Legal Definitions - REV. PROC.

Definition: Rev. Proc. is an abbreviation for Revenue Procedure. A Revenue Procedure is an official document published by the Internal Revenue Service (IRS) that provides guidance on how to comply with tax laws and regulations. It is a type of administrative ruling that is less formal than a Treasury Regulation or a Revenue Ruling.

Example: One example of a Revenue Procedure is Rev. Proc. 2019-44, which provides guidance on how to claim a deduction for qualified business income under section 199A of the Internal Revenue Code. This Revenue Procedure explains how to calculate the deduction, how to determine whether a trade or business qualifies for the deduction, and how to report the deduction on a tax return.

Explanation: This example illustrates how a Revenue Procedure can provide detailed instructions on how to comply with a specific tax law or regulation. In this case, Rev. Proc. 2019-44 explains how to claim a deduction for qualified business income, which is a complex provision of the tax code. By following the guidance in the Revenue Procedure, taxpayers can ensure that they are claiming the deduction correctly and avoiding potential penalties or audits.