Administrative sources
Regulation and penalty (substantial authority):
Regulation is effective in the published Federal Register. With time, reprinted in the weekly IRB, IRB is bound twice a yr and redistributed as CB. Eventually codified in the code of federal reg (CFR) Not retroactive! Can apply Back to notice or proposal and temp published. Same process for amended regulation.
Final regulation: reg issued after notice and comment period.
Proposed regulation (not binding): subject to notice and comment period. No foundation and law. Going forward basis. Statue is clear, then no need for reg. final reg can be effective the date of proposed reg, so that need to be paid attention.
What does the tax court say about the treasury’s right to apply reg retroactively?
Regulation changes the definition of party, in new definition, prohibit tp. Court said that the change should going forward. You cannot change the rules in the middle and apply retroactively. there is difference btw prop reg and final reg. The court said no surprise, no big change in logic here (due process thus is not violated), anticipate the direction, and therefore no need to hold the reg invalid. temporary reg (binding): has time constraint and can expire soon( 3 yrs) before the final reg be effective. Proposed reliance reg can be relied on before the final reg be effective and no time restraint.
Written determination, can’t be cited as precedent. Revenue ruling: follow them but not bound by