Ordinary Trusts

Internal Revenue Service Department of the Treasury
Washington, DC 20224
Number: 201538007
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-139636-14
Date:
June 11, 2015
Legend
X = ---
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Country = ---
Act A = ---
Act B = ---
Body A = ---
Body B = ---
Y = --- n = ---
Dear ---:
This responds to a letter dated October 20, 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

PLR-139636-14 2
The information submitted states that X was organized as a trust under the laws of
Country. X was created to provide superannuation benefits to members of X in
Country.

# 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 protection and 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.

# 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 Country and the United States concerning income derived from the United States.
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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: