IRS Has Extensive No-Ruling Topics

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The IRS has issued its annual list of issues on which it will not rule in Revenue Procedure 2018-03.

The topics begin on Page 130 of the 280-page document. They are followed by areas in which rulings aren’t ordinarily issued and areas under study in which rulings will not be issued.

Numerous no-ruling topics refer readers to Section 3.01, which pertains to corporate issues under the jurisdiction of the Associate Chief Counsel (see Page 10 of the bulletin).

If you have a bit of time to read through, here’s a snapshot of the topics:

  • Section 42: Low-income Housing Credit. (The IRS may issue a determination letter for this topic.)
  • Section 61: Gross Income Defined.
  • Sections 61, 451, and 1001: Gross Income Defined; General Rule for Taxable Year of Inclusion; Determination of Amount of and Recognition of Gain or Loss.
  • Section 79: Group-Term Life Insurance Purchased for Employees.
  • Section 83: Property Transferred in Connection with Performance of Services.
  • Section 101: Certain Death Benefits.
  • Sections 101, 761, and 7701: Certain Death Benefits; Terms Defined; Definitions.
  • Section 102: Gifts and Inheritances.
  • Section 105(h): Amount Paid to Highly Compensated Individuals Under a Discriminatory Self-Insured Medical Expense Reimbursement Plan.
  • Section 107: Rental Value of Parsonages.
  • Section 115: Income of States, Municipalities, Etc.
  • Section 117: Qualified Scholarships.
  • Section 118: Contributions to the Capital of a Corporation.
  • Section 119: Meals or Lodging Furnished for the Convenience of the Employer.
  • Section 121: Exclusion of Gain from Sale of Principal Residence
  • Section 125: Cafeteria Plans.
  • Section 162: Trade or Business Expenses.
  • Section 163: Interest.
  • Sections 165 and 1502: Losses; Regulations.
  • Section 170: Charitable, Etc., Contributions and Gifts. The Associate Chief Counsel will rule, however, on specific legal questions related to Internal Revenue Code 170(b)(1)(A) or 170(c) not otherwise described in this revenue procedure.
  • Section 181: Treatment of Certain Qualified Film and Television Productions
  • Section 199: Income Attributable to Domestic Production Activities.
  • Section 213: Medical, Dental, Etc., Expenses.
  • Section 216: Deduction of Taxes, Interest, and Business Depreciation by Cooperative Housing Corporation Tenant-Stockholder.
  • Section 264: Certain Amounts Paid in Connection with Insurance Contracts.
  • Section 264(c)(1): Contracts Treated as Single Premium Contracts.
  • Sections 267, 304, 331, 332, 351, and 1502: Losses, Expenses, and Interest with Respect to Transactions Between Related Taxpayers; Redemption Through Use of Related Corporations; Gain or Loss to Shareholders in Corporate Liquidations; Complete Liquidations of Subsidiaries; Transfer to Corporation Controlled by Transferor; Regulations.
  • Section 269: Acquisitions Made to Evade or Avoid Income Tax.
  • Section 274: Disallowance of Certain Entertainment, Etc., Expenses.
  • Section 302: Distributions in Redemption of Stock.
  • Section 302(b)(4) and (e): Redemption from Non-corporate Shareholder in Partial Liquidation; Partial Liquidation Defined.
  • Section 312: Effect on Earnings and Profits.
  • Sections 331, 453, and 1239: Gain or Loss to Shareholders in Corporate Liquidations; Installment Method; Gain from Sale of Depreciable Property Between Certain Related Taxpayers.
  • Sections 332, 351, 368, and 1036: Complete Liquidations of Subsidiaries; Transfer to Corporation Controlled by Transferor; Definitions Relating to Corporate Reorganizations; Stock for Stock of Same Corporation.
  • Section 355: Distribution of Stock and Securities of a Controlled Corporation.
  • Section 358: Basis to Distributees.
  • Section 403(b): Taxability of Beneficiary Under Annuity Purchased by Section 501(c)(3) Organization or Public School.
  • Section 409A: Inclusion in Gross Income of Deferred Compensation Under Nonqualified Deferred Compensation Plans.
  • Section 411(d)(3): Termination or Partial Termination; Discontinuance of Contributions
  • Section 414(d): Governmental Plan.
  • Section 419(e): Welfare Benefit Fund.
  • Section 424: Definitions and Special Rules (regarding substituting new incentive stock options for an old one or the assumption of an old one. The IRS will continue to rule on the issue of whether the new ISO or the assumption of the old ISO gives the employee additional benefits not present under the old option within the meaning of Internal Revenue Code Section 424(a)(2).
  • Section 451: General Rule for Taxable Year of Inclusion.
  • Sections 451 and 457: General Rule for Taxable Year of Inclusion; Nonqualified Deferred Compensation Plans of State and Local Governments and Tax-Exempt Organizations.
  • Section 457A: Nonqualified Deferred Compensation from Certain Tax Indifferent Parties.
  • Section 501: Exemption from Tax on Corporations, Certain Trusts, Etc. The Associate Chief Counsel will rule, however, on specific legal questions related to Internal Revenue Code 501(c) or 501(d) that are not otherwise described in this revenue procedure.
  • Sections 501, 511, 512, 513, and 514: Exemption from Tax on Corporations, Certain Trusts, Etc.; Imposition of Tax on Unrelated Business Income of Charitable, Etc., Organizations; Unrelated Business Taxable Income; Unrelated Trade or Business; Unrelated Debt-Financed Income.
  • Sections 507, 664, 4941, and 4945: Termination of Private Foundation Status; Charitable Remainder Trusts; Taxes on Self-Dealing; Taxes on Taxable Expenditures.
  • Section 509: Private Foundation Defined. The Associate Chief Counsel will rule, however, on specific legal questions related to Internal Revenue Code Section 509(a) not otherwise described in this revenue procedure.
  • Sections 511-514: Imposition of Tax on Unrelated Business Income of Charitable, Etc., Organizations; Unrelated Business Taxable Income; Unrelated Trade or Business; Unrelated Debt-Financed Income.
  • Section 529: Qualified Tuition Programs.
  • Sections 542-544: Definition of Personal Holding Company; Personal Holding Company Income; Rules for Determining Stock Ownership.
  • Section 641: Imposition of Tax.
  • Section 642(c): Deduction for Amounts Paid or Permanently Set Aside for a Charitable Purpose.
  • Section 664: Charitable Remainder Trusts.
  • Section 671: Trust Income, Deductions, and Credits Attributable to Grantors and Others as Substantial Owners.
  • Section 704(b): Determination of Distributive Share.
  • Section 761: Terms Defined.
  • Section 856: Definition of Real Estate Investment Trust.
  • Section 1001: Determination of Amount of and Recognition of Gain or Loss.
  • Section 1033: Involuntary Conversions.
  • Section 1221: Capital Asset Defined.
  • Section 1361: S Corporation Defined. The IRS will treat any request for a ruling on whether a state law limited partnership is eligible to elect S corporation status as a request for a ruling on whether the partnership complies with Internal Revenue Code Section 1361(b)(1)(D).
  • Section 1502: Regulations (regarding the filing of Form 1122). The IRS may issue a determination letter in this case.
  • Section 1551: Disallowance of the Benefits of the Graduated Corporate Rates and Accumulated Earnings Credit.
  • Section 2031: Definition of Gross Estate.
  • Section 2055: Transfers for Public, Charitable, and Religious Uses.
  • Section 2512: Valuation of Gifts.
  • Section 2522: Charitable and Similar Gifts.
  • Section 2601: Tax Imposed.
  • Sections 3121, 3306, and 3401: Definitions for purposes of determining prospective employment status; whether an individual will be an employee or an independent contractor. A ruling with regard to prior employment status may be issued.
  • Section 4052(f)(1): Certain Repairs and Modifications Not Treated as Manufacture.
  • Section 4191: Medical Devices.
  • Section 4216(b): Constructive Sale Price.
  • Sections 4375, 4376, and 4377: Health Insurance; Self-Insured Health Plans; Definitions and Special
  • Rules.
  • Sections 4940 and 4942: Excise Tax Based on Investment Income; Taxes on Failure to Distribute Income.
  • The Associate Chief Counsel will rule, however, on specific legal questions related to Internal Revenue Code Sections 4940(d)(2) or 4942(j)(3) not otherwise described in this revenue procedure.
  • Section 4941: Taxes on Self-Dealing.
  • Section 4958: Taxes on Excess Benefit Transactions.
  • Section 4975(d): Exemptions.
  • Section 4980B: Failure to Satisfy Continuation Coverage Requirements of Group Health Plans.
  • Section 4980H: Shared Responsibility for Employers Regarding Health Coverage.
  • Section 6166: Extension of Time for Payment of Estate Tax Where Estate Consists Largely of Interest in Closely Held Business.
  • Section 6901: Transferred Assets.
  • Section 7216: Disclosure or Use of Information by Preparers of Returns.
  • Section 7701: Definitions.
  • Section 7704: Certain Publicly Traded Partnerships Treated as Corporations.
  • Section 9815: Additional Market Reforms.

About Terry Sheridan

Terry Sheridan

Terry Sheridan is an award-winning journalist who has covered real estate, mortgage finance, health care, insurance, personal finance, and accounting and taxation issues for newspapers, magazines, and websites. A Chicago native and former South Florida resident, she now lives in New England.

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