Rev Proc 2014 1: How to Request an IRS Ruling

The Internal Revenue Service (IRS) provides guidance for taxpayers seeking clarity on complex tax issues before filing a return through an annual publication known as a Revenue Procedure. For 2025, this is Revenue Procedure 2025-1. It outlines the official process for requesting specific types of advice from the IRS on topics under the jurisdiction of its Associate Chief Counsel offices.

Following this procedure allows taxpayers to obtain certainty on the tax consequences of their actions directly from the source. This can help avoid future disputes, penalties, and interest that might arise from an incorrect interpretation of tax law. The process is designed to be proactive, resolving questions about planned financial events rather than addressing issues after a tax return has been submitted.

Types of IRS Guidance Available

The IRS offers several forms of guidance, each with a different purpose and level of authority. The most formal is the Private Letter Ruling (PLR), which is a written determination from the IRS National Office that interprets and applies tax laws to a taxpayer’s specific set of facts. A taxpayer might request a PLR before a major corporate reorganization to confirm the transaction will qualify for tax-free treatment. The resulting PLR is binding on the IRS for the taxpayer who requested it.

A Determination Letter is issued for a completed transaction. These are most commonly used to establish the tax-qualified status of retirement plans or confirm the tax-exempt status of an organization. Determination letters for employee benefit plans, like 401(k)s, are handled by specialized offices as outlined in Revenue Procedure 2025-4.

The IRS also issues Information Letters, which call attention to a well-established interpretation of tax law without applying it to a specific set of facts. These are advisory only and not binding on the IRS. A taxpayer might receive an information letter if their inquiry is general or does not meet the requirements for a formal ruling request.

Circumstances Where the IRS Will Not Issue Rulings

The IRS maintains a list of “no-rule” areas, which are subjects where a Private Letter Ruling or Determination Letter will not be issued. These limitations are often because the issues are inherently factual, hypothetical, or otherwise inappropriate for a formal ruling.

One category of no-rule areas involves hypothetical transactions or alternative plans. A request must concern a specific, definite course of action. The IRS also refrains from ruling on questions that are primarily factual. For example, the agency will not issue a ruling to determine the fair market value of property or whether a salary constitutes reasonable compensation, as these are based on analyzing facts rather than interpreting law.

Furthermore, the IRS will not rule on an issue if that same issue is currently under examination in a taxpayer’s filed return, being considered by an IRS Appeals office, or pending in litigation. The annual Revenue Procedure, along with companion documents like Revenue Procedure 2025-3, contains a specific list of these no-rule topics. The IRS also reserves the right to decline a ruling if the law is unclear or under study.

Preparing a Letter Ruling Request

A complete letter ruling request must provide the IRS with all the information needed to understand the transaction and the legal question. The submission must be accompanied by the correct user fee, which was set at $43,700 for a standard private letter ruling as of early 2025, with reduced fees available for taxpayers below certain income thresholds.

A complete request package must contain the following elements:

• A complete statement of all facts relevant to the transaction. This includes the names, addresses, and taxpayer identification numbers of all interested parties, the business reasons for the transaction, and a full description of the event itself.
• Copies of all relevant documents. This includes contracts, agreements, deeds, wills, or any other instrument central to the transaction, along with an analysis of their bearing on the issue.
• A statement of supporting authorities. This is the taxpayer’s legal argument, explaining their reasoning and conclusion with citations to the Internal Revenue Code, Treasury Regulations, other rulings, and relevant court cases.
• A statement of contrary authorities. Taxpayers must disclose and explain any legal authorities that appear to contradict the position they are advocating.
• A penalties of perjury statement. The taxpayer must sign a declaration, with specific wording provided in the Revenue Procedure, attesting that the information provided is true, correct, and complete.

The Submission and Post-Submission Process

Ruling requests are submitted electronically, and the submission must be encrypted to protect sensitive taxpayer information. Payment of the user fee is handled electronically in conjunction with the submission.

After the IRS receives the package, the taxpayer will receive an acknowledgment letter that confirms receipt and provides a control number for future reference. The request is then assigned to an attorney or tax law specialist within the relevant IRS branch, who becomes the primary point of contact. It is common for the assigned IRS attorney to contact the taxpayer to ask clarifying questions or request additional information.

A taxpayer can withdraw a request in writing at any time before the ruling is signed. However, even if a request is withdrawn, the IRS National Office may still furnish its views on the matter to the field office that has audit jurisdiction over the taxpayer’s return. This could lead to the issue being raised during a subsequent examination.