​

PLR 122176-22 (May 02, 2023) is an example of our success to secure favorable Private Letter Rulings (PLRs) on behalf of our clients. See link to PLR

In PLR 122176-22, despite a very complex set of facts, we persuaded the Associate Chief Counsel (Passthroughs and Special Industries) to rule under Treas. Reg. §1.1362-5(a) and grant consent to our client to be an S corporation, some 2 years after it terminated its original S election and notwithstanding the otherwise 5-year expiration period mandated by IRC § 1362(g). The favorable PLR 122176-22 ended a multi-year dispute with the IRS and saved our client millions of dollars of otherwise income tax adjustments and penalties.

 

Discussion:

​​

​

A Private Letter Ruling (PLR or LTR) from the IRS removes all uncertainties that may or could exist regarding the tax treatment or consequences of a specific transaction and/or a specific taxpayer. In a PLR, the IRS ordinarily applies the applicable tax laws to the specific facts of your case, and makes a written official ruling about the tax treatment and consequences of the specific matters you request the IRS to rule upon.

A taxpayer generally may request a Private Letter Ruling in connection with a myriad of
transactions and issues, including but not limited to –

​

• Matters under the jurisdiction of the Associate Chief Counsel (Corporate), such as consolidated returns, corporate acquisitions, reorganizations, transfers to controlled corporations, distributions to shareholders, the effect of certain ownership changes, debt vs. equity determinations, allocation of income and deductions among taxpayers, and certain earnings and profits questions.
   

• Questions under the jurisdiction of the Associate Chief Counsel (International), such as the tax treatment of nonresident aliens and foreign corporations, withholding tax on nonresident aliens and foreign corporations, foreign tax credit, determination of sources of income, income from sources outside the United States, subpart F questions, branch profits tax questions, domestic international sales corporations (DISCs), foreign sales corporations (FSCs), exclusions under § 114 for extraterritorial income (ETI), international boycott determinations, treatment of certain passive foreign investment companies (PFICs), income affected by tax treaty, U.S. possessions, and other matters relating to the activities of non-U.S. persons within the United States or U.S.-related persons outside the United States, and changes in method of accounting for these persons.
   

• Issues under the jurisdiction of the Associate Chief Counsel (Passthroughs and
  Special Industries), such as income taxes of S corporations, partnerships, common trust funds, and trusts, entity classification issues, estate, gift, generation-skipping transfer, and certain excise taxes, and various specified Tax Credits including the Low-Income Housing Credit, the New Markets Tax Credit, and the Rehabilitation Credit and Qualified Electric Vehicle Credits.
   

• Questions under the jurisdiction of the Associate Chief Counsel (Income Tax andAccounting), such as recognition and timing of income and deductions ofindividuals and corporations, sales and exchanges, capital gains and losses,installment sales, equipment leasing, long-term contracts, inventories,amortization, depreciation, net operating losses (NOL) generally, includingchanges in method of accounting for these questions, and accounting periods
   

We have substantial experience in carefully investigating and developing the facts of the case, judiciously distilling the facts to produce convincing legal tax positions and arguments, crafting highly creative and persuasive Requests for a Private Letter Ruling,

winning over the understanding of the IRS’s attorneys and reviewers at the applicable offices of the Associate Chief Counsel, and securing favorable Private Letter Rulings (PLRs) for our clients.

We have been successful in obtaining numerous favorable PLRs for our clients, including a ruling on behalf of the common parent of a consolidated return in connection with a tax-free recapitalization under IRC §§ 368(a)(1)(E) and 1502, and a ruling on behalf of a large estate and the surviving family members on the income, gift and generation- skipping transfer (GST) tax consequences of a complex transaction pursuant to IRC §§ 61, 671, 2601, 2501 and 2036.

PLR 122176-22 (May 02, 2023) is an example of our success to secure favorable Private Letter Rulings (PLRs) on behalf of our clients. See link to PLR

When a Private Letter Ruling is sought or appropriate under the circumstances, we will work with you on the PLR request, communicate and deal with IRS counsel, and judiciously advance your position to obtain a favorable determination.