Define: Revenue Ruling

A Revenue Ruling is an official interpretation of the tax laws issued by the Internal Revenue Service (IRS) in the United States. It provides guidance on how the IRS interprets and applies the tax laws to specific factual situations.

While both Revenue Rulings and Revenue Procedures are official IRS documents, a Revenue Ruling provides guidance on the interpretation of tax laws, whereas a Revenue Procedure provides instructions on procedural matters, such as how to apply for a tax exemption or request a ruling from the IRS.

Revenue Rulings are not legally binding on taxpayers or the IRS. However, they do provide valuable guidance on how the IRS interprets the tax laws and can be relied upon as persuasive authority in tax disputes.

While you cannot directly challenge a Revenue Ruling, you can contest the IRS’s interpretation of the tax laws in court if you believe it is incorrect. However, keep in mind that Revenue Rulings are often given deference by the courts due to the expertise of the IRS in tax matters.

You can find Revenue Rulings on the IRS website by searching for the specific ruling number or by browsing through the various categories and topics. Additionally, many tax research databases and legal libraries also provide access to Revenue Rulings.

Yes, a Revenue Ruling can be overturned or modified by subsequent legislation, court decisions, or even by the IRS itself. It is important to stay updated on any changes or updates to Revenue Rulings that may affect your tax situation.

Yes, you can rely on a Revenue Ruling for your tax planning purposes. However, it is always advisable to consult with a tax professional or attorney to ensure that the ruling is applicable to your specific circumstances and to consider any potential changes or updates.

Revenue Rulings are generally applicable to all taxpayers unless specifically limited to a certain group or situation. However, it is important to review the ruling carefully to determine if any exceptions or limitations apply to your particular case.

Yes, you can use a Revenue Ruling as a defence in a tax audit to support your position on a particular tax issue. However, keep in mind that the IRS may still challenge your interpretation and it is advisable to seek professional advice to strengthen your defence.

Revenue Rulings are issued periodically by the IRS as needed. The frequency of issuance can vary depending on changes in tax laws, emerging issues, or the need for clarification on certain tax matters.