New Federal Tax Legislation (order of origination & approval):
- House Ways and Means Committee
- House of Representatives
- Senate Finance Committee
- Interprets the Code and Issues Regulations
- Second highest authority next to the IRC
- Regulations have the full force and effect of the law
National Office of the IRS
- Issues Revenue Rulings
- They do not have the full force of the law
- Can be cited as precedent
- Private Letter Rulings -– used to describe a position on a particular proposed tax issue to a taxpayer. They are considered the substantial authority for the purpose of avoiding accuracy-related penalties. It is only precedent for the taxpayer for which it was specifically addressed.
- Technical Advice Memorandums (TAMs) - ruling from an IRS office in response to a particular question raised by an audit agent, when a need for clarification arises.
- Determination Letters - similar to private letter rulings, but issued by district directors for complicated issues involving completed transactions.
Secondary Authority & Research Sources
Personal FinanceThe Volcker Rule is likely to be threatened by the new administration appointed by Donald Trump, who campaigned on promises to dismantle Dodd-Frank.
Financial AdvisorEven if tax day has come and gone, errors still can be fixed through mid-October, including those to do with Roth and traditional IRAs.
InvestingIssued shares are the amount of authorized stocks a company’s shareholders buy and own. The annual report shows the number of outstanding shares.
TaxesIf you face a personal or business tax audit, should you represent yourself vs. the IRS? In most cases, no. Here's why.
Financial AdvisorNow that the DoL's Fiduciary Rule has been released, it'll be subject to a legal fight by opponents. Here's an overview.
Financial AdvisorDespite the opposition it faces, advisors should still plan to comply with the fiduciary rule. Here's why.
TaxesIf you can't pay your taxes, know that the IRS has many avenues for collecting what you owe.
TaxesWhen financial advisors collaborate with tax advisors, the end result is efficient tax mitigation.
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