Tax Law Sources Flashcards by Cassi Bradford

What are the two broad categories of tax authorities?

primary authorities

secondary authorities

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Tax law generated by the legislative branch are …

statutory authority issued by Congress

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Tax law generated by the legislative branch are …

statutory authority issued by Congress

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Tax law generated by the judicial branch are …

rulings by the U.S courts

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6 common judicial authorities are …

U.S. Supreme Court

U.S. Circuit Court of Appeals

U.S. Tax Court - regular decision

U.S. Tax Court - memorandum decision

U.S. Court of Federal Claims

U.S. District Court

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6 common judicial authorities are …

U.S. Supreme Court

U.S. Circuit Court of Appeals

U.S. Tax Court - regular decision

U.S. Tax Court - memorandum decision

U.S. Court of Federal Claims

U.S. District Court

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Tax law generated by the executive/administrative branch are …

Treasury and IRS pronouncements

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7 common administrative authorities are …

Final Regulation

Temporary Regulation

Proposed Regulation

Revenue Ruling

Revenue Procedure

Private Letter Ruling

Technical Advice Memorandum

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5 common tax research service authorities …

BNA Tax Management Portfolios

CCH Standard Federal Tax Reporter

CCH Tax Research Consultant

RIA Federal Tax Coordinator

RIA United States Tax Reporter

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5 common tax research service authorities …

BNA Tax Management Portfolios

CCH Standard Federal Tax Reporter

CCH Tax Research Consultant

RIA Federal Tax Coordinator

RIA United States Tax Reporter

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3 common newsletter authorities …

Daily Tax Reporter

Federal Tax Weekly Alert

Tax Notes

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2 common law review authorities …

Tax Law Review (New York University School of Law)

Virginia Tax Review (University of Virginia School of Law)

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The three legislative or statutory tax authorities are …
Which one is the highest authority?
Which is the main authority?

U.S. Constitution (⭐highest)

Internal Revenue Code (⭐main)

tax treaties

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Which authority has the same authoritative weight as tax treaties and Supreme Court rulings

The Internal Revenue Code

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As required by the U.S. Constitution (Article 1, Section 7), “All bills for raising revenue shall originate in the _____ __ ________________.”

House of Representatives

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The ______ may propose tax legislation, but the first to formally consider a bill will be the _____, typically within its ____ ___ _____ _________.

Senate
House
Ways and Means Committee

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After the Ways and Means Committee debates proposed tax legislation and drafts a bill, the bill goes to the House of Representatives floor for debate and ultimately a ____. If the bill is ________, it becomes an ___ and is sent to the ______, which typically refers the act to the ______ _______ _________.

vote
approved
act
Senate
Senate Finance Committee

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The _____ ____ ___ _____ Committee, ______ _______ Committee, and _____ __________ Committee each produce a committee report that explains the _______ tax law, ________ ______ in the law, and _______ for the ______.

These committee reports are considered _________ sources of the tax law and may be very useful in ____________ tax law and _____________ changes congressional ______.

House Ways and Means
Senate Finance
Joint Conference
current
proposed change
reasons
change
statutory
interpreting
understanding 
intent

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How is the Internal Revenue Code divided? (6 parts)

subtitles
chapters
subchapters
parts
subparts
sections

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When referencing a tax law, the researcher generally refers to the law simply by its ____ _______.

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code section

Primary authorities are ________ sources of the tax law generated by the ___________ branch, ________ branch, and _______________________ branch.

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official
legislative
judicial
executive/administrative

Secondary authorities are __________ tax authorities that _________ ___ _______ the primary authorities, such as ___ ________ _________, ___ ________ ____ ____________________ ___ ___ _______ , ___________ , and _________.

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unofficial
interpret and explain
tax research services 
tax articles from professional journals and law reviews
newsletters
textbooks

Which branch system has the ultimate authority to interpret the Internal Revenue Code and settle disputes between the IRS and taxpayers?

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judicial

The lowest level of judicial authority consists of three different types of trial-level courts …

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U.S. District Courts

U.S. Court of Federal Claims

U.S. Tax Court

U.S. Tax Court hears only ___ cases and its judges are ___ _______, its decisions typically have more weight than those rendered by a district court or the U.S. Court of Federal Claims

tax | “tax experts”

The U.S. Court of Federal Claims hears only ________ claims against the US government, its decisions have more weight than district court decisions.

monetary

What is stare decisis doctrine?

that a court will rule consistently with (a) its previous rulings (unless, due to evolving interpretations of the tax law over time, the court decides to overturn an earlier decision) and (b) the rulings of higher courts with appellate jurisdiction (the courts its cases are appealed to)

The doctrine of stare decisis presents a special problem for the U.S. Tax Court because ...

it appeals to different circuit courts based on the taxpayer’s residence.

To implement the doctrine of stare decisis, the tax court applies the ______ ____, which states that the tax court will ...

Golsen rule abide by rulings of the circuit court that has appellate jurisdiction for a case

The Treasury Department is charged with ... , among other duties such as ...

administering and interpreting the tax laws of the United States printing money and advising the president on economic issues

What are regulations?

the Treasury Department’s official interpretation of the Internal Revenue Code and have the highest authoritative weight issued by the IRS often contains examples of the application of the Code that may be particularly helpful to the tax researcher

Regulations are issued in three different forms ...

final temporary proposed

What are final regulations?

regulations that have been issued in final form, and thus, unless or until revoked, they represent the Treasury’s interpretation of the Code

What are temporary regulations?

regulations issued with a limited life (three years for regulations issued after November 20, 1988). during their life, they carry the same authoritative weight as final regulations

What are proposed regulations?

regulations issued in proposed form do not carry the same authoritative weight as temporary or final regulations

all regulations are issued in ________ form first to allow...

proposed public comment on them

Regulations serve three basic purposes ...

interpretative procedural legislative

What are interpretative regulations?

the most common regulations represents the Treasury's interpretation of the Code and are issued under the Treasury's general authority to interpret the Code

What are procedural regulations?

they explain Treasury Department procedures as they relate to administering the Code

What are legislative regulations?

rarest type of regulation issued when Congress specifically directs the Treasury Department to create regulations to address an issue in an area of law thereby writing the tax law actually represent tax law instead of interpretation of the law have more authoritative weight than interpretative and procedural regulations

What are revenue rulings?

second in administrative authoritative weight after regulations they address the specific applications of the Code and regulations to specific factual situation provide more detailed interpretation of the Code

What are private letter rulings?

IRS pronouncements issued in response to a taxpayer request for a ruling on specific issues for the taxpayer common for proposed transactions with potentially large tax implications very high authority for the requesting taxpayer, but little weight for others

What are determination letters?

rulings requested by the taxpayer, issued by local IRs directors, generally not controversial

What are technical advice memorandums?

ruling issued by the IRS national office, requested by an IRS agent, and generated for a completed transaction

Whenever the IRS loses a case it may issue an ____________ or _______________

acquiescence | nonacquiescence

An acquiescence indicates that the IRS has decided to ______ the court’s adverse ruling in the future, it does not mean that the IRS ______ with it. Instead, it simply means that the IRS will ...

follow agrees no longer litigate this issue

A nonacquiescence alerts taxpayers that the IRS will ...

continue to litigate the issue

What is actions on decisions?

an IRS pronouncement that explains the background reasoning behind an IRS acquiescence or nonacquiescence.

True or False: | Revenue rulings and revenue procedures are examples of secondary tax authorities.

False

Tax Law Sources Flashcards

(49 cards)