Tax planning is crucial for the growth of any business. Unfortunately, there are situations where a business would like to engage in a transaction and the IRS has issued no guidance as to how that transaction should be treated for tax purposes. To address this issue, the IRS allows tax professionals to request guidance as to how the transaction should be treated. The IRS response is known as a private letter ruling and may only be relied upon by the taxpayer requesting the ruling.
Is your business facing a financial situation for which there appears to be no IRS guidance? Reach out to a tax professional who can determine whether your particular situation is unique and, if necessary, request a private letter ruling.
