The IRS is not always right.
And when the IRS wants you to pay taxes you really don’t owe, or tries to assess a penalty you feel is undeserved, you don’t have to cave.
You can fight.
But to win a dispute with the IRS, you need to base your arguments on “substantial authority.”
There are three types of substantial authority
you can call upon to come out a winner:
- The Internal Revenue Code
- Treasury Department or IRS interpretations of the Internal Revenue Code
- Court interpretations of the Internal Revenue Code (we’ll cover court interpretations in Part 2)
Want to learn how to effectively back up your case against the IRS?
Take it on my authority that you need to read my new article titled Tax Tips: Arguing with the IRS: You Need Tax Authority (Part 1).
Three ways our fact-filled article can help you:
- You’ll learn why the Internal Revenue Code can be your friend. It’s the tax law as written by lawmakers. This means it’s the gold standard — the very best authority you can use to win your argument with the IRS. If you or your tax professional can point Uncle Sam to a relevant section of the tax code and show that it backs up your reasoning, you’ll emerge victorious. Want to learn more? Read the full article.
- We’ll explain how treasury regulations can work for you. Treasury regulations rank just below the Internal Revenue Code in authority and the courts hold them in high regard. The Treasury Department issues three types of regulations: final regulations, temporary regulations, and proposed regulations. We’ll show you how to use all three when you read the full article.
- We’ll tell you how to put the Internal Revenue Bulletin (IRB) to work. The IRB is “the authoritative instrument of the Commissioner of Internal Revenue for the publication of official rulings.” Inside the IRB, you find the next level of authority and that includes revenue rulings, revenue procedures, announcements and notices, private letter rulings, technical advice memoranda, and more. We’ll explain what these mean to you when you read the full article.