Rev. Proc. 78-24

Section 1. Purpose.

The purpose of this Revenue Procedure is to supersede Rev. Proc. 72-1, 1972-1 C.B. 693, and restate the objective of and set forth the standards for the publication of revenue rulings and revenue procedures in the Internal Revenue Bulletin.

Sec. 2. Changes.

.01 Section 6 revises section 5 of Rev. Proc. 72-1 to reflect the revised standards of publication of revenue rulings and revenue procedures in the Internal Revenue Bulletin.

.02 Material relating to matters that are now administered by the Bureau of Alcohol, Tobacco and Firearms has been deleted from this Revenue Procedure.

Sec. 3. Definitions.

.01 A "revenue ruling" is an official interpretation of the Internal Revenue laws, related statutes, tax treaties, and regulations, by the Internal Revenue Service that has been published in the Internal Revenue Bulletin. Revenue rulings are issued only by the National Office and are published for the information and guidance of taxpayers, Service officials, and others concerned.

.02 A "revenue procedure" is an official statement of a procedure published in the Internal Revenue Bulletin that either affects the rights or duties of taxpayers or other members of the public under the Internal Revenue Code and related statutes and regulations, or, although not necessarily affecting the rights and duties of the public, should be a matter of public knowledge.

Sec. 4. Background.

.01 The Internal Revenue Bulletin is the authoritative instrument of the Commissioner of Internal Revenue for the publication of official rulings and procedures of the Internal Revenue Service, including all rulings and statements of procedure that supersede, revoke, modify, amend, or affect any previously published ruling or procedure. The Service also announces in the Bulletin the Commissioner's acquiescence or nonacquiescence in decisions of the United States Tax Court (other than decisions in memorandum opinions), and publishes Treasury Decisions, Executive Orders, tax conventions, legislation, court decisions, and other items considered to be of general interest.

.02 The Bulletin is published weekly. In order to provide a permanent reference source, the contents of the Bulletin are consolidated semiannually into an indexed Cumulative Bulletin. An Index-Digest Supplement System provides a research and reference guide to all matters appearing in the Cumulative Bulletins. These materials are sold by the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402.

Sec. 5. Objectives.

The purpose of publication of revenue rulings and revenue procedures in the Internal Revenue Bulletin is to promote uniform application of the tax laws by Internal Revenue Service employees and to assist taxpayers in attaining maximum voluntary compliance by informing Service personnel and the public of National Office interpretations of the internal revenue laws, related statutes, tax treaties, and regulations, and statements of Service procedures affecting the rights and duties of taxpayers.

Sec. 6. Publication Standards.

.01 It is the policy of the Internal Revenue Service to publish in the Internal Revenue Bulletin issues and answers involving substantive tax laws under the jurisdiction of the Internal Revenue Service, except those involving--

(1) Issues answered by statute, tax treaties, or regulations;

(2) Issues answered by rulings, opinions, or court decisions previously published in the Bulletin;

(3) Issues that are of insufficient importance or interest to warrant publication;

(4) Determinations of fact rather than interpretations of law;

(5) Informers and informers' rewards; and

(6) Disclosure of secret formulas, processes, business practices, and similar information.

.02 It is the policy of the Service to publish in the Bulletin procedures affecting taxpayers' rights or duties that relate to matters under the jurisdiction of the Service.

Sec. 7. Form and Effect of Publication.

.01 Revenue rulings.--(1) Rulings and other communications involving substantive tax law published in the Internal Revenue Bulletin are published in the form of revenue rulings. The conclusions expressed in revenue rulings will be directly responsive to and limited in scope by the pivotal facts stated in the revenue ruling. Revenue rulings arise from various sources, including rulings to taxpayers, technical advice to district offices, court decisions, suggestions from tax practitioner groups, publications, etc.

(2) The Internal Revenue Service publishes as much of the ruling or communication as is necessary for an understanding of the position stated. However, identifying details, including the names and addresses of persons involved, and information of a confidential nature are not included, to prevent unwarranted invasions of personal privacy and to comply with statutory provisions, such as 18 U.S.C. 1905 and 26 U.S.C. 6103 and 7213, dealing with disclosure of information obtained from members of the public.

(3) A revenue ruling, other than one relating to the qualification of pension, annuity, profit-sharing, stock bonus, and bond purchase plans, applies retroactively, unless it includes a specific statement indicating, under the authority of section 7805(b) of the Internal Revenue Code of 1954, the extent to which it is to be applied without retroactive effect. When revenue rulings revoke or modify rulings previously published in the Bulletin, the authority of section 7805(b) ordinarily is invoked to provide that the new rulings will not be applied retroactively to the extent that the new rulings have adverse tax consequences to taxpayers. Section 7805(b) provides that the Secretary of the Treasury or the Secretary's delegate may prescribe the extent to which any ruling is to be applied without retroactive effect. That authority has been delegated to the Commissioner and has been redelegated to the Assistant Commissioners and Deputy Assistant Commissioners (Technical and Employee Plans and Exempt Organizations). The exercise of this authority requires an affirmative action. For the effect of revenue rulings on determination letters and opinion letters issued with respect to the qualification of pension, annuity, profit-sharing, stock bonus, and bond purchase plans, see section 5 of Revenue Procedure 72-6, 1972-1 C.B. 710.

(4) Revenue rulings published in the Bulletin do not have the force and effect of Treasury Department Regulations (including Treasury Decisions), but are published to provide precedents to be used in the disposition of other cases, and may be cited and relied upon for that purpose. No unpublished ruling or decision will be relied on, used, or cited, by any officer or employee of the Service as a precedent in the disposition of other cases.

(5) Taxpayers generally may rely upon revenue rulings published in the Bulletin in determining the tax treatment of their own transactions and need not request specific rulings applying the principles of a published revenue ruling to the facts of their particular cases. However, since each revenue ruling represents the conclusion of the Service as to the application of the law to the entire state of facts involved, taxpayers, Service personnel, and others concerned are cautioned against reaching the same conclusion in other cases unless the facts and circumstances are substantially the same. They should consider the effect of subsequent legislation, regulations, court decisions, and revenue rulings.

(6) Comments and suggestions from taxpayers, taxpayer groups, or other interested parties, on revenue rulings being prepared for publication in the Bulletin may be solicited, if justified by special circumstances. Conferences on revenue rulings being prepared for publication will not be granted except when the Service determines that such action is justified by special circumstances.

.02 Revenue procedures.--When revenue procedures reflect the contents of internal management documents, it is Service practice to publish as much of the internal management document as is necessary for an understanding of the procedure. When publication of the substance of a revenue procedure in the Federal Register is required pursuant to 5 U.S.C. 552, it will usually be accomplished by an amendment of the Statement of Procedural Rules (26 CFR Part 601).

Sec. 8. Responsibilities.

.01 The Assistant Commissioner (Technical) is responsible for administering the system for the publication of revenue rulings and revenue procedures in the Internal Revenue Bulletin, including the standards for style and format.

.02 In accordance with the standards set forth in section 6 of this Revenue Procedure, each Assistant Commissioner is responsible for the preparation and appropriate referral for publication of revenue rulings reflecting interpretations of substantive tax law made by such Assistant Commissioner's office and communicated in writing to taxpayers or field offices. The Chief Counsel is responsible for the referring of interpretations of substantive tax law made by the Chief Counsel's office to the appropriate Assistant Commissioner to be considered for publication as a revenue ruling.

.03 In accordance with the standards set forth in section 6 of this Revenue Procedure, each Assistant Commissioner and Chief Counsel are responsible for determining whether procedures established by any office under their jurisdiction should be published as revenue procedures and for the initiation, content, and appropriate referral for publication of such revenue procedures.

Sec. 9. Effects on Other Documents.

Rev. Proc. 72-1 is superseded.