Question

Treasury Ruling: Differentiate between Treasury Regulation and Revenue Ruling.

Answer 1

The Department of the Treasury is the executive department of Federal Government responsible for implementing tax laws. The Internal Revenue Service (the IRS), a bureau of the Treasury, issues numerous document types to both interpret the Internal Revenue Code (the IRC) and enforce tax laws.

Treasury regulations are the highest administrative authority issued by Treasury. These are the tax regulations issued by the IRS. They are basically the official interpretation/description of the Internal Revenue Code and are a source of U.S. federal income tax law.

​​​​​​Revenue Ruling are the rulings by IRS that shows how the law is applicable in different factual situations. These rulings are published to promote correct and uniform application of the tax laws by the IRS employees and for the information and guidance of taxpayers.