CHAPTER THREE
TREASURY
INTERPRETATIONS
EXPECTED LEARNING
OUTCOMES

Understand the following about
Treasury interpretations:
•
•
•
•
•
The different types
Their level of authority
How they are accessed
How to determine their validity
How they are cited
TYPES OF TREASURY
INTERPRETATIONS

Regulations

Revenue Rulings

Revenue Procedures

Letter Rulings

Other
Treasury Regulations
and Their Authority



Regulations provide clarity of IRC sections.
Regs: Not issued for every section.
Final Regs: Force and effect of law if
reasonable & consistent interpretation of
the law. (preamble – summarizes intended
effect of the regulation.
• Legislative v. Interpretive Regs???


Proposed: min. 30 days proposed before
finalized. Solicit feedback (AICPA, ABA) –
little authoritative value
Temporary: authoritative guidance while
being finalized (3 year expiration deadline)
How to Access
Regulations



Treasury Decisions (Federal
Register) – Law Library
Internal Revenue Bulletin –
published weekly.
Cumulative Bulletin (compiled
semi-annually.
Organization and
Citation of Regulations

Organization
• by Code
Section

Citation
• Treas. Regs.
1.263-xxxxx
• See pg. 125
Formats Available




Print/Paper
CD-ROM
Modem
Web
Confirming the Reliability
of a Regulation

Danger of being obsolete

Check for cautions
Revenue Rulings





Differ greatly from regulations
Code’s application to specific
set of facts
Issued by IRS- National Office
Issue/ Facts / Law& Analysis /
Holding / Effect on other docs.
Authority limited by its facts
Discovering Relevant
Revenue Rulings


Through reference service
IRS Bulletin Index-Digest
System
Accessing Revenue
Rulings

Internal Revenue Bulletin

Cumulative Bulletin

Print or electronic
Discovering Relevant
Revenue Rulings


Through reference service
IRS Bulletin Index-Digest
System
Citing a Revenue Ruling

Rev. Rul. 83-14, 1983-1 CB 200

Rev. Rul. 99-89, IRB 1999-20, 30

Rev. Rul. 99-89, 1999-20 CB 30
Ensuring the Reliability
of a Revenue Ruling
Must check that Rev. ruling
is still in effect.
 Old rulings are not removed
 Citator: indicates whether
the IRS/Courts amended
authority of ruling



Use finding lists if using hard copy.
See examples on page. 138/139.
Revenue Procedures




Procedural guidelines
Authoritative if current
Generally not fact specific
If lengthy, have table of
contents.
Discovering Relevant
Revenue Procedures


Through reference service
IRS Bulletin Index-Digest
System
Accessing Revenue
Procedures

Internal Revenue Bulletin

Cumulative Bulletin

Print or electronic
Citing a Revenue
Procedure

Rev. Proc. 83-14, 1983-1 CB 200

Rev. Proc. 99-89, IRB 1999-20, 30

Rev. Proc. 99-89, 1999-20 CB 30
Ensuring the Reliability
of a Revenue Procedure

Citating- same
procedure as for Rev.
Rulings.
Letter Rulings/Technical
Advice Memoranda



Similar to Revenue Rulings
Generated through request or
internal confusion
Limited authority
Discovering Relevant
Letter Rulings


Cannot depend on reference
services
Searching using electronic
database
Citing a Letter Ruling
9940300
• 99  year
• 40  week
• 300  number in that week
Other Types of Treasury
Interpretations




Determination
letters
General Counsel
Memos
IRS News
Releases
IRS Publications





Actions on
Decisions
Acquiescences/non
Internal Revenue
Manual
Forms and
Instructions
Go Over p. 152-153