of Internal Revenue Tax Administration The function of the Internal Revenue Service is to At the heart of administration is interpretation of The Service also has the responsibility of apply- Administration should be both reasonable and These principles of tax administration were previously published The Internal Revenue Bulletin is the authoritative It is the policy of the Service to publish in the Revenue Rulings represent the conclusions of Rulings and procedures reported in the Bulletin do not have the force and effect of Treasury De- partment Regulations, but they may be used as precedents. Unpublished rulings will not be relied on, used, or cited as precedents by Service per- sonnel in the disposition of other cases. In ap- plying published rulings and procedures, the ef- fect of subsequent legislation, regulations, court decisions, rulings, and procedures must be con- sidered, and Service personnel and others con- cerned are cautioned against reaching the same conclusions in other cases unless the facts and The synopses preceding Revenue Rulings, Revenue Procedures, and Court Decisions are intended only as aids to the reader in identifying the subject matter covered. They may not be relied upon as authoritative interpretations. The contents of this publication are not copyrighted and may be reprinted freely; a citation of the Cumulative Bulletin as the weekly Bulletins 1979-1 through 1979-26 for the The Internal Revenue Cumulative Bulletin is pre- Part I.-1954 Code. This part includes rulings and decisions based on Part II.-Treaties and Tax Legislation. This part is divided into two subparts as follows: Part III.-Administrative, Procedural and Miscel- To the extent practicable, pertinent cross refer- practice before the Internal Revenue Service. The Bulletin Index-Digest System, a research and reference service supplementing the Bulletin, may be obtained from the Superintendent of Documents on a subscription basis. It consists of four Services: Service No. 1, Income Tax, Service No. 2, Estate and Gift Taxes; Service No. 3, Employment Taxes; Service No. 4, Excise Taxes. Each Service consists of a basic volume and a cumulative supplement that provide (1) finding lists of items published in the Bulletin, Revenue Rulings and Revenue Procedures (hereinafter referred to as “rulings") that have an effect on previous rulings use the following defined terms to describe the effect: a Amplified describes situation where no change is being made in a prior published position, but the prior position is being extended to apply to a variation of the fact situation set forth therein. Thus, if an earlier ruling held that a principle applied to A, and the new ruling holds that the same principle also applies to B, the earlier ruling is amplified. (Compare with modified, below). Clarified is used in those instances where the language in a prior ruling is being made clear because the language has caused, or may cause, some confusion. It is not used where a position in a prior ruling is being changed. Distinguished describes a situation where a ruling mentions a previously published ruling and points out an essential difference between them. Modified is used where the substance of a previously published position is being changed. Thus, if a prior ruling held that a principle applied to A but not to B, and the new ruling holds that it applies to both A and B, Abbreviations The following abbreviations in cur- B.T.A.-Board of Tax Appeals. CFR-Code of Federal Regulations. Del. Order-Delegation Order. E.O.-Executive Order. the prior ruling is modified because it corrects a published position. (Compare with amplified and clarified, above). Obsoleted describes a previously published ruling that is not considered determinative with respect to future transactions. This term is most commonly used in a ruling that lists previously published rulings that are obsoleted because of changes in law or regulations. A ruling may also be obsoleted because the substance has been included in regulations subsequently adopted. Revoked describes situations where the position in the previously published ruling is not correct and the correct position is being stated in the new ruling. Superseded describes a situation where the new ruling does nothing more than restate the substance and situation of a previously published ruling (or rulings). Thus, the term is used to republish under the 1954 Code and regulations the same position published under the 1939 Code and regulations. The term is also used when it is desired to republish in a single ruling a series of situations, names, etc., that were previously published over a period of time in sepa ERISA-Employee Retirement In- Nonacq.-Nonacquiescence. O.D.-Office Decision. P.T.E.-Prohibited Transactions Exemption. rate rulings. If the new ruling does more than restate the substance of a prior ruling, a combination of terms is used. For example, modified and superseded describes a situation where the substance of a previously published ruling is being changed in part and is continued without change in part and it is desired to restate the valid portion of the previously published ruling in a new ruling that is self contained. In this case the previously published ruling is first modified and then, as modified, is superseded. Supplemented is used in situations in which a list, such as a list of the names of countries, is published in a ruling and that list is expanded by adding further names in subsequent rulings. After the original ruling has been supplemented several times, a new ruling may be published that includes the list in the original ruling and the additions, and supersedes all prior rulings in the series. Suspended is used in rare situations to show that the previous published rulings will not be applied pending some future action such as the issuance of new or amended regulations. the outcome of cases in litigation, or the outcome of a Service study. |