Asked by Anthony Rodriguez on Jul 16, 2024
Verified
A Private Letter Ruling is considered to be tax authority only to the taxpayer to whom it is issued.
Private Letter Ruling
A written decision by the Internal Revenue Service in response to a taxpayer's request for clarification on a specific tax issue, applicable only to the individual or entity that requested it.
Tax Authority
Governmental agencies responsible for the enforcement of tax laws and the collection of taxes.
- Explain the role and limitations of Private Letter Rulings in tax authority.
Verified Answer
JM
Jenee MadridJul 16, 2024
Final Answer :
True
Explanation :
A Private Letter Ruling is only binding to the taxpayer who requested it and cannot be relied on by other taxpayers or used as legal precedent.
Learning Objectives
- Explain the role and limitations of Private Letter Rulings in tax authority.
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