Definitions for "private letter ruling"
A letter sent by the IRS in response to a request for clarification or interpretation...
A ruling by the IRS in response to a request for interpretation of a tax law.
Represents the IRS's view on a specific transaction, a private letter ruling is an informational statement by the IRS interpreting how a statute or administrative rule applies to a particular set of facts or circumstances. Typically addresses a situation specific to a particular taxpayer and is generally not binding, as it is merely giving guidance on the IRS's current position. Taxpayers can refer to private letter rulings issued to other taxpayers to determine how their situation, if similar, may be interpreted by the IRS. However, a specific private letter ruling does not mean the IRS will rule the same way in a future similar situation -- For instance if significant time has passed since the original ruling and laws or circumstances may have changed during that time. However, a private letter ruling for a set of circumstances does offer a platform for argument if a future case is questioned. Some 1031 strategies are based on private letter rulings and any associated risk. Although a taxpayer is ultimately responsible for the decision to pursue a specific tax strategy, the qualified intermediary should inform them of associated risks.
Keywords:  temporary, issued, document
a temporary document issued