An IRS private letter ruling is a request to the IRS to rule on
a tax issue before a taxpayer takes certain action. The IRS private letter ruling is applicable to
that tax situation and that taxpayer only. Most taxpayers will never need such an
IRS private letter ruling, but
if there is a large dollar amount of tax involved and a tax issue that is unclear, you should
consider requesting an IRS private letter ruling to reduce your risk. You should not request an
IRS private
letter ruling if you plan to complete the transaction regardless of the IRS
tax decision. In
such a case requesting the IRS private letter ruling would be senseless. In that case, you would either
complete the transaction and hope that you're tax return is not audited by
the IRS or complete the transaction,
disclose all the details to the IRS on the tax return, and hope that the IRS agrees. An
IRS private letter
ruling would only be applicable where you intend to abide by the IRS tax decision and do not
wish to take the chance of a tax audit.
If you are under tax examination, your request for an
IRS private letter ruling should be submitted
under section 4.02 of Revenue Procedure 97-1 (including the applicable user fee) to the
IRS tax
examining or IRS appeals officer. The IRS tax examining officer or IRS
appeals officer must then forward the request for an IRS private letter
ruling to the IRS National Office.
If you are not under tax
examination by the IRS, submit the IRS private letter ruling request (with applicable
user fee) to:
Associate Chief Counsel (Domestic)
IRS
Attn: CC: DOM: CORP: T
P.O. Box 7604
Ben Franklin Station
Washington, DC 20044
Your Rights as a Taxpayer, and
IRS 
