Revenue Ruling Law and Legal Definition

A revenue ruling is a published opinion of the Internal Revenue Service stating how it would rule on future tax questions based on the same circumstances. It is an IRS tax decision resulting from an interpretation of an unclear regulation. These rulings are used for guidance to taxpayers, tax preparers, accountants and attorneys in anticipating tax treatment by the IRS. They have the force of law and may be relied upon until otherwise decided by the federal tax court or a new revenue ruling.