In short
A revenue ruling is the Internal Revenue Service's official interpretation of how the tax law applies to a specific set of facts. It is published in the Internal Revenue Bulletin and can be relied on by any taxpayer with substantially the same facts.
Key takeaways
- It carries less authority than regulations, and courts aren't bound by it.
- Revenue procedures cover procedural matters, such as how to make an election.
- A private letter ruling, by contrast, applies only to the taxpayer who asked for it.
Where it's tested
TCP: Tax Research & Documentation — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
A tax practitioner finds a Private Letter Ruling issued to another taxpayer that directly supports the client's intended position. How should the practitioner treat it?