private letter ruling

Definition of "private letter ruling"
  1. An interpretation issued by the Internal Revenue Service in response to an individual taxpayer's inquiry about how tax laws apply to their specific circumstance or planned activity
How to use "private letter ruling" in a sentence
  1. The businessman sought a private letter ruling to understand his tax obligations for his proposed business expansion.
  2. To minimize potential legal risks, the company requested a private letter ruling from the IRS before proceeding with the transaction.
  3. Applying for a private letter ruling can provide taxpayers with greater certainty about their tax liabilities for certain activities.

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