According to my opinion on the IRS private letter ruling, it is very essential for the organization to decide and look for ways on which they can request for the IRS private letter ruling. An IRS private letter ruling does not contain laws but it contains guideline to the taxpayer on tax issues. Therefore it can be defined as a disclosed statement that is issued to the tax payer by the Internal Revenue Service (IRS) in which some guidance are defined on how to deal with financial assessment that have prospective tax cost.
Many of the organization have limited knowledge about the IRS private letter ruling and that is why they tend to run away from the IRS especially when they have to deal with issue regarding taxes. It is the responsibity of the organizational leaders to look upon the anticipated changes in the organization and compare the importance of the IRS private letter ruling to the company (IRS. gov 2010).
The taxpayer is able to rely on what the private letter states regarding its measurement.
IRS reduces risk when dealing with paying a large amount of tax; it gives the task payer a surety of safety that will occur when dealing with paying large amount of tax. On a contemplated transaction the private letter of ruling gives advancement to the taxpayer on the tax treatment expectation from the IRS. The IRS can become negative to companies. Therefore for the IRS private letter ruling to have a meaning the transactions are supposed to be completed accompanied by the tax returns. There after the IRS officials discuss and come to an agreement after they have evaluated the transactions and the tax returns.
... are: Registration: Identify potential taxpayers and register taxpayers. Each taxpayer would be identified via a tax identification number and contact details ... turn-around in assessments, refunds, audit cases, appeals, rulings and so on. A large portion of the administration’s ... s tax administration is the lack of resources. In terms of priority, these agencies are more focused on transaction ...