What is the weight of IRS proposed regulations?

[Guest EBBeginner]

My question concerns how much we should rely upon proposed regulations issued by the IRS? Basically, would you advise a client to consider proposed regulations as the law? Would your answer be different if the regulations have been in proposed form since the 1980s?

[david rigby]

What is the weight of IRS proposed regulations?

Four to five pounds?

No expert, but I thought proposed regulations did not carry the force of law unless they were also issued as temporary regulations, which is sometimes the case. Have also heard one practioner state (approximately) "proposed regs bind the IRS but do not bind the individual".

Probably not possible to generalize completely about how to advise a plan sponsor. Each reg, and each situation, should be analyzed in light of its facts and circumstances.

[mbozek]

there are a lot of proposed reg. Which ones are you referring to? 411b?

[jevd]

it depends,

Some proposed regulations are issued with instructions that they may be relied upon until temporary or final regs are issued. There is generally a comment period where the service collect additional reactions to the proposed regs. They will then issue temporary or finals.

in some cases, proposed regulations are issued only for comment and may not be relied upon. This information is generally in the preamble to the regulatiion.

[Lori Friedman]

If I'm reading your question correctly, I believe you're asking about tax regulations in general?

Regulations are the Treasury Department's official interpretation and explanation of the Internal Revenue Code. A very short Code section might have many pages of interpretation and operational rules for applying the law. Regulations are substantial authority, incorporated into official administrative tax law.

A regulation is issued as a Treasury Decision. Before a TD can be published in final form, however, it must be released in proposed form for a period of at least 30 days (usually much longer). During this period of time, the TD is referred to as a Proposed Regulation and, unlike a final regulation, does not have the force and effect of law. Interested parties have time to comment on the proposed regulation, and the IRS may make changes to the TD before it's published in final form.