Private Letter Ruling Definition

Definition 
Private letter ruling (PLR) is generated by the Internal Revenue Service (IRS) to provide specific information on interpreting tax laws based on a taxpayer’s unique situation.

Expanded Definition
Tax laws are written to provide general guidance, but sometimes taxpayers need clarification for unusual situations. The Internal Revenue Service (IRS) generates Private Letter Rulings (PLR) in response to taxpayers’ written requests for interpretation of the tax laws. There are fees charged to request the PLR.

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What Is a Private Letter Ruling from the IRS?