Tax Law And Rulings Flashcards
1
Q
What penalties does the IRS apply in instances in which a tax avoidance scheme is ruled illegal?
A
Tax deficiencies are collected, and penalties and interest may be applied.
2
Q
What implication for general tax law does a Private Letter Ruling have?
A
A Private Letter Ruling applies only to the party that requested the ruling. While PLR’s are often cited by those marketing a particular tax strategy, such Letters cannot be relied on outside the confines of the private party for which they were written.
