Letter Rulings

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		Rated
	16 Jun 2017 \| Charitable Remainder Trust , \| Letter Rulings \| National Publication, Richard L. Fox, Esq. \| Article \| 2 comments Recently Issued PLRs Offer Cautionary Tale to Trustees Failing to... Richard Fox lends us a cautionary tale about the need for proper administration of Charitable Trusts. A recent Private Letter Ruling demonstrates the dire consequences of retaining the wrong person for administration.	5
	1 Jun 2017 \| Charitable Remainder Trust , \| Letter Rulings \| National Publication, David Wheeler Newman \| Article \| 9 comments Can Charitable Remainder Trusts Avoid The Self-Dealing Rules? David Wheeler Newman provides his analysis of the recent PLR that has planners re-thinking how they use CRTs in their planning.	3
	3 May 2017 \| Charitable Remainder Trust , \| Letter Rulings \| National Publication, Richard L. Fox, Esq. \| Article \| 5 comments Settlor Not Claiming Charitable Deduction Allows Charitable Remainder... Richard Fox analyzes and clarifies a recent PLR involving a CRT. There are interesting opportunities to explore subsequent to this ruling.	0
	11 Jun 2015 \| Letter Rulings \| National Publication, Richard L. Fox, Esq. \| News story IRS Private Letter Rulings 201446024 and 201510050; Reminder that... Richard Fox provides a thorough view of the self-dealing rules by analyzing two recent Private Letter Rulings.	0
	23 Dec 2014 \| Letter Rulings \| National Publication \| News story New Private Letter Ruling PLR allows reformation of CRT.	5
	9 Sep 2014 \| Letter Rulings \| National Publication \| News story New Private Letter Ruling In this PLR the IRS offers clarification on a number of private foundation issues: excess business holdings; UBTI; and self-dealing. Interesting facts and circumstances lead to a very favorable outcome.	0
	2 Jul 2014 \| Letter Rulings \| National Publication, Charles E. Rounds Jr, Fiduciary Consultant \| Article The confusion being engendered by the Uniform Trust Code's... When is an irrevocable trust revocable? The recently adopted Uniform Trust Code (UTC) was supposed to make all of this more clear, but a recent case in New Mexico has muddied the waters for all practitioners.	5
	15 May 2014 \| Letter Rulings \| National Publication \| News story IRS Ruling Allows Merger of Tax Exempt Family Entities Without... In a recent ruling, the tax court allowed the transfer of assets from a charitable trust to a private foundation that were both governed by substantially the same family. The courts still held, among other things, that there was no act of self-dealing, there were no...	0
	21 Jan 2014 \| Letter Rulings \| National Publication, Richard L. Fox, Esq. \| News story IRS Letter Ruling 201342011: Bequest by Founder of Organization... A substantial and material change in the sources of support of a public charity described in IRC Sections 170(b)(1)(A)(vi) or 509(a)(2), which are dependent on a sufficient amount of public support for their public charity status, may potentially cause an...	5
	15 Jan 2014 \| Letter Rulings \| National Publication, Richard L. Fox, Esq. \| News story Ltr. Rul. 201323007: Completed Gift Occured Notwithstanding That... In recently issued Ltr. Rul. 201323007, the taxpayer created a charitable lead annuity trust ("CLAT"), where the beneficiary of the income interest was a private foundation. The foundation was established by the taxpayer and his spouse and the taxpayer, his spouse,...	0
	7 Nov 2013 \| Letter Rulings \| National Publication \| News story Trust Granted Extension to Deduct Charitable Contributions Made in... IRS section 642(c)(1) provides that estates and certain trusts can elect to deduct charitable contributions made in the current year on their prior year's income tax return. In this case, the IRS has ruled privately that a trust that had intended but failed to make...	0
	30 Oct 2013 \| Letter Rulings \| National Publication \| News story Court Ordered Reformation of NIMCRUT Will Not Affect Trust... The Service has ruled privately that a court ordered reformation of a net income with make-up provision charitable remainder unitrust to bring the trust into compliance with current law will not cause it to fail to qualify as charitable remainder unitrust under I.R....	0
	19 Sep 2013 \| Letter Rulings \| National Publication \| News story Private Foundation's Scholarships Not Taxable ...	0
	19 Aug 2013 \| Letter Rulings \| National Publication \| News story IRS Approves Court Ordered Reformation of Testamentary CRUT The IRS has approved the reformation of a testamentary charitable remainder unitrust (CRUT) that was funded via formula in the trustor's revocable living trust in an amount that exceeded the unified credit exclusion amount provided under law at the time of the...	0
	19 Aug 2013 \| Letter Rulings \| National Publication \| News story \| 1 comments Private Foundation Permitted to Own Hedge Fund The IRS has ruled privately that a private foundation's ownership interest in an LLC that is taxed as a partnership and that operates solely as a hedge fund will not generate unrelated business taxable income to the foundation, will not subject the foundation to the...	0
	19 Aug 2013 \| Letter Rulings \| National Publication \| News story Medical Cannabis Cooperative Denied Exempt Status In most cases the PGDC does not comment on rulings involving denials of tax-exempt status unless they involve high-profile issues or concepts of general application. In this case, a corporation organized as a cooperative that facilitates and organizes transactions...	0
	14 Aug 2013 \| Letter Rulings \| National Publication \| News story IRS Rules on Reformation of CRT The IRS has approved a court ordered reformation of a net income with make-up provision charitable remainder unitrust to eliminate a requirement that would require the trustee to treat any deficiency account balance as a liability when valuing the trust for purposes...	0
	29 Jul 2013 \| Letter Rulings \| National Publication \| News story Assignment of IRAs from Estate to Charities The IRS has ruled privately that an assignment by a trustee of two IRAs to two charitable organizations from the residue of an estate would be income in respect of a decedent only to the charities in the amounts received by each. Of course, this is the ideal result...	0
	24 Jul 2013 \| Letter Rulings \| National Publication \| News story \| 1 comments IRS Approves Private Foundation's Investment in LLC The IRS has ruled privately that a private foundation's investment in Class A membership interests in an LLC that operates a hedge fund and is treated as a partnership for federal tax purposes will not generate unrelated business taxable income to the foundation,...	0
	14 Jul 2013 \| Letter Rulings \| National Publication \| News story Service Grants Five-Year Extension to Private Foundation to Dispose... The IRS has ruled privately that a private foundation may have an additional five years to dispose of its excess business holdings. The foundation stated that despite making a diligent effort during the initial five-year period, disposition was not possible (except...	0

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Define: Letter Rulings

A private letter ruling (PLR or Ltr. Rul.) is a written statement issued by the IRS to a taxpayer that interprets and applies tax laws to the taxpayer’s specific set of facts. It is issued to establish with certainty the federal tax consequences of a particular transaction before the transaction is consummated or before the taxpayer’s return is filed. It is issued in response to a written request submitted by a taxpayer and is binding on the IRS if the taxpayer fully and accurately described the proposed transaction in the request and carries out the transaction as described. A private letter ruling may not be relied on as precedent by other taxpayers or IRS personnel. Private letter rulings are generally made public after all information has been redacted that could identify the taxpayer to whom it was issued.

Recent activity

Settlor Not Claiming Charitable Deduction Allows Charitable Remainder Trust to Escape Private Foundation Excise Tax Rules

"For a sub-$5,000,000 estate, should a non-required Form 706 be filed to document that a charitable deduction was not claimed in the establishment of..." from rhunt1967.

"The trust is still a qualified CRUT under Section 664 and, therefore, would not be subject to income tax upon a sale of a contributed asset. Of..." from Richard.

"Will such a CRUT still be able to defer the sale gain of an appreciated asset contributed to it and then sold?" from nfbandon.

"It is unclear whether a CRUT for which no deduction is claimed would be able to defer the taxation of appreciate property contributed to the CRUT and..." from nfbandon.

Can Charitable Remainder Trusts Avoid The Self-Dealing Rules?

"I agree with David on this. A brother is not, by that alone, a disqualified person for a private foundation (not an ascendant or descendant), so it..." from rnja8c.

"Keep in mind that the prohibition on excess business holdings does not apply to most CRTs, since IRC 4947 which applies some private foundation..." from David Wheeler Newman.

"Not sure what is meant by "non-profit family trust", but let's assume we're talking about a charitable remainder trust since that's what the ruling..." from David Wheeler Newman.

"Case Study: A practicing attorney who is the sole Trustor of a non-profit family trust loans his biological brother, also an attorney, 3 million..." from WmAPackard.

"I am thinking if none of the private excise tax rules apply, the taxpayer could put 100% of a closely held business into the "Un-Charitable Remainder..." from rnja8c.

"Note, too, that it wasn't just the self-dealing rules that didn't apply. It was all of the Chapter 42 private foundation excise tax rules that..." from Richard.

"My guess is that they were trying to avoid the self-dealing rules, so that the property contributed to the trust could have been sold to a..." from Richard.

"So, grantor sets up a CRT for himself, names a charity and retains the right to change it -- no gift to himself and no completed gift to charity for..." from Nancy Marx.

Recently Issued PLRs Offer Cautionary Tale to Trustees Failing to Administer Charitable Remainder Trusts in Accordance with Governing Instrument

"The regulations provide that, with respect to a CRT, “trust income may not be determined by reference to a fixed percentage of the annual FMV of the..." from Richard.

"In this case, the State law did not permit payments from corpus. Will the result be different if the State law has a "total return" definition of..." from h.schechter.

		Rated
	16 Jun 2017 \| Charitable Remainder Trust , \| Letter Rulings \| National Publication, Richard L. Fox, Esq. \| Article \| 2 comments Recently Issued PLRs Offer Cautionary Tale to Trustees Failing to... Richard Fox lends us a cautionary tale about the need for proper administration of Charitable Trusts. A recent Private Letter Ruling demonstrates the dire consequences of retaining the wrong person for administration.	5
	1 Jun 2017 \| Charitable Remainder Trust , \| Letter Rulings \| National Publication, David Wheeler Newman \| Article \| 9 comments Can Charitable Remainder Trusts Avoid The Self-Dealing Rules? David Wheeler Newman provides his analysis of the recent PLR that has planners re-thinking how they use CRTs in their planning.	3
	3 May 2017 \| Charitable Remainder Trust , \| Letter Rulings \| National Publication, Richard L. Fox, Esq. \| Article \| 5 comments Settlor Not Claiming Charitable Deduction Allows Charitable Remainder... Richard Fox analyzes and clarifies a recent PLR involving a CRT. There are interesting opportunities to explore subsequent to this ruling.	0
	11 Jun 2015 \| Letter Rulings \| National Publication, Richard L. Fox, Esq. \| News story IRS Private Letter Rulings 201446024 and 201510050; Reminder that... Richard Fox provides a thorough view of the self-dealing rules by analyzing two recent Private Letter Rulings.	0
	23 Dec 2014 \| Letter Rulings \| National Publication \| News story New Private Letter Ruling PLR allows reformation of CRT.	5
	9 Sep 2014 \| Letter Rulings \| National Publication \| News story New Private Letter Ruling In this PLR the IRS offers clarification on a number of private foundation issues: excess business holdings; UBTI; and self-dealing. Interesting facts and circumstances lead to a very favorable outcome.	0
	2 Jul 2014 \| Letter Rulings \| National Publication, Charles E. Rounds Jr, Fiduciary Consultant \| Article The confusion being engendered by the Uniform Trust Code's... When is an irrevocable trust revocable? The recently adopted Uniform Trust Code (UTC) was supposed to make all of this more clear, but a recent case in New Mexico has muddied the waters for all practitioners.	5
	15 May 2014 \| Letter Rulings \| National Publication \| News story IRS Ruling Allows Merger of Tax Exempt Family Entities Without... In a recent ruling, the tax court allowed the transfer of assets from a charitable trust to a private foundation that were both governed by substantially the same family. The courts still held, among other things, that there was no act of self-dealing, there were no...	0
	21 Jan 2014 \| Letter Rulings \| National Publication, Richard L. Fox, Esq. \| News story IRS Letter Ruling 201342011: Bequest by Founder of Organization... A substantial and material change in the sources of support of a public charity described in IRC Sections 170(b)(1)(A)(vi) or 509(a)(2), which are dependent on a sufficient amount of public support for their public charity status, may potentially cause an...	5
	15 Jan 2014 \| Letter Rulings \| National Publication, Richard L. Fox, Esq. \| News story Ltr. Rul. 201323007: Completed Gift Occured Notwithstanding That... In recently issued Ltr. Rul. 201323007, the taxpayer created a charitable lead annuity trust ("CLAT"), where the beneficiary of the income interest was a private foundation. The foundation was established by the taxpayer and his spouse and the taxpayer, his spouse,...	0
	7 Nov 2013 \| Letter Rulings \| National Publication \| News story Trust Granted Extension to Deduct Charitable Contributions Made in... IRS section 642(c)(1) provides that estates and certain trusts can elect to deduct charitable contributions made in the current year on their prior year's income tax return. In this case, the IRS has ruled privately that a trust that had intended but failed to make...	0
	30 Oct 2013 \| Letter Rulings \| National Publication \| News story Court Ordered Reformation of NIMCRUT Will Not Affect Trust... The Service has ruled privately that a court ordered reformation of a net income with make-up provision charitable remainder unitrust to bring the trust into compliance with current law will not cause it to fail to qualify as charitable remainder unitrust under I.R....	0
	19 Sep 2013 \| Letter Rulings \| National Publication \| News story Private Foundation's Scholarships Not Taxable ...	0
	19 Aug 2013 \| Letter Rulings \| National Publication \| News story IRS Approves Court Ordered Reformation of Testamentary CRUT The IRS has approved the reformation of a testamentary charitable remainder unitrust (CRUT) that was funded via formula in the trustor's revocable living trust in an amount that exceeded the unified credit exclusion amount provided under law at the time of the...	0
	19 Aug 2013 \| Letter Rulings \| National Publication \| News story \| 1 comments Private Foundation Permitted to Own Hedge Fund The IRS has ruled privately that a private foundation's ownership interest in an LLC that is taxed as a partnership and that operates solely as a hedge fund will not generate unrelated business taxable income to the foundation, will not subject the foundation to the...	0
	19 Aug 2013 \| Letter Rulings \| National Publication \| News story Medical Cannabis Cooperative Denied Exempt Status In most cases the PGDC does not comment on rulings involving denials of tax-exempt status unless they involve high-profile issues or concepts of general application. In this case, a corporation organized as a cooperative that facilitates and organizes transactions...	0
	14 Aug 2013 \| Letter Rulings \| National Publication \| News story IRS Rules on Reformation of CRT The IRS has approved a court ordered reformation of a net income with make-up provision charitable remainder unitrust to eliminate a requirement that would require the trustee to treat any deficiency account balance as a liability when valuing the trust for purposes...	0
	29 Jul 2013 \| Letter Rulings \| National Publication \| News story Assignment of IRAs from Estate to Charities The IRS has ruled privately that an assignment by a trustee of two IRAs to two charitable organizations from the residue of an estate would be income in respect of a decedent only to the charities in the amounts received by each. Of course, this is the ideal result...	0
	24 Jul 2013 \| Letter Rulings \| National Publication \| News story \| 1 comments IRS Approves Private Foundation's Investment in LLC The IRS has ruled privately that a private foundation's investment in Class A membership interests in an LLC that operates a hedge fund and is treated as a partnership for federal tax purposes will not generate unrelated business taxable income to the foundation,...	0
	14 Jul 2013 \| Letter Rulings \| National Publication \| News story Service Grants Five-Year Extension to Private Foundation to Dispose... The IRS has ruled privately that a private foundation may have an additional five years to dispose of its excess business holdings. The foundation stated that despite making a diligent effort during the initial five-year period, disposition was not possible (except...	0

Letter Rulings

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Define: Letter Rulings

Recent activity

Settlor Not Claiming Charitable Deduction Allows Charitable Remainder Trust to Escape Private Foundation Excise Tax Rules

Can Charitable Remainder Trusts Avoid The Self-Dealing Rules?

Recently Issued PLRs Offer Cautionary Tale to Trustees Failing to Administer Charitable Remainder Trusts in Accordance with Governing Instrument

Private Foundation Permitted to Own Hedge Fund

IRS Approves Private Foundation's Investment in LLC

Issuance of Units from Organization's Endowment Fund to CRT Does Not Cause UBTI

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