Subject: Business Tax Sally Andrews calls you on the phone. She says that she has found...

Question

Question

Subject: Business Tax Sally Andrews calls you on the phone. She says that she has found...

Subject: Business Tax

Sally Andrews calls you on the phone. She says that she has found a 2007 letter ruling that agrees with a position she wants to take on her tax return. She asks you about the precedential value of a letter ruling. Draft a memo for the tax files, outlining what you told Sally.

business finance

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Answer:

What is Private Letter Ruling:

Sometimes Taxpayer may need some clarification regarding interpretation of tax law or they may be disagree with interpretation of law. Then they may ask Internal Revenue Service (IRS) office to issue a ruling on specified point. It is regarded as "Private letter ruling".

Legal Value of letter ruling:

Legal value of Private letter ruling is very restricted i.e. it applies only to those taxpayer who request for it and only for a transaction for which it was sought.

Hence, Sally Andrews cannot take a benefit of 2007 letter ruling. She has to take new letter ruling for her transaction.

"If you have any Query, then please put it in the comment box."

Add a comment

Answer 2

Similar Homework Help Questions

Jessica loves to visit antique malls and flea markets. She buys old furniture to refinish and...

Jessica loves to visit antique malls and flea markets. She buys old furniture to refinish and later resell s some of her projects for a modest pro fit . Jessica inherited a large house with a barn from her grandmother. The barn is where she keeps her future furniture refinishing projects. She buys more than she can handle and has a large backlog of projects. To Jessica’s surprise, while cleaning and sanding an ol d desk that she purchased five...
Assume you are a recently hired accountant working for growing bigger, Inc. a national business consulting...

Assume you are a recently hired accountant working for growing bigger, Inc. a national business consulting firm with the ambition to expand into an international market. The President of Growing, Elizabeth Golightly, calls you into her office with a request. She has been asked to participate in a seminar on international accounting standards and wants to update her knowledge of the topic. She asks you to research the topic, with emphasis on the position taken recently by U.S agencies and...
Staci wants to buy Todd’s 1958 Les Paul guitar. She played it when she was recently...

Staci wants to buy Todd’s 1958 Les Paul guitar. She played it when she was recently visiting North Carolina. She calls Todd Sunday night and offers him $8,000 for the guitar. Todd replies he can’t take $8,000 and says, “I will let you have it for a $12,000 and you have to pay for shipping to your home in Kalamazoo, Michigan.” Staci knows that Todd likes her and wants to ask her out on a date. Staci replies, “I can’t...

#2 CASE STUDY #2: University-Level Note-Taking! Melanie was a university student taking business classes. She found...

#2 CASE STUDY #2: University-Level Note-Taking! Melanie was a university student taking business classes. She found that many of her classes were a combination of lecture information, classroom examples and what the instructor would put on the board, and practice problems that she had to Properties of various discussions worksheet. The challenge was to integrate no TRICOT I u ogle flowchart that enabled her to understand the important concepts. Our solution was to utilize technology to gather and sort information....
QUESTIONS Joan is setting up a small business mowing lawns and maintaining domestic gardens. Her ...

QUESTIONS Joan is setting up a small business mowing lawns and maintaining domestic gardens. Her business is called ‘Prune & Bloom’. Joan needs a sturdy lawnmower that will withstand frequent use, so she goes to her local Nailed It Hardware store. Joan is assisted by Effah. Joan explains her needs, and Effah shows her the MowMaster 3000, a new brand of lawnmower. “The MowMaster 3000 is the one for you. It’s amazing! The blades can cut through anything, and they’ll...
Case Study: Josephine has been experiencing anxiety for years. She is currently finishing the third year...

Case Study: Josephine has been experiencing anxiety for years. She is currently finishing the third year of an intensive health sciences degree program. Josephine was referred to a mental health specialist, Dr. Goodhand, when she first moved away to university. Dr. Goodhand’s office is just off campus and is very convenient. When she first met Dr. Goodhand, Josephine told him about what she calls her panics which she describes as overwhelming feelings of panic and dread that make her heart...

Case Study: Josephine has been experiencing anxiety for years. She is currently finishing the third year...

Case Study: Josephine has been experiencing anxiety for years. She is currently finishing the third year of an intensive health sciences degree program. Josephine was referred to a mental health specialist, Dr. Goodhand, when she first moved away to university. Dr. Goodhand’s office is just off campus and is very convenient. When she first met Dr. Goodhand, Josephine told him about what she calls her panics which she describes as overwhelming feelings of panic and dread that make her heart...
The primary asset of Greene's Jewelry is its patented process for creating a synthetic gold-colored material...

The primary asset of Greene's Jewelry is its patented process for creating a synthetic gold-colored material called "Ever-Gold," which is used in Greene's necklaces, rings, earrings, and bracelets. Ever-Gold is impervious to scratches, discoloration, oxidization, and is marketed as "everlasting gold." Jennifer Lawson, who has been employed for three years as a junior executive secretary in the research and development department at Greene's Jewelry, has just learned that she is pregnant. She has earned high marks on each of her...
Please see attached Pictures. This is a homework assignment for Legal environment of Business that i...

Please see attached Pictures. This is a homework assignment for Legal environment of Business that i need help solving. Stacy mails Jennifer an offer to sell Jennifer 43 bags of rice for $107.00. Jennifer replies to Stacy by mail, stating, " agree to pay $105.75 for 43 bags of rice. Neither Stacy nor Jennifer are merchants. What is the status of Stacy's offer. 1. a. Jennifer has accepted it b. Jenifer has rejected it and counteroffered c, Jennifer has breached...

Anthony is a chef who owns a small restaurant in Cleveland, Ohio as a sole proprietor....

Anthony is a chef who owns a small restaurant in Cleveland, Ohio as a sole proprietor. Because the business is struggling in the beginning, Anthony frequently puts money from his own personal account into the business account for the restaurant. After a while, business is picking up and he decides to expand by purchasing a food truck. In the beginning he is able to run the food truck during the day, and then open his restaurant just in the evening...

Subject: Business Tax Sally Andrews calls you on the phone. She says that she has found...

Homework Answers

Add Answer to:
Subject: Business Tax Sally Andrews calls you on the phone. She says that she has found...

Post as a guest

Earn Coins

Jessica loves to visit antique malls and flea markets. She buys old furniture to refinish and...

Assume you are a recently hired accountant working for growing bigger, Inc. a national business consulting...

Staci wants to buy Todd’s 1958 Les Paul guitar. She played it when she was recently...

#2 CASE STUDY #2: University-Level Note-Taking! Melanie was a university student taking business classes. She found...

QUESTIONS Joan is setting up a small business mowing lawns and maintaining domestic gardens. Her ...

Case Study: Josephine has been experiencing anxiety for years. She is currently finishing the third year...

Case Study: Josephine has been experiencing anxiety for years. She is currently finishing the third year...

The primary asset of Greene's Jewelry is its patented process for creating a synthetic gold-colored material...

Please see attached Pictures. This is a homework assignment for Legal environment of Business that i...

Anthony is a chef who owns a small restaurant in Cleveland, Ohio as a sole proprietor....

Subject: Business Tax Sally Andrews calls you on the phone. She says that she has found...

Homework Answers

Add Answer to: Subject: Business Tax Sally Andrews calls you on the phone. She says that she has found...

Post as a guest

Earn Coins

Add Answer to:
Subject: Business Tax Sally Andrews calls you on the phone. She says that she has found...