Federal Income Tax 2 – Tax Research 1

There are three types of tax law sources, namely legislative, administrative, and judicial
sources. The Internal Revenue Code, as was implemented by Congress, is an example of a
statutory tax law source. Other examples of regulatory tax law sources include the constitution of
the United States and the tax treaties. The tax law source permits Congress to collect and levy
taxes from the citizens of the country. The tax law is different from the other two in
administrative tax law, as the treasury department is responsible for the collection of taxes. An
example of a governmental tax law source is the Internal Revenue Service (IRS). The
judicial tax law source, on the other hand, is based on the structure of the Federal Court of the
United States. They have the responsibility of resolving tax issues that arise between taxpayers and
the IRS. An example includes the federal district court.
The fundamental difference between regulations, revenue rulings, and private letter
rulings is the individual who issues the IRS guidance. A control is issued by the IRS and the
department of the treasury. The main aim of the regulation is to provide advice on new
legislation and address some of the issues that arise from the internal revenue codes. The revenue
ruling, on the other hand, is an interpretation that is official concerning the IRS code (“U.S.
Department of the Treasury. Internal Revenue Service,” 2015). The ruling provides the final
decision from the IRS on how best the law will apply to given specific facts. Lastly, private letter
rulings entail a written statement that is given to the taxpayer with an interpretation of tax laws
that apply to given circumstances. The private letter ruling is provided to determine the certainty
of the implication of the federal tax of a specific transaction before consummation by the
taxpayers.
The Internal Revenue Code is a part of the United States Code, which represents a
codification of all the federal laws. The elements of IRC are organized in an alphabetical order
that gives the numerical. There are 26 codes of the IRC in the United States Code. The laws are
arranged in categories and sub-sections, including the subtitle, chapters, subchapters, parts, and
subsections. For sufficient identification, the captions are written in capital letters, and each of
them has a tax provision that relates to a given area of tax law (“U.S. Department of the
Treasury. Internal Revenue Service,” 2015). The most important part is the sections. The
sections are only used once in the IRC, giving the taxpayer specific provisions. Understanding
the organization of the IRC is essential as it makes the navigation easy and the taxpayer can
quickly identify tax laws that resonate with them
The FICA model consists of the facts, issues, conclusion, and the analysis. The effect
should describe what took place between the plaintiff and the defendant. Also, there should be
informed about what took place at the lower court level. The issues should describe what
transpired between the two parties. The problems can be in form questions and should address
the primary concern of creating a disagreement between the plaintiff and the defendant. The
conclusion should describe what happened as a result of the court ruling. The analysis should
justify the judgment provided by highlighting laws that support the decision.

FEDERAL INCOME TAX 2 – TAX RESEARCH 1 3

References

U.S. Department of the Treasury. Internal Revenue Service. (2015). Publication 17: Tax Guide
2014 for Individuals (Cat. No 10311G). Retrieved from https://www.irs.gov/pub/irs-
pdf/p17.pdf