CHAPTER THREE TREASURY INTERPRETATIONS

EXPECTED LEARNING OUTCOMES l Understand the following about Treasury interpretations: The different types Their level of authority How they are accessed How to determine their validity How they are cited

TYPES OF TREASURY INTERPRETATIONS l Regulations l Revenue Rulings l Revenue Procedures l Letter Rulings l Other

Treasury Regulations and Their Authority l Regulations provide clarity of IRC sections. l Regs: Not issued for every section. l Final Regs: Force and effect of law if reasonable & consistent interpretation of the law. (preamble – summarizes intended effect of the regulation. Legislative v. Interpretive Regs??? l Proposed: min. 30 days proposed before finalized. Solicit feedback (AICPA, ABA) – little authoritative value l Temporary: authoritative guidance while being finalized (3 year expiration deadline)

How to Access Regulations l Treasury Decisions (Federal Register) – Law Library l Internal Revenue Bulletin – published weekly. l Cumulative Bulletin (compiled semi-annually.

Organization and Citation of Regulations l Organization by Code Section l Citation Treas. Regs xxxxx See pg. 125

Formats Available l Print/Paper l CD-ROM l Modem l Web

Confirming the Reliability of a Regulation l Danger of being obsolete l Check for cautions

Revenue Rulings l Differ greatly from regulations l Code’s application to specific set of facts l Issued by IRS- National Office l Issue/ Facts / Law& Analysis / Holding / Effect on other docs. l Authority limited by its facts

Discovering Relevant Revenue Rulings l Through reference service l IRS Bulletin Index-Digest System

Accessing Revenue Rulings l Internal Revenue Bulletin l Cumulative Bulletin l Print or electronic

Discovering Relevant Revenue Rulings l Through reference service l IRS Bulletin Index-Digest System

Citing a Revenue Ruling l Rev. Rul , CB 200 l Rev. Rul , IRB , 30 l Rev. Rul , CB 30

Ensuring the Reliability of a Revenue Ruling l Must check that Rev. ruling is still in effect. l Old rulings are not removed l Citator: indicates whether the IRS/Courts amended authority of ruling l Use finding lists if using hard copy. l See examples on page. 138/139.

Revenue Procedures l Procedural guidelines l Authoritative if current l Generally not fact specific l If lengthy, have table of contents.

Discovering Relevant Revenue Procedures l Through reference service l IRS Bulletin Index-Digest System

Accessing Revenue Procedures l Internal Revenue Bulletin l Cumulative Bulletin l Print or electronic

Citing a Revenue Procedure l Rev. Proc , CB 200 l Rev. Proc , IRB , 30 l Rev. Proc , CB 30

Ensuring the Reliability of a Revenue Procedure l Citating- same procedure as for Rev. Rulings.

Letter Rulings/Technical Advice Memoranda l Similar to Revenue Rulings l Generated through request or internal confusion l Limited authority

Discovering Relevant Letter Rulings l Cannot depend on reference services l Searching using electronic database

Citing a Letter Ruling  year 40  week 300  number in that week

Other Types of Treasury Interpretations l Determination letters l General Counsel Memos l IRS News Releases l IRS Publications l Actions on Decisions l Acquiescences/non l Internal Revenue Manual l Forms and Instructions l Go Over p