Question

How would the use of Private Letter Rulings (PLR's) be explained?

Answer 1

As we know that in case of various critical taxation problems, tax payers request for some explanation & interpretations to IRS and as a result IRS will issue a private letter ruling (PLR) which will give explanation to the complex taxation problems of the taxpayers.

In other words we can say that private letter ruling (PLR) is a written statement issued by the IRS to give explanations for the tax related complex problems. Thus private letter ruling (PLR) is very useful for the taxpayers because in case of critical tax problems, all tax payers can get clarification with the help of PLR so tax payers can handle such critical problem smoothly.