Final answer:
The IRS is not required to issue a PLR each time a taxpayer makes a request. The decision to issue a PLR depends on several factors, including the significance of the legal issue and the provision of necessary information.
Step-by-step explanation:
PLR stands for Private Letter Ruling, which is a written statement issued by the Internal Revenue Service (IRS) in response to a taxpayer's request. The IRS is not required to issue a PLR each time a taxpayer makes a request. The decision to issue a PLR depends on several factors, including whether the issue is one of first impression, whether the request involves a significant legal issue, and whether the taxpayer has provided all necessary information.
For example, if a taxpayer is unsure about how a specific tax provision applies to their situation, they can submit a PLR request to the IRS for guidance. The IRS will then review the request and issue a written ruling that provides the taxpayer with a definitive answer. However, the IRS has the discretion to decline a PLR request if it believes the issue can be resolved through other means, such as existing guidance or regulations