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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A partnership received 45 days to file its missed QOF election and return
Two members formed a limited liability company to operate as a qualified opportunity fund and invested gains that the company placed into an opportunity-zone real estate business. Their longtime advis…
Opportunity-zone business may count land-sale income toward its active-business test
A qualified opportunity zone business was developing a retail and multifamily real estate project on two parcels. During its start-up period, an unrelated buyer unsolicitedly offered to purchase one p…
Late Form 8996 allowed so an LLC can self-certify as a Qualified Opportunity Fund
A partnership (organized as an LLC) was set up to be a Qualified Opportunity Fund (QOF), which lets investors defer or reduce capital gains taxes by investing in designated low-income "Opportunity Zon…
Partnership received 45 days to self-certify as an opportunity fund
A partnership intended to operate as a qualified opportunity fund, but its tax adviser mistakenly failed to attach Form 8996 to its timely filed return. The partnership did not know about the separate…
Chief Counsel (FIP) declines to support an examination adjustment because it would require regulations
This is a short internal Chief Counsel Advice email from the Financial Institutions and Products (FIP) branch, responding to an examiner who was weighing whether to adjust a taxpayer's return for two …
Late Form 8996 accepted as timely, letting an LLC self-certify as a Qualified Opportunity Fund
A Qualified Opportunity Fund (QOF) is an investment vehicle that gets special capital-gains tax benefits for investing in designated low-income "opportunity zones," and an entity self-certifies as a Q…
60-day relief to treat a late Form 8996 (Qualified Opportunity Fund self-certification) as timely
A partnership was set up to invest in an Opportunity Zone, a program under IRC Section 1400Z-2 that gives tax benefits for putting capital gains into distressed areas through a Qualified Opportunity F…
Relief treating a late Form 8996 (Qualified Opportunity Fund self-certification) as timely
A newly formed LLC, taxed as a partnership, was set up to invest in an Opportunity Zone under IRC Section 1400Z-2. To become a Qualified Opportunity Fund (QOF), it had to file Form 8996 with its first…
How commonly controlled partnerships count toward the section 7874 inversion ownership fraction
Section 7874 is the anti-inversion rule: when a foreign corporation acquires a U.S. business, the tax law measures how much of the new foreign parent the former U.S. owners hold (the "ownership fracti…
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…
A section 965 underpayment from disregarding a regulation cannot be spread over installments and is due at once
The 2017 tax law imposed a one-time transition tax under section 965 on U.S. companies' accumulated offshore earnings, and it let a company elect to pay that tax in eight annual installments. Here a d…
Court-ordered restructuring of long-term care policies in an insurer rehabilitation is not a taxable event for policyholders
A state-domiciled life insurance company that sold guaranteed-renewable long-term care policies was placed into rehabilitation by a state court because its projected liabilities far exceeded its asset…
Late Opportunity-Zone fund self-certification allowed after tax preparer missed the deadline
An LLC taxed as a partnership meant to certify itself as a Qualified Opportunity Fund (QOF), the vehicle that lets investors defer capital gains by reinvesting them in Opportunity Zones under IRC § 14…
9100 relief to self-certify a late qualified opportunity fund election (Form 8996)
An LLC taxed as a partnership was organized to invest in a qualified opportunity zone and intended to self-certify as a qualified opportunity fund (QOF) by filing Form 8996 with its partnership return…
9100 relief lets an LLC self-certify late as a Qualified Opportunity Fund (Form 8996)
An LLC taxed as a partnership was set up to invest in qualified opportunity zone property and intended to certify itself as a Qualified Opportunity Fund (QOF) under section 1400Z-2 by attaching Form 8…
IRS rules a state workers'-comp insurer's shift from tax-exempt to taxable status is not a sale or exchange
A state-sponsored workers' compensation insurer had been tax-exempt under IRC § 501(c)(27). State legislation began privatizing it by gradually shifting control of its board to its policyholders. Once…
Chief Counsel email on whether a foreign corporation that elected under § 953(d) to be a domestic life insurer must file an FBAR
This is a short internal email of Chief Counsel Advice about the Report of Foreign Bank and Financial Accounts (FBAR), which certain U.S. persons must file to disclose foreign financial accounts. The …
A bank cannot turn time-barred over-reported section 597 income into deductible basis in mortgage servicing rights
A bank acquired a failed bank in an FDIC-assisted deal, which was a "taxable transfer" under section 597 that came with loss-share agreements counted as federal financial assistance. Because of a comp…
A taxable rural telephone cooperative's cellular-network income is patronage-sourced income
A rural telephone cooperative that is now taxable (it once qualified for exemption under section 501(c)(12) but stopped meeting the 85%-member-income test) asked the IRS how to classify the income fro…
Fund gets more time to self-certify as a Qualified Opportunity Fund after its preparer omitted Form 8996
To be a Qualified Opportunity Fund (QOF), an entity must self-certify each year by attaching Form 8996 to a timely filed return. Here an LLC taxed as a partnership was set up specifically to be a QOF,…
IRS grants a late-filing extension to let an LLC self-certify as a Qualified Opportunity Fund
To qualify as a Qualified Opportunity Fund (QOF), an entity must self-certify by filing Form 8996 with a timely filed tax return. An LLC taxed as a partnership, formed to invest in opportunity zone pr…
A Blue Cross Blue Shield insurer's spin-off into a mutual holding company is tax-free and keeps its special § 833 status
A nonprofit, nonstock health insurance company (an existing Blue Cross Blue Shield organization) is the parent of a group of companies that files one consolidated federal tax return. It asked the IRS …
IRS grants 45 more days to make a late Qualified Opportunity Fund self-certification after the accountant left Form 8996 off the return
A limited liability company taxed as a partnership was formed to invest in a qualified opportunity zone and intended to self-certify as a Qualified Opportunity Fund (QOF) under IRC § 1400Z-2(d). To do…
IRS grants late relief to self-certify as a qualified opportunity fund
An LLC taxed as a partnership was set up to invest in a qualified opportunity zone, a program that offers capital gains tax benefits for investing in designated low-income areas. To qualify, the entit…
Consent to revoke a captive insurer's § 831(b) small-company election
A small captive insurance company (a foreign captive that had elected to be treated as a U.S. company under § 953(d)) had elected under § 831(b) to be taxed only on its investment income rather than o…
Rural telephone cooperative's gain on sale of a broadband partnership is patronage-sourced income
A rural telephone cooperative (now taxable, because it no longer meets the 85% member-income test for exemption under § 501(c)(12)) had invested through a subsidiary in a partnership that built and ra…
Late self-certification as a Qualified Opportunity Fund is treated as timely
A limited liability company (taxed as a partnership) was set up to invest in a qualified opportunity zone. To get the tax benefits, it had to "self-certify" as a Qualified Opportunity Fund (QOF) by fi…
9100-3 extension to self-certify a late qualified opportunity fund (Form 8996) election
A newly formed LLC taxed as a partnership was set up to be a qualified opportunity fund (QOF), which requires self-certifying each year by filing Form 8996 with a timely partnership return. The taxpay…
IRS grants a partnership 45 days to make a late Opportunity Zone gain-deferral election after its CPA missed the investor filing
A real estate investment LLC (taxed as a partnership) asked the IRS for extra time to make an Opportunity Zone election. Section 1400Z-2 lets a taxpayer defer capital gain by reinvesting it in a quali…
IRS consents to a captive insurer revoking its small-insurance-company (Section 831(b)) election
A small property-and-casualty ("non-life") insurance company can elect under Section 831(b) to be taxed only on its investment income rather than on its underwriting income. Once made, that election c…
Extra time to self-certify as a Qualified Opportunity Fund after the accountant left Form 8996 off the return
An LLC taxed as a partnership was set up to invest in opportunity-zone property and intended to certify itself as a Qualified Opportunity Fund (QOF), which requires attaching Form 8996 to a timely fil…
A captive insurance company gets consent to revoke its section 831(b) small-company tax election, on condition it not re-elect for five years
Section 831(b) lets a small non-life insurance company elect to be taxed only on its investment income, instead of on its underwriting income, if its premiums stay under a dollar cap and it meets dive…
Extra time for a fund to file a late Form 8996 self-certifying as a Qualified Opportunity Fund from its formation
The Opportunity Zone rules let investors defer and reduce tax on capital gains they reinvest in a "Qualified Opportunity Fund" (QOF). To be a QOF, an entity must self-certify by filing Form 8996 with …
Extra time for a fund to file a late Form 8996 self-certifying as a Qualified Opportunity Fund from its formation
The Opportunity Zone rules let investors defer and reduce tax on capital gains they reinvest in a "Qualified Opportunity Fund" (QOF). To be a QOF, an entity must self-certify by filing Form 8996 with …
Late relief for a fund to self-certify as a Qualified Opportunity Fund on Form 8996
A Qualified Opportunity Fund (QOF) is an investment vehicle that lets investors defer and reduce tax on capital gains reinvested in designated low-income "opportunity zones" under § 1400Z-2. To become…
Late relief for a fund to self-certify as a Qualified Opportunity Fund on Form 8996
A Qualified Opportunity Fund (QOF) is an investment vehicle that lets investors defer and reduce tax on capital gains reinvested in designated low-income "opportunity zones" under § 1400Z-2. To become…
Extra time granted to self-certify as a qualified opportunity fund after a missed Form 8996
A limited partnership was set up to invest in a qualified opportunity zone and bought real estate there. To get the tax benefits of a qualified opportunity fund (QOF), it had to self-certify by attach…
Late qualified-opportunity-fund self-certification (Form 8996) allowed under 9100 relief
An LLC taxed as a partnership was set up to be a qualified opportunity fund (QOF), a vehicle that lets investors defer and reduce tax on capital gains they reinvest in economically distressed "opportu…
Late qualified-opportunity-fund self-certification (Form 8996) allowed under 9100 relief
An LLC taxed as a partnership was set up to be a qualified opportunity fund (QOF), a vehicle that lets investors defer and reduce tax on capital gains they reinvest in economically distressed "opportu…
A GRAT funded during a pending merger failed section 2702 because the donor used an outdated, undervalued appraisal
The founder of a very successful company was exploring a sale. After investment bankers solicited bids and five corporations made offers, the founder set up a two-year grantor retained annuity trust (…
9100 relief lets a qualified opportunity fund self-certify late on Form 8996 after its preparer wrongly told it not to file
A limited liability company set up as a Qualified Opportunity Fund (QOF) missed the deadline to self-certify by filing Form 8996 with its tax return. It had hired a tax firm to prepare the return, but…
9100 relief for a partnership to self-certify as a qualified opportunity fund after its accountant forgot to file Form 8996
A limited liability company taxed as a partnership was organized to invest in opportunity zone property and intended to self-certify as a Qualified Opportunity Fund (QOF). Self-certifying requires fil…
When short-term (vacation) rental income is hit with self-employment tax under section 1402(a)(1)
This Chief Counsel Advice addresses short-term rentals, the kind listed on online marketplaces like Airbnb or VRBO, and whether the owner's net rental income is subject to self-employment (SECA) tax. …
Late-filing relief letting a partnership self-certify as a qualified opportunity fund after it missed the Form 8996 deadline
Qualified opportunity zones let investors defer and reduce tax on capital gains by putting the money into a qualified opportunity fund (QOF). To become a QOF, an entity self-certifies by filing Form 8…
IRS lets a royalty company treat its adjacent nonoperating mineral interests as a single property for depletion
A company that owns oil, gas, and mineral royalty interests (but does not itself drill, develop, or operate the properties) asked the IRS for permission to combine many separate "nonoperating" mineral…
IRS grants extension to self-certify as a Qualified Opportunity Fund (Form 8996)
An LLC was formed to invest in a qualified opportunity zone and to act as a Qualified Opportunity Fund (QOF), the vehicle that lets investors defer tax on capital gains they reinvest in distressed are…
Splitting a QTIP marital trust in two, then disclaiming one, is a gift but not a taxable sale and keeps QTIP status
After a decedent's death, the marital share of his revocable trust was treated as qualified terminable interest property (QTIP), giving his surviving spouse a lifetime income interest. The spouse, as …
An LLC gets 9100 relief to file a late Form 8996 self-certifying as a Qualified Opportunity Fund
A Delaware LLC was formed to invest in opportunity-zone property and intended to be a Qualified Opportunity Fund (QOF), a vehicle that lets investors defer and reduce tax on capital gains under sectio…
A new corporation gets 9100 relief to make late REIT and consent dividend elections
A newly formed corporation intended to operate as a real estate investment trust (REIT) and to use a "consent dividend," a hypothetical distribution that a shareholder agrees to treat as an actual div…
Opportunity fund receives 45 days to make a late self-certification election
A limited liability company taxed as a partnership was formed to invest in and rehabilitate qualified opportunity zone property and intended to operate as a qualified opportunity fund. Its tax adviser…
Late Form 8996 is treated as timely for opportunity fund status
A limited liability company taxed as a partnership was formed to invest in qualified opportunity zone property through a single operating business. Its manager sought legal and tax assistance but did …
Related natural-gas retailer does not taint producer's independent status
A consolidated energy group included a natural-gas producer, a marketer, and a related company that sold natural gas at retail. The producer sold most of its gas to the marketer, which combined econom…
IRS grants 60 days for two late consent-dividend elections
A corporation sought to make consent-dividend elections for two prior tax years. A consent dividend is a hypothetical distribution that consenting shareholders treat as an actual dividend and that the…
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 denies exemption to a health-research and software organization
A nonprofit organization developed health-care software, conducted research projects for pharmaceutical companies, and created educational content. Its formation document did not limit its purposes to…
Dog training club denied Section 501(c)(3) exemption
A dog club applied for Section 501(c)(3) exemption. Its articles promoted purebred dogs, dog training, obedience trials, and sanctioned matches. The club offered training classes to members and the pu…
IRS denies Section 501(c)(3) status to an adjunct faculty mutual benefit group
An organization formed as a mutual benefit corporation applied for recognition as a Section 501(c)(3) charity. It promoted the professional treatment, economic welfare, and rights of adjunct faculty t…
IRS denies Section 501(c)(3) status to a member golf course
An organization operating a golf course and clubhouse for members applied for recognition as a Section 501(c)(3) charity. Members and their families could use the course and reserve the clubhouse, whi…
IRS treats late opportunity-fund self-certification as timely
An S corporation formed to invest in qualified opportunity zone property intended to self-certify as a qualified opportunity fund. Its accountant mistakenly used the later filing deadline for a C corp…
Partnership receives time for opportunity-fund certification
A partnership was formed and funded to invest in a qualified opportunity zone business, but its accounting officer believed no return was required for the first year because the partnership had no 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.