Letter Ruling Requests

A Letter Ruling request is a good way to determine the taxability of a proposed product or company initiative when the current tax law is unclear.  Many companies find it better to know the tax consequences of their proposed actions before company resources are committed to the new project. 

Generally, the proposed product or company initiative is outlined in a letter format to a taxing jurisdiction on an anonymous basis and the taxing jurisdiction will provide an answer as to the taxability of the proposed product or company initiative.  The taxing jurisdiction will provide a detailed discussion and analysis to support their position.