Finally, with IRS budget cuts and dwindling personnel hours devoted to private letter rulings
, there may be a significant time lag between the submission and receipt of the ruling.
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.
Per Private Letter Ruling
201245004, a surviving spouse who, prior to making a disclaimer, received distributions in excess of the deceased's spouse RMD was ruled as having made a qualified disclaimer by the IRS.
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.
A cursory review of established judicial doctrine shows support for several key restrictions on the use of private letter rulings
. In the footnotes to a 1984 case, the U.S.
Given the common view among scholars on the importance of advance tax rulings for taxpayers, and the evidence on tax law uncertainty, one would expect to find a large number of private letter rulings
in the United States.
The IRS has started a review of the private letter rulings
, which were issued by the IRS Office of the Associate Chief Counsel, Passthroughs & Special Industries.
The IRS focus on battery and observable bodily harm ignores "physical sickness." Yet, in Private Letter Ruling
200121031, the IRS addressed damages for a disease, finding a recovery against an asbestos manufacturer to be excludable, even though there was no physical contact with the plaintiff.
Two private letter rulings
(PLR 9448035 and 9433016) permitted lease language to be incorporated into QPRT documents.
For example, the IRS issued a number of private letter rulings
to taxpayers that sanctioned a hospital's sale of part of its operations revenue stream to a joint venture between the hospital and medical staff physicians.
If presented with these types of issues, tax advisers might consider this private letter ruling
, and other similarly broad rescission-related private letter rulings
, when advising a client as to the potential tax effects of a rescinded transaction or counseling a client on whether to seek a private letter ruling