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Tax Regulation in the United States are issued by the Internal Revenue Service. Any tax regulation issued by the IRS are the Treasury Department’s interpretations of the Internal Revenue Code, which consists of the domestic components of US statutory tax law. Tax regulations in place in the US and enforced by the Internal Revenue Code include income, payroll, estate, gift, and excise tax regulations.
Tax regulation authority
In the Internal Revenue Code, Section 7805 states that the US Secretary of the Treasury is the authority in charge of making new rules and regulations that will help to enforce the Internal Revenue Code. All new regulations meant to enforce the code go under Title 26 of the Code of Federal Regulations.
Types of regulations
There are both proposed, final and interpretive regulations that are created to allow for interpretation of the Internal Revenue Code. A proposed regulation is put into effect in the process of implementing final regulations. A proposed regulation often must be referred to in order to determine how much a taxpayer owes for a particular year, but it may not be applicable the following year.
Publication of tax regulations
Tax regulations put in place by the Internal Revenue Service must be made available to the public through publication. Any proposed regulations will be laid out by the IRS in draft form and subsequently undergo publication in the Federal Register. These regulations must be published in such a way that American taxpayers can send in their feedback or comments. Taxpayers can also express themselves regarding the regulations in hearings. These hearings will take place before proposed regulations are made final.
A comment period takes place after proposed regulations are made public via publication in the Federal Register. After this period, proposed regulations will be put into the Code of Federal Regulations and undergo final publication. When first published, both temporary and final regulations will be referred to as Treasury Decisions. Another place where new regulations are published is in the Internal Revenue Bulletin.
The Internal Revenue Code of 1986
A comprehensive revision of the Internal Revenue Code was implemented in 1986. Revisions were passed under the Tax Reform Act of 1986. However, regular updates have been made to these changes since the passage of the Tax Reform Act of 1986. Currently, any reference made to the Internal Revenue Code typically will refer to the Internal Revenue Code Title 26.
Previously, the Internal Revenue Code that was being used was the version of the code implemented in 1954. Many amendments were made in the Tax Reform Act of 1986 to update tax regulations to reflect new developments in the nation’s economic structure. While there were many updates made to the code in 1986, the Internal Revenue Code of 1986 did not entail any actual re-codification. In other words, the same structure was kept in the Internal Revenue Code of 1986 in terms of the organization of the code. The 1986 version retained similar lettering and numbering in the organization of subtitles, parts, sections, etc.
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Tax regulation in the United States is implemented and enforced by the Internal Revenue Service through the creation of tax regulations in the Internal Revenue Code.