Question

. b. Identify which of the following statements are true regarding Revenue Rulings and Revenue Procedures. Select "Yes" or "No" whichever is applicable. • Revenue Procedures deal with the internal management practices and requirements of the IRS. • Revenue Rulings typically provide one or more examples of how the IRS would apply a law to specific fact situations. Revenue Procedures can increase taxpayer compliance and assist the efficient administration of the . tax law by the IRS. • Revenue Procedures are issued in a different manner than Revenue Rulings. c. Identify which of the following statements are true regarding Revenue Rulings and letter rulings. Select "Yes" or "No" whichever is applicable. • Revenue Rulings serve an important function in providing guidance to IRS personnel and taxpayers in handling routine tax matters. • Letter rulings describe how the IRS will treat a proposed transaction for tax purposes. • Letter rulings "may not be use or cited as precedent." • The IRS limits the issuance of letter rulings to restricted, pre-announced areas of taxation. • Revenue Rulings apply only to the taxpayer who applies for and obtains the ruling. No

Answer 1

QUESTION : [B] : STATEMENTS REGARDING REVENUE PROCEDURES & REVENUE RULING

ANSWER :

• Revenue procedures deals with the internal management practices and requirements of IRS = YES Revenue procedures are more concerned with the internal management practices and IRS procedures.It is an official statement that provides instructions on how a rule, regulation have to be applied in tax return.

• Revenue rulings typically provides one or more examples of how the IRS would apply a law to specific fact situation. = YES   Revenue rulings is a public administrative ruling that explains how the IRS applies a tax treaty or regulation to particular facts and also explains how it reaches to conclusion. Thus it provides examples on how the IRS would apply a law to fact situation.

• Revenue procedures can increase the tax payer compliance and assist the efficient administration of tax law by the IRS = YES.   With the help of these procedures the complaince of tax payers can be increased and helps the IRS in administer the law more efficiently.

• Revenue procedures are issured in a different manner than Revenue rulings = YES Both revenue rulings and revenue procedures are different. Revenue pocedure is a official statement , includes the procedure that affects the rights and duties of an tax payer; whereas, rulings deals with the conclusion of how how the law affets specific facts in relates to IRS.