ruling

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Ruling

An official opinion by the IRS on how it interprets U.S. tax law. The IRS may make a ruling, for example, after seeing taxpayers apply a deduction or credit to an unusual, but still relevant situation. The IRS determines whether or not it will accept the situation, and, afterward, applies the ruling to all comparable situations. It is also called a revenue ruling, a letter ruling, or a private letter ruling.

ruling

References in periodicals archive ?
In a letter ruling issued in April 2010, the IRS addressed the common concept of credit card companies allowing their customers to request that their credit card rebates be donated to charity.
Before taxpayers claim tuition as a deduction, however, there are other requirements in letter ruling 200521003:
The IRS will continue to issue private letter rulings on whether these other requirements have been satisfied.
Another installment sales planning opportunity was illustrated in Letter Ruling 200603017.
Letter rulings 200407025, 200406049 and 200406050 (taxpayer was hard of hearing, mentally disabled or recently widowed and suffering illness).
For example, although it is not apparent from the ruling itself, in Letter Ruling No.
In Letter Ruling 200513010, the facts were similar.
Treasury regulations issued under section 6662 provide that both private letter rulings and GCMs are substantial authority, reversing the position under the old regulations cited by the court.
The IRS has issued a number of instructive revenue rulings and private letter rulings relating to public offerings.
Taxpayers--generally through their CPAs--often apply for Internal Revenue Service private letter rulings to ensure proposed transactions will have the intended tax consequences.