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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Consolidated group gets 120 days to make a late GILTI high-tax exclusion election after misreading the 24-month deadline
U.S. companies that own controlled foreign corporations (CFCs) generally have to include the CFCs' "GILTI" (global intangible low-taxed income) in their own income under Section 951A. A regulation let…
A supplemental ruling confirms no foreign use of a dual consolidated loss and lets a shareholder count its section 961(a) basis increase before reducing CFC stock basis on a previously-taxed-earnings distribution
This is a supplemental letter updating an earlier private ruling (from January 2021) about a multinational group's series of transactions. The only factual change is that several steps happened on lat…
IRS grants extra time to file a missed IC-DISC election
A newly formed domestic corporation intended to operate as an interest charge domestic international sales corporation (IC-DISC), a structure that gives certain exporters a tax benefit. To get that st…
IRS lets a taxpayer re-elect the foreign earned income exclusion early
A U.S. citizen living and working abroad had claimed the Section 911 foreign earned income exclusion, then in a later year switched to taking the foreign tax credit instead, which counts as revoking t…
Foreign corporation received 30 days to file a late branch-tax election statement
A foreign corporation owned a disregarded U.S. limited liability company that conducted a U.S. trade or business. When the LLC elected corporate status, its assets were treated as contributed to a new…
Corporation received 120-day relief for a late GILTI high-tax election
A domestic corporation sought to make the GILTI high-tax exclusion election for its wholly owned controlled foreign corporation on an amended return. The election regulations were not final when the o…
Corporation receives more time for a GILTI high-tax election
A domestic corporation wanted to make the GILTI high-tax exclusion election for four controlled foreign corporations for an earlier tax year. The corporation intended to amend that year’s return after…
IRS grants extra time to make a branch-profits-tax E&P election after a check-the-box conversion
A foreign parent corporation wholly owned a U.S. limited liability company that was a disregarded entity running a U.S. trade or business, so the parent paid the branch profits tax on the branch's ear…
Corporation received 90 days to file its IC-DISC election
A corporation was formed to operate as an interest charge domestic international sales corporation for an affiliated manufacturer's exports. Its advisers and staff prepared Form 4876-A and believed th…
120-day extension for a partnership to make a GILTI high-tax exclusion election for its CFC
US shareholders of a controlled foreign corporation (CFC) generally must include the CFC's "global intangible low-taxed income" (GILTI) in their income each year, but they can elect a "high-tax exclus…
120-day extension for a partnership to make a GILTI high-tax exclusion election for its CFC
US shareholders of a controlled foreign corporation (CFC) generally must include the CFC's "global intangible low-taxed income" (GILTI) in their income each year, but they can elect a "high-tax exclus…
120-day extension for a partnership to make a GILTI high-tax exclusion election for three CFCs
US shareholders of a controlled foreign corporation (CFC) generally must include the CFC's "global intangible low-taxed income" (GILTI) in their income each year, but they can elect a "high-tax exclus…
120-day extension for a partnership to make a GILTI high-tax exclusion election for three CFCs
US shareholders of a controlled foreign corporation (CFC) generally must include the CFC's "global intangible low-taxed income" (GILTI) in their income each year, but they can elect a "high-tax exclus…
120-day extension for a partnership to make a GILTI high-tax exclusion election for its CFC
US shareholders of a controlled foreign corporation (CFC) generally must include the CFC's "global intangible low-taxed income" (GILTI) in their income each year, but they can elect a "high-tax exclus…
120-day extension for a partnership to make a GILTI high-tax exclusion election for five CFCs
US shareholders of a controlled foreign corporation (CFC) generally must include the CFC's "global intangible low-taxed income" (GILTI) in their income each year, but they can elect a "high-tax exclus…
120-day extension for a partnership to make a GILTI high-tax exclusion election for five CFCs
US shareholders of a controlled foreign corporation (CFC) generally must include the CFC's "global intangible low-taxed income" (GILTI) in their income each year, but they can elect a "high-tax exclus…
Couple gets more time to elect corporate tax rates on foreign-corporation income after their accountant missed it
When a U.S. individual owns a share of a controlled foreign corporation, they can be taxed currently on that foreign income, and a § 962 election lets the individual instead be taxed at corporate rate…
Couple gets more time to elect corporate tax rates on foreign-corporation income after their accountant missed it
When a U.S. individual owns a share of a controlled foreign corporation, they can be taxed currently on that foreign income, and a § 962 election lets the individual instead be taxed at corporate rate…
An entity lacking dealer or bank-type regulatory supervision is not a qualified derivatives dealer eligible entity, so its application should be rejected
U.S. tax rules on payments to foreign persons let certain foreign financial firms register as qualified derivatives dealers (QDDs), a status that changes how withholding applies to dividend-equivalent…
Late-election relief lets a corporation file Form 4876-A and be treated as an IC-DISC for its first year
A newly formed corporation, wholly owned by an S corporation, was set up to operate as an interest charge domestic international sales corporation (IC-DISC), a structure that lets exporters defer some…
Section 956 anti-abuse rule reaches cash repatriated through a chain of intercompany deposits, loans, and note repayments
A U.S. parent company wanted to bring offshore cash held by two lower-taxed foreign subsidiaries (CFC5 and CFC7) back to the United States. Lending that cash straight to the U.S. parent would have tri…
Permission to integrate foreign-currency hedges with an anticipated cross-border stock acquisition under section 988
A publicly traded U.S. parent, whose functional currency is the dollar, is using a subsidiary to acquire 100% of a foreign publicly traded target. Target shareholders can take cash (paid in the foreig…
The six-year assessment period for omitted subpart F income opens the entire return, but a section 6501(c)(4) extension does not revive an already-expired refund-claim period
This Chief Counsel Advice answers two statute-of-limitations questions for a corporate taxpayer that filed amended returns omitting subpart F income. First, when the six-year assessment period under s…
IRS consents to a corporation's change of its spot rate convention under Treas. Reg. section 1.988-1(d)(3)
A domestic corporation that heads a U.S. consolidated group operates in many foreign currencies and has large amounts of payables and receivables denominated in nonfunctional currencies. To compute fo…
Commodity hedge gains follow the source of the underlying inventory
A corporate group bought and sold physical inventory in the United States and abroad and used commodity futures and options to manage price risk associated with that inventory. The derivatives qualifi…
Examiners may assert withholding tax when a foreign microcaptive's payments are not insurance premiums
Chief Counsel advised examiners about foreign microcaptive arrangements in which a captive elects under Section 953(d) to be treated as a domestic corporation. If an examination finds that payments to…
IRS accepts late branch-profits-tax assessment consent
A foreign corporation indirectly participated in a U.S. trade or business through a partnership, then its U.S. business assets were sold and its shareholder adopted an irrevocable liquidation resoluti…
IRS grants late IC-DISC election relief
A domestic corporation was formed to operate as an interest charge domestic international sales corporation, or IC-DISC, and immediately conducted its affairs as though the election were effective. It…
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 dis…
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 revoke…
IRS grants extra time for IC-DISC election
An operating S corporation formed a subsidiary to act as an interest charge domestic international sales corporation for its export business. The subsidiary entered a commission agreement, received co…
Corporation gets 90 days to make a late IC-DISC election
A corporation was formed to operate as an interest charge domestic international sales corporation, or IC-DISC, for an affiliated equipment exporter. Its owners and tax advisers intended to make the e…
Late-filing relief to elect U.S. tax treatment and small-insurer status
A small foreign insurance company, owned equally by two individuals, writes extended-warranty coverage tied to a related recreational-vehicle business. It hired a tax professional who was supposed to …
IRS grants a foreign insurance company 60 days to perfect its election for domestic tax treatment
A foreign insurance company and its U.S. parent had consistently filed as though the insurer had validly elected under § 953(d) to be treated as a domestic corporation and member of the parent's conso…
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 cor…
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 the…
IRS approves a currency-hedging accounting method for a bond index fund
A proposed regulated investment company planned to track an index of foreign-currency-denominated bonds whose methodology uses rolling one-month currency forwards. Rather than hedge each bond separate…
IRS consents to a foreign insurer's revocation of its domestic-corporation election
A foreign insurance company had elected under § 953(d) to be taxed as a domestic corporation. Two U.S. corporate shareholders were considering selling their shares to the company's foreign corporate s…
IRS says a foreign subsidiary liquidation will not trigger a branch-tax disposition
A foreign corporate group planned to liquidate a foreign subsidiary into its foreign parent under IRC § 332. The subsidiary indirectly held a U.S. holding company and a disregarded foreign entity, and…
Three foreign insurers receive more time to elect domestic treatment
Three foreign insurance companies writing U.S. risks intended to elect under section 953(d) to be treated as domestic corporations for federal tax purposes. Their professional adviser prepared returns…
IRS grants 60 days to file an IC-DISC election not found in its records
A domestic corporation was formed to operate as an interest charge domestic international sales corporation for a partnership that manufactured and sold products. Its accounting firm prepared Form 487…
Foreign insurer gets time for domestic and small-company elections
A foreign property-and-casualty insurer relied on a professional adviser to make elections under sections 953(d) and 831(b), treating it as a domestic corporation and a qualifying small insurance comp…
Export commission corporation received extra time to elect IC-DISC status
A domestic corporation was formed to receive commissions connected with another company's software exports and intended to operate as an interest charge domestic international sales corporation, or IC…
Corporation received 60 days to make a late IC-DISC election
A domestic corporation was formed to operate as an interest charge domestic international sales corporation. Its shareholder hired a law firm to handle the formation, but the firm failed to file Form …
Corporation received 60 days to file late IC-DISC election
A domestic corporation was formed to operate as an interest charge domestic international sales corporation and entered a commission arrangement with a related company. Its law firm organized the enti…
Worker may reelect foreign earned income exclusion early
A worker had elected the section 911 foreign earned income and housing cost exclusions and later revoked them. Before the normal five-year waiting period ended, the worker took a position with a new e…
Corporation receives 60 days to file a late IC-DISC election
A domestic corporation intended to elect interest charge domestic international sales corporation status from its formation. Its accounting firm prepared Form 4876-A, gave filing instructions, and lat…
Corporation received 60 days to file late IC-DISC election
A corporation was formed to act as an interest charge domestic international sales corporation for a related company’s export sales. Its law firm prepared Form 4876-A, but responsibility for filing th…
Exporter's corporation gets extra time to file its lost IC-DISC election form
A domestic corporation was set up to act as an interest-charge domestic international sales corporation (IC-DISC), a special export-incentive entity that earns commissions on a related company's forei…
A structure designed to move CFC cash to the U.S. parent without a section 956 inclusion still triggers one
When a U.S. company owns a controlled foreign corporation (CFC), section 956 generally forces the U.S. shareholder to pick up income (via section 951(a)(1)(B)) when the CFC invests its earnings in "Un…
U.S. citizen abroad may re-elect the foreign earned income exclusion early after switching countries and employers
A U.S. citizen working overseas may exclude foreign earned income from U.S. tax under section 911, but once he revokes that election he normally cannot make it again for five years without IRS permiss…
IC-DISC election given effect despite a conflicting form filed the same day
An Interest Charge Domestic International Sales Corporation (IC-DISC) is a special type of company that gives U.S. exporters a tax benefit on export sales, but only if the corporation properly elects …
Foreign bank could apply interest and liability-ratio rules after closing U.S. branch
A foreign bank planned to close its U.S. branch and transfer most branch assets to its home office. It represented that interest earned after the closure would continue to be treated as effectively co…
Foreign insurer receives more time to elect domestic treatment
A foreign insurance company intended to elect under section 953(d) to be treated as a domestic corporation and join its parent's consolidated return. The return was prepared and filed as if the electi…
Late relief to make an IC-DISC election after the company mistakenly filed an S-corporation election instead
An interest-charge domestic international sales corporation (IC-DISC) is a special export-incentive entity, and a company has to elect that status by filing Form 4876-A within 90 days of starting its …
Acquisition debt uses the partners' functional currency for Section 988 calculations
A foreign corporation used a disregarded acquisition entity to borrow in several currencies and buy a corporate group. It later contributed that entity to a partnership whose separate business used a …
IRS grants a foreign reinsurance company more time to elect to be taxed as a domestic corporation under § 953(d)
A foreign insurance company (a controlled foreign corporation whose business is reinsuring risks) wanted to be treated as a U.S. domestic corporation for tax purposes by making an election under Code …
IRS grants a foreign reinsurance company late-election relief for both the § 953(d) domestic-treatment and § 831(b) small-insurer elections
A small foreign insurance company that reinsures insurance contracts, owned by three individuals, wanted two tax elections: one under Code Section 953(d) to be treated as a U.S. domestic corporation, …
Grants 60 days to file a late IC-DISC election after advisers miscommunicated
A domestic corporation was formed to operate as an interest charge domestic international sales corporation (IC-DISC) for its parent company's export sales. The corporation relied on two accounting fi…
Corporation gets more time to file the election to be treated as an IC-DISC after its form went missing
An interest-charge domestic international sales corporation (IC-DISC) is a special export tax vehicle that lets qualifying exporters defer some U.S. tax on export income. To claim that status, a corpo…
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.