2. It All Starts with the
Constitution
• Section 8. Clause 1. The Congress shall
have Power to lay and collect Taxes, Duties,
Imposts and Excises, to pay the Debts and provide for the
common Defense and general Welfare of the United States;
but all Duties, Imposts and Excises shall be uniform
throughout the United States.
3. Statutory Basis
• The Revenue Act of 1913 also known as the Tariff Act of 1913
• Every two to three years ended up with new statue
• 1939
• Internal Revenue Code of 1939 – codification of tax law
• Changes passed as amendments proceeding years
• 1954
• Internal Revenue Code of 1954 -2yrs work by House Ways and Means
Committee result was comprehensive revision of the code including
placement
• 1986
• Tip the Sections of the 1986 and the 1954 code are generally the
same
• http://0-
intelliconnect.cch.com.catalog.fcsl.edu/scion/secure/ctx_cslguides_c
harlottelaw_edu_content_php/index.jsp?cpid=WKUS-Legal-
IC#page[1]
4. United States Code
• Internal Revenue Code contained in
Title 26
• 10% of the volumes of the USC are
about TAX
• Highest weight and authority
• http://www.charlottelaw.edu/commu
nity/law-library
5. Joint Committee “Blue Book”
• Joint Committee on Taxation (JCT)
• Post enactment general explanations of the law
• Not legislative history
• Not controlling authority
• They are cited by courts with respect
• Good place for legislative intent that you do not gain from
legislative history
• https://www.jct.gov/
6. The Process
• HR originates tax bill
• Ways and Means Committee has subject jurisdiction over federal
tax legislation
• Work on the bill- subcommittee of Ways and Means
• After markup it is reported out to the full House
• Pass- sent to Senate
• Referred to the Senate Finance Committee ( they can create
their own version)
• After markup reported to full Senate
• Pass but material difference between the bill goes to a
conference committee to reconcile the difference
• If both Chambers past the reconciled bill from committee sent
to the president
7. Legislative History
• House, Senate and Conference
reports have the most weight
• Blue Book?
• JCT offers assistance in the bill writing
process ( great source for intent)
• Made up of members of both Ways
and Means and the Finance
Committee
8. Legislative History
• If the Code language is unclear
• no reg. or case to clarify
• USCCAN, Congressional Record, Statutes at Large
• Cumulative Bulletin
http://encore.fcsl.edu/iii/encore_chasl/record/C__Rb247668__SCumulative
%20Bulletin__P0%2C3__Orightresult__X5?lang=eng&suite=chasl
• Internal Revenue bulletin
• http://apps.irs.gov/app/picklist/list/internalRevenueBulletins.html
• CCH
• http://0-
intelliconnect.cch.com.catalog.fcsl.edu/scion/secure/ctx_cslguides_charlott
elaw_edu_content_php/index.jsp?cpid=WKUS-Legal-IC#page[1]
• RIA
http://encore.fcsl.edu/iii/encore_chasl/record/C__Rb898903__SRIA__P0%2
C2__Orightresult__X5?lang=eng&suite=chasl
• Treatises
9. Regulations 2nd weight
• Treasury Department granted power via statute to interpret and administer the Code. IRS is
a division of the Treasury Department and handle the daily operation.
• Administrative pronouncements interpret or enforce tax statutes
• Regulations, Revenue rulings, Revenue procedures, Letter ruling
http://0-
intelliconnect.cch.com.catalog.fcsl.edu/scion/secure/ctx_cslguides_charlottelaw_edu_content_p
hp/index.jsp?cpid=WKUS-Legal-IC#page[2]
http://www.legalbitstream.com/
• TD issue two types of Reg.
• Legislative regulation
• Interpretive regulations (can be challenged)
• Issued proposed form, comment period, then issued final form
• Proposed regulation- no judicial deference
• Located in the CFR and FR
• http://www.irs.gov/Tax-Professionals/Tax-Code,-Regulations-and-Official-Guidance
11. U.S. Tax Court
• Prior to 1943 called the Board of Tax Appeals
• Handles only tax cases
• Heard by a single Judge and opinion reviewed by Chief Judge
• Chief Judge can refer to full court review
• no Jury trial in Tax Court or U.S. Claims
• Taxpayers disputing tax liability do not pay before trial but if
they lose they must pay interest
• Decisions of the tax court appealed to U.S. Court of Appeals
• Small cases division disputes $50,000 or less
• Taxpayer can pay and claim refund, if denied, they file suit in
US District Court of U.S. Claims Court
• Decisions appealed to U.S. Court of Appeals
12. Judicial Opinions- 3rd weight
• Tax court issues three types of opinions
http://ustaxcourt.gov/
• Memorandum Decisions (large number)
• Situation is disputed not interpreting the
code is not official reported
• Regular Decisions
• Dispute interpreting the Code or points never
litigated
• Decisions of Small Cases Decision
• Summary opinions not officially reported or
precedent
http://www.legalbitstream.com/
13. Opinions: Official - Unofficial
Sources
• Official
• US Tax Court Opinions
• Reports of the United States Board of Tax Appeals
• Unofficial
Tax Court Memorandum Decisions (CCH)
Tax Court Reporter (CCH)
US Tax Cases Advance Sheets (CCH)
United States Tax Cases(CCH)
American Federal Tax Reports (RIA)
Tax Court Reported Decisions(RIA)
• Tip: cases designated Taxpayer v. Commissioner = Tax Court
• Taxpayer v. United States= District Court or Claims Court
http://cslguides.charlottelaw.edu/content.php?pid=119534&sid=10
29601
14. Action on Decisions
• If IRS loses a case it issues a legal memorandum (Actions on
Decisions)
• Print reporters, Cumulative Bulletin, Tax Court website, CCH
and RIA
• Chart Cheat Sheet
15. IRS
• Guidance to the people
• Revenue Rulings- how IRS will treat a
transaction applying the law to the facts
• Revenue Procedures – public guidance on
procedural rules
• Notices and Announcements – guidance
on matters IRS deem important
16. IRS Pamphlets/ Publications
• Internal Revenue Bulletin- weekly: rulings
and procedures by IRS and other docs
• Cumulative Bulletin- issued twice a year
• Announcements, congressional
committee reports, court opinions,
delegation orders, executive orders,
notices, proposed regulations, public
laws, revenue procedures, revenue
rulings and treasury decisions
17. Guidance from Office of Chief Counsel
• Private Letter Ruling- Issued upon request address
how IRS would treat a particular transaction
• Determination letters- written statement applies tax
law principles and precedents to set facts
• Information letter – calls attention to well
established principle of tax law
• Technical Advice Memorandum- advice provided on
cases being examined but not litigated
20. RIA United States Tax Reporter
• RIA Print and online
•Code, legislative history, Treasury
regulations , Judicial Opinions,
Revenue Rulings, Revenue
Procedures, RIA Explanations
• https://a.next.westlaw.com/Browse/Home/SecondarySources
/TaxSecondarySources/ResearchInstituteofAmericaRIA?transiti
onType=Default&contextData=(sc.Default)
21. RIA Federal Tax Coordinator
• Organized by topic
• Income, gift , estate and excise tax
• Presents issues and analysis supported
by code, reg. and opinions
• https://a.next.westlaw.com/Browse/Home
/SecondarySources/TaxSecondarySources/
ResearchInstituteofAmericaRIA/FederalTax
ationRIA/FederalTaxCoordinator2dRIA?tra
nsitionType=Default&contextData=%28sc.
Default%29
22. Bloomberg BNA Tax
Management Portfolio’s
• Print and (Online fall2014)
• Three series
• U.S. Income
• Estate, gift and trust
• Foreign Income
Broken down by topic in the series. Provide
analysis, working papers - experts, bibliography
and references
http://encore.fcsl.edu/iii/encore_chasl/record/C_
_Rb490652__Stax%20portfolios__P0%2C1__Orig
htresult__X2;jsessionid=963B0645CFF48A9B9770
596337EF2528?lang=eng&suite=chasl
23. Master Tax Guide
• CCH product
• published annually
• Code sections by topic
• Citations to CCH tax treatises for further
information.
• Some case and IRS citations
• http://0-
intelliconnect.cch.com.catalog.fcsl.edu/scion/secure/ctx_cslgu
ides_charlottelaw_edu_content_php/index.jsp?cpid=WKUS-
Legal-IC#page[2]
25. Current Awareness
• Law Reviews and Journals
• BNA daily tax report
• BNA electronic commerce and law report
• Tax analyst tax report (Tax Notes) (lexis)
http://cslguides.charlottelaw.edu/content.php?pid=
571378&sid=4711610#17360557
• Tax forums - Event IRS sponsors 6 each year
• Taxtalk Today- IRS host each month online for free
• How to handle a tax controversy at the restructured
IRS and in court
• Annually (ALI ABA )
26. Databases
• Westlaw
• Classic: Add a tab (July1)
• Next: Topic- Tax
• Lexis Advanced
• Bloomberglaw – Practice Center –Tax (CSL Fall 2014)
• Fastcase-Codes and Regs (NC Bar membership)
• Proquest- Legislative history, regulations and committee
• RIA – resources through Westlaw
• CCH – Tax Database
• Hein-Historical
Websites
IRS Website
Joint Committee on Taxation
LegalBitStream
Tax Court
Regulations.gov
