3.4 AUTHORITATIVE HIERARCHY Flashcards
WHAT IS THE APPROPRIATE HIERARCHY OF AUTHORITY FOR TAX PURPOSES?
PRIMARY SOURCES CONSIST OF THE ORIGINAL SOURCE OF THE LAW
A) LEGISLATIVE “CONSTITUTION > IRC”
B) ADMINISTRATIVE “GENERATED BY THE TREASURY DEPARTMENT OF THE IRS”
C) JUDICIAL “JUDICIAL DECESION”
E) PUBLICATIONS. SECONDARY SOURCES “COMMENTARY OF THE LAW”
A) IRC [BINDING]
B) TREASURY REGULATIONS [BINDING]
B1) LEGISLATIVE
B2) INTERPRETATIVE
B3) PROCEDURAL
C) INTERNAL REVENUE BULLETIN [BINDING]
C1) TREASURY REGULATIONS
C2) REVENUE RULINGS “LIMITED TO A GIVEN SET OF FACTS & ARE
MORE SPECIFIC THAN REGULATIONS”
C3) REVENUE PROCEDURE “INTERNAL MANAGEMENT PRACTICES OF THE IRS”
B) WRITTEN DETERMINATIONS [BINDING TO SPECIFIC TAXPAYERS ONLY]
B4) PRIVATE LETTER RULING “REQUEST TO IRS FOR SPECIFIC
TRANSACTION.
B5) TECHNICAL ADVICE MEMORANDUM “REQUEST MADE BY IRS
AGENTS.”
E) OTHER IRS PUBLICATIONS AND INFO
E1) FORM, NEWS RELEASE, FAQ’S
