private letter ruling
private letter
ruling Finance Definition
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law, so the letter could later be superseded by another IRS ruling or a tax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.
Browse dictionary entries near private letter ruling
