Asked by Minmint Vanichvorasakul on Jun 12, 2024
Verified
What are Revenue Rulings and Revenue Procedures?
Revenue Rulings
Official interpretations of tax laws issued by the Internal Revenue Service that guide taxpayers in compliance.
Revenue Procedures
Official statements published by the IRS that outline procedures, practices, and administrative aspects of tax law to guide taxpayers.
- Understand the importance and consequences of various tax documents, including Private Letter Rulings and Revenue Rulings/Procedures.
Verified Answer
MA
madeha arafaJun 16, 2024
Final Answer :
Revenue Rulings (Rev.Rul. )and Revenue Procedures (Rev.Proc. )are issued by the IRS and are excellent sources of information for taxpayers and tax preparers.With Revenue Rulings,the IRS is reacting to an area of the tax law that is confusing to many taxpayers and/or has material tax implications to many taxpayers.The Rev.Rul.lists a fact situation,the relevant tax authority,and the IRS's conclusion on the manner in which the item should be treated.
A Rev.Proc.is a proactive document and is issued by the IRS to illustrate the manner in which it wants something reported.
A Rev.Proc.is a proactive document and is issued by the IRS to illustrate the manner in which it wants something reported.
Learning Objectives
- Understand the importance and consequences of various tax documents, including Private Letter Rulings and Revenue Rulings/Procedures.
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