A private letter ruling or PLR is a written statement issued by the IRS in response to the taxpayer about unclear tax law. If a taxpayer needs any clarification on an unusual situation, the IRS generates a written request for the same.

PLR is generally for the proposed transaction where the tax liability is high and the law is uncertain. At that time, the taxpayer requests a private letter ruling from the IRS before proceeding with the transaction. The major purpose of a private letter ruling is to remove any uncertainty. It helps to sort out all types of tax matters. Whether it is related to a nonprofit corporation or account qualifies for tax deferral, or whether a taxpayer is entitled to deduct certain business expenses.

You need to request a letter before filing the return or report. PLR specifically explains how IRS rules apply to your specific transaction. It can get public by the IRS after removing the personal identity. If talking about the time, the IRS does not have a set time limit for issuing letter ruling. Depending on the complexity and other factors of the letter, it takes time of 6-12 months to review and approve the PLR.

To receive an IRS PLR, you must submit a letter ruling request for filing returns. You can request PLR when it is subject to gift tax, estate tax, excise tax, employment tax, administrative concerns, change in the company tax year. There are some situations where PLR should not be requested. In the hypothetical situation, the request does not address your tax status or reporting obligation. To know in depth detail, it is better to discuss your case with a private letter ruling attorney for proper guidance.

The PLR attorneys are capable to resolve all your issues. If not, they have another alternative to resolve your case. The IRS PLR offers advice on the jurisdiction related to financial institutes or products, procedure and administration, employee benefits, employment taxes, and exempt organization.

Wish to know more about submitting a request on PLR, consult the attorneys of Kreig LLC. We help to resolve all kinds of taxpayers. All you need to provide pertinent detail in the ruling request. Contact our attorney to start on a private ruling request. You will get thoughtful requests and experienced advocacy on all tax planning disputes. Call us now and get worry-free about all your tax plans.


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