67-1-109 - Revenue and letter rulings.
67-1-109. Revenue and letter rulings.
(a) The commissioner has the power to issue revenue and letter rulings, at the commissioner's discretion.
(b) Revenue rulings shall be statements regarding the substantive application of law and statements of procedure that affect the rights and duties of taxpayers and other members of the public. Revenue rulings shall be advisory in nature and shall not be binding upon the department.
(c) (1) Letter rulings shall interpret and apply the tax law to a specific set of existing facts furnished by a particular taxpayer. These rulings shall be binding upon the department and are applicable only to the individual taxpayer being addressed.
(2) Letter rulings can be revoked or modified by the commissioner at any time. Such revocation or modification shall be effective retroactively, unless the following conditions are met, in which case the revocation shall be prospective only:
(A) The taxpayer must not have misstated or omitted material facts involved in the transaction;
(B) Facts that develop later must not be materially different from the facts upon which the ruling was based;
(C) The applicable law must not have been changed or amended;
(D) The ruling must have been issued originally with respect to a prospective or proposed transaction; and
(E) The taxpayer directly involved must have acted in good faith in relying upon the ruling, and a retroactive revocation of the ruling must inure to the taxpayer's detriment.
(d) Requests for revenue and letter rulings shall be submitted in the form and manner prescribed by regulations issued by the commissioner.
(e) A reasonable fee, not to exceed two hundred dollars ($200), may be prescribed by the commissioner for issuing revenue and letter rulings.
[Acts 1988, ch. 562, § 1.]