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Federal Tax Hierarchies Paul D. Callister, JD, MSLIS Director of the Leon E. Bloch Law Library & Professor of Law University of Missouri-Kansas City School of Law http://www1.law.umkc.edu/faculty/callister/TAX/tax.ppt 2009, 2005,Paul D. Callister Slide 2 Primary Authority (Case Law) InstitutionReported Binding Upon Supreme Court Supreme Court Reporter/US Tax Cases Parties and as precedent for all courts Courts of Appeals Federal Reporter/US Tax Cases Parties and as precedent for all courts of that circuit including cases before Tax Court District Court/Cou rt of Claims Federal Supplement/US Tax Cases Parties and as precedent for that district (including Tax Court) Tax CourtTax Court Reports Tax Court Memo Parties and as precedent in Tax Court (unless other Fed. Court decided). Tax Court Reports are cases of first impression. Tax Court Memo for cases where the issue is how to apply settled law. Slide 3 Acquiescence v. Non-Acquiescence Slide 4 Deficiency Notice 90-Day Letter To Pay or Not to Pay Pay Tax and File Claim for Refund Not Pay & Petition Tax Ct. Notice of Claim Disallowance Choice of Action File Petition Tax Court Fed. Court of Claims Fed. Dist. Court Court of Appeals for your Circuit Court of Appeals for Fed. Circuit U.S. Supreme Ct. Slide 5 Weight IRS National Office TreasuryInstitution An official position as to application of the Code or Regulations to a specific situation (usually submitted by taxpayer). Second in importance to regulations. Internal Revenue Bulletin (Cum. Bulletin). Published by CCH, Mertens, etc. Revenue Ruling No binding effect until made final (after hearings and comment period). Does give guidance as to IRS interpretation. Proposed Regulations (TDs) Issued for immediate guidance to tax papers as a result of new legislation. Issued without hearing or comment period. Three year expiration date. Must issue proposed regulations at the same time. Not binding if court finds to be an incorrect interpretation of tax code. Temporary Regulations (TDs) Treasury (IRS) interpretation of tax code (general regulations) or law-making function (legislative regulations) delegated by code. Difficult to challenge in court. Legislative regulations bear the greatest precedential value of any IRS pronouncement. Federal Register, & Code of Federal Regulations. Final regulations are also published in the Internal Revenue Bulletin (which is bound as the Cumulative Bulletin). Also published by CCH, Mertens, etc. Internal Revenue Bulletin Treasury Regulations, aka Treasury Decisions or TDs (Final Regs) Binding upon/Whos it for Reported in Document Primary Authority (Regulations & Rulings) Slide 6 Weight IRS National Office Treasury Institution An official position as to application of the Code or Regulations to a specific situation (usually submitted by taxpayer). Second in importance to regulations. Internal Revenue Bulletin (Cum. Bulletin). Published by CCH, Mertens, etc. Revenue Ruling No binding effect until made final (after hearings and comment period). Does give guidance as to IRS interpretation. Proposed Regulations (TDs) Issued for immediate guidance to tax papers as a result of new legislation. Issued without hearing or comment period. Three year expiration date. Must issue proposed regulations at the same time. Not binding if court finds to be an incorrect interpretation of tax code. Temporary Regulations (TDs) Treasury (IRS) interpretation of tax code (general regulations) or law-making function (legislative regulations) delegated by code. Difficult to challenge in court. Legislative regulations bear the greatest precedential value of any IRS pronouncement. Federal Register, & Code of Federal Regulations. Final regulations are also published in the Internal Revenue Bulletin (which is bound as the Cumulative Bulletin). Also published by CCH, Mertens, etc Internal Revenue Bulletin Treasury Regulations, aka Treasury Decisions or TDs (Final Regs) Binding upon/Whos it forReported inDocument Primary Authority (Regulations & Rulings) Slide 7 Weight IRS National Office Treasury Institution An official position as to application of the Code or Regulations to a specific situation (usually submitted by taxpayer). Second in importance to regulations. Internal Revenue Bulletin (Cum. Bulletin). Published by CCH, Mertens, etc. Revenue Ruling No binding effect until made final (after hearings and comment period). Does give guidance as to IRS interpretation. Proposed Regulations (TDs) Issued for immediate guidance to tax papers as a result of new legislation. Issued without hearing or comment period. Three year expiration date. Must issue proposed regulations at the same time. Not binding if court finds to be an incorrect interpretation of tax code. Temporary Regulations (TDs) Treasury (IRS) interpretation of tax code (general regulations) or law-making function (legislative regulations) delegated by code. Difficult to challenge in court. Legislative regulations bear the greatest precedential value of any IRS pronouncement. Federal Register, & Code of Federal Regulations. Final regulations are also published in the Internal Revenue Bulletin (which is bound as the Cumulative Bulletin). Also published by CCH, Mertens, etc Internal Revenue Bulletin Treasury Regulations, aka Treasury Decisions or TDs (Final Regs) Binding upon/Whos it forReported inDocument Primary Authority (Regulations & Rulings) Slide 8 Weight IRS National Office TreasuryInstitution An official position as to application of the Code or Regulations to a specific situation (usually submitted by taxpayer). Second in importance to regulations. Internal Revenue Bulletin (Cum. Bulletin). Published by CCH, Mertens, etc. Revenue Ruling No binding effect until made final (after hearings and comment period). Does give guidance as to IRS interpretation. Proposed Regulations (TDs) Issued for immediate guidance to tax papers as a result of new legislation. Issued without hearing or comment period. Three year expiration date. Must issue proposed regulations at the same time. Not binding if court finds to be an incorrect interpretation of tax code. Temporary Regulations (TDs) Treasury (IRS) interpretation of tax code (general regulations) or law-making function (legislative regulations) delegated by code. Difficult to challenge in court. Legislative regulations bear the greatest precedential value of any IRS pronouncement. Federal Register, & Code of Federal Regulations. Final regulations are also published in the Internal Revenue Bulletin (which is bound as the Cumulative Bulletin). Also published by CCH, Mertens, etc Internal Revenue Bulletin Treasury Regulations, aka Treasury Decisions or TDs (Final Regs) Binding upon/Whos it for Reported in Document Primary Authority (Regulations & Rulings) Slide 9 Requested by IRS agent with respect to prior event or a completed transaction (which local office couldnt resolve). Commercial PublisherTechnical Advice Memo Same as a Private Letter Ruling except issued by a local office. FOIADetermination Letter Nonbinding ruling (except between IRS and applicant) requested by taxpayer on a specific issue from the IRS National Office. Commercial PublisherPrivate Letter Ruling Internal Revenue Bulletin (Cumulative Bulletin). Also published by CCH, Mertens, etc. IRS National Office Commercial PublisherInstitution Requested by IRS from its own legal counsel with respect to preparing letter or revenue rulings. General Counsels Memo (FSA) Official procedures for IRS and practitioners making filings or seeking rulings or information from the IRS. Revenue Procedure Binding Upon/Whos it for Reported in Document Primary Authority (Regulations & Rulings Cont.) Slide 10 InstitutionDocument Reported in Binding Upon/Whos it for IRS National Office Revenue Procedure Internal Revenue Bulletin (Cumulative Bulletin). Published by CCH, Mertens, etc. Official procedures for IRS and practitioners making filings or seeking rulings or information from the IRS. Private Letter Ruling Commercial PublisherNonbinding ruling (except between IRS and applicant) requested by taxpayer on a specific issue from the IRS National Office. Determination Letter FOIASame as a Private Letter Ruling except issued by a local office. Technical Advice Memo Commercial PublisherRequested by IRS agent with respect to prior event or a completed transaction (which local office couldnt resolve). General Counsels Memo (FSA) Commercial PublisherRequested by IRS from its own legal counsel with respect to preparing letter or revenue rulings. Slide 11 Primary Authority (Regulations & Rulings Cont.) InstitutionDocument Reported in Binding Upon/Whos it for IRS National Office Revenue Procedure Internal Revenue Bulletin (Cumulative Bulletin). Published by CCH, Mertens, etc. Official procedures for IRS and practitioners making filings or seeking rulings or information from the IRS. Private Letter Ruling Commercial PublisherNonbinding ruling (except between IRS and applicant) requested by taxpayer on a specific issue from the IRS National Office. Determination Letter FOIASame as a Private Letter Ruling except issued by a district office. Technical Advice Memo Commercial PublisherRequested by IRS agent with respect to prior event or a completed transaction (which local office couldnt resolve). General Counsels Memo (FSA) Commercial PublisherRequested by IRS from its own legal counsel with respect to preparing letter or revenue rulings. Slide 12 Primary Authority (Regulations & Rulings Cont.) InstitutionDocument Reported in Binding Upon/Whos it for IRS National Office Revenue Procedure Internal Revenue Bulletin (Cumulative Bulletin). Published by CCH, Mertens, etc. Official procedures for IRS and practitioners making filings or seeking rulings or information from the IRS. Private Letter Ruling Commercial PublisherNonbinding ruling (except between IRS and applicant) requested by taxpayer on a specific issue from the IRS National Office. Determination Letter FOIASame as a Private Letter Ruling except issued by a local office. Technical Advice Memo Commercial PublisherRequested by IRS agent with respect to prior event or a completed transaction (which local office couldnt resolve). General Counsels Memo (FSA) Commercial PublisherRequested by IRS from its own legal counsel with respect to preparing letter or revenue rulings. Slide 13 Primary Authority (Regulations & Rulings Cont.) InstitutionDocumentReported inBinding Upon/Whos it for IRS National Office Revenue Procedure Internal Revenue Bulletin (Cumulative Bulletin). Published by CCH, Mertens, etc. Official procedures for IRS and practitioners making filings or seeking rulings or information from the IRS. Private Letter Ruling Commercial PublisherNonbinding ruling (except between IRS and applicant) requested by taxpayer on a specific issue from the IRS National Office. Determination Letter FOIASame as a Private Letter Ruling except issued by a local office. Technical Advice Memo Commercial PublisherRequested by IRS agent with respect to prior event or a completed transaction (which local office couldnt resolve). General Counsels Memo (FSA) Commercial PublisherRequested by IRS from its own legal counsel with respect to preparing letter or revenue rulings. Slide 14 Other IRS Documents Publications Notices Acquiescence and Non- acquiescence noticesAcquiescence and Non- acquiescence notices Internal Revenue Manual Slide 15 Institutional Process Authoritative/ Primary Documents Access Tools Tax Research Institution Secondary Documents Commercial Publishers Slide 16 Code Based Subject Based Handbook News & Awareness Slide 17 Code Based Subject Based Handbook News & Awareness Slide 18 Code Based Subject Based Handbook News & Awareness Slide 19 Code Based Subject Based Handbook News & Awareness Slide 20 Code Based Subject Based Handbook News & Awareness Slide 21 Code Based Subject Based Handbook News & Awareness Slide 22 Code BasedSubject BasedHandbookNews & Awareness Slide 23 Code Based Subject Based Handbook News & Awareness Slide 24 Code Based Subject Based Handbook News & Awareness Slide 25 Code Based Subject Based Handbook News & Awareness Slide 26 Code Based Subject Based Handbook News & Awareness Slide 27 Code BasedSubject BasedHandbookNews & Awareness Slide 28 The End