health care services asked whether it was a political subdivision for federal tax purposes. State law authorized the authority to exercise eminen…
Partnership received 120 days to make a late Section 754 election
A limited partnership timely filed its federal tax return but inadvertently failed to include an election under Section 754. The partnership represented that it acted reasonably and in good faith and …
Utility could leave deferred tax balances unchanged after restructuring
An electric transmission utility treated as a partnership underwent a restructuring in which regulated utility members transferred partnership interests to nonregulated affiliates in their consolidate…
Home hazard-mitigation grants required information reporting
A state entity offered grants to selected homeowners for structural work intended to help their homes withstand a future hazard. Eligibility depended on the home's location, age, physical characterist…
City development payments qualified for REIT tests
A REIT owned an interest in a partnership developing a mixed-use shopping center on a long-vacant site. A city agreed to make annual payments from a portion of new tax revenue generated by the project…
Development reimbursements met REIT asset and income tests
A REIT held an interest in a partnership developing a mixed-use shopping center on a long-vacant property. A city agreed to make annual payments from a share of new tax revenue attributable to the pro…
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.