Introduction to Tax School LL.M. (Taxation) Programs

Official Tax Law Authorities

(Non-Judicial)

  1. Internal Revenue Code:
  1. Treasury Regulations
  1. Revenue Rulings: Revenue Rulings are not law; instead, they represent the government’s opinion. Nevertheless, they are very important tools – both helpful and harmful to taxpayers.

The IRS issues a revenue ruling when the IRS applies its interpretation of substantive law to a specific factual situation. The purpose of the ruling is to provide guidance to IRS agents as well as to taxpayers when a specific issue is not clearly resolved by statute, regulation, or case law. Even though these rulings are not subject to a proposed form for public comment, they are subject to numerous levels of review within the IRS, IRS Counsel, and on occasion, the Department of Treasury.

The Supreme Court has stated that “[a]lthough the Service’s interpretative rulings do not have the force and effect of regulations . . . we give [the IRS’s] interpretation and practices considerable weight where they involve a contemporaneous construction of a statute and where they have been in long use.”[1] The IRS warns taxpayers against reaching the same conclusion as the revenue ruling unless the facts and circumstances are substantially the same as the facts and circumstances described in the revenue ruling. Interestingly, the taxpayer will win if the ruling is on point for him; however, the IRS will not necessarily win if the ruling is on point for the IRS. The IRS treats itself as being bound by the ruling; nevertheless, courts will entertain arguments that the ruling is not applicable because the facts are not similar.

Each revenue ruling contains up to six different parts: (1) issue, (2) facts, (3) law, (4) analysis, (5) holding, and (6) effect on other documents. The effect on other documents section only appears if the current ruling modifies, deletes, revokes, or affects in any way a prior holding. The holdings in the revenue rulings apply retroactively unless explicitly indicated otherwise.

Revenue Rulings are consecutively numbered by year of issuance. For example, Rev. Rul. 85-234 was the 234th revenue ruling in 1985. In 2000, the IRS switched to a full year prefix - for example, Rev. Rul. 2000-34. Revenue Rulings are initially published in the Internal Revenue Bulletin (IRB) and then semi-annually in the Cumulative Bulletin. These bulletins are on the IRS website.

  1. Revenue Procedures:
  1. Technical Advice Memoranda:
  1. Notices and Announcements:
  1. Internal Revenue Bulletin:
  1. Actions on Decisions:
  1. Private Letter Rulings:
  1. Information Letters:
  1. Field Service Advisories:
  1. Tax Exempt Field Memoranda:
  1. General Counsel Memoranda:
  1. Appeals Guidelines:
  1. Chief Counsel Bulletins:
  1. Internal Revenue Manual:
  1. IRS Forms and Instructions:
  1. AFR Rulings:
  1. IRS Publications:
  1. Committee Reports:
  1. Blue Book

© Steven J. Willis 2008. All Rights Reserved. 1

[1]Davis v. US, 495 US 472, 484 (1990).