State Letter Rulings
Letter rulings are a highly effective method of protecting your business when a tax position is unclear. Most states allow taxpayers to request upfront rulings on the taxation of certain transactions or business models. A business describes the situation and requests the state to provide a binding ruling as to how tax applies.
My letter ruling requests are carefully crafted. All relevant and favorable tax laws, rules, and other precedents are used to lead the taxing authority to the correct answer. In addition, all necessary facts are disclosed so that the taxing authority is bound by the ruling.