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 by the IRS upon a taxpayer's request when they want to know the tax treatment of a specific tax situation. However, the rulings only provide tax authority to the taxpayer who requested it and cannot be relied upon by all taxpayers in a similar situation. Therefore, the correct choice is D.

Which of the Following Is Correct with Respect to Private