UCF Tax 6065

1
UCFTax 6065

• Administrative Sources of
• Federal Tax Law
• Text Chapter Four

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Administrative Sources of Tax Law

• Regulations
• Revenue Rulings
• Revenue Procedures
• Letter Rulings
• PLR
• TAM
• Determination Letters
• Other IRS Pronouncements
• Acquiescenses and Nonacquiescenses
• Chief Counsel Memoranda
• Announcements and Notices
• Publications

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Regulations

• Official Treasury or IRS interpretation of a
  portion of the IRC
• First issued in Proposed form
• Proposed regulations do not have the force of law
• General Regulations
• Issued under the general authority granted to IRS
  to interpret the language of the code
• Legislative Regulations
• Ordered by the Code
• greatest precedential value of any IRS
  Pronouncement
• Example Treasury Regulation 1.199-1
• Temporary Regulations
• Effective immediately, but expire 3 years after
  issuance

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Citing a Regulation

• Type of Regulation (1.)
• Code Section (179-)
• Regulation Number (1)
• Paragraph (c)
• Subparagraph (1)
• Temporary Regulations have a T after the
  Regulation number

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Assessing Regulations

• Regulations are assumed to be valid by courts
• If taxpayer takes position contrary to
  regulations without supporting authority, it is
  likely that an accuracy-related penalty for the
  intentional disregard of rules and regulations
  will be imposed (20 of underpayment)
• Some regulations are stronger than others (e.g.
  legislative regulations)
• Many regulations are based on prior law so may
  NOT be up-to-date

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Examples of Regulations

• Proposed Regulation
• General Regulation
• Treasury Regulation 1.179-1
• Legislative Regulation
• IRC 199(c)(1)
• Treasury Regulation 1.199-1
• Temporary Regulation
• Treasury Regulation 1.163-11T

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Revenue Rulings

• Official Pronouncement of National Office of IRS
• Deals with application of Code and Regs to a
  specific factual situation
• Do not carry the force and effect of Regulations
• Typical Structure
• Issue
• Facts
• Law and Analysis
• Holding
• Effect on Other Documents
• Examples
• 2008-42
• 2008-36

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Citing a Revenue Ruling

• Temporary Citation refers to Internal Revenue
  Bulletin (published weekly)
• Rev. Rul. 2008-42, 2008-30 I.R.B. 175
• 42nd Revenue Ruling issued in 2008.
• Issued in 30th week of 2008
• Found on page 175
• Twice per year, the IRBs are bound into
  Cumulative Bulletin
• Rev. Rul. 2003-61, 2003-1 C.B. 1015
• In Volume 1 of 2003 Cumulative Bulletin

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Revenue Procedures

• Deal with internal practice and procedures of the
  IRS in administration of the tax laws.
• Revenue Procedures are cited like Revenue Rulings
• Rev. Proc. 2003-35, 2003-20, I.R.B. 919
• Rev. Proc. 2003-35, 2003-1, C.B. 919
• Examples
• Rev. Proc. 2008-35
• Rev. Proc. 2008-47
• Rev. Proc. 2008-32

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Letter Rulings

• Issued by National Office
• Private Letter Rulings (PLR)
• Ltr. Rul. 200927014
• 14th letter issued in the 27th week of 2009
• Technical Advice Memorandum (TAM)
• Ltr. Rul. 200914021
• 32nd letter Issued in the 25th week of 2006
• Determination Letters similar to TAM however are
  issued by office of local IRS district director

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Other IRS Pronouncements

• Actions on Decisions (AOD)
• When IRS loses in court they may issue AOD
  indicating their Acquiescence (ACQ) or
  Non-Acquiescence (NONACG) with the ruling
• Chief Counsel Memoranda
• Technical Memorandum (TM)
• General Counsel Memorandum (GCM)
• Advice to IRS Offices and Personnel
• Field Service Advice (FSA)
• Chief Counsel Notices (CCN)
• Service Center Advice (SCA)

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IRS Announcements and Notices

• Announcements
• public pronouncements that have immediate or
  short-term value
• Announcement 2008-67, 2008-29 I.R.B.164
• Notices
• Contain guidance involving substantive
  interpretations of Code
• Notice 2008-61, 2008-30 I.R.B. 180