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 ?
At least one state has requested an IRS Private Letter Ruling asking that participants be allowed to move money between investment options within a state's plan.
An IRS private letter ruling shows that the service has an aggressive policy for a parent's personal guarantee of a child's business loan.
* A vendor relationship (approved in IRS private letter ruling 8208164), provided the products are supplied on a job-by-job basis