9/3/2021
Revenue Procedure 2021-40 amplifies Rev. Proc. 2021-3 and announces that the IRS will not issue letter rulings on whether certain transactions are self-dealing within the meaning of section 4941(d), when a private foundation (or other entity subject to § 4941) owns or receives an interest in a limited liability company or other entity that owns a promissory note issued by a disqualified person. This revenue procedure applies to all ruling requests pending in or received by the Service on or after September 3, 2021. Any ruling request pending on September 3, 2021 will be closed and the user fee will be returned in full.
The IRS answers inquiries from individuals and organizations regarding their status for tax purposes and the tax effects of their acts or transactions, but there are areas in which they will not issue letter rulings or determination letters. The IRS incorporates the no-rule areas annually into the third revenue procedure of the year, currently Rev. Proc. 2021-3. Section 3 of Rev. Proc. 2021-3 sets forth a list of those areas in which rulings or determination letters will not be issued. See Section 2.01 of Rev. Proc. 2021-3.
The IRS is currently reviewing its prior ruling position on transactions described in section 3 of this revenue procedure and determined that it is in the interest of sound tax administration not to issue rulings on such transactions while it reviews their proper tax treatment.
Revenue Procedure 2021-40 is in IRB: 2021-38, dated 09/20/2021.