Revenue Ruling Legal Meaning and Definition

Here is a simplified definition of the legal term Revenue Ruling.

Revenue Ruling (noun)

A Revenue Ruling is an official interpretation made by the tax authorities such as the Internal Revenue Service (IRS) in the United States. These decisions provide clarity on how tax laws should be interpreted and applied to a specific type of income, expense, or taxation situation. Revenue Rulings are designed to help taxpayers prepare for future tax obligations, and although they are not legally binding, they generally carry significant weight in any discussions or disputes about taxation responsibilities.