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.
IRS grants relief for a late real-property debt exclusion election
A taxpayer held an interest in a real-estate partnership through a trust but apparently did not receive the partnership's Schedule K-1 for the relevant year. The taxpayer therefore did not report canc…
IRS rules a utility's customer "Fee" for energy infrastructure is taxable income, not a tax-free contribution to capital
A regulated electric utility collects a special state-authorized "Fee" from its retail customers to fund energy infrastructure and public-purpose projects, including certain costs tied to a plant it o…
Government-beneficiary settlement trust is a QSF with income excluded under § 115
A statutory trust was set up under a court-approved bankruptcy plan to resolve mass claims (public nuisance, consumer-protection, fraud, and similar claims) against companies over a product tied to a …
Indexed structured-settlement annuity payments are fixed and determinable, so the annuity is a qualified funding asset under 130
When someone is injured and settles a personal-injury claim, the defendant can hand off its obligation to make future payments to an assignment company, which funds those payments by buying an annuity…
Indexed structured-settlement annuity payments are fixed and determinable, so the annuity is a qualified funding asset under 130
This is a companion ruling to a nearly identical letter issued to the same insurance group, covering a proposed indexed structured-settlement annuity. When a personal-injury claim is settled with futu…
Indexed structured-settlement annuity is fixed and determinable and a qualified funding asset (130)
When someone settles a personal-injury claim for a stream of future payments (a "structured settlement"), the defendant usually hands off its payment obligation to an assignment company, which funds t…
IRS revokes a 2019 investment-tax-credit ruling, but only going forward
In 2019 the IRS issued a private letter ruling (PLR 201949002) to a taxpayer about getting additional § 48 investment tax credits from a change in accounting method. In this new letter the IRS revokes…
45-day extension to file the original Form 3115 for a 263A accounting method change
A partnership hired a CPA to change how it capitalizes costs on self-constructed assets under IRC § 263A, using the IRS automatic-consent process for accounting method changes. That process requires f…
Consent to partially revoke a net-capital-gain-as-investment-income election under 163(d)(4)(B)
An individual taxpayer's tax preparer, completing Form 4952, mistakenly elected to treat too much net capital gain as investment income under section 163(d)(4)(B), instead of the smaller amount the ta…
An indexed structured-settlement annuity still counts as a section 130 qualified funding asset
When someone is injured and settles for periodic payments over time (a "structured settlement"), the defendant usually hands off its payment obligation to an assignment company, which buys an annuity …
Extra time granted to make a late real-property-trade-or-business election out of the 163(j) interest cap
Section 163(j) caps how much business interest a taxpayer can deduct, but a real property trade or business can elect out of that cap by making a 163(j)(7)(B) election (the trade-off is slower depreci…
Extra time granted to make a late real-property-trade-or-business election out of the 163(j) interest cap
Section 163(j) caps how much business interest a taxpayer can deduct, but a real property trade or business can elect out of that cap by making a 163(j)(7)(B) election (the trade-off is slower depreci…
Utility plant priced under a special (non rate-of-return) method is not "public utility property," so no normalization is required
A regulated electric and gas utility owns a power plant. It asked the IRS how the depreciation rules treat certain plant assets it is acquiring, given that its state commission will set the rates for …
Bonds for a water-purification plant do not fail the private-business tests because output is allocable to governmental and public buyers
A public water agency plans to issue tax-exempt bonds to build an advanced water-purification facility. Tax-exempt status is lost if the bonds are "private activity bonds," which happens under § 141(b…
IRS grants 120 more days to make a late election passing the rehabilitation credit through to a tenant
A limited liability company that owns a rehabilitated building asked the IRS for extra time to make a tax election it had missed. Under the rehabilitation credit rules (Code section 47), the owner of …
A county land-reclamation nonprofit's income is excludable under section 115(1) and contributions to it are deductible under section 170(c)(1)
A county created a nonprofit corporation (a "land bank") to reclaim and repurpose vacant, abandoned, and tax-foreclosed property and to promote housing and economic development. It asked the IRS for t…
Transitory, insignificant momentary ownership of S-corp stock by an ineligible shareholder under the equity-compensation regulations does not terminate the S elections
An S corporation loses its S status if it ever has an ineligible shareholder, such as a partnership. Here, two S corporations (Y and Z) ran equity compensation plans that let employees of a related bu…
IRS grants a late safe-harbor election for acquisition success fees
An S corporation incurred a success-based advisory fee through disregarded subsidiaries in a taxable business acquisition. Its original return preparer did not advise it to make the safe-harbor electi…
State Medicaid in-home care payments are excludable difficulty-of-care payments
A state Medicaid agency runs an in-home supportive care program that pays individual caregivers to look after disabled or chronically ill people who would otherwise need a nursing home or other instit…
Late set-aside election allowed on an amended Form 8609 for the low-income housing credit
The low-income housing credit under § 42 rewards owners who rent a share of their units to lower-income tenants. To qualify, an owner must pick a "minimum set-aside" test on Form 8609, and once made t…
Late § 108(b)(5) election allowed to reduce depreciable-property basis first for cancelled debt
When a company's debt is forgiven, it normally has taxable cancellation-of-debt income, but an insolvent company can exclude that income under § 108 in exchange for cutting its tax attributes (things …
A "divide and donate" split and early termination of a charitable remainder unitrust to fund the settlors' private foundations is not self-dealing and yields income and gift tax charitable deductions
A married couple created a charitable remainder unitrust (CRUT), a trust that pays them 5% a year for life and leaves whatever remains to charity. They now want to accelerate part of the gift so money…
"Divide and donate" split of a charitable remainder unitrust, with 8 favorable rulings on self-dealing, deductions, and foundation status
A married couple created a charitable remainder unitrust (CRUT), a trust that pays them an annual amount for life and leaves what remains to charity. Because one of the family's private foundations fa…
Companion ruling to the individuals on the same "divide and donate" CRUT split, with 8 favorable rulings
This ruling is the companion to a same-day ruling on the identical "divide and donate" transaction, but this letter is directed to the married couple (H and W) rather than to their charitable remainde…
Housing project gets 120 days to make omitted average-income election
The owner of a multi-building low-income housing project intended to elect the average-income minimum set-aside under Section 42(g)(1)(C). Its contemporaneous records showed that intent, but it inadve…
60-day extension to elect out of bonus depreciation on 7-year and 15-year property
A partnership (an LLC taxed as a partnership) bought property it classified as 7-year and 15-year property and claimed the extra "bonus" first-year depreciation deduction under section 168(k) on its t…
County-government support association's income is excludable under section 115(1)
A nonprofit corporation, already recognized as tax-exempt under section 501(c)(4), exists to support and strengthen county governments in its state. Every county is a member, pays standardized dues, a…
A foreign operating subsidiary that never earned revenue still qualifies for an ordinary worthless-stock deduction under Section 165(g)(3)
A domestic company formed a foreign subsidiary to run a licensed business, won the licenses by committing to invest a large sum, but never managed to generate any revenue because of events outside its…
IRS grants a tax-exempt-owned LLC late elections to be taxed as a corporation and to opt out of tax-exempt controlled entity status
An LLC owned entirely by four Section 501(c)(3) tax-exempt organizations missed two related tax elections it needed for a building-rehabilitation investment. First, it was supposed to elect (on Form 8…
Bank holding company may claim an ordinary loss on abandoned subsidiary stock
A bank holding company asked whether its loss from abandoning the stock of its failed bank subsidiary could be treated as an ordinary loss rather than a capital loss. The parent directly owned all of …
120-day relief for two late elections tied to a tax-exempt-owned low-income housing entity
When property is used by a tax-exempt entity, special "tax-exempt use property" rules force the owner to depreciate it slowly under the alternative depreciation system, which shrinks the deductions. H…
Partnership may make late election to defer housing credit period
A partnership placed a low-income housing building in service but intended to begin its ten-year credit period in the following taxable year. It filed Form 8609 without timely making the irrevocable e…
Building owner may correct housing credit period election
A building owner intended to begin a low-income housing building's ten-year credit period in the year after the building was placed in service. Its preparer instead checked “No” on line 10a of Form 86…
Housing project received 120 days to make average-income election
The owner of a single-building low-income housing project intended to elect the average-income minimum set-aside under IRC § 42(g)(1)(C). Contemporaneous records showed that intent, but the owner inad…
Housing project received 120 days to make average-income election
The owner of a multi-building low-income housing project intended to elect the average-income minimum set-aside under § 42(g)(1)(C), as shown by contemporaneous records, but inadvertently omitted the …
Partnership may correct housing-credit start-year elections
A partnership intended to begin the ten-year low-income housing credit period for several buildings in the year after they were placed in service. It filed Forms 8609 but inadvertently failed to make …
Live-in care payments qualify for the difficulty-of-care income exclusion
A state program asked whether Medicaid payments to personal care providers who live with the people receiving care could be excluded from the providers' income. The program operates under section 1905…
Housing project receives 120 days to make its minimum set-aside elections
A partnership owns a three-building low-income housing project and intended to make the 20-50 minimum set-aside election for each building. Its contemporaneous records reflected that intent, but the p…
Joint filers receive more time to aggregate businesses for QBI deduction
A married couple owned interests in disregarded entities, S corporations, and partnerships conducting rental-real-estate and operating businesses. They elected to aggregate some rental businesses for …
Community foundation and new corporation treated as one entity
A community foundation organized as a trust planned to create and fund a nonprofit corporation with substantially the same charitable purposes and governing body. Their governing documents would subje…
Government health system captive insurer's income excluded
A state health system formed a nonprofit captive insurer to provide insurance and risk-mitigation services solely to the system and entities it controls. The insurer's income comes from member premium…
Late safe harbor elections approved for acquisition fees
A domestic limited partnership paid success-based fees for five taxable asset acquisitions spanning two tax years. Its returns generally deducted 70 percent and capitalized 30 percent of four fees but…
Solar facility owner received more time for leased-property credit election
A partnership owned a solar energy facility and leased it to another entity, intending to pass the facility's energy credit to the lessee. The parties' timely returns reflected that intended treatment…
BEAT services exception does not require using the transfer-pricing cost method
Chief Counsel considered whether a taxpayer must use the services cost method for transfer pricing to claim the services cost method exception from base erosion payments under IRC § 59A(d)(5). The mem…
QSF need not withhold on principal repayments to foreign claimants
A court-appointed receivership qualified as a settlement fund after the SEC sued an internet-advertising company and its owner for operating a Ponzi scheme. The court-approved claims process allowed v…
Tax-exempt controlled entity received 60 days to file a depreciation election
A corporation wholly owned by a tax-exempt entity intended to elect not to be treated as a tax-exempt controlled entity for depreciation purposes. Its tax advisor prepared the return as if the electio…
120-day relief for two late elections tied to a tax-exempt-owned low-income housing entity
When property is used by a tax-exempt entity, special "tax-exempt use property" rules force the owner to depreciate it slowly under the alternative depreciation system, which reduces deductions. Here …
Housing project received 120 days to make the average-income election
The owner of a single-building low-income housing project intended to elect the average-income minimum set-aside. Contemporaneous documents supported that intent, but the owner inadvertently omitted t…
Corporation received 60 days to make a late success-based fee election
A corporate group used the Rev. Proc. 2011-29 safe harbor for success-based transaction fees, deducting 70 percent and capitalizing 30 percent. It reported the merger fees consistently with the safe h…
Consolidated group received 75 days to waive a loss carryback
A consolidated corporate group generated a consolidated net operating loss and carried it forward on its returns. The group intended to waive the loss's carryback period but relied on a tax profession…
Late multiple-building housing credit election allowed
A low-income housing taxpayer intended to treat all buildings in a project as one multiple-building project but inadvertently omitted the election from Forms 8609. The IRS found that the taxpayer met …
Special-contract solar projects were not public utility property
A regulated electric utility proposed two renewable energy projects for a manufacturer, one grid-scale project under a virtual power purchase agreement and one rooftop system. The utility would own an…
IVF expenses deductible, gestational surrogacy expenses denied
A married couple used their own eggs and sperm for in vitro fertilization and engaged a gestational carrier because carrying a pregnancy posed a high health risk to one spouse. The IRS allowed deducti…
Company received more time to elect out of tax-exempt controlled entity treatment
A corporation was treated as a tax-exempt controlled entity because tax-exempt partners held more than half of its parent. The corporation intended to elect under IRC § 168(h)(6)(F)(ii) not to be trea…
Debtors’ liquidation plan received another extension while assets and disputed claims are resolved
A taxpayer group sought a second supplemental ruling concerning an existing plan to liquidate debtors. It represented that it had continuously pursued liquidation as quickly as commercially reasonable…
Line-of-duty disability and death benefits received specified income-tax exclusions
A state governmental retirement plan asked about special benefits for public safety officers who are permanently disabled, catastrophically injured, or killed in the line of duty. The disability statu…
Scam-loss deduction depends on the victim’s profit motive
Chief Counsel analyzed five common scams involving funds held in IRA and non-IRA investment accounts. All five victims discovered theft losses in 2024 and had little to no reasonable prospect of recov…
Renewable facility received more time to elect the investment tax credit
A partnership upgraded two electricity-generating units but treated the upgrades as one project in its financial records. Because those records did not show that one unit had already been placed in se…
Irrevocable reduced research-credit election could not be withdrawn
A corporation intended to claim its full IRC § 41 research credit after changes to the treatment of research expenses, and its financial statements and workpapers reflected that decision. During retur…
Life-insurance commission rebates were nontaxable price adjustments
A life-insurance agency entered rebate agreements under which it returned part of its commission to customers after they paid the premium and the carrier issued the policy. The rebate effectively redu…
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.