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Which firms are fully remote? Looking to move
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Statute controls. Statute (the IRC) can authorize treasury to provide guidance through regulation (Section 482, for example). Treasury can also issue interpretations of statute. Treasury can issue legislative regs (like 482 which control), interpretative (where statute doesn’t expressly grant authority but treasury addresses complexity...needs to align with the statute and isn’t authoritative if it oversteps and contradicts statute or adds law), and procedural (how to file returns, reporting requirements, etc). Case law settles disputes around uncertainty in application. Two general courts: tax court and court of claims. Tax court when the taxpayer refuses to agree with and pay an assessment. Claims when the taxpayer pays and then requests refund. Tax court follows district courts and thus generally applies only in district and only if facts align. Then there are a host of procedural items (rev ruling, rev procedure, etc) and general guidance issued by IRS (CCM) and responses to company specific facts (PLR, which can’t be used as authority).
Now that I’ve trained you up, want to come to PwC? Haha
Also, there are final, temporary and proposed regs. Final regs have force of law. Same with temp. Proposed don’t carry force of law and are issued for comment and to provide general direction Treasury is expected to take on an issue. Wolters Kluwer actually has a pretty good summary out there somewhere, by the way.
Transfer pricing in the house! Go TP
As a prof, I am glad someone paid attention I their research and writing class :)
Strong technical answer to your question. Reality on why positions are taken - consequences of position taken and client’s risk tolerance.