Top-Rated Free Essay

Role of the Irs in Interpreting and Providing Guidance on the Tax Law

Good Essays
Role of the IRS in interpreting and providing guidance on the tax law
The role of the IRS in interpreting and providing guidance on the Tax Law is to help taxpayers to understand and comply with the tax law and ensure that those who does not comply pay their fair share of the penalty. The IRS has to apply the tax law with integrity and fairness to all.
Types of tax law guidance are published by the IRS
The authoritative instrument of the IRS for announcing official rulings (Revenue Rulings and Revenue Procedures) and for publishing Treasury Decisions, Executive Orders, Tax Conventions, legislations, and other items of general interest is the Internal Revenue Bulletin. The Internal Revenue Bulletin also has Technical Information Releases and Announcements to advise the public of various technical matters.
Another documents that IRS issues are letter rulings, determination letters and technical advice memoranda. These documents are part of the IRS Ruling Program, which includes published rulings from the Internal Revenue Bulletin, and intend to communication with individual taxpayers and IRS personnel.
IRS also develops and issues IRS Publications that address a variety of general and specific topics of concern to taxpayers to assist them to be in compliance with requirements of the Internal Revenue Code and regulations. A typical IRS Publication highlights changes in the tax law in specific area, explains the purpose of the law, defines terminology, lists exemptions, provides several examples, and includes sample worksheets and filled-in forms.

The role of the Constitution in creating tax law is ultimate source of the power to tax. Current tax law is resulting from Sixteenth Amendment to the Constitution as passed by the Congress on July 12, 1909. The amendment stated: “The Congress shall have power to lay and collect taxes on incomes, from whatever source derived without apportionment among the several States, and without regard to any census or enumeration”. U.S. Constitution includes steps that should be followed to create a tax law, which I described below under “…..
The role of the U.S. Congress in creating the tax law is that all legislative power, including tax law, are vested in a Congress of the United States, which consists of a Senate and House of Representatives. Sometimes Tax Bill originate with the president, another times with the Congress. But it is the Congress that creates Bill, pass it first in the House of Representative, then in the Senate and after the vote on the final version of the Bill, it passes to the President to become a law.
Tax bill originate with the President sending message to Congress or with congressional initiative on a tax bill. Because the Constitution requires that revenue legislation originate in the House, the first step is the Tax Bill is screened by the House Ways and Means Committee. Many influential bodies present their recommendations to this committee including the Secretary of the Treasury and the Office of Management and Budget. After the Bill is completed, it is considered by the House of Representative. The passed Bill is sent to the Senate Finance committee. After passage by the Senate if there are any differences between the House and Senate versions of the bill, it goes to the Joint Conference Committee. The last is composed of seven ranking members of the House Ways and Means Committee and five members of the Senate Finance Committee. The Conference Committee version of the Bill must be accepted or rejected, after it, if passed by the Congress, the bill becomes law when approved by the President. If it is vetoed, both the Senate and the House must vote affirmatively by a two-third majority to override the President’s veto.

You May Also Find These Documents Helpful

  • Good Essays

    Irs Tax Scandal 2013

    • 1137 Words
    • 5 Pages

    all of its patrons. Lately, the IRS has been under intense heat that has sparked from its quesitonable treatment of several groups seeking to operate within a tax-exempt status. In order to better understand what's going on what it means to us we will explore the history of the IRS, then discover what the applicable tax code means, and finally, and finally dive into the imposing scandal surrounding the agency. Who is the IRS? Let's first take a look at what the IRS actually is. According to IRS…

    • 1137 Words
    • 5 Pages
    Good Essays
  • Better Essays

    Providing Tax Advise Case

    • 648 Words
    • 3 Pages

    Response to Providing Tax Advise Case “Over and over again the Courts have said that there is nothing sinister in so arranging affairs as to keep taxes as low as possible. Everyone does it, rich and poor alike and all do right, for nobody owes any public duty to pay more than the law demands." (Judge Learned Hand 1872-1961) With regards to the principles, there shouldn’t be any conflict of interest between upholding the public interest and providing tax advice to reduce people’s tax liability.…

    • 648 Words
    • 3 Pages
    Better Essays
  • Good Essays

    Tax Law

    • 1272 Words
    • 6 Pages

    of modern income tax statutes. The primary source of US tax law is Congress. Power to initiate tax legislation is vested in the House of Representatives but all tax bills must pass both houses and be signed into law by the President. Many times the details of the legislation are not dictated by Congress, but left to the Treasury Department which adopts regulations (that have the force of law) to spell out the details as well as interpret the statutes and provide guidance on the law. In addition, the…

    • 1272 Words
    • 6 Pages
    Good Essays
  • Good Essays

    Final Providing Tax Advise Ethical Concerns Ethical issues surround all parts of the accounting profession. A case regarding providing tax advice demonstrates a prevalent ethical circumstance. In the case presented in the Brooks and Dunn text, two female accountants discuss the areas of accounting in which they practice, Sophia concentrating on not-for-profit, as Maya prefers tax accounting. Sophia feels the accounting profession’s top priority is public interest, not profits. She claims tax accounting…

    • 1568 Words
    • 7 Pages
    Good Essays
  • Satisfactory Essays

    Tax Law and Sales Tax

    • 280 Words
    • 2 Pages

    Week 3 paper help Here is some guidance on the week 3 paper that I think will help. Also, please contact the tutors if you need help as an additional layer of support. The tutoring information is posted in another announcement. Question #1 - 300 words · Ellen wants to secure her images, content and products from being stolen. · Discuss how effective/or not effective copyrighting will be to protect her ideas and products. · Discuss intellectual property and…

    • 280 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    Tax Law

    • 7450 Words
    • 30 Pages

    Tax Law Assignment According to the Act Gross Income is defined as , in relation to any year or period of assessment, means, in the case of any person, the total amount, in cash or otherwise, received by or accrued to or in favour of such person during such year or period of assessment from a source within or deemed to be within Namibia, excluding receipts or accruals of a capital nature, but including, without in any way limiting the scope of this definition, such amounts (whether of a capital…

    • 7450 Words
    • 30 Pages
    Better Essays
  • Satisfactory Essays

    Tax Law

    • 1446 Words
    • 6 Pages

    Australian Tax Law BFA714 – Exempt Income BFA714_10 What is income? 2 Key Legislative Provisions ITAA97 • Economist View – Division 6: • • • • • – Traditional economic view of income is that it is a ‘gain’ • Recognises both realised and unrealised gains as income s 6-5 Ordinary income s 6-10 Statutory income s 6-15 Not assessable income s 6-20 Exempt income s 6-23 Non-assessable non-exempt income – Other Relevant Divisions: • • • • • Tax View • Only…

    • 1446 Words
    • 6 Pages
    Satisfactory Essays
  • Powerful Essays

    Tax Law

    • 2508 Words
    • 11 Pages

    Department of Business Law and Taxation BTC3150 Taxation Law Semester One 2011 Case Study / Assignment 1. IMPORTANT PRELIMINARY INFORMATION This section must be read in conjunction with the case study / assignment assessment details in the Unit Guide. Detailed below is a summary of selected key points. Assessment This assignment must be completed on an individual basis, or alternatively in a group of up to three students. Your (or your group’s) submission will be marked out of…

    • 2508 Words
    • 11 Pages
    Powerful Essays
  • Good Essays

    law and evidence guidance

    • 597 Words
    • 3 Pages

    DPP [1935] AC 462, that in criminal cases, the prosecution always bears the legal burden of proof. Consider the proposition (statement) that the rule itself, and the current state of the law means that the rule is not as clear-cut as Lord Sankey would make us believe. What is the current state of the law that affects the thinking of lord Sankey. Is it the case that an intrusion into the “golden rule” denies the accused his right to a fair trial and the presumption of innocence? This means…

    • 597 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Tax Law

    • 1877 Words
    • 8 Pages

    Ordinary income Tennant v Smith, (money or convertible into money) An employee was given accommodation rent free by his employer. Was this ordinary income? • The employee could not sublet the accommodation to anyone else, therefore could not turn this accommodation into cash. • The Court said it was not ordinary income under s. 25(1) (now s.6-5) since the accommodation was not convertible into money. • Not ordinary income under s.6-5. FCT v Cooke & Sherden. (money or convertible into money) Soft…

    • 1877 Words
    • 8 Pages
    Good Essays