Definition of Revenue ruling:
Managed by the Internal Revenue Service (IRS), these methods aid businesses or corporations in identifying how the allocation of income and expenses should be handled.
A revenue ruling is a public decree issued by the IRS that essentially has the force of law. A revenue ruling outlines the IRS's interpretation of the tax laws and is binding on all IRS employees and public taxpayers. Revenue rulings are published in the Internal Revenue Bulletin and are issued only from the National Office of the IRS. The IRS Bulletin may abbreviate revenue rulings as Rev. Rul. when listing the specific rulings online and in the Bulletin. The purpose of the Revenue Bulletin is to inform American taxpayers of their tax responsibilities and enforce the laws surrounding taxes with fairness and equality. The revenue rulings within the Revenue Bulletin help in the mission of educating and enforcing tax regulations and rulings.
Revenue rulings are used by taxpayers and tax professionals as reliable guidelines for their own returns or the returns of their clients. According to the IRS, revenue rulings represent the conclusions of the Service on the application of the law to the pivotal facts stated in the revenue ruling. The IRS also notes that while the rulings and procedures reported in the Bulletin don’t have the force and effect of Treasury Department Regulations, they are able to be used as precedents.
Meaning of Revenue ruling & Revenue ruling Definition