Get Revenue Ruling 1999-37 - Federal Rates

996(a)(2)(C) Amounts distributed out of previously taxed income shall be excluded by the distributee from gross income except for gains described in subsection (e)(2), and shall reduce the amount of the previously taxed income.

A revenue ruling is an official interpretation by the IRS of the Internal Revenue Code, related statutes, tax treaties and regulations. It is the conclusion of the IRS on how the law is applied to a specific set of facts.

A private letter ruling, or PLR, is a written statement issued to a taxpayer that interprets and applies tax laws to the taxpayer's represented set of facts. A PLR is issued in response to a written request submitted by a taxpayer. A PLR may not be relied on as precedent by other taxpayers or by IRS personnel.

partner's interest by the other partner in a two-person partnership. The Service ruled. that, for the purpose of determining the purchaser's holding period in the assets. attributable to the deceased partner's interest, the purchaser should treat the. transaction as a purchase of the assets attributable to the interest ...

Situation 2. In this situation, the LLC is converted from an entity that is disregarded as an entity separate from its owner to a partnership when a new member, B, contributes cash to the LLC. B's contribution is treated as a contribution to a partnership in exchange for an ownership Page 3 interest in the partnership.

Is there a penalty for overpaying your taxes? There's no consequence from the IRS if you overpay, although it might not sit well with you knowing that you gave more money to the IRS than was needed. The good news is that you'll most likely receive a tax refund, so your money will be safe and sound after all.

99-40. This revenue ruling states that when a taxpayer elects to apply an overpayment to a succeeding year's estimated taxes, the overpayment will be applied to unpaid estimated tax installments due on or after the date of the overpayment, in the order required to avoid a penalty for the failure to pay estimated tax.

While you're not required to apply your overpayment of taxes to next year, doing so allows you to get a head start on next year's taxes. This may be especially helpful if you're going to have income that's not subject to withholding.