Revenue Ruling Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Revenue Ruling, written in plain English, along with examples of how it is used.
What is Revenue Ruling?
(n) Revenue ruling is the opinion published by revenue department about the future taxation proposals containing rules and answers about taxation questions and circumstances.
History and Meaning of Revenue Ruling
Revenue Ruling refers to an official interpretation by the Internal Revenue Service (IRS) of the United States federal tax laws. The ruling provides guidance on specific tax-related issues and is published in the Internal Revenue Bulletin. Revenue Ruling is issued on a periodic basis and reflects the current position of the IRS on certain tax matters.
The IRS issues Revenue Rulings to clarify and interpret tax laws and regulations to taxpayers, tax professionals, and other government agencies. They typically contain a summary of the facts and circumstances of a specific case or situation, the applicable law, and the IRS's view on how the law should be interpreted or applied.
Examples of Revenue Ruling
An individual's payment for a particular type of service is taxable under the Internal Revenue Code, and the payment is not subject to any exclusion or deduction.
The amount of damages received by a taxpayer is included in gross income, regardless of whether the damages are for personal injuries or as compensation for other losses.
Money received from a tax-exempt organization as compensation for services rendered will be included in the recipient's gross income.
Legal Terms Similar to Revenue Ruling
Private Letter Ruling (PLR): A written statement issued by the IRS in response to a taxpayer's request for guidance on a specific tax issue.
Revenue Procedure: A statement of procedure that provides guidance on how to comply with procedural or administrative aspects of tax laws.
Technical Advice Memorandum (TAM): A written statement issued by the IRS to provide guidance to its agents on how to handle specific tax issues in specific cases.