Treasury Regulations

A daily publication of Presidential Documents, Final Rules and Regulations, Proposed Rules and Regulations, and Notices

First step, used by the IRS to announce Proposed Regulation

Proposed Regulations
Temporary Regulations
Final Regulations

(Notice of Proposed Rulemaking) Non-binding, generally not given judicial deference by courts (Unless specifically stated). Allows a comment period for input

A Proposed Regulation in which the IRS indicates that it may be relied upon by the public to support a tax position

(Treasury Decision) Have the same high-level authority of Final Regulations. Issued when guidance is needed urgently. Are valid for 3 years, unless replaced before that time frame.

(Treasury Decision) Highest authoritative value

Codification of regulations

The title in the CFR corresponds with the title of the USC

Regulations specifically authorized in the tax law enacted by Congress pursuant to a delegation by Congress to the Treasury (the law specifically states that the Treasury will form regulations)

A court will sustain a legislative regulation unless it is arbitrary, capricious, or contrary to the law/statute

Based on IRC Section 7805(a), which grants the IRS authority to interpret the language of the tax code even when they are not specifically authorized to by the law (Afforded less deference than legislative regs, and are not sustained if they are unreasonable and do not implement the mandate of congress)

Address matters and issues related to tax procedures (how to do something)

20% penalty imposed on the portion of an underpayment due to disregarding rules and regulations

Issued yearly, identifies and prioritizes the tax issues that should be addressed through regs, revenue rulings, revenue procedures, notices, and other published administrative guidance