Federal Income Taxation Ron Wessley Research

Federal Income Taxation Ron Wessley Research

first tax research is the Ron Weasley assignment, it is in the Content area along with all your resources for tax research. There is a video which is the same as the typed out Steps of Basic Tax Research.

There is an example of a Memorandum to the File in chapter 2. Please read chapter 2 before you start. There is a discussion area for questions.

Use the text book index (appendix), find punitive damages and read it.

In Answer Connect use punitive damages as a key word search.

You should get:

Code Section 104(a)(2)

Regulation Section 1.104-1(C)

Case:

K.M. O’Gilvie, 96-2 USTC paragraph 50,664

Use the example on page 2-27 to write your memo.

Primary and Secondary Tax Sources
Primary
16th Amendment to Constitution
Tax Treaty
Internal Revenue Code Section
U.S. Supreme Court Decision
U.S. Circuit Court of Appeals Decision
Tax Court Memorandum Decision
Tax Court Regular Decision
U.S. District Court Decision
U.S. Court of Federal Claims Decision
Small Cases Division of U.S. Tax Court
Final Regulation
Temporary Regulation
Proposed Regulation
Revenue Ruling
Revenue Procedure
Senate Finance Committee Report
Bluebook
Letter Ruling
Technical Advice Memorandum
Actions on Decisions
Determination Letter
Harvard Law Review article
Field Service Advice
General Counsel Memorandum
* For three years.
Secondary
X
X
X
X
X
X
X
X
X
X
X
X*
X
X
X
X
X
X
X
X
X
X
X
X
ACTG 401 Principles of Federal Taxation – Individuals
Professor Debra Schoenfeld
Research Problem Handout: Mr. Ron Weasley
In January, Ron, a firefighter, was injured in the line of duty as a result
of interference by a homeowner. He incurred medical expense of $6,500
related to his injuries. Ron sued the homeowner and was awarded
damages of $26,500 in December. The court indicated that $6,500 of the
award was for payment of Ron’s medical expenses and $20,000 was for
punitive damages. Ron has prepared his income tax return for the year
and has asked you to review it. You notice that Ron has not reported any
part of the award as income and has included the medical expenses in
computing his itemized deductions. Write a memorandum to the tax files
that summarizes the advice you should give Ron.
Your memorandum is to address only the issue of whether the punitive
damages are taxable income or not. You are required to use CCH.
From page 10-48 2010 Edition of South-Western Federal Taxation Comprehensive Volume, Problem # 2
Please refer to the syllabus, chapter 2, tax citation handout, and Steps in
Basic Tax Research Handout and the other handouts in D2L.
ACTG 401 Principles of Federal Taxation – Individuals
Professor Debra Schoenfeld
Updated 8/13/2020 for change from IntelliConnect to AnswerConnect
Answer Connect link when off
campus: http://proxybl.lib.montana.edu/login?url=https://answerconnect.cch.com.
On campus: http://answerconnect.cch.com
For one of your researches you will have to attach a step by step of what you did for your research, outside
of CCH and inside CCH. In the past you logged in with your own CCH ID and password, you are now no
longer doing this, therefore I suggest that you start a Word document at the beginning of your research and
add to it each time you do any research. Yes, I want the tedious items, like I r ead about ordinary, necessary
and reasonable business expenses on page 6-XX, or I did a key word search on medical expenses and got
back 5,000 items so this was not an efficient research so then I instead did a search on Code Section 213. I
used the Citator tool and read the subsequent cases to Smith v. Commissioner and the case is still good law
and being followed and has not be modified.
Training/Help in Answer Connect: The AnswerConnect Help Center will provide students with a good
overview on using AnswerConnect. Click on Help in the upper right hand corner, and you will see Help
Center in the menu. Once you are in the Help Center, if you scroll down, you will see training documents in
various categories, such as Getting Started, Federal Tax Research, and State Tax Research. You can also get
to a link that includes their training resources for AnswerConnect, simply search for “training”. They have
several online trainings every month.
AnswerConnect does also have the Citator tool. Below is a link to a directions on how to use the
tool: https://support.cch.com/kb/solution/000108273/How-do-I-use-the-Citator-tool-in-AnswerConnect
Remember that there is the Master Tax Guide in CCH that is by topic.
If in doubt, ask. Thanks, Prof. Schoenfeld
Steps in Basic Tax Research
Your boss has just given you a situation for which you must determine the tax consequences.
You are to resolve any uncertainty in a way that will benefit the client, BUT ONLY if you have
a good faith belief that the position has a realistic possibility of being sustained administratively
(e.g., in an audit) or judicially (e.g., in court) on its merits if challenged. [The “realistic
possibility” standard is from AICPA Statement on Responsibilities in Tax Practice No. 1,
revised 1988.]
Here is the situation for which you have been provided with a simulation of the research
process:
Don has a very painful terminal disease. He has learned that marijuana may assist in mitigating
his pain. Don lives in a state in which it is legal to use the drug if its use is under the direction
of a medical doctor. Can Don deduct the cost of the marijuana as a medical expense?
Issue: Is Don permitted to deduct the cost of medically prescribed marijuana as a medical
expense?
1
The first step in tax research is to make sure that you have a basic understanding of the issue in
question. Then, it is wise to restate the situation and the tax question as you perceive it and have
your boss/superior/client affirm that this is what they wanted you to investigate.
The next step is to make a brief list of key words that might relate to the issue, so that your
search will be effective and efficient. Some key words for the above situation might be:
prescribed drugs, medical expense deduction (with or without marijuana)
medical expense deduction and do a search, click on Topic on the left, the topic at the top is
deducible medical expense explanation.
It appears that the key words: prescribed drugs marijuana, have given us the explanation that we
need. Nondeductible Medical Expenses is the second item returned and it is a topic. On this
page is also the Code and Regulation. However, we now need to go read and understand the
primary sources of law associated with the explanation just read. Remember Commerce
Clearing House is a secondary source and would not be cited as authority for our position (in
our memorandum to the file or our letter to our client). We use secondary sources of law for
research however the secondary sources of law are not authority. From the search
results/explanation we found the following primary sources of law relating to our issue:
IRS Code Section 213
Regulation Section 1.213-1(e)
Revenue Ruling 97-9, 1997-1 CB 77
We will now look up, and read and understand the primary sources of law:
All Federal Tax
In the search box put Code section 213 in the search box
IRS Code Section 213(a) give the definition of an allowance of a deduction
IRS Code Section 213(d)(3) gives the definition of a prescribed drug
We would repeat the same steps above for the “regulation” and the “revenue ruling”
Revenue Ruling marijuana
Prescribed drug marijuana
The Code Section will be the starting point of “Authority and Reasoning” when writing the
research memorandum. At the same time we are looking for cases and/or rulings to support our
position, we need to look for cases and/or rulings that support the opposing position, so that we
can state why it is NOT applicable to our situation.
Primary and Secondary Sources of Law handout:
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Internal Revenue Code
IRS Regulations (Treasury Regulations)
Committee Reports
Cases
Rulings
Other rulings or procedures
Remember that you are to resolve any uncertainty in a way that will benefit the client, BUT
ONLY if you have a good faith belief that the position has a realistic possibility of being
sustained administratively (e.g., in an audit) or judicially (e.g., in court) on its merits if
challenged. [The realistic possibility standard is from AICPA Statement on Responsibilities in
Tax Practice No. 1, revised 1988.]
There are not a certain number of cases or rulings you must have in order to be “done” with
your research (see Assessing the Validity of the Tax Law Sources in the text). Malpractice is
missing research that is necessary to protect your client. You should have sufficient authority
and reasoning to support your recommendation to the client. This particular situation happens to
have the Internal Revenue Code, Regulations, Revenue Rulings, and the researcher’s reasoning
to support the conclusion (see the Tax Memorandum to the file).
Most of the time you will also find that cases provide some clarification/guidance, as well as
other sources of authority (see the next research issue). For your homework you are required to
have at least one (or more) of each of the following: Code Section, IRS Regulation, Court Case
and Revenue Ruling if applicable.
Sometimes you will find no authority other than the Internal Revenue Code to assist you in
making your recommendation. This means that the issue has not been litigated yet (in court) and
the IRS has not yet issued a regulation or ruling on the matter. In that situation, your reasoning
becomes even more of a major factor in reaching your conclusion – but ALWAYS start with the
Internal Revenue Code! It would be rare occasion and would probably deal with “new” law.
Once you have determined the position that you will recommend to the client, you are to
prepare a memorandum to your boss. The memorandum is to contain the following
components:
Statement of Facts – it is necessary to restate the relevant facts, in order to make sure that the
situation you have researched is the same as the situation that your boss/client/friend asked you
to research. Be sure to include the statement that if the facts change the outcome would be
different.
Identification of Tax Question(s)/Issue(s) – state the specific question(s) to be researched
3
Authority – be sure to give complete citations for your authorities. One possible approach to
this section is to give a summary of each of the authorities you are using. When appropriate,
state the relative weights of the authorities cited. Again we only cite primary authority.
Reasoning
Reasoning is where you apply the law to your facts and then state what would be the outcome
based on the law and previous applicable cases. Here is where you tie the facts of that situation
into your case and conclusion. Make sure that you have provided a logical analysis! (make sure
that it is easy to tell what authority is and what is your reasoning!) Do not come to any
conclusions without including the authority supporting your conclusion which is stated in the
previous section.
Conclusions – answer the tax questions you identified! “Yes,” “No,” and “It depends” are all
good ways to start. Do not hide your basic answer! Also, include recommends to your client or
tax planning opportunities. No new information should be added here. This is a summary of
what you said in the rest of you memo.
Do not be afraid to use the above headings in your report.
Your memorandum (your report of findings) is to be typed (text single-spaced). Do not be
wordy. Make your report as complete and concise as possible. Clarity and ease of
communication are very important. Proper English, grammar, and written communication will
be graded. Your client is paying big money for this research it should be complete, very
polished and professional.
Be sure to anticipate other questions on this issue that your client is likely to ask.
Sample Memorandum of Research Results (also please refer to chapter 2)
Statement of Facts
Don has a very painful terminal disease. He has learned that marijuana may assist in mitigating
his pain. Don lives in a state in which it is legal to use the drug if its use is under the direction
of a medical doctor. Don has received a prescription for medical marijuana from his doctor
and has filled the prescription at a pharmacy. Can Don deduct the cost of the marijuana as a
medical expense?
Tax Question/Issue
Is the use of medical marijuana legal? Is Don permitted to deduct the cost of his medically
prescribed marijuana as a medical expense?
Authority
Certain medical expenses, including prescription drugs, are deductible under Section 213.
Section 213(d)(3) defines the term “prescribed drug” as a drug, which requires a prescription of
4
a physician for its use by an individual. Reg. §1.213-1(e)(2) provides that the deduction applies
only to medicines and drugs that are legally procured. Rev. Rul. 97-9, 1997-1 CB 77 states that
even though a controlled substance may be purchased for medical purposes under state law, if it
is in violation of federal law, it is not considered to be “legally procured.”
Reasoning
Even if Don is legally prescribed marijuana by his doctor under state law, it will not be
deductible as a medical expense as it is illegal under federal law as a controlled substance.
Conclusion
No, Don is not permitted to deduct the cost of marijuana as a medical expense.
The above memo is very brief (and is for demonstration purposes only) your memorandums
will be more complete and most likely will contain more than one issue. Different issues would
be divided into different paragraph. You may use different paragraphs for different sources if
the length of the source, reasoning, or application of the law to your client’s facts warrants it. In
addition, you may have primary sources of law with opposing position in your memo; your
objective will be to distinguish your facts so that these opposing sources of law do not apply to
your client’s facts. See the sample memorandum in the text. Please note that in most instances
you would have a case as a source of law.
NOTE (This is NOT part of the memorandum!!): Notice that there are no references in this
memorandum to paragraph numbers or to “CCH Explanations.” The paragraph numbers are
merely a method of indexing the various authorities and summaries use so that you can find
them within the CCH (the tax service). The CCH Explanations are provided so that you might
have some assistance in “translating” the various authorities.
Also, most of the time the Treasury Regulations do provide additional clarification of the
Internal Revenue Code.
We are going to do another research in class so that you can see how to look up cases and to use
the “Citatior.”
Fact Pattern:
Samantha has been unemployed for some time and is very short of money. She learned that the
local blood bank has a severe shortage of her type of blood and, therefore, is willing to pay $120
for each blood donation. Samantha gives blood twice a week for 12 weeks, receiving $120 for
each donation. Are these funds includable in Samantha’s gross income?
Issue: Does Samantha have income as a result of the funds she received for donating her blood?
Green v. Comm, 74 T.C. 1229 (1980)
input into the search box
Make sure this is the correct case (when it comes up read it).
5
To check and make sure this case is still good law, click on Citator while you have this case
open. This is the little icon on the far right, in the upper right corner.
The following results will come up:
Citator: Green, Margaret C.
Green, Margaret C.
• TC– Dec. 37,229 , 74 TC 1229
Lary, Jr. CA-11, 86-1 ustc ¶9376 , 787 F2d 1538
Liljeberg TC, Dec. 60,849 , 148 TC No. 6
Perez TC, Dec. 60,218 , 144 TC 51
Kelly TC, Dec. 47,792(M) , 62 TCM 1406 , TC Memo. 1991-605
Conant TC, Dec. 43,324(M) , 52 TCM 377 , TC Memo. 1986-415
Walsh TC, Dec. 38,479(M) , 43 TCM 41 , TC Memo. 1981-698
Read all the links to determine if your case is still good law. You are looking to see if your case
has been followed by subsequent cases or been reversed, remanded, modified, partially
reversed, etcetera.
Please see your text: Assessing the Validity of the Tax Law Sources
A citator provides the history of a case and lists subsequently published opinions that refer to
the case being assed. Review of these references enables the tax researcher to determine
whether the decision in question has been reversed, affirmed, modified or followed by other
courts, or distinguished in some way. If one intends to rely on a judicial decision to any
significant degree, “running” the case through a citator is imperative. (text chapter 2)
6
TAX CITATIONS
(Just the citations! A guide)
Citations are a “shorthand” way of refering to various authorities (e.g., Internal Revenue Code, Treasury
Regulations, court cases, Revenue Rulings, etc.). General rules for the format of most citations.
Whenever any authority is cited, you should be as specific as possible.
PRIMARY SOURCES OF TAX LAW
A. Internal Revenue Code
The Internal Revenue Code can be cited using a number of formats – but notice that all of them
are very similar.
If you were to cite (refer to) Section 162(a) of the Internal Revenue Code (dealing with the
deductibility of ordinary and necessary business expenses, all of the following formats would be
acceptable (what ever format you use from below be sure to be consistent thoughout your
memo):
Internal Revenue Code Section 162(a)
I.R.C. Section 162(a)
Section 162(a)
Sec. 162(a)
§162(a)
B. Committee Reports
How to cite a Committee Report:
• House Report: H. Rep’t 91-413, 1969-3 CB 200, 246.
(This means that it is House Report 413 from the 91st Congress, and is found in the
Cumulative Bulletin (CB) in volume 1969-3. This House Report begins on page 200, but
your reference is to information found on page 246.)
• Senate Report: S. Rep’t ….. (same format)
• Joint Conference Report: H. Rep’t 98-861 (Conference Report), 1984-3 CB 1 (Vol 2) 150.
C. Treasury Regulations
If you were to cite the portion of the Treasury Regulation that deals with the costs associated with
maintaining or improving your skills as a type of educational expense (which are deductible only
as a type of business expense), the following formats would be acceptable:
Treasury Regulation Section 1.162-5(c)(1)
Regulations Section 1.162-5(c)(1)
Regulation Section 1.162-5(c)(1)
Reg. Sec. 1.162-5(c)(1)
Reg. §1.162-5(c)(1)
In the numbering system for Treasury Regulations, the Internal Revenue Code Section to which
the Regulation refers is located just after the decimal point. The number just before the decimal
point refers to the subject type of regulation. This prefix preceding the number is identical to the
section number appearing in the Code. For example:
1.
20.
is an income tax regulation
is an estate tax regulation
25.
is a gift tax regulation
31.
is an employment tax regulation
53.
is anexcise tax regulation
301.
is a procedural regulation
When looking for a regulation in numerical order, ignore the decimal point and the number before
the decimal point.
There are 3 types of regulations: Temporary, Proposed, and Final:
• Temporary (binding on taxpayer) [The letter “T” appears in the citation.]
For example, Reg. Sec. 1.338-4T(j)(2) or Reg. §1.338-4T(j)(2)
• Proposed (not binding, but probably should be followed) [The word “Prop.” appears in the
citation.]
For example, Prop. Reg. Sec. 1.401-1(a)(5) or Prop. Reg. §1.401-1(a)(5)
• Final (binding)
See the examples above, or these on the regulations related to Code Section 61:
Reg. Sec. 1.61-2(a)(1) or Reg. §1.61-2(a)(1)
D. Judicial Decisions
Generally you should cite the last hearing of the case. If, however, you are quoting language from
a case, cite the specific case, and then give the history of the case. For example, if you want to
quote language from a district court case, cite the specific case and also put whether it was
affirmed or reversed on appeal (assuming it was appealed).
Central Ill. Public Service Co., 76-1 USTC ¶9167 (D.Ct. Ill., 1976), rev’d 76-2 USTC ¶9612 (CA7), rev’d 78-1 USTC ¶9254 (USSC).
There may be other times when showing the history of a case may be relevant, particularly when
circuits have issued conflicting opinions. Use your judgment.
The tax journals generally use the West citations (i.e., F2d and FSupp). This allows any
practitioner to find the case regardless of which tax service s/he may have. Use the citator to find
the appropriate citation. CCH citations should be used in this class (not West citations) because
we are using the CCH Internet Tax Research Service.
Tax Court
The Tax Court issues two “types” of decisions: regular decisions and memorandum decisions.
Regular decisions are cited as follows:
Frank P. Rutz, 66 TC 879, Dec. 33,979
This refers to a case where Frank P. Rutz challenged the IRS (the “Commissioner of Internal
Revenue”). The full text of the case can be found in volume 66 of the Tax Court Reports on page
879, and is decision number 33,979 of the U.S. Tax Court. It is not necessary to include the
government in the citation because all trial court cases involve the taxpayer bringing suit against
the government.
Memorandum decisions are cited as follows:
Jimmy L. Swaggart, 48 TCM 759, Dec. 41,394(M), T.C.Memo 1984-409
This refers to a case where Jimmy L. Swaggart challenged the IRS. The full text of the case can
be found either in volume 48 of the Tax Court Memorandum Decisions on page 759 or on
microfiche (and in several other formats) as the 409th Tax Court Memorandum decision issued in
1984. This case is decision number 41,394 of the U.S. Tax Court and has been designated by
the U.S. Tax Court as a memorandum decision.
Board of Tax Appeals
Prior to October of 1942 the Tax Court was known as the Board of Tax Appeals (BTA). Board of
Tax Appeals cases can be cited as follows:
Warren Reilly, 7 BTA 1327, Dec. 2772
The full text of this case can be found in volume 7 of the Board of Tax Appeals Reports on page
1327, and is decision number 2772 of the Board of Tax Appeals. The Board of Tax Appeals also
issued memorandum decisions.
Federal District Courts
District Court cases can be cited as follows:
Lloyd N. Paine III, (DC NY, 1988), 88-1 USTC ¶9185, 682 FSupp 739
This refers to the Lloyd N. Paine III case, decided in the Federal District Court of New York in
1988. The full text of the case can be found in volume 88-1 of the United States Tax Cases (a
CCH publication) at paragraph 9185, and also in volume 682 of the Federal Supplement on page
739.
U.S. Court of Federal Claims
U.S. Court of Federal Claims cases can be cited as follows:
James H. Sutphin, (Cls.Ct., 1988), 88-1 USTC ¶9269, 14 ClsCt 545
This refers to the James H. Sutphin case, decided in the U.S. Claims Court in 1988. The full text
of the case can be found in volume 88-1 of the United States Tax Cases at paragraph 9269, and
also in volume 14 of the U.S. Claims Court Reports on page 545.
U.S. Circuit Courts of Appeal
U.S. Circuit Courts of Appeal cases can be cited as follows:
Susan G. Moncrief, (CA-5, 1984; rev’g & rem’g DC), 84-1 USTC ¶9417, 730 F2d 276
This refers to the Susan G. Moncrief case, which was decided by the Fifth Circuit Court of
Appeals in 1984. The decision reversed an earlier District Court decision and remanded [sent
back] the case to the District Court for further action of some sort. The full text of the cases can
be found in volume 84-1 of the United States Tax Cases at paragraph 9417, and also in volume
730 of the Federal Reporter, 2nd Series on page 276. It is possible for a case citation to appear
as “5th Cir.” instead of “CA-5.”
U.S. Court of Appeal for the Federal Circuit
The citation format for the Court of Appeals for the Federal Circuit is similar to the Circuit Courts
of Appeal.
U.S. Supreme Court
U.S. Supreme Court cases can be cited as follows:
Shotwell Mfg. Co., (Sup.Ct., 1963; aff’g CA-7), 63-1 USTC ¶9184, 371 U.S. 341, 83 S.Ct.
448
This refers to the Shotwell Manufacturing Company case, which was decided by the U.S.
Supreme Court in 1963. The Supreme Court affirmed a decision by the Seventh Circuit Court of
Appeals. The full text of the cases can be found in volume 63-1 of the United States Tax Cases
at paragraph 9184, or in volume 371 of the United States Supreme Court Reports on page 341,
or in volume 83 of the Supreme Court Reporter on page 448.
Common abbreviations (in tax case citations)
Rev’g
reversing the decision of a lower court
Rev’d
reversed by the decision of a higher court
Aff’g
affirming the decision of a lower court
Aff’d
affirmed by the decision of a higher court
Rem’g
remanding (sending back) to the same court out of which the case came
Certiorari (Cert.)
a request (“writ”) that the Supreme Court hear a case appealed
from the Claims Court or a Circuit Court of Appeal
Cert. denied
the Supreme Court decides not to hear the appeal
Acquiescence (Acq., A.)
only issued by the IRS in response to some Tax Court regular
decisions – this signifies that the IRS will not contest a case with
substantially the same facts and circumstances
Nonacquiescence (Nonacq., NA.)
only issued by the IRS in response to some Tax Court
regular decisions – this signifies that the IRS will
probably contest a case with substantially the same facts
and circumstances
How to find a citation for a court case
The “Citator” is similar to a “telephone book” of court cases by name, and gives the citation(s) for
the court case, a list of cases that occurred after that decision in which the case was cited
(referred to), and paragraph numbers in the CCH tax service where a summary of the court case
may be found. Always read the full text of a case on which you plan to rely! (Don’t rely on the
summary!)
E. Administrative Pronouncements
Revenue Rulings (Rev. Rul.)
A Revenue Ruling is issued by the Internal Revenue Service and presents a specific fact situation
(similar to a case), and then presents the position the IRS will take in that situation. Revenue
Rulings are published weekly in the Internal Revenue Bulletin (IRB), which are bound semiannually in the Cumulative Bulletin (CB), and are cited as follows:
Rev. Rul. 89-122, 1989-2 CB 200
The above citation is interpreted as the 122nd Revenue Ruling issued in 1989, and to find the full
text of that Revenue Ruling, you would look in volume 1989-2 of the Cumulative Bulletin on page
200.
A new volume of the Cumulative Bulletin is generally produced twice per year. Revenue Rulings,
Revenue Procedures, other IRS pronouncements, Internal Revenue Acts, and congressional
committee reports are found in the Cumulative Bulletin. It is possible to find the same information
in the Internal Revenue Bulletin (IRB) which is published weekly and is available online at
www.irs.gov. For example, if you were looking for a Revenue Ruling that is too recent to be
included in a bound copy of the Cumulative Bulletin, the citation for it might be as follows:
Rev. Rul. 93-13, IRB 1993-7, 12.
This refers to the 13th Revenue Ruling issued in 1993, located on page 12 of the Internal
Revenue Bulletin issue number 1993-7.
Revenue Procedures (Rev. Proc.)
Certain IRS internal management practices and procedures are published in the IRBs (and CBs)
because they either affect the rights and duties of taxpayers under the Code and related statutes
or because they should be a matter of public knowledge to help in administering the tax law.
Occasionally, a revenue procedure is issued to inform taxpayers of the facts, procedures and
information required to obtain a favorable ruling in certain tax matters.
Sample citation: Rev.Proc. 89-26, 1989-1 CB 892
IRS Letter Rulings
IRS Letter Rulings, also known as Private Letter Rulings, are guidance issued in response to
request by a taxpayer who asks the tax consequences of a particular transaction. There is a fee
for a taxpayer to request such a private ruling from the Internal Revenue Service on a matter
specific to that taxpayer. Only the taxpayer to whom the ruling is addressed may rely on it as an
authority. These private rulings cited as follows:
IRS Letter Ruling 9038003, June 18, 1990
This refers to the 3rd private letter ruling issued in the 38th week of the 1990 fiscal year of the
IRS. Letter rulings are not very strong authority, since they are binding only upon the IRS and the
taxpayer to whom they were issued – but they do give us a least an indication of a position that
the IRS may be likely to take.
Some other types of IRS pronouncements (and sample citations)
Announcements
Notices
Treasury Decisions
Ann. 91-57, 1991-15 IRB 38
Notice 90-64, 1990-44 IRB 13
T.D. 8316, 1990-45 IRB 4
How to find a citation for an IRS pronouncement
Use the Citator in the CCH tax service. For each type of IRS pronouncement (including Revenue
Rulings), gives the citation for the pronouncement, gives the status of the pronouncement (e.g.,
whether it has been superseded or supersedes another pronouncement), and paragraph
numbers of current (and obsolete) CCH tax services where a summary of the pronouncement
may be found.
****************************
SECONDARY SOURCES
A. Tax Services (such as CCH Internet Tax Research Network, BNA Tax Management Portfolios)
How to cite a tax service
o DON’T
o Services are generally not cited. Never cite a tax service as authority to the IRS for taking
a position on a tax issue. Instead cite the primary source cited by the tax service, but
ONLY after you’ve read the primary source! Don’t rely on annotations and summaries!!
B. Tax Journals and Newsletters
The numerous journals and newsletters should not be cited as authority to the IRS for taking a
position on a tax issue. However, they can be very useful because the writer has already conducted
the research process. Thus, you save time by using their citations and reasoning. Obviously, if you
are writing an article, you should cite any article that you used.
C. IRS Publications
IRS Publications should NOT be cited as authority. Instead, locate the primary source and cite it.
Also refer to chapter 2 of the text for examples and explinations.
Source: Hutton, Western Washington University