Revenue Rulings are initiated by the IRS
- often when they see recurring issues or need to clarify how the law applies to common fact patterns.
- They’re based on hypothetical or generalized scenarios, even if inspired by real cases.
- The IRS publishes them in the Internal Revenue Bulletin to provide uniform guidance to all taxpayers and IRS personnel.
- Precedential for taxpayers If a taxpayer's situation matches the facts in a ruling, the taxpayer relies on it.
PLR
- Issued by the IRS Office of Chief Counsel
- Applies only to the requesting taxpayer
- Cannot be cited as precedent by others (unlike Revenue Rulings)
- Provides certainty before a transaction is completed
- PLRs are are not free—they come with a hefty user fee (often tens of thousands of dollars).
- The IRS may revoke or modify a PLR if the law changes or if the facts were misrepresented.
General Counsel Memoranda (GCMs)
- When: Historically issued (before 2002) during the drafting of published guidance like Revenue Rulings.
- Who: Prepared by the IRS Office of Chief Counsel.
- What for: To document the legal reasoning behind IRS positions. While no longer issued, archived GCMs still offer insight into the IRS’s interpretive process.
Technical Memoranda (TMs)
- When: During the development of proposed regulations or revenue rulings.
- Who: Drafted by IRS attorneys and Treasury officials.
- What for: To explain the rationale and legal basis for proposed guidance. These are internal documents and not binding, but they help clarify intent behind complex rules.
Technical Advice Memoranda (TAMs)
- When: During an audit or appeal, when a legal question arises that field agents can’t resolve.
- Who: Requested by IRS Examination or Appeals officers; issued by the Office of Chief Counsel.
- What for: To provide binding legal guidance on how tax law applies to a specific case. TAMs are case-specific but reflect the IRS’s official interpretation.