Business and Personal Finance Dictionary

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• PRIVATE LETTER RULING
  
  A private letter ruling explains a position the Internal Revenue Service (IRS) has taken on a specific issue or action that affects the amount of income tax a taxpayer owes. For example, one letter ruling from 1998 agreed that IRA distributions made to a charitable organization at the participant's death are tax exempt. While these rulings are not the law, and there's no guarantee that they won't be overturned by new IRS opinions, they can provide guidance in handling taxable distributions from your 401(k) or IRA.
  
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