MGMT 127A Chapter Notes - Chapter 2: Treasury Regulations, Deferral, Capital Asset
Document Summary
Chapter 2: working with the tax law. Notes are only relevant to this specific class** The primary sources of tax information include pronouncements from all three branches of government: legislative, executive, and judicial: also includes the constitution, legislative history materials, statutes, treaties, treasury regulations, irs pronouncements, and judicial decisions. The tax adviser must be cognizant that the objective of tax planning is not necessarily to minimize the tax liability. Instead, a taxpayer should maximize his or her after-tax return, which may include maximizing nontax as well as noneconomic benefits. The constitution grants congress the power to impose and collect taxes and authorizes the creation of treaties with other countries. Treasury regulations are the official interpretation of the code and are entitled to great deference. Final regulations can be classified as procedural, interpretive, or legislative o. Procedural regulations neither establish tax laws nor attempt to explain tax laws.
