Page images
PDF
EPUB
[merged small][merged small][merged small][ocr errors][merged small][merged small][merged small][merged small]

For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402 - Price $12.35 (cloth covers)

Stock Number 048-004-01280-4

Statement of Principles of Internal Revenue Tax Administration

The function of the Internal Revenue Service is to administer the Internal Revenue Code. Tax policy for raising revenue is determined by Congress. With this in mind, it is the duty of the Service to carry out that policy by correctly applying the laws enacted by Congress; to determine the reasonable meaning of various Code provisions in light of the Congressional purpose in enacting them; and to perform this work in a fair and impartial manner, with neither a government nor a taxpayer point of view. At the heart of administration is interpretation of the Code. It is the responsibility of each person in the Service, charged with the duty of interpreting the law, to try to find the true meaning of the statutory provision and not to adopt a strained construction in the belief that he is "protecting the revenue." The revenue is properly protected only when we ascertain and apply the true meaning of the statute.

The Service also has the responsibility of applying and administering the law in a reasonable, practical manner. Issues should only be raised by examining officers when they have merit, never arbitrarily or for trading purposes. At the same time, the examining officer should never hesitate to raise a meritorious issue. It is also important that care be exercised not to raise an issue or to ask a court to adopt a position inconsistent with an established Service position. Administration should be both reasonable and vigorous. It should be conducted with as little delay as possible and with great courtesy and considerateness. It should never try to overreach, and should be reasonable within the bounds of law and sound administration. It should, however, be vigorous in requiring compliance with law and it should be relentless in its attack on unreal tax devices and fraud.

These principles of tax administration were previously published in the Internal Revenue Bulletin as Revenue Procedure 64-22, 1964-1 (Part I) C.B. 689. They are restated here to emphasize their importance to all employees of the Internal Revenue Service.

weekly Bulletins 1975-1 through 1975-26 for the period of January 1 through June 30, 1975. It includes a cumulative list of announcements relating to decisions of the Tax Court published in the Internal Revenue Bulletins.

The Internal Revenue Bulletin is the authoritative instrument of the Commissioner of Internal Revenue for announcing official rulings and procedures of the Internal Revenue Service and for publishing Treasury Decisions, Executive Orders, Tax Conventions, legislation, court decisions, and other items of general interest. It is the policy of the Service to publish in the Bulletin all substantive rulings necessary to promote a uniform application of the tax laws, including all rulings that supersede, revoke, modify, or amend any of those previously published in the Bulletin. All published rulings apply retroactively unless otherwise indicated. Procedures relating solely to matters of internal management are not published; however, statements of internal practices and procedures that affect the rights and duties of taxpayers are published. Revenue Rulings represent the conclusions of the Service on the application of the law to the entire state of facts involved. In those that are based on positions taken in rulings to taxpayers or technical advice to Service field offices, identifying details and confidential information are deleted to comply with statutory requirements. Rulings and procedures reported in the Bulletin do not have the force and effect of Treasury Department Regulations, but they may be used as precedents. Unpublished rulings will not be relied on, used, or cited as precedents by Service personnel in the disposition of other cases. In applying published rulings and procedures, the effect of subsequent legislation, regulations, court decisions, rulings, and procedures must be considered, and Service personnel and others concerned are cautioned against reaching the same conclusions in other cases unless the facts and circumstances are substantially the same. Cumulative Bulletin 1975-1 is a consolidation of all items of a permanent nature published in the

The Internal Revenue Cumulative Bulletin is prepared in three parts as follows: Part 1.-1954 Code. This part includes rulings and decisions based on provisions of the Internal Revenue Code of 1954. Arrangement is sequential according to Code and regulations sections. The Code section is shown at the top of each page. Part 11.-Treaties and Tax Legislation. This part is divided into two subparts as follows: Subpart A, Tax Conventions and related Treasury Decisions and Revenue Rulings; Subpart B, Legislation and related Committee Reports. Part III.-Administrative, Procedural and Miscellaneous. To the extent practicable, pertinent cross references to these subjects are contained in the other Parts and Subparts. Included in this part is a list of persons disbarred or suspended from practice before the Internal Revenue Service.

The Bulletin Index-Digest System, a research and reference service supplementing the Bulletin, may be obtained from the Superintendent of Documents on a subscription basis. It consists of four Services: Service No. 1, Income Tax; Service No. 2, Estate and Gift Taxes; Service No. 3, Employment Taxes; Service No. 4, Excise Taxes. Each Service consists of a basic volume and a cumulative supplement that provide (1) finding lists of items published in the Bulletin, (2) digests of Revenue Rulings, Revenue Procedures, and other published items, and (3) topical indexes of Public Laws, Treasury Decisions, and Tax Conventions.

The synopses preceding Revenue Rulings, Revenue Procedures, and Court Decisions are intended only as aids to the reader in identifying the subject matter covered. They may not be relied upon as authoritative interpretations. The contents of this publication are not copyrighted and may be reprinted freely; a citation of the Cumulative Bulletin as the source would be appropriate.

The following abbreviations in current use and formerly used will appear in material published in the Bulletin.

A, B, C, etc. The names of individuals.
A.R.R. Committee on Appeals and Review recom-

mendation.
A.T. Alcohol and tobacco tax ruling.
B.T.A. Board of Tax Appeals.
C.B. Cumulative Bulletin.
CFR Code of Federal Regulations.
C.T. Carriers Taxing Act of 1937.
Ct. D. Court Decision.
Del. Order Delegation Order.
D.C. Treasury Department circular.
DISC Domestic International Sales Corporations.
E.O. Executive Order.
E.T. Estate and gift tax ruling.
Em. T. Employment tax ruling.
F.A.A.A. Federal Alcohol Administration Act.
FICA Federal Insurance Contributions Act.
F.R. Federal Register.
FUTA Federal Unemployment Tax Act.
G.C.M. Chief Counsel's memorandum (formerly

General Counsel's memorandum).

I.R.B. Internal Revenue Bulletin.
IR-Mim. Published IR-Mimeograph.
I.T. Income tax ruling.
M, N, X, Y, Z, etc. The names of corporations,

places or businesses, according to context. M.T. Miscellaneous tax ruling. Mim. Published mimeograph. 0.D. Office Decision. Pub.L. Public Law PS Pension, profit-sharing, stock bonus or annuity

plan ruling. Rev. Proc. Revenue Procedure. Rev. Rul. Revenue Ruling. R.S. Revised Statute. S.M. Solicitor's Memorandum. Sol. Op. Solicitor's Opinion. S.P.R. Statement of Procedural Rules. S.R. Solicitor's Recommendation. S.S.T. Social Security Tax. S.T. Sales tax ruling. Stat. Statutes at Large. T.C. The Tax Court of the United States. T.D. Treasury Decision. TIR Technical Information Release. U.S.C. United States Code. x and y are used to represent certain numbers and when used with the word "dollars" represent sums of money.

16

Advisory Committees: 635 757 759 Committee Reports: Senate: 813 (P.L. 89-487), 392 93-554 (P.L. 93-597), 497 93-854 (P.L. 93-502) 402 93-1183 (P.L. 93-579), 448 93-1298 (P.L. 93-618), 505 93-1356 (P.L. 93-647), 545 93-1357 (P.L. 93-625), 517 93-36 (P.L. 94-12), 590 House: 125 (P.L. 90-23), 399 93-1416 (P.L. 93-579), 434 94-19 (P.L. 94-12), 569 Conference: 93-1200 (P.L. 93-502), 420 93-1642 (P.L. 93-625), 538 93-1644 (P.L. 93-618), 509 94-120 (P.L. 94-12), 624 Court Decisions: 1968, 377 1969, 329 1970, 379 1971, 372 Delegation Orders: 35 (Rev. 6), 635 42 (Rev. 6), 635 73 Revocation Notice, 636 77 (Rev. 7), 636 77 (Rev. 8), 636 96 (Rev. 2), 637 97 (Rev. 12), 637 112 (Rev. 1), 638 113 (Rev. 2), 639 113 (Rev. 3), 640 127 (Rev. 1) Revocation Notice, 640 139 (Rev. 1), 641 149. 641 Disbarments & Suspensions List: 759 Executive Orders: 11822, 641 11859, 642 Public Laws 89-487, 391 90-23, 397 93-502, 400 93-531, 425 93-579, 426 93-597, 495 93-618, 501 93-625, 510 93-644. 542 93-647, 543 94-12, 545 Railroad Retirement Tax Act: 324 325 Revenue Procedures: 75-1, 642 75-2, 642 75-3, 643 75-4, 644 75-5, 645 75-6, 646 75-7, 648 75-8, 648

Revenue Procedures—Continued 75-9, 649 75-10, 651 75-11, 652 75-12, 653 75-13, 662 75-14, 662 75-15, 671 75-16, 676 75-17, 677 75-18, 687 75-19, 687 75-20, 688 75-21, 715 75-22, 717 75-23, 719 75-24, 719 75-25, 720 75-26, 722 75-27, 725 75-28, 752 75-29, 754 75-30, 756 Revenue Rulings: 75-1, 5 75-2, 99 75-3, 108 75-4, 165 75-5, 166 75-6, 178 75-7, 244 75-8, 309 75-9, 348 75-10, 389 75-11, 27 75-12, 62 75-13, 67 75-14. 90 75-15, 317 74-16, 340 75-17, 344 75-18, 345 75-19, 382 75-20, 29 75-21, 367 75-22, 49 75-23, 290 75-24, 306 75-25, 359 75-26, 339 75-27, 355 75-28, 68 75-29, 91 75-30, 235 75-31, 10 75-32. 14 75-33, 115 75-34, 271 75-35, 131 75-36, 143 75-37, 148 75-38, 161 75-39, 272 75-40, 276 75-41, 323 75-42, 359 75-43, 383 75-44, 15 75-45, 47 75-46, 55 75-47, 62 75-48, 62

Revenue Rulings—Continued 75-49, 151 75-50, 152 75-51, 190 75-52, 198 75-53, 234 75-54, 293 75-55, 74 75-56, 98 75-57, 141 75-58, 374 75-59, 177 75-60. 179 75-61, 180 75-62, 188 75-63, 294 75-64, 75-65, 79 75-66, 85 75-67, 169 75-68, 184 75-69, 253 75-70, 301 75-71, 309 75-72, 310 75-73, 313 75-74, 152 75-75, 154 75-76, 154 75-77, 75-78, 8 75-79, 184 75-80, 292 75-81, 326 75-82, 5 75-83, 112 75-84. 236 75-85, 239 75-86, 242 75-87, 325 75-88, 341 75-89, 351 75-90, 17 75-91, 39 75-92, 75 75-93, 101 75-94, 111 75-95, 114 75-96, 139 75-97, 167 75-98, 196 75-99. 197 75-100, 303 75-101, 318 75-102, 351 75-103, 17 75-104, 18 75-105, 29 75-106, 31 75-107, 32 75-108, 69 75-109, 69 75-110, 167 75-111, 251 75-112, 274 75-113, 19 75-114, 138 75-115, 178 75-116, 182 75-117, 273 75-118, 390 75-119, 48

« PreviousContinue »