Advance Determination Ruling - ADR

An official statement by the Internal Revenue Service (IRS) on how it interprets U.S. tax laws.

Sounds judicial.

It is.

These statements are mainly issued regarding tax-exempt status of organizations, yet frequently involve deductions and tax credits. If, say, a firm takes a tax credit, and the IRS states the tax credit has not been applied properly, the firm is subject to fines.

Who knew tax codes could be so controversial?