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How To Write A Letter Ruling Request To The IRS



IRS- How To Write A Revenue Ruling Request

To assist you in preparing a Letter Ruling Request, TaxConnections is providing this sample format. This Letter Ruling Request Template will be helpful as an outline for anyone writing one. If your request is different from the sample format, a different format will not defer consideration of your Letter Ruling Request. We simply want to provide you with a general sample and outline in writing one.

What Is A Letter Ruling?

A letter ruling is a written determination issued to a taxpayer by IRS Chief Counsel in response to the taxpayer’s written inquiry, submitted prior to the filing of returns or reports required under federal law. In general, it concerns the requester’s status for tax purposes or the tax effects of its acts or transactions. Letter rulings and other similar ruling requests interpret the tax laws and apply them to the taxpayer’s specific set of facts. You must pay a User fee that can range from $200 to $28,300, depending upon the type of ruling being sought.

In order to file a letter ruling request, you must go to Pay.gov to make a payment prior in order to receive a payment receipt that must be submitted with the Letter Ruling Request. The original, signed ruling request and supporting materials must be submitted together by mail or hand delivery to the IRS.

To submit a user fee, visit www.pay.gov and use the IRS Chief Counsel User Fees (or Supplemental User Fees) for Form 1128, Form 2553, Form 3115, Form 8716, Private Letter Rulings and Closing Agreements form. This form can be found by entering “IRS Chief Counsel User Fees” in the “Search the Forms” box or by clicking on the “Agency List” link under “What Federal Agencies Can I Pay?” and choosing Internal Revenue Service.

Once payment is made, print a copy of the completed form and the receipt and include with the Letter Ruling Request. Then submit the complete package and mail to:

Internal Revenue Service
CC: PA: LPD: DRU
P.O. Box 7604
Ben Franklin Station
Washington, DC 20044

SAMPLE FORMAT LETTER RULING REQUEST

[Insert Date Of Letter Ruling Request]

Internal Revenue Service
Name Of Assistant Secretary For Internal Revenue Area
CC: PA: LPD: DRU
P.O. Box 7604
Ben Franklin Station
Washington, DC 20044

Dear    ,

(Insert the name of the Taxpayer) requests a ruling on the proper treatment of (insert the subject matter of the letter ruling request) under section (insert the number) of the Internal Revenue Code.[If the taxpayer is requesting expeditious handling, a statement to that effect must be attached to, or contained in, the letter ruling request. The statement must explain the need for expeditious handling.]

A. STATEMENT OF FACTS

  1. Taxpayer Information
  2. Description of Taxpayer’s Business Operations
  3. Facts Relating to Transaction [The ruling request must contain a complete statement of the facts relating to the transaction that is the subject of the letter ruling request. This statement must include a detailed description of the transaction, including material facts in any accompanying documents, and the business reasons for the transaction. If the ruling request is related to only one step of a larger integrated transaction, it shall also contain the facts, circumstances and all pertinent information with respect to the complete transaction.
    4. Facts Relating to Affiliates [The ruling request must contain the information required with respect to members of a controlled group of which the taxpayer is also a member such as names, taxpayer identifying numbers act.]

B.  RULING REQUESTED
[The ruling request should contain a concise statement of the ruling requested by the taxpayer. It is preferred that the language of the requested ruling be exactly as the response that the taxpayer wishes to receive.
C. STATEMENT OF LAW
[The ruling request must contain a statement of the law in support of the taxpayer’s views or conclusion and identify any pending legislation that may affect the proposed transaction. The taxpayer must also identify and discuss any authorities believed to be contrary to the position advanced in the ruling request.]
D. ANALYSIS
[The ruling request must contain a discussion of the facts and an analysis of the law. The taxpayer also must identify and discuss any authorities believed to be contrary to the position advanced in the ruling request.]
E. CONCLUSION [The ruling request should contain a statement of the taxpayer’s conclusion on the ruling requested.]

F. PROCEDURAL MATTERS
1.Circular Letter.

a.[Provide the statement regarding whether the same issue in the letter ruling request is in an earlier return of the taxpayer or in a return for any year of a related taxpayer.]

b.[Provide the statement regarding whether the Department previously ruled on the same or similar issue for the taxpayer, a related taxpayer, or a predecessor.]

c.[Provide the statement regarding whether the taxpayer, a related taxpayer, a predecessor, or any representatives previously submitted a request (including an application for change in accounting method) involving the same or similar issue but withdrew the request before a letter ruling or determination letter was issued.]

d.[Provide the statement regarding whether the taxpayer, a related taxpayer or a predecessor previously submitted a request (including an application for change in accounting method) involving the same or a similar issue that is currently pending with the Department.]

e.[Provide the statement whether at the same time as this request, the taxpayer or a related taxpayer is presently submitting another request (including an application for change in accounting method) involving the same or similar issue to the Department.]

f.[Provide the statement regarding whether the law in connection with the letter ruling request is uncertain and whether the issue is adequately addressed by relevant authorities.]

g.[If the taxpayer determines that there are no contrary authorities, a statement to that effect must be made.]

h.[If the taxpayer wants to have a conference on the issues involved in the letter ruling request, the ruling request should contain a statement to that effect.]

i.[If the taxpayer is requesting a copy of the letter ruling to be sent by facsimile (fax) transmission, the ruling request should contain a statement to that effect. This statement must also contain a waiver of any disclosure violations resulting from the fax transmission.]

j.[If the taxpayer is requesting separate letter rulings on multiple issues, the letter ruling request should contain a statement to that effect.]

G.ADMINISTRATIVE
[The ruling request should state: “The checklist required is enclosed.”]

[The ruling request should state: “The required filing fee of $ (Insert the fee amount) is enclosed.”]

[If the taxpayer’s authorized representative is to sign the letter ruling request or is to appear before the Department in connection with the request, the ruling request should state: “A Power of Attorney is enclosed.” ]

Very truly yours,

(Insert the name of the taxpayer or the taxpayer’s authorized representative)

By: __________________ __________ Signature Date ________________________________

Typed or printed name of person signing request.

DECLARATION:

Under penalties of perjury, I declare that I have examined this request, including the accompanying documents, if any, and to the best of my knowledge and belief, this request contains all relevant facts relating to such request, the facts presented in support of the requested ruling are true, correct and complete, and the issue(s) contained therein (a) are not being considered by the Puerto Rico Treasury Department in connection with an active examination or audit of a tax return of the interested parties or by the Assistant Secretary for Appeals; and (b) are not pending litigation in a case involving the undersigned or a related taxpayer.

(Insert the name of the taxpayer) By: ____________________ _______________ __________ Signature Title Date ______________________

Typed or printed name of person signing declaration [If the taxpayer is a corporation that is a member of an affiliated group filing consolidated returns for federal tax purposes, the above declaration must also be signed and dated by an officer of the common parent of the group.]

VIEW UPDATED IMPORTANT IRS INFORMATION AT THIS LINK

If you have a sample of a Letter Ruling Request you are willing to share, please submit it as we would welcome the opportunity to share yours with our readers.Your comments are most welcome below.

 

 

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