Question

​ACC 241 Module Two Assignment:
Answer the questions completely. Each answer should be at least one half page.

1. Describe the legislative process for drafting tax law.

2. Describe the purpose of Regulations.

3. Explain the three types of Regulations: Proposed, Temporary and Final.

4. Discuss Revenue Rulings, Revenue Procedures, Letter Rulings and Determination

   Letters.

5. Describe the attributes of the four Courts that hear tax cases.

Answer 1

answer 1

1. The tax bill begins in the House of Representatives and is referred to the Ways and Means Committee. When members of this committee reach agreement about the legislation, they write a proposed tax law.

2. The bill goes to the full House, where it is debated, possibly amended, and eventually approved.

3. The bill goes to the Senate, where it is reviewed and often rewritten by the Finance

Committee. The committee's version is then presented to the full Senate.

4. After the Senate approves the bill, it is sent to a joint committee of House and Senate

members, who try to arrive at a compromise version 5. The compromise version of the bill is sent to both the House and the Senate for approval

6. After Congress passes the bill, it goes to the president, who can either sign it into law or

veto it

7. If the president vetoes the bill, Congress may try to override the veto with a two-thirds vote of cach house If this vote succeeds, the bill becomes law without the president's signature

answwer 2 The primary regulatory purpose is defined as the achievement of quality control of a subject system, its process or its product. Quality control via regulation is achieved through one or a combination of approaches: (1) accountability, (2) organizational development, (3) protectionism.

answer3 The proposed rule, or Notice of Proposed Rulemaking (NPRM), is the official document that announces and explains the agency's plan to address a problem or accomplish a goal. All proposed rules must be published in the Federal Register to notify the public and to give them an opportunity to submit comments.

Temporary regulations are issued to provide immediate guidance to the public and IRS and Counsel employees prior to publishing final regulations. Temporary regulations are effective when published by the Office of the Federal Register.

Final and Interpretive Regulations

In the process of enacting final regulations, the Treasury issues proposed or temporary regulations. Proposed regulations do not become effective until after comments and testimony are received ("notice and comment"), and a final regulation is issued.

answer4 A revenue ruling is a public decree issued by the IRS that essentially has the force of law. A revenue ruling outlines the IRS's interpretation of the tax laws and is binding on all IRS employees and public taxpayers. Revenue rulings are published in the Internal Revenue Bulletin and are issued only from the National Office of the IRS. The IRS Bulletin may abbreviate revenue rulings as Rev. Rul. when listing the specific rulings online and in the Bulletin. The purpose of the Revenue Bulletin is to inform American taxpayers of their tax responsibilities and enforce the laws surrounding taxes with fairness and equality. The revenue rulings within the Revenue Bulletin help in the mission of educating and enforcing tax regulations and rulings

A revenue procedure is an official statement of a procedure published in the Bulletin that either affects the rights or duties of taxpayers or other members of the public under the Internal Revenue Code and related statutes, treaties, and regulations or, although not necessarily affecting the rights and duties of the public, should be a matter of public knowledge.

Private letter rulings (PLRs), in the United States, are written decisions by the Internal Revenue Service (IRS) in response to taxpayer requests for guidance.^[1] A letter ruling is "a written statement issued to a taxpayer by an Associate Chief Counsel Office of the Office of Chief Counsel or by the Tax Exempt and Government Entities Division that interprets and applies the tax laws to a specific set of facts."^[2]

A letter ruling binds both the IRS and the requesting taxpayer (in the event the matter is further disputed or litigated) but only those parties, so the ruling may not be relied on as precedent by other taxpayers. The IRS has the option, however, of redacting the personal content of a letter ruling and issuing that content as a revenue ruling, which may become binding on all taxpayers and the IRS.

A determination letter is a formal document issued by the Internal Revenue Service (IRS) that indicates whether or not a company's employee benefit plan has been found to meet the minimum legal requirements for special tax treatment.