IRS written determination 201538006

Private letter rulings and published taxpayer determination letters. Native document type is retained separately; a determination letter is not labeled a private letter ruling. These taxpayer-specific releases cannot be used or cited as precedent under 26 USC 6110(k)(3); applicability and current legal force are not independently certified. Keep repeated UILC subjects attached to one actual numbered document.

Internal Revenue Service
Department of the Treasury
Washington, DC 20224
Number: 201538006
Release Date: 9/18/2015
Index Number: 7701.03-08
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Third Party Communication: None
Date of Communication: Not Applicable
Person To Contact:
---------------------, ID No. ----------------
Telephone Number:
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Refer Reply To:
CC:PSI:B01
PLR-124608-14
Date:
June 11, 2015
Legend
X =-----------------------------------------------------------
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Country= -----------
Act A=--------------------------------------------------------------
Act B=---------------------------------------------------------------
Act C=-------------------------------------------------------------------------
Act D=-----------------------------------------------------------------
Act E=------------------------------------------------------------------
Act F=------------------------------------------------------------------------
Body A=-------------------------------------------------------
Body B=-------------------------------------------------------------------
Body C=---------------------------
Body D=------------------------------------------------
Y =-------------------
n =--

PLR-124608-14
2
Dear ----------------------:
This responds to a letter dated June 16, 2014, and subsequent correspondence,
submitted on behalf of X, requesting a ruling that X is classified as a trust for federal
income tax purposes under § 301.7701-4 of the Procedure and Administration
Regulations of the Internal Revenue Code.
FACTS
The information submitted states that X was established under Act A and is treated as a
trust under the laws of Country. X was created to provide superannuation benefits to
members of X in Country.
X is governed primarily by Act A, Act B, Act C, Act D, Act E, and Act F. X is regulated
by several government bodies, including Body A, Body B, Body C, and Body D. X is
managed by Y, which is made up of n trustees. The organizing documents of X provide
that the sole purpose of X is to provide superannuation benefits to members of X and
their beneficiaries.
X derives its funds from a combination of employer contributions, employee
contributions, and income from investments. Under the provisions of the organizing
documents, Y is obligated to manage the funds of X responsibly in order to protect and
conserve the superannuation fund. Y must also provide annually a statement setting
forth information of X as required by law. X is subject to annual audit by an approved
auditor appointed by Y. The members of X cannot unilaterally assign or transfer their
benefitsunder X to another person.
LAW AND ANALYSIS
Section 301.7701-1(b) provides that the classification of organizations that are
recognized as separate entities is determined under §§ 301.7701-2, 301-7701-3, and
301.7701-4 unless a provision of the Code provides for special treatment of that
organization.
Section 301.7701-4(a) provides that, in general, an arrangement will be treated as a
trust if it can be shown that the purpose of the arrangement is to vest in trustees
responsibility for the protectionand conservation of property for beneficiaries who
cannot share in the discharge of this responsibility and, therefore, are not associates in
joint enterprise for the conduct of business for profit. If an entity has both associates
and a business purpose, it cannot be classified as a trust for federal income tax
purposes.

PLR-124608-14
3
CONCLUSION
Based solely on facts submitted and representations made, we conclude that X is
classified as a trust for federal income tax purposes under § 301.7701-4(a).
Except as expressly provided herein, no opinion is expressed or implied concerning the
federal income tax consequences of the facts above under any other provision of the
Code. Specifically, we make no determination concerning whether X or its beneficiaries
are entitled to any benefits under the Code or under the income tax treaty entered into
by Countryand the United States concerning income derived from the United States.
This ruling is directed only to the taxpayer requesting it. Section 6110(k)(3) of the Code
provides that it may not be used or cited as precedent.
In accordance with the Power of Attorney on file with this office, a copy of this letter is
being sent to your authorized representatives.
Sincerely,
Faith P. Colson
Faith P. Colson
Senior Counsel,Branch 1
(Passthroughs & Special Industries)
Enclosures (2)
Copy of this letter
Copy for § 6110 purposes
cc: