Tax Return Position Paper When it comes to taxes and the Internal Revenue Service (IRS), it can be difficult to take any particular position on a tax return. There are so many different things that must be weighed out before making such a difficult decision. In order to take a firm position on a tax return one would first need to know the primary sources of tax law as well as the secondary sources of tax law. Secondly, there is also the need to know what substantial authority is and to have a clear and decisive understanding of the true meaning of it. Lastly, one needs to understand the role of the Internal Revenue Service and the courts in the aspect of applying tax law.
Primary Sources There are multiple sources of tax law that are used. The largest primary source currently being used is the Internal Revenue Code. The Internal Revenue Code is actually part of the United States Code. Other primary sources of tax law consist of treasury regulations and federal regulations. Previous decisions made by the different courts systems (United States Tax Court, federal circuit courts, district courts, supreme court and court of federal claims) are widely used as primary sources of tax law. The previous rulings from the different court systems is a good sources because the information is more detailed and serves as a guideline for different taxpayer situations. The courts and Internal Revenue Code generally have the highest authority. However, there are also other sources to be used such as IRS publications and private letter rulings. These sources typically do not carry as much weight as the courts.

Secondary Sources The uses of secondary sources of tax law are commonly used and in often times, it may be best to explore secondary sources before exploring your primary sources. The most important secondary source of tax law used is treatises.