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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Late basis-reduction election allowed after adviser missed extension filing
A company emerging from bankruptcy reported cancellation-of-debt income and intended to elect under section 108(b)(5) to reduce the basis of depreciable property first. Its return included Form 982 ma…
Estate gets extra time for reverse QTIP election and trust severance
A decedent's estate made a QTIP election for a marital trust but did not divide the trust into GST-exempt and non-exempt shares or make a reverse QTIP election. The accountant who prepared the estate …
Late tax-exempt controlled entity election treated as timely
A taxable corporation wholly owned by a section 501(c)(3) organization invested in a partnership that developed rental real estate. Because the corporation was a tax-exempt controlled entity, it neede…
Partnership receives 120 days to make late section 754 election
A limited partner died, creating a transfer for which the partnership wanted a section 754 election and the related section 743(b) basis adjustment. The partnership's tax advisers neither filed the el…
Foreign corporation receives relief for two late tax elections
A foreign corporation sold its interest in a partnership holding U.S. real property and later learned that the sale produced taxable gain. It wanted to elect out of installment reporting and report th…
Corporation receives 60 days to file late IC-DISC election
A domestic corporation was formed to operate as an interest charge domestic international sales corporation, or IC-DISC, and hired an accounting firm to complete the required election. The corporation…
S corporation receives 120 days for late QSub election
An S corporation formed a domestic subsidiary and owned all of its stock from the subsidiary's incorporation date. The parent intended to treat the subsidiary as a qualified subchapter S subsidiary, o…
Five subsidiary elections receive inadvertent or late-filing relief
An S corporation intended five wholly owned subsidiaries to be qualified subchapter S subsidiaries, or QSubs. Elections filed for four subsidiaries were ineffective, and the parent inadvertently faile…
Foreign entity gets 120 days to elect disregarded status
A foreign entity's owner intended the entity to be treated as a disregarded entity for federal tax purposes from the date it was formed. The entity did not timely file Form 8832, but represented that …
Foreign entity gets 120 days to elect disregarded status
A foreign entity's indirect owner intended the entity to be treated as a disregarded entity for federal tax purposes from the date it was formed. The entity did not timely file Form 8832, but represen…
Taxpayers get more time to complete section 336(e) election
A corporate group intended to make a section 336(e) election for a disposition of all the target company's stock. The seller and target did not timely enter the written binding agreement required for …
Estate gets 120 days to make 2010 carryover-basis election
A nonresident noncitizen died in 2010, and the decedent's U.S.-situs property passed to the surviving spouse. The spouse did not file Form 8939 by the January 17, 2012 deadline, so the estate did not …
REIT receives extensions to make two taxable-subsidiary elections
A real estate investment trust and two indirectly owned corporations intended to elect taxable REIT subsidiary status, but their advisers and internal personnel failed to file the required Forms 8875 …
Corporation receives another extension to elect IC-DISC status
A domestic corporation formed to operate as an interest charge domestic international sales corporation failed to make its initial election on time. The IRS had already granted a 60-day extension, but…
Partnership receives 120 days to make a late section 754 election
A limited partnership failed to make a section 754 election after a partner in its general partner died because its tax advisers neither explained the election nor filed it. The partnership represente…
Partnership receives late section 754 election relief after a partner's death
A limited partnership failed to make a section 754 election after one of its limited partners died because its tax advisers neither explained the available election nor filed it. The partnership repre…
Taxpayers receive 60 days to elect partial disposition of a replaced roof
Owners of rental property replaced the roof of a commercial building and capitalized the new roof, but failed to file their income tax return on time. They had calculated timely estimated payments on …
Estate receives 120 days to allocate GST exemption to family trust
A decedent's will created a family trust with generation-skipping transfer tax potential. The estate's accounting firm timely filed Form 706 but allocated GST exemption to a different trust and failed…
A corporation received more time to file its IC-DISC election
A domestic corporation was formed to operate as an interest charge domestic international sales corporation, or IC-DISC. Its law firm completed the formation filings but failed to file Form 4876-A, an…
An S corporation received more time to elect the success-based fee safe harbor
An S corporation paid a success-based fee in connection with an acquisition and reported the fee using the safe harbor in Revenue Procedure 2011-29. It deducted 70 percent and capitalized 30 percent, …
A corporation received more time to file its IC-DISC election after an adviser mix-up
A domestic corporation was formed to operate as an interest charge domestic international sales corporation, or IC-DISC. Its accounting firm believed the law firm had filed Form 4876-A, while the law …
A foreign entity received more time to elect disregarded status
A fund held a foreign entity that was intended to be treated as disregarded from the date it was formed. The entity did not timely file Form 8832 to make that classification election. Based on the sub…
A foreign entity received 120 days to make a late disregarded entity election
A fund intended a foreign entity it held to be classified as disregarded for federal tax purposes from the entity's formation date. The entity failed to file Form 8832 on time. The IRS concluded, from…
A foreign entity may file a late Form 8832 for disregarded status
A foreign entity held by a fund was meant to be classified as disregarded for federal tax purposes beginning on its formation date. It failed to file the required Form 8832 by the deadline. The IRS de…
A foreign entity obtained late relief for a disregarded entity election
A fund intended one of its foreign entities to be disregarded for federal tax purposes effective on the date the entity was formed. The entity did not timely submit Form 8832. Based only on the submit…
A foreign entity received late relief to elect partnership status
A fund intended a foreign entity it held to be classified as a partnership for federal tax purposes from the entity's formation date. The entity did not file Form 8832 on time. Based on the facts and …
A foreign entity may make a late partnership classification election
A fund held a foreign entity that it intended to treat as a partnership beginning on the entity's formation date. The entity failed to timely file Form 8832 for that classification. The IRS found that…
A missed Form 8832 deadline did not prevent late partnership election relief
A foreign entity owned through a fund was intended to be treated as a partnership from the day it was formed. Form 8832 was not filed by the normal deadline. The IRS concluded that the entity had met …
A foreign entity received a 120-day extension for its partnership election
A fund intended a foreign entity to have partnership status for federal tax purposes as of the entity's formation. The entity missed the deadline for filing Form 8832. After reviewing the supplied fac…
A foreign entity may elect partnership treatment after the filing deadline
A fund wanted a foreign entity it held to be classified as a partnership effective on its formation date. The entity did not timely file the necessary Form 8832. Based on the representations and facts…
A foreign entity obtained an extension to elect partnership status
A fund held a foreign entity that was intended to have partnership classification from its formation date. The entity failed to make a timely election on Form 8832. The IRS determined from the submitt…
Late Form 8832 relief allowed partnership treatment from formation
A foreign entity owned through a fund was intended to be classified as a partnership from its formation date. It did not file Form 8832 within the normal election period. The IRS concluded that the en…
A foreign entity received extra time for a partnership classification election
A fund intended a foreign entity it held to be treated as a partnership for federal tax purposes from the date of formation. Form 8832 was not filed on time. The IRS concluded, based on the facts and …
A foreign entity may file its partnership classification election late
A fund held a foreign entity that was supposed to be treated as a partnership beginning when it was formed. The entity missed the deadline to file Form 8832. The IRS found that the entity met the regu…
A foreign entity got 120 days to elect partnership classification
A foreign entity held by a fund was intended to be a partnership for federal tax purposes from its formation date. It failed to timely file the Form 8832 needed for that classification. The IRS decide…
A foreign entity held by multiple funds received late partnership election relief
Multiple funds held a foreign entity that they intended to be treated as a partnership from the date it was formed. The entity failed to file Form 8832 on time. Based solely on the submitted facts and…
A foreign entity received late filing relief for partnership classification
A fund intended its foreign entity to be treated as a partnership for federal tax purposes beginning on the formation date. The entity did not timely file Form 8832. The IRS concluded from the submitt…
A foreign entity may make its partnership election within 120 days
A fund intended a foreign entity it held to have partnership classification from the day the entity was formed. The entity failed to submit Form 8832 by the required deadline. The IRS determined, base…
A taxpayer may revoke three elections treating capital gains as investment income
A taxpayer materially participated in a securities-trading partnership and received carried-interest income. The taxpayer's first accounting firm mistakenly reported partnership interest expense on Fo…
A foreign unlimited liability company received late corporate election relief
A foreign unlimited liability company was intended by its owner to be classified as an association taxable as a corporation from the date it was formed. The company failed to timely file Form 8832, al…
An oil and gas group received more time to amortize drilling costs
An affiliated oil and gas group intended to elect under section 59(e) to deduct intangible drilling and development costs ratably over 60 months. Its timely consolidated return did not include the sta…
An internal error qualified for late IC-DISC election relief
A domestic corporation was formed to operate as an interest charge domestic international sales corporation, or IC-DISC. Its accounting firm supplied Form 4876-A and filing instructions, but the corpo…
Three foreign entities received late partnership election relief
Three foreign entities intended to be treated as partnerships for U.S. federal tax purposes but failed to file Forms 8832 on time. The IRS found that the entities met the standards for discretionary l…
Disregarded entity relief preserved a subsidiary's S corporation status
An individual placed an interest in an S corporation into a wholly owned limited liability company. On an accountant's advice, that LLC then elected S corporation treatment, making it a corporation an…
A parent received more time to make a consolidated return election
A subsidiary acquired the parent of an existing consolidated group, but the resulting return incorrectly identified the subsidiary rather than its own parent as the new common parent. The subsidiary a…
An adviser miscommunication qualified for late IC-DISC election relief
A domestic corporation was formed to operate as an interest charge domestic international sales corporation, or IC-DISC. It relied on a law firm to complete the necessary elections, but the firm belie…
A foreign insurer received more time for domestic and small-company elections
A foreign property and casualty insurer intended to elect under section 953(d) to be treated as a domestic corporation and under section 831(b) to be taxed as a small insurance company. Its return inc…
Affiliated group received more time to elect out of bonus depreciation
A corporate parent asked for extra time to elect out of additional first-year depreciation for three classes of qualified property placed in service by its affiliated group. The group had claimed bonu…
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 a partner died. That election allows partnership property basis adjustments after certain property …
Foreign entity received 120 days to elect partnership treatment
A foreign eligible entity with limited-liability members failed to file Form 8832 on time to elect partnership treatment from its organization date. It represented that the failure was reasonable and …
Employer received 60 days to file a late QSLOB notice
A company and an acquired business maintained separate operations and separate 401(k) plans but failed to file Form 5310-A notifying the IRS that they would be treated as qualified separate lines of b…
Acquirer received 60 days to make a late success-fee safe-harbor election
A company paid a contingent transaction fee when it acquired another business. Its return treated 70 percent of the fee as nonfacilitative and capitalized the other 30 percent under the Revenue Proced…
Donor received more time to elect out of automatic GST exemption allocations
A married couple treated annual gifts to generation-skipping trusts as made one-half by each spouse and reported the transfers on timely gift tax returns. The taxpayer intended to elect out of the aut…
Trust creator received late relief to preserve GST exemption
A taxpayer made annual gifts to a generation-skipping trust and later to its successor trust, with the taxpayer and spouse electing to split each gift equally. Timely gift tax returns were filed, but …
Foreign entity received late partnership-classification relief
A foreign eligible entity with multiple limited-liability members intended to elect partnership treatment for U.S. federal tax purposes but did not file Form 8832 on time. The IRS found that the stand…
Housing project receives 120 days to correct low-income elections
A taxpayer that owned a multiple-building low-income housing project intended to elect the 40-60 minimum set-aside under section 42(g)(1)(B). Its Forms 8609 did not make timely, correct elections for …
LLC receives 120 days for association election
A single-owner domestic limited liability company intended to be classified as an association for federal tax purposes from its formation date. Because of inadvertence, it did not file Form 8832 on ti…
Foreign entity receives late disregarded-entity election relief
A foreign eligible entity was indirectly wholly owned by the parent of a consolidated corporate group and intended to be disregarded for federal tax purposes from its formation date. It failed to file…
Partnership receives 120 days for section 754 election
A limited liability company taxed as a partnership experienced a transfer of a partnership interest after a member died. Although the partnership timely filed its return for the transfer year, it inad…
Housing building receives 120 days to correct section 42 election
A taxpayer owned a single-building low-income housing project and intended to make a section 42(g)(1) minimum set-aside election. It inadvertently failed to make a timely, correct election, despite co…
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.