Define: Revenue Procedure

A Revenue Procedure is an official statement of the Internal Revenue Service (IRS) that provides guidance on various tax-related issues, such as accounting methods, depreciation, and other procedural matters.

A Revenue Procedure provides guidance on procedural matters, while a Revenue Ruling provides guidance on the interpretation of tax laws.

Yes, taxpayers can rely on a Revenue Procedure for tax planning purposes, as it represents the official position of the IRS on a particular issue.

Revenue Procedures are typically issued on a regular basis throughout the year as the need arises to provide guidance on specific tax issues.

While Revenue Procedures are generally considered authoritative guidance, they can be challenged in court if a taxpayer believes that the IRS has misinterpreted the law or acted arbitrarily.

Yes, Revenue Procedures are binding on the IRS and must be followed by IRS personnel in administering the tax laws.

Yes, the IRS has the authority to revoke or modify a Revenue Procedure if it determines that the guidance provided is no longer accurate or relevant.

Revenue Procedures are published in the Internal Revenue Bulletin, which is available on the IRS website. They can also be found through various tax research databases.

In most cases, a private letter ruling is not necessary if a Revenue Procedure already provides guidance on the issue. However, in certain circumstances, a taxpayer may still choose to request a private letter ruling for additional certainty.

While Revenue Procedures do not have an expiration date, taxpayers should be aware that the IRS may issue new guidance that supersedes or modifies a previous Revenue Procedure. It is important to check for any updates or changes to the guidance before relying on it for tax planning purposes.