Tax Standards & Research

Question 1

Internal Revenue Code

Answer 1

Internal Revenue Code (IRC) holds the most authoritative value in the tax law.

Question 2

IRS Regulations (Federal Tax Regulations)

Answer 2

The IRS Regulations are the U.S. Department of Treasury’s interpretation of the Internal Revenue Code (IRC). They give directions on how to apply the law outlined in the IRC and have the second most force and effect (second only to the IRC).

Question 3

Tax Court Decisions

Answer 3

Tax court decisions also interpret the Internal Revenue Code, but they do not have the authority of the IRC

Question 4

IRS Agents’ Reports

Answer 4

The reports of IRS agents are used to report on specific taxpayer situations. IRS agents’ reports apply the Internal Revenue Code, IRS Regulations, and other forms of authoritative literature, but they do not hold the value that the IRC, the IRS Regulations, or even tax court decisions have.

Question 5

AICPA Statements on Standards for Tax Services

Answer 5

1. Tax Return Positions
2. Answers to Questions on Returns
3. Certain Procedural Aspects of Preparing Returns
4. Use of Estimates
5. Departure from a Position Previously Concluded in an Administrative or Court Hearing
6. Knowledge of Error: Return Preparation and Administrative Proceedings
7. Form and Content of Advice to Tax