What do Private Letter Rulings provide to specific taxpayers?

Private Letter Rulings provide an interpretation of the tax law specifically tailored to the circumstances of the taxpayer requesting the ruling. These rulings are issued by the IRS and offer guidance on how tax laws apply to a particular set of facts. This personalized guidance can help taxpayers better understand their tax obligations or the application of specific tax provisions in their unique situations.

Unlike a general overview of tax law, which would apply broadly to all taxpayers, a Private Letter Ruling is focused on the taxpayer's individual case, providing clarity on specific questions they have posed. Additionally, these rulings are not enforcement actions from the IRS but rather advisory in nature, intended to assist taxpayers in compliance. They also do not provide exhaustive lists of allowable tax deductions; such information would typically be found in IRS publications or tax code sections.