Which of the following is correct with respect to Private Letter Rulings?
A)Issued when a taxpayer wants to know the tax treatment of a specific tax situation.
B)Can be relied upon by all taxpayers in a similar tax situation.
C)Provides tax authority only to the taxpayer to whom it is issued.
D)Both issued when a taxpayer wants to know the tax treatment of a specific tax situation and provides tax authority only to the taxpayer to whom it is issued.

Question

Quizplus · Accepted Answer

Private Letter Rulings are issued when a taxpayer wants to know the tax treatment of a specific tax situation. However, they provide tax authority only to the taxpayer to whom it is issued and cannot be relied upon by other taxpayers in a similar situation. Therefore, the correct answer is D, as it includes both aspects.

Which of the Following Is Correct with Respect to Private