10. (TCO G) Complete the following requirements: Describe the components of the common body of tax law (CBOTL). Include in your response answers to the following questions: • What role does the U.S. Congress play in creating the tax law? Briefly explain how a tax bill becomes a tax law. • What role does the Internal Revenue Service play in interpreting, and providing guidance on, the tax law? What types of tax law guidance are published by the IRS?
Under the 16th amendment, which states " "The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration." Prior to the 16th amendment, people could build up wealth with little to no interaction with the government. Most tax legislation originates in the House Committee on Ways and Means, who drafts a bill and forwards it to the full House. It is accompanied with a detailed report that gives the Committee's reasoning behind the bill - which can be used by the IRS and the court system to interpret the law as presesented. If the bill passes the House it goes to the Senate Finance Committee. That committee makes changes, and then takes the bill to the Senate floor. If the Senate bill is unchanged from the House bill, then it goes to the president for signature. If it is changed, there is a conference committee from reps in both the House and Senate. Both the House and Senate must pass the same version of a bill before it goes to the president for signature. The mission of the Internal Revenue Service is to apply the tax law with integrity and fairness.It is to provide America's taxpayers top quality service by helping them understand and meet their tax responsibilities and by applying the tax law with integrity and fairness to all. The IRS role is to help the large majority of compliant taxpayers with the tax law, while ensuring that the minority who are unwilling to comply pay their fair share.IN order to achieve its objectives, the IRS produces many documents, most of which are published in the weekly Internal Revenue Bulletin (IRB). The IRB has four main parts: the Code (which includes revenue rulings, final regulations, and Supreme Court tax decisions relating to the provisions of the IRC); Treaties and Tax Legislation (which includes treaties, tax legislation, and committee reports); Administrative, Procedural, and Miscellaneous (which includes notices and revenue procedures); and Items of General Interest (which includes notices of proposed rulemakings and announcements). The IRB also publishes notices of IRS acquiescence or nonacquiescence of judicial decisions against the government.Link to detailed information-http://www.law.harvard.edu/library/services/research/guides/grfs/specialized/tax.php#IRS