Federal Income Tax: a QuickStudy Digital Law Reference

By Elena Marty-Nelson

BarCharts, Inc was founded on our law guides created by the owner, designed to understand the significance of details within the larger scheme of the law, as a daily refresher, and to review before the Bar Exam. Twenty five years later we keep those guides up to date for students, paralegals and practicing lawyers to have the most handy legal reference to the most important points of the law possible in this digital guide.
Digital guide includes:

• Administration
• Personal Income Tax
  • Definitions
  • Gross Income
  • Exclusions
  • Deductions
  • Depreciation Deductions
  • Tax Imposed
  • Capital Gains & Losses
• Corporate Income Tax
  • Types of Businesses
  • Special Corporate Deduction Rules
  • Mergers, Acquisitions & Recapitalizations
  • Tax-Free Corporate Formation Rules
  • Corporate Distribution Rules

• Language: English
• Publisher: BarCharts, Inc.
• Release date: Jul 1, 2019
• ISBN: 9781423243298

Book preview

title

Administration

• INTERNAL REVENUE SERVICE (IRS)

Agency within Treasury Department responsible for enforcing tax laws

Tax forms, instructions, publications, and rulings available at www.irs.gov

Website links to other sources of law

• INTERNAL REVENUE CODE (IRC)

Codification of most federal tax laws

Title 26 of U.S. Code (U.S.C.)

• ADMINISTRATIVE PRONOUNCEMENTS

Treasury Regulations

Interpret and implement IRC [§7805]

Issued by Treasury Department; drafted by IRS ii. Regulation numbers include relevant IRC § numbers

Title 26 of Code of Federal Regulations (CFR)

Published Revenue Rulings

Officially published IRS interpretation of the tax law

Give facts, IRS view of the tax result, and brief explanation

Published in weekly Internal Revenue Bulletin

Precedential value: Not limited to specific taxpayer who sought ruling

Private Letter Rulings (PLRs) and Technical Advice Memoranda (TAMs)

Taxpayer can request a PLR regarding a contemplated transaction, unless the issue is purely factual or is on an IRS "no ruling" list

During audit, IRS agent can request a TAM on completed transaction

No precedential value [§6110(k)(3)]

Ruling effective for the requesting taxpayer only if the facts are accurate

• TAX CONTROVERSY STEPS

Different procedures for overpayments and underpayments

Taxpayer can recover an overpayment by filing a claim or bringing suit in District Court or Court of Federal Claims [see also 28 U.S.C.]

Taxpayer can dispute a government claim for payment by bringing suit in Tax Court

Taxpayer may sue for attorneys’ fees if government’s position is unjustified [§7430]

Statute of limitations

Statute of limitations is generally 3 years after return is filed [§6501(a)]

Statute of limitations is 6 years if taxpayer omits more than 25% of gross income [§6501(e)]

Overstating basis is an omission for this purpose [§6501(e)(1)]

Statute of limitations for credit and refund claims can be suspended for mental or physical impairment [§6511(h)]

Notice of right to hearing is required before levy [§6330]

Administrative appeal to IRS

Taxpayer is entitled to explanation of process

Appeals procedures are designed to reduce litigation [§7123]

Trial court litigation: Burden of proof may shift to government [§7491]

U.S. Tax Court

Taxpayer who gets a 90-day