ruling

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Related to Letter of Determination: Private letter ruling

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

See revenue ruling.

References in periodicals archive ?

They require a letter of determination from the Internal Revenue Service stating that you have received tax exempt status to operate them.

VEBA: An underutilized planning tool

The IRS issued an internal policy statement in January 1997 called the administrative policy regarding self-corrections (APRSC), which permits plan operating mistakes -- discovered and corrected within a year or so -- to avoid the sanctions discussed above as long as the plan has a letter of determination. The APPSC also allows "minor" mistakes (depending on facts and circumstances) to go unpunished if they are corrected after the IRS discovers them.

Maximizing retirement plan benefits

These plans cannot obtain a letter of determination from the IRS and are never reviewed by the IRS (except on audit) and, therefore, it is not known when something is wrong.