In tax terms, a revenue procedure is IRS guidance on how taxpayers should comply with certain laws and regulations.
This page on the IRS website provides a good breakdown of the different types of IRS rulings that are out there. Here’s an example given on that page:
- A revenue ruling takes a particular set of facts and circumstances and give the IRS’s opinion on the tax implications. For example, a revenue ruling might say that certain expenses are deductible under certain circumstances.
- Following the example in the first bullet point about deductible expenses: a revenue procedure would build off the revenue ruling by explaining how to calculate the deduction, and how to claim the deduction on a tax return.
For more tax terms, check out the Glossary page on this website.
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