This is particularly true with respect to an issue that has not been addressed in case law or other binding authority and there are numerous private letter rulings
with similar facts and similar results.
Most of the recent guidance in this area comes from revenue rulings and private letter rulings
, and the recent set of private letter rulings
provides helpful analysis of each element.
In this respect, adjudication, private letter rulings
, and licensing all allow for incrementalism and flexibility in line drawing (since these instruments allow for case-by-case decisions), whereas rulemaking, which adopts a single rule in all cases, does not.
Comparing the 2005 Revenue Ruling with the 2012 Private Letter Ruling
Businesses may look to private letter rulings
concerning other taxpayers in an attempt to determine their own tax liability, but they may not rely on them as precedent.
In the private letter rulings
, IRS officials have concluded that the trusts administered by trust beneficiary committees do not have to pay gift taxes on any distributions because the beneficiary committee members have conflicting interests and do not have general powers of appointment over the trust, officials say.
Court of Appeals for the 11th Circuit indicated that "taxpayers who have not requested or received private letter rulings
from the IRS will not succeed on a claim of discriminatory treatment because other taxpayers have received private letter rulings
on the tax consequences of the same activities" (Willard K.
The regulation says private letter rulings
and GCMs are not authoritative.
In General Counsel Memorandum 39862, the IRS reviewed three private letter rulings
that had approved specific hospital-physician joint ventures involving the sale of part of hospitals' revenue streams to physician participants.
The IRS also has never issued any private letter rulings
or other legal memoranda discussing or applying Rev.