Tax Brief Issue 5: Retroactive Partnership Basis; Surviving Spouse IRA Rollover Clarity

01. Late §754 election basis adjustment

• PLR 202621004 grants a partnership a 120-day extension under §301.9100-3 to make a late §754 election, contingent on the partnership and its partners retroactively adjusting §734(b)/§743(b) basis as if the election had been timely made, including additional recovery-of-basis deductions, regardless of whether the statute of limitations has expired for prior years.
• §9100 relief is not automatic - the taxpayer must show it acted reasonably and in good faith and that the grant does not prejudice the government. As a PLR, this ruling binds only the requesting taxpayer (§6110(k)(3)) and cannot be cited as precedent.

Source: IRS Written Determinations · 2026-05-22

02. Surviving spouse IRA rollover clarified

• PLR 202621003: a surviving spouse who is sole administrator of the estate and sole trustee/beneficiary of a trust with unlimited withdrawal rights may roll over IRA assets passing decedent → estate → trust into her own IRA, with the 60-day clock starting when she receives the distribution as trustee. RMDs cannot be rolled over, and a rollover to a Roth IRA triggers full income inclusion.
• Highly fact-specific (predeceased primary beneficiary, state-court ordered transfer); §408(d)(3)(B)'s one-rollover-per-12-months rule still applies. As a PLR, this ruling binds only the requesting taxpayer (§6110(k)(3)) and cannot be cited as precedent.

Source: IRS Written Determinations · 2026-05-22