Federal Tax Research

Administrative materials are a key component of tax law. They are issued by the Treasury Department and the Internal Revenue Service (IRS) to provide guidance on how the provisions of the Internal Revenue Code should be interpreted and applied. These materials can offer valuable insights into the government's position on various tax issues and can be an important resource in your tax research.

Under Section 7805 of the Internal Revenue Code, the Secretary of the Treasury is authorized to "prescribe all needful rules and regulations for the enforcement of this title." This authority is delegated to the IRS, and specifically to the Office of the Chief Counsel, which serves as the legal advisor to the IRS.

The Office of the Chief Counsel issues a variety of administrative materials, including regulations, revenue rulings, letter rulings, and other types of guidance, such as General Counsel Memoranda and Actions on Decisions, which are less common, but can still provide useful insights into the IRS's interpretation of tax law.

It's important to note that not all administrative materials have the same authoritative value. Some, like regulations, have the force of law and are binding on taxpayers and the IRS. Others, like revenue rulings and letter rulings, are considered precedential and must be followed by the IRS in similar cases. Still others, like General Counsel Memoranda, are merely persuasive and are not binding on the IRS or taxpayers.

When using administrative materials in your research, be sure to understand the authoritative value of each type of material and to interpret them in light of the relevant statutes, regulations, and case law.

Administrative materials are documents produced by the Internal Revenue Service (IRS) and the Department of the Treasury that provide guidance on how the Internal Revenue Code (IRC) should be interpreted and applied. These materials are a primary source of tax law and are crucial for understanding how the IRS will treat a particular tax issue. They include:

Treasury Regulations
Treasury regulations (also known as "tax regulations") are the Treasury Department's official interpretations of the IRC. They provide detailed rules on how the provisions of the IRC should be applied and are binding on all taxpayers. There are two main types of Treasury regulations:

• Final Regulations: First published in the Federal Register, as Treasury Decisions. These are regulations that have gone through the full rulemaking process, including a period of public comment (minimum 30 days). They have the full force and effect of law.
• Proposed and Temporary Regulations: These are regulations that are issued on a temporary basis while the full rulemaking process is ongoing. Proposed regulations can be looked to as guidance. Temporary regulations are binding, but they may be changed when the final regulations are issued.

Revenue Rulings and Procedures
Revenue rulings and revenue procedures are official interpretations by the IRS on how the tax law applies to specific factual situations. Revenue Rulings are published by the IRS to provide guidance to taxpayers and IRS officials. They are based on the IRS's interpretation of the law as applied to a specific set of facts. Revenue Procedures are statements of procedure that affect the rights or duties of taxpayers or other members of the public under the law. They provide guidance on the internal management practices and procedures of the IRS.

Letter Rulings and Other Guidance Materials
Letter rulings (also known as "private letter rulings" or "PLRs") are written statements issued by the IRS that interpret and apply tax laws to the taxpayer's specific set of facts. They are usually requested by taxpayers or tax professionals to confirm the tax treatment of a proposed transaction. Other guidance materials include notices and announcements, which the IRS uses to provide immediate guidance on new tax laws or to communicate administrative matters.

Administrative materials can be found in several places:

IRS Website: The IRS provides access to many administrative materials on its website, including Treasury regulations, revenue rulings and procedures, and letter rulings.
Federal Register: The Federal Register publishes new and proposed regulations, as well as notices from the IRS.
Paid Legal Databases: Legal research platforms like Westlaw, Lexis, and Bloomberg Law provide access to administrative materials. These platforms offer advanced search features and annotations that can help you understand and interpret these materials.

When using administrative materials in legal research, it's important to remember a few key points:

• Check the Date: Tax law changes frequently. Always check the date of the material to make sure it's still current.
• Read Carefully: Administrative materials can be complex and detailed. Make sure to read them carefully and thoroughly.
• Use Annotations: Annotations can provide valuable insights into how a particular material has been interpreted by the courts.
• Consult Secondary Sources: Secondary sources, like tax treatises and law review articles, can provide further explanation and analysis of administrative materials.

Remember, understanding and effectively using administrative materials is a crucial part of tax research. They provide valuable insights into how the IRS interprets and applies the IRC.