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The Internal Revenue Service ( Irs )

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Introduction
Congress created the Internal Revenue Service (IRS) in 1862 mainly to administer and to enforce internal revenue laws and related statutes. The purpose of the IRS is to help taxpayers understand tax law and to be responsible for their tax obligations. In 2000, it processed 226 returns and collected $2 trillion tax dollars. The cost is 39 cents for each $100 collected.
The President appoints the chief executive of the IRS, the Commissioner. Then, the Senate approved the appointment. The Commissioner has a five-year tenure and oversees all operation of the IRS, including “processing of tax returns, the collection of taxes, enforcing tax laws, and interpreting tax laws written by Congress.”
The IRS has four operating …show more content…

In drafting the response or getting ready for the appointment, the taxpayer should examine very carefully the issues stated in the contact letter. The taxpayer should also plan an audit defense and to determine whether the issues are localized in one year or potentially broaden to other years.
Tax Authorities and References
Generally, there are two types of tax authority: primary and secondary. Statute, administrative regulations, and case law are the highest level of authority in tax. Secondary authority consists of Federal Tax Coordinator, US Tax Reporter, Tax Journals, and Newsletters. “For administrative law, the court examines under Chrevron and Skidmore/Mead deference. “Under the Chevron two-part framework, a court first asks whether Congress has “directly addressed the precise issue at question,” i.e., is the statute clear, or is it ambiguous or silent. Under the second part, a court examines whether the regulation is a permissible interpretation of the statutory text.” “The earlier Skidmore doctrine was reaffirmed in in Mead case where the court considers whether administrative agency 's interpretative rules deserve deference according to their persuasiveness.”
Private Letter Ruling
A Private letter ruling is “[a] written statement issued to the taxpayer by the Internal Revenue Service in which interpretations of the tax law are made and

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