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 ?
Company Also Announces Receipt of Favorable IRS Private Letter Ruling
Based upon the IRS private letter ruling received today, PREIT is permitted to make and today is making the TRS election effective as of October 12, 2001.
REI is planning to proceed with the spin-off to shareholders its remaining 83% interest in RRI, having recently received an expected IRS private letter ruling as to the tax free nature of the transaction as well as favorable solvency opinions for both REI and RRI.
Following the receipt of the IRS private letter ruling, Watts is proceeding with plans to separate the industrial and oil and gas businesses from its existing plumbing and heating and water quality businesses.