In the United States, a private letter ruling is a written statement issued by the IRS. This written statement is a request for guidance on specific tax-related issues of the taxpayer. By writing the detailed information the tax authority provides an interpretation of the relevant tax law to apply to the specific situation.

It is an invaluable tool for people who are seeking clarity on the complex world of taxation. You can reduce unexpected tax liabilities and tax disputes. It can also be used as a negotiating tool with other parties.
A PLR is issued to individual taxpayers, businesses, trusts, and other entities. The IRS does not set a time for issuing a letter ruling. It takes approx 6-12 months to process and review. It gets public after removing all the personal information of the taxpayer. Once the tax authority gathers all the necessary information, it will evaluate it according to the relevant tax laws and regulations. It issues a favorable ruling. Conversely, if the tax authority does not comply with the tax law and regulation, it will issue an unfavorable ruling.

There are three major rules of a private letter ruling: -
• A PLR is published by the IRS for the taxpayer to use in the tax return filing.
• It is a confidential letter that cannot be shared with anyone.
• It is only given to the taxpayer.
The letter works the same for non-profit corporations or is entitled to deduct certain business expenses.

If you wish to know more about PLR requests and when to seek help from the PLR tax attorney, seek guidance and talk to the experts of Mitchell Tax Law. The attorneys of the firm have experience in resolving all types of tax issues for decades. The private letter ruling attorney of the firm ensures compliance with tax codes, especially when dealing with tough situations.

You can request the PLR when there is a matter of gift tax, excise tax, employment tax, or any other concerns. In a hypothetical situation, the request is not accepted.
Our experts undertake full studies and are well aware of the rules, policies, and all other situations to deal with PLR. In cases where there is a disagreement between taxpayers and IRS it leverages the expertise to negotiate with the IRS. The attorneys can negotiate with the IRS on behalf of you to secure favorable rulings. Call us now to schedule a meeting with our experts!

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