Let’s do a quick review of the levels of authoritative research sources for the IRS. We are always being told that IRS pubs are not binding or authoritative in scope by the IRS so when we do research we need to dig deeper. The pubs are handy for helping the layman understand the process and they have some pretty good examples and formula computations. But you always need the underlying internal Revenue Code (IRC) for the pub. The IRC is the Holy Bible for the IRS. It gives them their cans and cant’s. It gives them their authority and also limits that authority. It is from whence all things income tax flows. If the IRC is the Bible then the Internal Revenue Manual (IRM) is the how-to manual.

The authority on this subject, and the person who I strive to emulate, is Peter J. Scalise. His article, Tax Research Techniques, used with his permission, is the basis for the rest of this post.

• Step 1: Establish the facts and circumstances (Joe Friday Style: Just the facts, Ma’am!)

• Step 2: Determine all tax issues (even if the IRS hasn’t brought them up yet)

• Step 3: Identify the specific authorities involved: (who are YOU dealing with?)

Statutory Authority – The Internal Revenue Code (IRC)

Administrative Authority Read More