Administrative Regulations and Rulings

Regulations

-          The IRS’s and Treasury’s interpretation of the code

-          Issued in the form of TD’s – Treasury Decisions

-          Known as Proposed Regulations during hearings process

-          Known as regulations once approved

Two forms of regulations

-          General Regulations

• Issued under authority granted to the IRS to interpret the code

-          Legislative Regulations

• IRS directed by congress to essentially make a law and specify requirements of a tax provision

Temporary Regulations

-          Response to change in tax law or interpretation

-          Must be replaced with regulation within 3 years

Effective date of regulations

-          Upon being filed with the Federal Register

-          Retroactive when:

• Regulation filed with 18 months of the date of the enactment of the provision
• Regulation designed to prevent tax abuse
• Regulation corrects a defect in prior regulation
• Relates to Treasury Dpt policies
• By congressional directive
• Commissioner elects so

Citing a Regulation

Reg, S 1.162-21 (a)(2)

Type of regulation

Related Code Section

Regulation Number

Regulation Paragraph

Regulation Sub paragraph

Type of Regulation

-          1. Income tax

-          20 estate tax

-          25 gift tax

-          31 employment tax

-          301 procedural matters

Locating Regulations

TD’s published in Internal Revenue Bulletin

Bulletin is bound into volumes called Cumulative Bulletin

Revenue Rulings

-          Pronouncement from the National Office of the IRS

-          Explains how IRS will treat certain transactions

-          May also give interest rates

-          Structure

• Issues
• Facts
• Law and analysis
• Holding (how IRS will treat transaction)

Revenue Ruling Citation

Temporary Citation example:

Rev.Rul.2005-7, 2005-9 I.R.B. 712

-          2005-7 = 7^th ruling of 2005

-          2005-9 = weekly issue of the bulletin. 9^th week of 2005

-          IRB = Internal Revenue Bulletin

-          712 = page number where ruling starts

Permanent Citation

-          Once added to bulletin

Rev Rul. 2005-7, 2005-1 C.B. 712

-          2007-7 = 7^th ruling of 2005

-          2005-1 = volume number of bulletin

-          C.b. = cumulative bulletin

-          712 = page number

Revenue Procedures

How the IRS releases info to taxpayers

Citation:

-           Rev Proc 2005-20, 2005-2 C.B. 1000

Letter Rulings

-           Response to inquiry to the IRS’s positions on an issue

Technical Advice Memoranda

-          Issued by national office

-          Deals with completed transaction

Determination Letters

-          Issued by local office

Public Inspection of Written Determinations

-          Unpublished IRS letter rulings

-          Other writings

-          Citation:

• Ltr. Rul. 200917024
• 2009 is yr issued
• 17 is week issued
• 024 means 24^th ruling issued in the week

Acquiescence and nonacquiescences

-          When IRS loses a case in court

-          Announced by commissioner

-          Acquiescence

• Indicates the court’s decision and that it will be followed in future

-          nonacquiescences

• will only follow decision for case specifically taken to court

-          issued as Actions on Decision (AOD)

• relative to:
  • tax court
  • memorandum tax court
  • district court
  • court of federal claims
  • courts of appeal

-          published in Bulletin

-          includes important facts, decision against govt and reason for agreeing or not

Internal Revenue Bulletin

-          new tax laws

-          committee reports

-          tax treaties

-          TD’s

-          Other notices

Chief Counsel Memorandum

-          Available from commercial publishers

-          Technical Memorandum (TM)

• Prepared for the production of a PM

I am Alexander Glaser, I am an online writer specializing in Economics Tutorials

Alexander Glaser

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