In the context of IRS regulations, which holds more weight?

In the context of IRS regulations, the correct answer indicates that the regulations hold an important authoritative role in tax law interpretation and application. The Internal Revenue Code is the primary source of federal tax law enacted by Congress, but the regulations issued by the IRS provide detailed guidance on how the provisions of the Code are to be implemented. They are designed to clarify the Code and provide taxpayers and practitioners with necessary instructions and interpretations, making them highly authoritative.

IRS regulations can take various forms, including proposed, temporary, and final regulations, and they reflect the IRS's official stance on various tax matters. Courts generally defer to the IRS's interpretations as long as they are reasonable and align with the intent of the Internal Revenue Code. Therefore, while the Internal Revenue Code is the foundational law, the regulations are critical for practical compliance and understanding of how the Code operates in real-life scenarios.

State law does play a significant role in tax matters at the state level but does not hold weight in the context of federal IRS regulations. Judicial decisions also provide important interpretations and determine how laws are applied, but they are typically viewed as secondary to the regulations issued by the IRS. In summary, the weight of IRS regulations is significant as they serve as the bridge between the broad legislative language of the