|FORMS: 9.6 IMPORTANCE OF COURT DECISIONS: IRM Sec. 22.214.171.124.9.8 -5/14/99|
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This administrative requirement is useful in contradicting the IRS in using other Tax Court rulings as a precedent or example of how any other case will be handled.
Internal Revenue Manual 126.96.36.199.9.8 05/14/99
Importance of Court Decisions
1. Decisions made at various levels of the court system are considered to be interpretations of tax laws and may be used by either examiners or taxpayers to support a position.
2. Certain court cases lend more weight to a position than others. A case decided by the U.S. Supreme Court becomes the law of the land and takes precedence over decisions of lower courts. The Internal Revenue Service must follow Supreme Court decisions. For examiners, Supreme Court decisions have the same weight as the Code.
3. Decisions made by lower courts, such as Tax Court, District Courts, or Claims Court, are binding on the Service only for the particular taxpayer and the years litigated. Adverse decisions of lower courts do not require the Service to alter its position for other taxpayers.