Video: Authoritative Value of Various Sources

In this lesson, Nick Palazzolo, CPA, breaks down the hierarchy of tax literature, starting with the most authoritative sources and working down to lesser-known but still relevant materials. He begins with an in-depth discussion on the role of the Internal Revenue Code (IRC) as the supreme rule book for federal tax law and moves on to cover Treasury Regulations, which offer interpretation and application guidance for the IRC. He delves into how tax court decisions, while not as authoritative as the IRC, still impact interpretations and applications of tax law. Nick provides clarity on the specific roles of various IRS publications, including revenue rulings and private letter rulings. He explains the nuanced differences between these sources and IRS agent reports, painting a clear picture of their varying degrees of authority. Nick also goes beyond formal tax authorities to address the value of opinions from tax professionals and legal periodicals. He engages with examples such as the complexities of modern issues like cryptocurrency to illustrate the evolution and interpretation of tax laws, serving as a comprehensive guide through the often-confusing landscape of tax literature and authoritative value.