Working with Tax LawCitation of CodeB) Administrative sourcesC) Judicial sourcesD) Tax servicesWorking with Tax LawA.) Statutory Sources 1) Internal Revenue Code – primary source2) Tax TreatiesNeither takes precedence most recent doesLegislative Process: * House Ways and Means Committee House of Rep.*Senate Finance Committee Senate*Joint Conference Committee (IF House and Senate disagree)(incl. both House + Senate members)Considered by House + SenateApproval or veto by PresidentIncorporated into code*Issued Committee reports explain provisions of legislation and intent of CongressCitation of Codee.g., Sec. 63(a)(1)- reading IRC can be complex – go over pitfalls p. 2 - 27 6) Action on Decisions (AOD) – IRS reaction to certain court decisions (e.g., nonacquiescence means IRS may continue to litigate7) General Council Memoranda (GCM )B) Administrative sources1) Regulations - issued by Treasury – Primary SourceProposed Regs - carry little weightTemporary Regs - immediate guidance neededFinal Regs have force and effect of lawAlso:Legislative - Congress gives Treasury authority to prescribe regs (e.g., consol. return regs)Interpretive - elaborate on Congress. Committee ReportProcedural – instructional (e.g., info. reporting)2) Revenue Rulings – official pronouncements by Nat’l Office of IRS (cite Rev. Rul. p. 28-10)Revenue Procedures – deal with internal mgmt practices + procedures of IRS (cite Rev. Proc.)3) Letter Rulings – (PLR, p. 28-11) issued for a fee upon taxpayer’s request + national office IRS describes how it would treat a particular item or proposed transaction – published 4) Determination letter – issued at request of taxpayer + provide guidance or application of tax law to completed transaction – advice given by District Director IRS – not published5) Technical Advice Memoranda (TAM)- arise from questions raised by IRS personnel in audit- give IRS’ determination of an issue + position on an issue - publishedC) Judicial sources See Figure 28-3, page 28-13 + 28-15 for summaryDoctrine of stare decisis each case has precedential value for future cases w/same controlling set of factsafter IRS disputes cannot be settled they go to:1) Trial court – any of:a) U.S. Tax Court (1)b) U.S. District Court (many) – jury trial avail. only herec) U.S. Court of Fed. Claims (1) d) Small cases division informal (no lawyer) + not publishedCases < $50,000Appellate Courts: 2) a) U.S. Court of Appeals – Regional Circuitb) U.S. Court of Appeals – Federal Circuit3) Supreme Court – appeal by writ of certiorari -writ will either be granted or denied-usually granted to resolve conflict between 2 or more appellate courtsGolsen Rule – Tax Ct. may reach different conclusions with 2 cases in different geographic locationsD) Tax services 1) RIA2) CCH3) BNA4) Merten’s5) Tax periodicals (see p. 28-25)Presentation of Tax Research- MEMO FORM to be used p. 28-32DateTo: FileFrom:Subject:Facts:Issue:Discussion:Conclusion:Review copy of a memoOn-line services: Lexis/NexisRIA
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