Use and Reliance of Private Letter Rulings
by Other Taxpayers
According to the recent group of private letter rulings
Third, tax authorities use private letter rulings
. In a request for a private letter ruling
, taxpayers ask tax authorities whether a transaction is entitled to the favorable tax treatment, before they act.
The IRS's issuance of Private Letter Ruling
201245004 in 2012 appears to make it easier for taxpayers to satisfy the provision of a qualified disclaimer and thus make the generation-skipping feature of estate planning for IRA assets more easily attainable.
(87) The IRS regularly "answer[s] inquiries of individuals and organizations, whenever appropriate in the interest of sound tax administration, as to their status for tax purposes and as to the tax effects of their acts or transactions." (88) One of the functions of the IRS is to issue rulings in such matters often in the form of private letter rulings
. (89) Statutes, regulations, Revenue Rulings, (90) and other guidance published in the Internal Revenue Bulletin, (91) are used in the determination of a taxpayer's liability.
Deputy IRS Chief Counsel Don Rocen delivered an informative luncheon address at which he announced a Chief Counsel initiative to study and revamp the process for providing "case-specific" guidance (such as private letter rulings
, technical advice requests, and pre-filing agreements).
In private letter rulings
200342007 and 200426027, the service said "the general anti-alienation rule of IRC section 401 (a)(13) does not preclude a court's garnishing the account balance of a fined participant in a qualified pension plan in order to collect a fine imposed in a federal criminal action" The IRS cited favorably three recent federal district court cases that concluded that ERISA plans were subject to garnishment to satisfy criminal fines under the Federal Debt Collection Procedures Act of 1977 (FDCPA).
It contains citations to a range of relevant cases, revenue rulings, significant private letter rulings
, technical advice memoranda, and continuing professional education texts for all major areas of federal taxation affecting those organizations.
Of more concern is the IRS's policy, announced through private letter rulings
, toward physician voting rights in the integrated delivery system context.
The IRS has recently interpreted the reverse acquisition rules broadly and has issued private letter rulings
applying a substance-over-form approach to transactions that may not fit within the literal definition of a reverse acquisition in Regs.