REG Tax Research and Planning: pick the right authority, court, and disclosure path

The rules, one page each

1. Final Regulations vs. Revenue Rulings: Which Controls?Sort it

   Follow the directly applicable Code and valid final Treasury regulation over conflicting lower-level guidance. Published revenue rulings and procedures provide IRS precedent; another taxpayer's PLR and IRS Publications do not.

2. Private letter rulings: what they are, how to use them, and when to request oneWhat next?

   A PLR may inform analysis but generally may not be cited as precedent by other taxpayers; to get taxpayer‑specific, binding guidance, request your own PLR from the IRS.

3. Which court controls? Apply the Golsen rule to pick binding judicial precedentStep by step

   Under the Tax Court’s Golsen rule, the Tax Court follows the controlling precedent of the Court of Appeals to which the case is appealable; binding circuit precedent outweighs contrary Tax Court opinions and IRS administrative guidance.

4. Disclosure vs substantial authority: avoiding taxpayer and preparer penaltiesContrasting cases

   For non‑tax‑shelter, nonreportable items, adequate disclosure plus at least a reasonable basis can avoid the IRC §6662 substantial‑understatement penalty and meet the §6694(a) signing‑preparer standard; this exception does not apply to tax shelters, listed, or reportable transactions.

5. Tax research process: get the facts, use primary authority, update for new guidance, and handle prior‑year errorsWhat next?

   Do not conclude until you have the decisive facts and applicable primary authority; update research for new binding guidance effective for the year at issue, and when discovering a prior‑year error, promptly advise the client and recommend correction without disclosing to the IRS absent permission or requirement.