What is Private letter ruling?
In short
A private letter ruling is a written statement from the Internal Revenue Service, issued at a taxpayer's request, applying the tax law to that taxpayer's specific facts.
Key takeaways
- Only the taxpayer who requested it may rely on it.
- Other taxpayers can't cite it as precedent, though it shows the agency's thinking.
- Revenue rulings, by contrast, are published and may be relied on by any taxpayer in similar circumstances.
Where it's tested
REG: Internal Revenue Service (IRS) Procedures & Appeals — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
A taxpayer wishes to dispute a proposed deficiency without first paying the disputed amount. Which court must the taxpayer use?