Skip to Main Content

Federal Tax Research Guide

Treasury Regulations and Their Stages (Title 26 of Code of Federal Regulations)

  • Treasury Department has authority to interpret and implement the Internal Revenue Code
  • Found in the Federal Register, the CFR, Internal Revenue Bulletin, Cumulative Bulletin, and looseleaf services.  (Lexis: All Tax Law Administrative Codes & Regulations; Westlaw:  Title 26—Internal Revenue (Treasury Regulations)).
  • Stages:
    • Proposed (Lexis: Proposed Regulations & Treasury Decisions; Westlaw: Tax: Proposed & Adopted Regulations).
      • Provide guidance and opportunity to comment on forthcoming tax regulations.
      • Effective after review of comments or testimony, and issuance of the final version of the regulation.
    • Treasury Decisions (Published weekly in Internal Revenue Bulletin & Cumulative Bulletin (KF6282.A2 I5); Lexis: IRS Cumulative Bulletin & Internal Revenue Bulletin (1954-date); Westlaw: Treasury Decisions (1954-date)).
      • "A Treasury Decision (TD) is a document that contains the text of a final or temporary regulation." (Treasury Decision, IRM § 32.1.1.2.5). Treasury Decisions (either final or temporary) are numbered sequentially and published in the Internal Revenue Bulletin and the Cumulative Bulletin.
      • Temporary
        • An IRS pronouncement which usually focuses on application of a recent tax law.  
        • Immediate binding guidance once published in the Federal Register (KF70 .A2).  May be relied upon until expiration in 3 years, withdrawal, or replacement by a final regulation.  Until a temporary regulation is replaced with a final regulation, it should be treated as if it were a final regulation.
        •  No public comment.
      • Final
        • May be different than proposed regulations, due to public comment or court decisions. 

Internal Revenue Service Pronouncements or Guidance

  • Revenue Rulings (Rev. Rul.) (Published weekly in Internal Revenue Bulletin & Cumulative Bulletin (KF6282.A2 I5); Lexis: IRS Cumulative Bulletin & Internal Revenue Bulletin (1954-date);  Westlaw: IRS Revenue Rulings (1995-date)).
    • Pronouncements or official declarations by the IRS concerning its interpretation of how the tax laws typically apply to a particular taxpayer's factual situation.  Rulings are made when the IRS determines that a ruling is of general interest.  A ruling an be relied upon as precedent by other taxpayers whose factual circumstances or patterns are substantially the same.  Rulings are second to regulations in importance as a significant administrative source of federal tax law (i.e., “junior regulation”).
    • While not as authoritative as Treasury Regulations, courts grant great deference to Revenue Rulings.
  •  Revenue Procedures (Rev. Proc) (In Internal Revenue Bulletin & Cumulative Bulletin (KF6282.A2 I5); Lexis: IRS Cumulative Bulletin & Internal Revenue Bulletin (1954-date);  Westlaw: IRS Revenue Procedures (1955-date)).
    • IRS statements about internal practices and procedures concerning the implementation of a specific code provision (e.g., how to request a ruling).  Allow a practitioner to determine how the IRS operates on a daily basis, allow an attorney to deal more effectively with IRS, and ensure that IRS doesn’t step outside its authority when working with attorneys and their clients.
    • Several regularly issued revenue procedures are important, such as Rev. Proc. 2021-1, which establishes procedures for obtaining rulings, determination letters, and closing agreements.
  • Private Letter Rulings (P.L.R.; PLR; Ltr. Rul.; Priv. Ltr. Rul.) (In Internal Revenue Bulletin & Cumulative Bulletin (KF6282.A2 I5); IRS: WD; Lexis: IRS Private Letter Rulings & Technical Advice Memoranda (1954-date); Westlaw: IRS Private Letter Rulings (selected documents: 1950-1976, all: 1977-date)).
    • IRS responses to questions from an individual taxpayer seeking guidance about the tax consequences of a proposed transaction.  These are like revenue rulings, but are not of general interest or application. 
    • Illustrate IRS policy and often indicate areas where future guidance is likely.
    • No precedential value beyond the taxpayer who was issued the ruling.  Not officially published.  
    • Important, however, because they indicate how the IRS may treat a similar transaction.  These rulings are also important because they serve to stimulate new revenue rulings.  When the IRS comes across an unusual transaction which it believes to be of general interest, or when it receives a flurry of letter ruling requests concerning very similar fact situations, a private letter ruling may be converted into a Revenue Ruling and published in official administrative sources.
    • Important because they indicate how IRS may treat similar transactions.
  • Notices (In Internal Revenue Bulletin & Cumulative Bulletin (KF6282.A2 I5); Lexis: IRS Cumulative Bulletin & Internal Revenue Bulletin (1954-date); Westlaw: IRS Announcements & Notices (notices: 1980-date)).
    • Provide guidance before rulings and regulations are available. 
    • Address e.g., IRS acquiescence & non-acquiescence to distract and circuit court decisions.
  • Technical Advice Memoranda (TAM; T.A.M.; Tech. Adv. Mem.) (Lexis: IRS Private Letter Rulings & Technical Advice Memoranda (1954-date); Westlaw: IRS Technical Advice Memoranda (1954-date)).
    • Pronouncements issued by the IRS Associate Chief Counsel Office, stating the agency’s position relative to the technical or procedural tax treatment of individual taxpayers whose returns are under audit.  (e.g., taxpayer’s claim for refund).
    • "The second revenue procedure each year (e.g., Rev. Proc. 2021-2) sets forth detailed guidance on the technical advice and technical expedited advice processes."  Issuing Technical Advice Memorandum ..., IRM § 33.2.1.1(1).
    • TAMs are issued following a completed transaction and hold no precedential value beyond the taxpayer audited.  Binding on the IRS only as to the individual taxpayer. 
    • If the facts of the TAM or its holding are felt to be of general interest, IRS may turn the TAM into a Revenue Ruling.
  • Actions on Decisions & Notices of Acquiescence or Nonacquiescence (AOD; A.O.D.; Action on Dec.) (In Internal Revenue Bulletin & Cumulative Bulletin (KF6282.A2 I5); IRS: Statements & Announcements; Lexis: IRS Actions on Decisions (1963-date); Westlaw: IRS Actions on Decisions (selected 1935-66; 1967-date)).
    • An internal IRS communication indicating the reasoning behind whether the IRS will appeal or will not appeal a decision in favor of a taxpayer in Tax Court, U.S. District Court, and Circuit Courts of Appeals. 
    • If the IRS nonacquiesces, it does not agree with the court’s decision, and it may continue to litigate an issue, even though it decides not to appeal a particular case that it has lost.  When the IRS acquiesces, even though a court’s decision was adverse to the IRS, the IRS will follow the decision in both the instant case and in similar future situations.  
    • “Caution should be exercised in extending the recommendation of the Action on Decision to similar cases where the facts are different.”  Action on Decision, IRM § 4.10.7.2.9.8.1(2).
  • Internal Revenue Manual (I.R.M.; IRM) (IRS: IRM; Lexis: Internal Revenue Manual; Westlaw: Internal Revenue Manual (IRM) Current Edition).
    • A compilation of internal operating policies and workings of the IRS.  Not binding upon the courts as it does not represent the law.
    • E.g., useful for learning the IRS appeals procedures. 
  • Announcements (In Internal Revenue Bulletin; IRS: Statements & Announcements; Westlaw: IRS Announcements & Notices (announcements: 1954-date).
    • Alert taxpayers to a variety of information of general importance such as extension of time to file forms.
  • General Counsel Memoranda (G.C.M.; GCM; Gen. Couns. Mem.) (IRS: GCM; Lexis: IRS General Counsel Memoranda (Archive)  (selected: 1958-1967; all: 1967-2002); Westlaw: IRS General Counsel Memoranda (1962-2002)).
    • Memoranda prepared by the Internal Revenue Service Office of Chief Counsel, as internal guidance, which provides the authority and reasoning underlying revenue rulings, private letter ruling, and technical advice memoranda.  Analogous to an Action on Decision, which gives the reasoning underlying litigation decisions.
    • Prepared in response to requests for advice from IRS staff.