Revenue Procedure #89-14
Published in IRB #89-8, p. 20, February 20, 1989
Section 1: Purpose
This revenue procedure supersedes Rev. Proc. 86-15, 1986-1 C.B. 544, and
makes the changes described in section 2 below. The revenue procedure restates
the objectives of, and sets forth the standards for, the publication of revenue
rulings and revenue procedures in the Internal Revenue Bulletin.
Section 2: Changes
Section 7.01(5) of Rev. Proc. 86-15 provides that because each revenue
ruling represents the conclusion of the Service as to the application of the law
to the entire statement of facts involved, taxpayers, Service personnel, and
others concerned are cautioned against reaching the same conclusion in other
cases unless the facts and circumstances are substantially the same. This
caution, which now appears in section 7.01(6) of this revenue procedure, has
been clarified. It now explicitly warns that, if from the facts, legal analysis,
or other discussion it is clear that the federal tax law conclusion of the
revenue ruling or revenue procedure is predicated upon a certain provision or
interpretation of law other than federal tax law, then those seeking to rely on
that conclusion must check to see whether such relevant nontax law has changed
materially from that used in the revenue ruling or revenue procedure.
Section 7.01(7) of the revenue procedure is revised to add a statement
which encourages all interested parties to submit suggestions of generic issues
that would be appropriately addressed in revenue rulings or revenue procedures.
Section 8.01 is revised to reflect the fact that the Assistant
Commissioner (Taxpayer Service and Returns Processing) is now responsible for
publishing the Internal Revenue Bulletin.
Section 3: Definitions
.01 A �revenue ruling� is an official interpretation by the Service of the
internal revenue laws and related statutes, treaties, and regulations, that has
been published in the Bulletin. Revenue rulings are issued only by the National
Office and are published for the information and guidance of taxpayers, Service
officials, and others concerned.
.02 A �revenue procedure� is an official statement of a procedure
published in the Bulletin that either affects the rights or duties of taxpayers
or other members of the public under the Internal Revenue Code and related
statutes, treaties, and regulations or, although not necessarily affecting the
rights and duties of the public, should be a matter of public knowledge.
Section 4: Background
.01 The Bulletin is the authoritative instrument of the Commissioner of
Internal Revenue for the publication of official rulings and procedures of the
Service, including all rulings and statements of procedure that supersede,
revoke, modify, amend, or affect any previously published ruling or procedure.
The Service also announces in the Bulletin the Commissioner�s acquiescence or
nonacquiescience in decisions of the United States Tax Court (other than
decisions in memorandum opinions), and publishes Treasury Decisions, Executive
Orders, tax conventions, legislation, court decisions, and other items
considered to be of general interest.
.02 The Bulletin is published weekly. In order to provide a permanent
reference source, the contents of the Bulletin are consolidated semiannually
into an indexed Cumulative Bulletin. These materials are sold by the
Superintendent of Documents, U.S. Government Printing Office, Washington, D.C.
20402-9325.
Section 5: Objectives
The purpose of publication of revenue rulings and revenue procedures in
the Bulletin is to promote uniform application of the tax laws by Service
employees and to assist taxpayers in attaining maximum voluntary compliance by
informing Service personnel and the public of National Office interpretations of
the internal revenue laws, related statutes, treaties, and regulations, and
statements of Service procedures affecting the rights and duties of taxpayers.
Section 6: Publication Standards
.01 It is the policy of the Service to publish in the Bulletin issues and
answers involving substantive tax laws under the jurisdiction of the Service,
except those involving--
- Issues answered by statute, treaties, or regulations;
- Issues answered by rulings, opinions, or court decisions previously published in the Bulletin;
- Issues that are of insufficient importance or interest to warrant publication;
- Determinations of fact rather than interpretations of law;
- Informers and informers� rewards; and
- Disclosure of secret formulas, processes, business practices, and similar information.
.02 It is the policy of the Service to publish in the Bulletin procedures
affecting taxpayers� rights or duties that relate to matters under the
jurisdiction of the Service.
Section 7: Form and Effect of Publication
.01 Revenue Rulings.
(1) Rulings and other communications involving substantive tax law
published in the Bulletin are published in the form of revenue rulings. The
conclusions expressed in a revenue ruling will be directly responsive to, and
limited in scope by, the pivotal facts stated in the revenue ruling. Revenue
rulings arise from various sources, including rulings to taxpayers, technical
advice to district offices, court decisions, suggestions from tax practitioner
groups, publications, etc.
(2) If the revenue ruling arises from the circumstances of a particular
taxpayer, the Service publishes as much as is necessary for an understanding of
the position stated. However, identifying details, including the names and
addresses of persons involved, and information of a confidential nature are not
included, to prevent unwarranted invasions of personal privacy and to comply
with statutory provisions, such as 18 U.S.C. section 1905 and 26 U.S.C. sections
6103 and 7213, dealing with disclosure of information obtained from members of
the public.
(3) A revenue ruling, other than one relating to the qualification of
pension annuity, profit-sharing, stock bonus, and bond purchase plans, applies
retroactively, unless it includes a specific statement indicating, under the
authority of section 7805(b) of the Code, the extent to which it is to be
applied without retroactive effect. When revenue rulings revoke or modify
rulings previously published in the Bulletin, the authority of section 7805(b)
ordinarily is invoked provide that the new rulings will not applied
retroactively to the extent that the new rulings have adverse tax consequences
to taxpayers. Section 7805 (provides that the Secretary of the Treasury may
prescribe the extent to which any ruling is to be applied without retroactive
effect. That authority has been delegated to the Commissioner and has been
delegated to the Associate Chief Counsel (Technical), the Associate Chief
Counsel (International), and the Assistant Commissioner (Employee Plans and
Exempt Organizations) and to each of their deputies. The exercise of this
authority requires an affirmative action. For the effect of revenue rulings on
determination letters and opinion letters issued with respect to the
qualification of pension, annuity, profit-sharing, stock bonus, and bond
purchase plans, see section 13 of Rev. Proc. 80-30, 1980-1 C.B. 685.
(4) Revenue Rulings published in the Bulletin do not have the force and
effect of Treasury Department regulations (including Treasury Decisions), but
are published to provide precedents to be used in the disposition of other
cases, and may be cited and relied upon for that purpose. No published ruling or
decision will be relied on, used, or cited, by any officer or employee of the
Service as a precedent in the disposition of other cases.
(5) Taxpayers generally may rely upon revenue rulings and revenue
procedures published in the Bulletin in determining the tax treatment of their
own transactions and need not request specific rulings applying the principles
of a published revenue ruling or revenue procedure to the facts of their
particular cases. However, taxpayers, Service personnel, and others concerned
are also cautioned to determine whether a revenue ruling or revenue procedure on
which they seek to rely has been revoked, modified, declared obsolete,
distinguished, clarified or otherwise affected by subsequent legislation,
treaties, regulations, revenue rulings, revenue procedures or court decisions.
(6) Each revenue ruling represents the conclusion of the Service as to the
application of the law to the entire statement of facts involved. Therefore,
taxpayers, Service personnel, and others concerned are cautioned against
reaching the same conclusion in other cases unless the facts and circumstances
are substantially the same. For example, occasionally, from the facts, legal
analysis, or other discussion it is clear that the federal tax law conclusion of
the revenue ruling or revenue procedure is predicated upon a certain provision
or interpretation of law other than federal tax law. If so, taxpayers, Service
personnel, and others concerned are also cautioned to determine whether such
relevant nontax law has changed materially from that used in the revenue ruling
or revenue procedure on which they seek to rely. In some cases, if the
conclusion of a revenue ruling or revenue procedure is so predicated on such
nontax law, the ruling or procedure may caution taxpayers by referring to this
paragraph of this revenue procedure. Any absence, however, of such a caution
does not prevent the principles stated here from applying to that revenue ruling
or revenue procedure.
(7) All interested parties, including teachers, professional associations,
and trade or business groups are encouraged to submit suggestions of generic
issues that would be appropriately addressed in revenue rulings or revenue
procedures. Also, comments and suggestions from taxpayers, taxpayer groups, or
other interested parties, on revenue rulings or revenue procedures being
prepared for publication in the Bulletin may be solicited if justified by
special circumstances. Conferences on revenue rulings or revenue procedures
being prepared for publication will not be granted except when the Service
determines that such action is justified by special circumstances.
.02 Revenue Procedures. When revenue procedures reflect the contents of
internal management documents, it is Service practice to publish as much of the
internal management document as is necessary for an understanding of the
procedure. When publication of the substance of a revenue procedure in the
Federal Register is required pursuant to 5 U.S.C. section 552, it will usually
be accomplished by an amendment of the Statement of Procedural Rules (26 C.F.R.
Part 601).
Section 8: Responsibilities
.01 The Chief Counsel is responsible for administering the Service�s
revenue ruling and revenue procedure publication program including the standards
for style and format of revenue rulings and revenue procedures. The Assistant
Commissioner (Taxpayer Service and Returns Processing) is responsible for
publishing the Internal Revenue Bulletin weekly and for consolidating the
contents of the Bulletin semiannually into an indexed Cumulative Bulletin.
.02 In accordance with the standards set forth in section 6 of this
revenue procedure, the Associate Chief Counsel (Technical), the Associate Chief
Counsel (International), and the Assistant Commissioner (Employee Plans and
Exempt Organizations) are responsible for the preparation and appropriate
referral for publication of revenue rulings reflecting interpretations of
substantive tax law made by their respective offices.
.03 In accordance with the standards set forth in section 6 of this
Revenue procedure, all Assistant Commissioners and the Chief Counsel are
responsible for the determination of whether procedures established by any
office under their jurisdiction should be published as revenue procedures and
for the initiation, content, and appropriate referral for publication of such
revenue procedures.
Section 9: Effect On Other Documents
Rev. Proc. 86-15 is superseded.
Drafting Information
This revenue procedure was drafted by the Office of the Associate Chief
Counsel (Passthroughs and Special Industries). For further information regarding
this revenue procedure contact Mr. James F. Hogan on (202) 566-3502 (not a
toll-free call).
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