Image courtesy of Pixabay.com

Image courtesy of Pixabay.com

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.