Revenue Ruling

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Definition: Revenue Ruling

Income Rulings are open authoritative decisions by the Internal Revenue Service (IRS) in the United States Department of the Treasury of the United States government that apply the law to specific genuine circumstances. A Revenue Ruling can be depended upon as point of reference by all citizens.

A Revenue Ruling is "an official elucidation by the [Internal Revenue] Service that has been distributed in the Internal Revenue Bulletin. Income Rulings are issued just by the National Office and are distributed for the data and direction of citizens, Internal Revenue Service authorities, and others concerned. Revenue Rulings are distributed "to advance right and uniform utilization of the duty laws by Internal Revenue Service workers and to help citizens in achieving greatest willful agreeability by illuminating Service staff and people in general of National Office elucidations of the interior income laws, related statutes, arrangements, regulations, and proclamations of Service systems influencing the rights and obligations of taxpayers."

A citizen might, for an expense, look for counsel from the IRS as to the best possible duty treatment of an exchange. This is known as a private letter decision. A private letter decision ties just the IRS and the asking for citizen. Accordingly, a private decision may not be refered to or depended upon for point of reference.

The IRS has the alternative of redacting the content of a private administering and issuing it as a Revenue Ruling, which may get to be tying on all citizens and the IRS. "Regardless of the possibility that it is clear that the citizen did not depend on an income decision, courts will frequently hold the Service to the position communicated in the income ruling."

Income Rulings are distributed both in the Internal Revenue Bulletin and in the Federal Register. The numbering framework for Revenue Rulings compares to the year in which they are issued. Along these lines, for instance, Revenue Ruling 79-24 was the twenty-fourth Revenue Ruling issued in 1979.



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