Rev Proc 2022-1: How to Request an IRS Letter Ruling

An Internal Revenue Service (IRS) Revenue Procedure is a published statement that provides direction on tax administration procedures. These documents are published in the Internal Revenue Bulletin to guide taxpayers and tax professionals.

Revenue Procedure 2025-1 is the annual guide detailing how taxpayers can request written advice from the IRS National Office on the tax treatment of specific transactions. The procedure explains the types of advice available, the issues on which the IRS will provide a determination, and the steps a taxpayer must follow. This guidance is updated annually, and taxpayers must consult the version effective for the year of their submission.

Understanding the Types of IRS Guidance

Revenue Procedure 2025-1 outlines several forms of written advice. The most detailed is the Private Letter Ruling (PLR), which is a written determination issued to a taxpayer by the IRS National Office. A PLR interprets and applies tax laws to that taxpayer’s specific set of represented facts before the transaction is completed and reported on a tax return.

A PLR provides certainty about the tax treatment of a transaction. The ruling is binding on the IRS for the requesting taxpayer, provided that all relevant facts were accurately represented and the transaction is carried out as described. This reliance allows individuals and businesses to make informed financial decisions, particularly in complex areas of tax law.

A PLR may not be used or cited as precedent by any other taxpayer. The IRS makes redacted versions of these rulings public to provide insight into the Service’s thinking on various issues. While these can be a research tool, they do not carry the same authoritative weight as other forms of guidance.

Another form of guidance is a Determination Letter, which is issued by an IRS Director and addresses issues based on established principles. These letters are most commonly used to rule on the qualified status of retirement plans or to determine an organization’s eligibility for tax-exempt status under sections like 501(c)(3).

Finally, the IRS may issue an Information Letter. This guidance is purely informational and calls attention to a well-established interpretation or principle of tax law without applying it to a specific factual scenario. It is used when a taxpayer’s question can be answered by pointing to existing statutes or regulations.

Issues Ineligible for an IRS Ruling

The IRS does not issue rulings on all tax matters and maintains “no-rule” lists that specify areas where it will not issue a PLR or a Determination Letter. These lists are found in separate documents, such as Revenue Procedure 2025-3 for domestic issues and Revenue Procedure 2025-7 for international issues.

The IRS will not rule on questions that are purely factual, such as the fair market value of property or whether a transaction has a legitimate business purpose. These determinations depend on an analysis of all surrounding facts and circumstances, which is a task for the taxpayer or their advisors.

The IRS will also decline to issue a ruling if the same issue is involved in a tax return of the taxpayer for a prior period and is under examination by an IRS field office, being considered by an Appeals office, or pending in litigation. This restriction prevents interference with the established examination and appeals processes.

Rulings are not provided for hypothetical transactions or for alternative plans for a proposed transaction. A request must be based on a genuine and specific set of facts related to a transaction the taxpayer intends to pursue. The Service will not analyze various “what-if” scenarios for a single outcome.

These revenue procedures also list substantive areas of tax law that are under extensive study. In these situations, the IRS will not issue rulings until it resolves the issue through the publication of a regulation, revenue ruling, or other formal guidance.

Information and Documents Needed for a Ruling Request

A request for a Private Letter Ruling requires a comprehensive package of information and documents. Failure to provide any of the required elements can result in the request being returned without review. The core components of a request include:

• A complete statement of all relevant facts related to the transaction, including the names, addresses, and Taxpayer Identification Numbers (TINs) of all interested parties and the business reasons for the transaction.
• Copies of all relevant documents, such as contracts, wills, deeds, and agreements. If documents are not yet executed, the most recent drafts must be submitted with a representation that the final versions are expected to be substantially the same.
• A clear and concise statement of the specific ruling or rulings being requested, framed as a precise legal conclusion.
• A supporting legal analysis in a memorandum of law that discusses the relevant authorities, including statutes, regulations, other IRS rulings, and court decisions. If the taxpayer is aware of any authorities contrary to their position, they must disclose and discuss them.
• A declaration signed by the taxpayer under penalties of perjury. The required language states: “Under penalties of perjury, I declare that I have examined this request, including accompanying documents, and, to the best of my knowledge and belief, the request contains all the relevant facts relating to the request, and such facts are true, correct, and complete.”

The Submission Process and Required User Fees

A user fee must be paid before the ruling request is submitted. The IRS charges for providing a PLR to cover the costs associated with the legal analysis and processing. The fee schedule is published in an appendix to the revenue procedure.

The standard user fee for a PLR request is $43,700. Reduced fees of $3,450 or $9,775 are available for certain individuals and organizations that meet specific gross income or gross receipts thresholds. Payment of the user fee is made through the federal government’s online payment portal, pay.gov.

After paying the fee, the taxpayer must submit the complete ruling request package. The revenue procedure provides a specific mailing address for the IRS National Office in Washington, D.C., for paper submissions. The IRS may also encourage or mandate electronic submission for certain requests through its secure online portals.

Upon successful submission, the taxpayer will receive an acknowledgment letter from the IRS that confirms receipt and assigns a case number. The request is then forwarded to the appropriate Associate Chief Counsel office, where an IRS attorney will be assigned to the case and serve as the taxpayer’s primary point of contact.