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.
No determinations match these filters
Try a different search term or clear the filters.
Trust allowed to revise dividend investment-income election
A trust elected to treat a specified amount of qualified dividend income as investment income when calculating its investment interest deduction. It based the election on a Schedule K-1, but the issue…
Omitted success-based fee election statement accepted late
A corporate taxpayer incurred success-based fees in an acquisition and reported them using Revenue Procedure 2011-29's 70-percent deduction and 30-percent capitalization safe harbor. Its accounting fi…
Acquisition fee safe-harbor election allowed late
A consolidated corporate group paid a success-based financial advisory fee when acquiring another company. Its tax adviser prepared a transaction-cost analysis concluding that the fee qualified for Re…
Late QSub election allowed
An S corporation acquired all the stock of a subsidiary and intended to elect qualified subchapter S subsidiary treatment from the acquisition date. It inadvertently failed to file Form 8869, although…
Foreign entity allowed late partnership classification election
A foreign eligible entity intended to be classified as a partnership for federal tax purposes but inadvertently failed to file Form 8832 on time. It represented that it acted reasonably and in good fa…
Late duplicate Forms 3115 accepted
A consolidated corporate group implemented three accounting method changes involving depreciation, advance payments, and the remodel-refresh safe harbor. Its accounting firm attached the original Form…
Late Form 3115 attachment allowed for repair-cost method change
A corporation intended to make an automatic accounting-method change so that qualifying repair and maintenance costs would be deducted rather than capitalized. It timely sent the duplicate Form 3115 t…
Partnership receives 120 days for late Section 754 election
A limited liability company taxed as a partnership did not include a section 754 election with its timely return for the year one of its two owners died. Its professional return preparer had not told …
Trust may revise qualified-dividend investment-income election
A trust elected to treat a stated amount of qualified dividends as investment income for its investment-interest deduction based on a Schedule K-1. After the issuer supplied an amended Schedule K-1 sh…
Amended K-1 permits revised dividend election
A trust elected to treat a stated amount of qualified dividends as investment income for its investment-interest deduction based on a Schedule K-1. After the issuer supplied an amended Schedule K-1 sh…
Trust receives relief to reduce dividend election
A trust elected to treat a stated amount of qualified dividends as investment income for its investment-interest deduction based on a Schedule K-1. After the issuer supplied an amended Schedule K-1 sh…
Individual may reduce dividend investment-income election
An individual filing as head of household elected to treat a stated amount of qualified dividends as investment income for the investment-interest deduction based on Schedules K-1 from two entities. A…
Joint filers may reduce dividend investment-income election
A married couple filing jointly elected to treat a stated amount of qualified dividends as investment income for the investment-interest deduction based on a Schedule K-1. After the issuer supplied an…
Biopharmaceutical company receives 60 days to make a success-based fee safe-harbor election
A biopharmaceutical company paid success-based advisory fees when it acquired another company. Its accounting firm deducted 70 percent of the fees and capitalized 30 percent under the safe harbor in R…
Corporate group receives 60 days to attach a success-based fee safe-harbor election
A corporate group paid a success-based advisory fee in connection with a stock acquisition and merger. Its return deducted 70 percent of the fee and capitalized the remaining 30 percent under Revenue …
Captive insurer receives 90 days to make a small-insurance-company election
A captive property and casualty insurer prepared a timely return and an election under section 831(b)(2) to be taxed only on taxable investment income. The company set the return aside for review but …
Corporate group receives 60 days to file safe-harbor elections for two acquisition fees
A consolidated corporate group paid success-based advisory fees in two acquisitions, one treated as an asset acquisition through a section 338(h)(10) election and one structured as an asset sale. The …
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…
Taxpayer received extra time to opt out of automatic GST exemption allocations
A taxpayer made gifts over several years to three irrevocable trusts with generation-skipping transfer potential. He did not intend to allocate GST exemption to those gifts, but his accountant failed …
LLC received 120 days to make a late partnership classification election
A limited liability company intended to be treated as a partnership for federal tax purposes from a specified date. It did not file Form 8832, the entity classification election, on time. The IRS conc…
Consolidated group received extra time for a general asset account election
A consolidated group acquired a subsidiary's real property through contribution and liquidation steps during the tax year. The group's return included a general asset account election for the predeces…
Partnership received 120 days to make a late section 754 election
A limited liability company taxed as a partnership timely filed its return but inadvertently omitted a valid section 754 election. It represented that it acted reasonably and in good faith and that la…
Parties received 45 days to file a late section 336(e) election statement
A partnership purchased all the stock of an S corporation, which later converted into a disregarded limited liability company. The parties signed a timely binding agreement to make a section 336(e) el…
Estate received 120 days to make a late portability election
An estate was not otherwise required to file an estate tax return because the decedent's gross estate and adjusted taxable gifts were below the filing threshold. The estate nevertheless needed to file…
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 …
Estate received 120 days to file a late portability election
An estate represented that it was below the section 6018 filing threshold and therefore was not otherwise required to file an estate tax return. It still needed Form 706 to elect portability of the de…
Estate received 120 days to make a late QTIP election for marital trust
A decedent's trust divided into a marital trust for the surviving spouse and a family trust for the children. The spouse was entitled to all marital-trust income, could receive principal for specified…
Partnership received 120 days for a late section 754 election after a partner's death
A married couple held separate interests in a limited partnership formed in a community-property state and later transferred those interests to a revocable trust. When one spouse died, that spouse's c…
Erroneous QTIP election voided and late reverse QTIP relief granted
A decedent's trust divided into Trust A and Trust B, both of which provided income and possible principal for the surviving spouse. Trust B also required recurring payments from corpus to the decedent…
Estate received 120 days to make a late portability election
An estate represented that the decedent's gross estate and adjusted taxable gifts were below the threshold requiring an estate tax return. The estate still needed a timely Form 706 to elect portabilit…
Two foreign LLCs received 120 days for late partnership elections
Two foreign limited liability companies intended to be classified as partnerships from their respective formation dates but did not timely file Forms 8832. Because all members of a foreign eligible en…
Partnership received 120 days for a late section 754 election after technical termination
A buyer acquired more than half of a limited liability company's partnership interests while the former section 708 technical-termination rule was still in effect. The acquisition caused a technical t…
Estate received late QTIP and reverse QTIP election relief
A decedent's revocable trust divided the marital share into generation-skipping transfer tax exempt and nonexempt trusts for the surviving spouse. The spouse was entitled to all income and could recei…
Foreign entity received 120 days for a late disregarded-entity election
A foreign single-owner entity intended to be disregarded for U.S. federal tax purposes from its formation date. It was owned by a domestic disregarded entity, which in turn was owned by an S corporati…
Estate received 120 days to file a late portability election
An estate represented that it was below the section 6018 filing threshold and was not otherwise required to file an estate tax return. It nevertheless needed Form 706 to elect portability of the deced…
Consolidated group received 60 days for a late section 382 closing-of-the-books election
A consolidated group experienced an ownership change that limited the use of its pre-change losses under section 382. The group missed the deadline to elect to close its books on the ownership-change …
Parties received 45 days to file a late section 336(e) election statement
A partnership purchased all stock of an S corporation, which later merged into a disregarded limited liability company owned by the purchaser. The parties timely signed a binding agreement to make a s…
Taxpayer received 60 days for a late success-based fee safe-harbor election
A partnership paid a contingent financial-adviser fee in connection with an acquisition that ended its partnership status. Its final return followed the Revenue Procedure 2011-29 safe harbor by deduct…
Estate received 120 days to make a late portability election
An estate represented that the decedent's gross estate and adjusted taxable gifts were below the threshold requiring an estate tax return. It still needed to file Form 706 to elect portability of the …
Estate received 120 days for late GST exemption allocations to three trusts
A decedent created an irrevocable trust that immediately divided into three equal trusts for the decedent's children, with the instrument stating that each trust was intended to be exempt from generat…
Extension granted to attach Form 3115 to amended return
A taxpayer timely mailed the duplicate copy of Form 3115 and reported all adjustments from its intended automatic accounting-method change, but its tax manager inadvertently failed to attach the origi…
Foreign entity received extension to elect disregarded status
A foreign entity intended to be classified as a disregarded entity but inadvertently failed to file Form 8832 on time. The IRS found that the entity satisfied the requirements for discretionary electi…
Extension granted for section 336(e) election after S corporation stock sale
A purchaser acquired all stock of an S corporation from its shareholders, and the parties intended to treat the qualified stock disposition as an asset sale under section 336(e). They did not timely e…
Late QSub and corporate classification elections received 120-day extensions
An S corporation acquired all the stock of another S corporation and intended to elect qualified subchapter S subsidiary status for the acquired company. It later converted both entities to limited li…
Foreign entity received 120 days for late disregarded-entity election
A foreign eligible entity intended to be treated as a disregarded entity from a specified date but inadvertently failed to file Form 8832 on time. The IRS found that the requirements for discretionary…
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…
Partnership received 60 days to elect success-fee safe harbor
A partnership paid financial advisers success-based fees in connection with its acquisition. Its return preparer applied the Revenue Procedure 2011-29 safe harbor, which treats 70 percent of qualifyin…
Parties received late relief for section 336(e) stock-sale election
A consolidated group sold all the stock of a subsidiary and intended to elect under section 336(e) to treat the stock sale as an asset disposition. The purchase agreement called for the election, but …
Consolidated group received 60 days to elect success-fee safe harbor
A consolidated corporate group paid a success-based financial advisory fee in a taxable stock acquisition. Its timely return deducted 70 percent and capitalized 30 percent in accordance with the Reven…
Estate received late alternate valuation election relief
An estate’s personal representative timely filed Form 706 after relying on a law firm, but the firm did not advise making the section 2032 alternate valuation election. During preparation of the estat…
Foreign entity received 120 days for late disregarded-entity election
A foreign eligible entity intended to be classified as a disregarded entity from its formation date but inadvertently failed to timely file Form 8832. The IRS found the discretionary extension require…
Late Forms 3115 received accounting-method filing relief
A consolidated group intended to make two automatic accounting-method changes for ten subsidiaries but missed the required filing deadlines after the parent inadvertently failed to submit Form 7004. T…
Taxpayer received 60 days to elect out of bonus depreciation
A consolidated group did not claim additional first-year depreciation for several classes of qualified property, but its internal tax department inadvertently omitted the required election statement f…
Partnership received 120 days to make a late section 754 election
A limited liability company treated as a partnership missed a section 754 election after an owner died because its advisor did not explain that the election was available. The IRS found that the regul…
Estate received 120 days for a reverse QTIP election and trust severance
An estate made a QTIP election for a marital trust, but its accountant failed to attach Schedule R, advise the executor to divide the trust into GST-exempt and nonexempt shares, or make a reverse QTIP…
Taxpayer received 120 days to opt out of automatic GST allocations
A taxpayer created two irrevocable annuity trusts before the automatic generation-skipping transfer tax allocation rules were enacted. The trusts' estate tax inclusion periods ended after those rules …
Taxpayer received 120 days to opt out of automatic GST allocations
A taxpayer created two irrevocable annuity trusts before the automatic generation-skipping transfer tax allocation rules were enacted. The trusts' estate tax inclusion periods ended after those rules …
Foreign entity received 120 days for a late disregarded-entity election
A wholly owned foreign eligible entity intended to be classified as disregarded for federal tax purposes but inadvertently failed to file Form 8832 on time. The IRS found that the regulatory-extension…
LLC received 120 days to correct a mistaken corporate election
A domestic single-member limited liability company intended to be disregarded for federal tax purposes and filed returns consistently with that treatment. It mistakenly submitted Form 8832 electing as…
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 and sell its parent's products to foreign buyers on a commission basis. Its accounting firm …
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.