private letter ruling

private letter ruling definition - finance
A letter written by the Internal Revenue Service (IRS) that explains its position on a tax question related to a specific issue. A letter is requested by an accountant. The private letter ruling gives a taxpayerÂ’s accountant an idea of how the IRS will view an issue. However, the letter doesnÂ’t have the force of law, so the letter could later be superseded by another IRS ruling or a tax court ruling.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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