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Ruling
(redirected from Private Ruling)

   Also found in: Dictionary/thesaurus, Legal, Encyclopedia 0.01 sec.
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


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According to these data, the average yearly number of private ruling requests for that period was 1,652 (excluding technical requests for a change in the accounting method or a change in the accounting period, which are processed as rulings but are not published).
Inexplicably, in a private ruling, the IRS seems not to regard the unlikely collection of funds as a valid out.
A Private Ruling states the Commissioner''s opinion on the way that the tax law applies to a taxpayer''s arrangement for the particular years that are described in the application for the Private Ruling.
 
 
 
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