Tax Return Position Paper free essay sample

Tax laws come from several sources and each source has a particular amount of rein over the laws conducted. Sources, such as the IRC, have a defined amount of say in the laws and the consequences. The way a law is interpreted and applied is also a very large part of tax law. Tax research is how tax laws are defined and followed for individual facts (Anderson, Pope Kramer 2010) Sources of Tax Law The primary and secondary sources of tax law are the Internal Revenue Code, United States Tax Court, United States district courts, Court of Federal Claims, federal ircuit courts, United States Supreme Court, Treasury Regulations, Internal Revenue Bulletin, Revenue rulings, Revenue Procedures, Notices, Announcements, Private Letter Rulings, Technical Advice Memoranda, BNA Tax management portfolios, and Law of Federal Income Taxation (Anderson, Pope Kramer 2010). The Internal Revenue Code, Title 26 of United States Code, was first created in 1939 and was redefined in 1954. We will write a custom essay sample on Tax Return Position Paper or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Changes made to the IRC replace old information so it is always currently defined what the laws are. This is the main source of tax law. Treasury Regulations are decisions made which can illustrate the IRC. There are proposed, temporary, and final regulations. Proposed regulations are proposed but not made final, temporary regulations are the process of making a proposal final, and have less authoritative weight, than final regulations which are the final regulation. If laws are undetermined by the IRC and the Treasury Department hearings go to court. U. S. Tax Court, U. S. Court of Federal Claims and U. S district courts are the choices of presenting litigation in which laws are interpreted into rulings and claims can etermine specific facts of the laws and regulations. The U. S. Supreme Court hears important tax claims presented after a loss in the other courts. The Internal Revenue Bulletin list rulings the IRS will use in future cases and ones it will not. Revenue Rulings and Revenue Procedures are listed in this bulletin. Announcements and notices are the posting of a tax act before it is determined proposed, temporary, or legislation (UWE, 2012). Substantial Authority Substantial Authority is when different treatment of the law or the consequence is applicable. The IRS makes rulings that are not as authoritative as Treasury Regulations and court cases. These IRS rulings do not have to be followed if there is substantial authority in one of the main sources of tax law such as the IRC, court cases and proposed, temporary, and final regulations. If found the individual is liable for the tax, there is no penalty, but there is retroactive interest involved (Tarlton Law, 2009). Interpretation and Application A tax law starts the legislation process in the House of Representatives. A proposal is formed into a bill that goes the House of Ways and Means Committee that y the full House of Representatives. After approval of the House of Representatives the bill goes to the Senate Finance Committee and if passed is voted on by the full Senate. Tax Return Position Paper free essay sample Position Tax law was established in order to govern tax transactions and events. The primary source of tax law is the internal revenue code, which was established in the year 1939, and has been revised multiple times since then. In addition to information regarding company income tax, employment tax, and other pertinent tax options. The legislative process is also a primary source of tax law, which is initiated in the House of Representatives, where new tax bills can be proposed. Once a proposed bill makes it to the House of Representatives, they can vote to decide whether or not to incorporate the proposed tax bill. Treasury regulations can help with the understanding of the application of internal revenue code provisions. As a secondary source of tax law, citations to treasury regulations are used in order to substantiate propositions and help locate underlying authority. Administrative pronouncements, such as revenue rulings and letter rulings, pertain to consequences issued in relation to tax transactions and tax practice. We will write a custom essay sample on Tax Return Position Paper or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Judicial decisions, which are also significant in reference to tax law, involve decisions made by judges on tax related laws and their subsequent consequences. Substantial authority refers to the factor of whether or not a penalty will be applied in the event a taxpayer did not adhere to the guidelines of tax law. Normally, taxpayers would be subject to a penalty if they do not adhere to the tax law according to the internal revenue code, although if there is substantial authority, that penalty would not be incurred. The title of having substantial authority allows for the taxpayer to have special treatment in regards to the tax ruling in question. The courts, as well as the Internal Revenue Service play a major role in the application and interpretation of tax law. It is the duty of the court system to ensure that tax laws are properly applied in relation to litigation claims that may arise into legal matters. Decisions by the court can be exercised via a regular decision or a memorandum decision, both which hold the same authoritative power. The small cases procedure, however, does not hold the same authoritative power as a regular decision and a memorandum decision because the case is not heard by a judge. In the even a tax payer decides to use the small cases procedure, not only is the claim at a maximum of $50,000 for the year, but the case is not heard by a judge, and is instead heard by commissioners. The taxpayer is not required to have an attorney to represent them in order to have their case heard, and the decision is not published like that of a regular decision or a memorandum decision. Some decisions made by the court are able to be appealed. In the event that a taxpayer has requested an appeal, they would be able to do so where the case was originally claimed. IN order to be able to have a case heard by the U. S. Supreme Court, the case must have great importance. If a taxpayer is able to have their case heard in the U. S. Supreme Court, the decision of the court would overrule all other decisions that had been previously made by other courts in the taxpayers’ jurisdiction. The majority of tax court is nationally represented, and does not take into account the location of the place of the businesses involved, nor does it take into account the location of the place in which the residence of the taxpayers or any of the people that are involved in the case. Tax court serves as a uniform entity which provides fair and sound decisions based on the laws and regulations at hand.