Question

1:15-10 a. Distinguish between proposed, temporary, and final Treasury Regulations. b. Distinguish between interpretative and legisla- tive Treasury Regulations.

Answer 1

ANSWER

As per the given question,

A proposed regulation enacted by the Treasury Department is not an authoritative regulation. However, a proposed regulation does include guidance of interpretations, made by the Treasury Department, of the Internal Revenue Code (IRC).

A temporary regulation is an authoritative regulation. A temporary regulation is issued when the Treasury Department makes a recent revision to the Internal Revenue Code. It provides a taxpayer with guidance on tax procedures or tax computations.

A final regulation is a more authoritative regulation. First, a proposed regulation is issued. Then the public will have time to make comments on the proposed regulation. Next, the Treasury Department will issue a final regulation.

An interpretative regulation is a regulation which makes the statutory language of the Internal Revenue Code more understandable and applicable. Besides, illustrations of tax computation are contained in interpretative regulations. A legislative regulation is a regulation in which the delegation of the rulemaking on a specific topic is made by Congress to the Treasury Department. Today, interpretative regulations are legislative regulations are of the same authoritative weight.

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