Definition
A Revenue Procedure is an official documentation issued by the Internal Revenue Service (IRS) that provides procedural instructions on compliance with tax laws. Unlike regulations, which have the force of law, Revenue Procedures are more focused on the execution and administration of tax rules. They offer taxpayers guidance on methods and forms of filing, record keeping, and other aspects of tax administration. These documents are initially published in the Internal Revenue Bulletin (IRB) and subsequently included in the Cumulative Bulletin (CB).
Examples
- Revenue Procedure 2021-20: This procedure provides guidance on waivers for taxpayers affected by the COVID-19 pandemic.
- Revenue Procedure 2019-38: Offers a safe harbor under Section 199A for rental real estate enterprises.
- Revenue Procedure 2015-13: This clarifies the process for accounting method changes.
Frequently Asked Questions (FAQs)
What is the purpose of a Revenue Procedure?
A Revenue Procedure offers guidance on the correct methods and processes for compliance with tax laws, including filing requirements and administrative processes.
How do Revenue Procedures differ from Revenue Rulings?
Revenue Procedures address procedural and administrative issues, while Revenue Rulings interpret the tax laws specifically addressing the IRS’s position on particular issues.
Where can I access Revenue Procedures?
Revenue Procedures are first published in the Internal Revenue Bulletin (IRB) and later compiled in the Cumulative Bulletin (CB), both of which can be accessed through the IRS website.
Do Revenue Procedures carry the force of law?
No, Revenue Procedures do not have the force of law but provide taxpayers with official guidance on tax administration and procedural matters.
Are Revenue Procedures issued annually?
Yes, Revenue Procedures are typically released on an annual basis, along with interim updates as necessary throughout the year.
Related Terms
Revenue Ruling
Revenue Ruling: An official IRS interpretation that provides guidance on how the law is applied to specific factual situations.
Internal Revenue Bulletin (IRB)
Internal Revenue Bulletin (IRB): The weekly publication by the IRS containing rulings, procedures, Treasury decisions, and other tax-related documents.
Cumulative Bulletin (CB)
Cumulative Bulletin (CB): A semi-annual compendium of documents initially published in the Internal Revenue Bulletin, providing comprehensive reference material.
Treasury Regulations
Treasury Regulations: The official interpretations of the Internal Revenue Code (IRC) issued by the United States Department of the Treasury.
Private Letter Ruling (PLR)
Private Letter Ruling (PLR): A written determination issued by the IRS to a taxpayer furnishing guidance on specific tax issues.
Online References to Online Resources
Suggested Books for Further Studies
- “Federal Income Tax: Code and Regulations–Selected Sections” by Martin B. Dickinson
- “Principles of Taxation for Business and Investment Planning” by Sally M. Jones and Shelley C. Rhoades-Catanach
- “Tax Procedure and Tax Fraud” by Camilla E. Watson
- “Understanding Taxation: A Primer” by Christopher White
- “Federal Tax Research” by William A. Raabe, Gerald E. Whittenburg, Debra Sanders, and John A. Everett
Fundamentals of Revenue Procedure: Taxation Basics Quiz
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