Question

List the three types of IRS written determinations
Briefly explain the differences

Answer 1

Private Letter Rulings (PLRs), Technical Advice Memorandums (TAMs), and General Counsel Memorandums (GCMs) are the three types of IRS written determinations. PLRs are specific to the taxpayer, binding on the IRS and future taxpayers, and for individual taxpayers. TAMs provide guidance to IRS personnel and carry significant weight. GCMs provide legal advice, are not binding, and intended for internal use by IRS attorneys.

Step-by-step explanation:

The Three Types of IRS Written Determinations:

1. Private Letter Rulings (PLRs):
2. A PLR is a written statement issued by the IRS in response to a taxpayer's request for guidance on a specific tax issue. It applies only to the taxpayer who requested it and can be used as a binding precedent for future tax situations.
3. Technical Advice Memorandums (TAMs):
4. TAMs are written by the IRS National Office to provide guidance to IRS field personnel on complex tax issues encountered in audits or investigations. They are not binding but carry significant weight.
5. General Counsel Memorandums (GCMs):
6. GCMs are written by the Office of Chief Counsel and provide legal advice on tax issues. They are intended for internal use by IRS attorneys and are not binding on the IRS.

Differences:

• Applicability: PLRs are specific to the taxpayer who requested them, while TAMs and GCMs provide guidance to IRS personnel.
• Binding Nature: PLRs can be binding on the IRS and future taxpayers, while TAMs and GCMs are not binding.
• Audience: PLRs are for individual taxpayers, while TAMs and GCMs are for IRS personnel and attorneys.