private letter ruling Hear it!

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 However, the letter doesnÂ’t have the force of law, so the letter could later be superseded by another IRS ruling or a tax court ruling.