My opinion on private letter ruling from the IRS Essay Example for Free

My opinion on private earn ruling from the IRS EssayAccording to my opinion on the IRS private earn ruling, it is very essential for the organization to decide and look for ways on which they can request for the IRS private letter ruling. An IRS private letter ruling does not contain laws but it contains guideline to the taxpayer on tax issues. Therefore it can be defined as a disclosed bidding that is issued to the tax payer by the Internal Revenue Service (IRS) in which some guidance are defined on how to deal with financial sagacity that have prospective tax cost. Many of the organization have limited knowledge about the IRS private letter ruling and that is why they tend to contribute away from the IRS especially when they have to deal with issue regarding taxes. It is the responsibity of the organizational leaders to look upon the anticipated changes in the organization and compare the importance of the IRS private letter ruling to the company (IRS. gov 2010). The taxpa yer is able to rely on what the private letter states regarding its measurement.IRS reduces risk when dealing with paying a large amount of tax it gives the tax payer a surety of safety that will occur when dealing with paying large amount of tax. On a contemplated transaction the private letter of ruling gives advancement to the taxpayer on the tax treatment expectation from the IRS. The IRS can become negative to companies. Therefore for the IRS private letter ruling to have a meaning the transactions are supposed to be completed accompanied by the tax returns. There after(prenominal) the IRS officials discuss and come to an agreement after they have evaluated the transactions and the tax returns.