2010-4 states that a preparer may contact clients to inform them of changes in tax law that could affect returns that the preparer prepared previously or future return filing obligations, since in both instances, the information is "for the purpose of preparing a tax return" and "for the purpose of providing other legal or accounting services to the taxpayer," both of which are allowed by the regulations.
The court looked favorably on the IRS's citation of Revenue Ruling
75-44 and took an expansive view of wages.
The Ninth Circuit has held that the Mead decision requires lower courts to give Skidmore deference to revenue rulings
because they are closely akin to Customs Service tariff rulings, to which the Mead Court applied the Skidmore deference standard; see Omohundro, 300 F3d 1065 (9th Cir.
(33) Under the principles of that revenue ruling
, a taxpayer must capitalize costs incurred in connection with the acquisition of a new trade or business after the date on which the taxpayer decides whether to acquire another business and which business to acquire.
The second ruling, Revenue Ruling
2004-110, concerns payments made in connection with the cancellation of an employment contract.
Also, as mentioned in note 2 and the accompanying text, the IRS will have a difficult time disavowing its own published revenue ruling
, as supplemented by its informal reaffirmation of its conclusion.
Formerly, taxpayers could deduct the costs of weight-loss programs only if the programs were in conjunction with treatment of another disease, a position confirmed in Revenue Ruling
2002-19 in the treatment of hypertension for the case of "Taxpayer B," who was not also diagnosed with obesity.
The Small Business/Self-Employed section of the IRS Web site at www.irs.gov defines it as "an activity carried on for a livelihood or in good faith to make a profit." Revenue Ruling
58-112 further characterizes a trade or business activity as one that is regular, frequent and continuous.
95-22 clarifies that proceeds received for the loss of a home and scheduled personal property can be reinvested in the home and/or contents, and restates that money received for contents is exempt from income, regardless of how the money is used.
Many of the issues raised in the revenue rulings
have been resolved in the courts and have become case law precedent.
332 liquidation of H&C, Dover concluded that the IRS's position violated the principle of Rauenhorst, 119 TC 157 (2002), that "taxpayers should he entitled to rely on revenue rulings
in structuring their transactions, and they should not be faced with the daunting prospect of the Commissioner's disavowing his rulings in subsequent litigation."
The most telling numbers are with respect to revenue rulings
. In 1980, the IRS published 355 revenue rulings