Question

1:15-9 Why should tax researchers note the date on which a Treasury Regulation was adopted? 1:15-10 a. Distinguish between proposed, temporary, and final Treasury Regulations. b. Distinguish between interpretative and legisla- tive Treasury Regulations. asbro 1.15 1.4 T. 01 1

Answer 1

15-9..Answer

Researchers should note the date on which a Treasury Regulation was adopted because the IRC may have been revised subsequent to that date. That is, the regulation may not interpret the current version of the IRC. Discrepancies between the IRC and the regulation occur when the Treasury Department has not updated the regulation to reflect the statute as amended.

15-10..Answer

Proposed regulations are not authoritative, but they do provide guidance concerning how the Treasury Department interprets the IRC. Temporary regulations, which are binding on the taxpayer, often are issued after recent revisions to the IRC so that taxpayers and tax advisers will have guidance concerning procedural and/or computational matters. Final regulations, which are issued after the public has had time to comment on proposed regulations, are considered to be somewhat more authoritative than temporary regulations.

(b).Interpretative regulations make the IRC’s statutory language easier to understand and apply. They also often provide computational illustrations. In the case of interpretative regulations, Congress has delegated the rulemaking on a specific topic (either narrow or broad) to the Treasury Department.

15-11..Answer

Legislative. It is more difficult for a taxpayer to successfully challenge this type of regulation because Congress has delegated its rulemaking authority to the Treasury Department.