Question
hich of the following statements does not apply to private letter rulings?
Multiple choice question.
They explain the IRS position on a proposed transaction for the taxpayer.
They are issued at the request of the taxpayer.
They typically address transactions with potentially large tax implications.
They carry the same weight and authority as Treasury regulations.
Multiple choice question.
They explain the IRS position on a proposed transaction for the taxpayer.
They are issued at the request of the taxpayer.
They typically address transactions with potentially large tax implications.
They carry the same weight and authority as Treasury regulations.
Answers
GPT-4o mini
The statement that does not apply to private letter rulings is:
**They carry the same weight and authority as Treasury regulations.**
Private letter rulings (PLRs) provide the IRS's interpretation of tax law as it applies to a specific taxpayer's situation but do not have the same authoritative weight as Treasury regulations or the Internal Revenue Code. PLRs are only binding on the IRS for the specific taxpayer who requested the ruling and cannot be relied upon by other taxpayers.
**They carry the same weight and authority as Treasury regulations.**
Private letter rulings (PLRs) provide the IRS's interpretation of tax law as it applies to a specific taxpayer's situation but do not have the same authoritative weight as Treasury regulations or the Internal Revenue Code. PLRs are only binding on the IRS for the specific taxpayer who requested the ruling and cannot be relied upon by other taxpayers.