Tax Return Position Paper

674 Words Dec 19th, 2013 3 Pages
Tax Return Position Paper
ACC/455

Tax Law Tax laws come from several sources and each source has a particular amount of rein over the laws conducted. Sources, such as the IRC, have a defined amount of say in the laws and the consequences. The way a law is interpreted and applied is also a very large part of tax law. Tax research is how tax laws are defined and followed for individual facts (Anderson, Pope & Kramer 2010)
Sources of Tax Law The primary and secondary sources of tax law are the Internal Revenue Code, United States Tax Court, United States district courts, Court of Federal Claims, federal circuit courts, United States Supreme Court, Treasury Regulations, Internal Revenue Bulletin, Revenue rulings, Revenue
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Substantial Authority Substantial Authority is when different treatment of the law or the consequence is applicable. The IRS makes rulings that are not as authoritative as Treasury Regulations and court cases. These IRS rulings do not have to be followed if there is substantial authority in one of the main sources of tax law such as the IRC, court cases and proposed, temporary, and final regulations. If found the individual is liable for the tax, there is no penalty, but there is retroactive interest involved (Tarlton Law, 2009).
Interpretation and Application A tax law starts the legislation process in the House of Representatives. A proposal is formed into a bill that goes the House of Ways and Means Committee that reviews all tax legislation. Once approved by House of Ways and Means it is voted on by the full House of Representatives. After approval of the House of Representatives the bill goes to the Senate Finance Committee and if passed is voted on by the full Senate. The president is the final one to make the bill a tax law (Anderson, Pope & Kramer 2010). Courts and the IRS interpret and apply the IRC and Treasury Regulations by Revenue Rulings, Revenue Procedures and Letter Rulings. Rulings made in practice can help a court apply individual situations and current laws when not specifically defined in the IRC. Revenue Procedures are

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