Values File

slhs value file justice is secured through the rule

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Unformatted text preview: rsity School of Law. J.D., University of Michigan Law School, 1988; B.S.B.A., Drake University, 1985. Cornell Journal of Law and Public Policy Spring, 1999 8 Cornell J. L. & Pub. Pol'y 445 Efforts to restore Rule of Law values in this area should begin by eliminating the Commissioner's authority to challenge methods of accounting that otherwise conform to the requirements of the Code and regulations. Dynamic rule-revision power is particularly offensive to Rule of Law values, and both taxpayer rights and goals of efficient tax administration are threatened when rules are abandoned in favor of a [*538] case-by-case determination of tax liability. Structural principles of tax law that may be identified and applied by courts hardly provide certainty and predictability as to when rules should be abandoned. Rule-based reliance is more likely to ensure that all taxpayers are treated similarly, and it avoids the costs associated with an attempt to achieve substantive justice in each case. RULE OF LAW CREATES JUSTICE Edward A. Morse, Associate Professor of Law, Creighton University School of Law. J.D., University of Michigan Law School, 1988; B.S.B.A., Drake University, 1985. Cornell Journal of Law and Public Policy Spring, 1999 8 Cornell J. L. & Pub. Pol'y 445 Current regulations look to compliance with GAAP as a general indicator of clear reflection of income. Section 1.446-1(a)(2) of the regulations states in part: "A method of accounting which reflects the consistent application of generally accepted accounting principles in a particular trade or business in accordance with accepted conditions or practices in that trade or business will ordinarily be regarded as clearly reflecting income, provided all items of gross income and expense are treated consistently from year to year." n434 Elevating compliance with GAAP to conclusive status in clear reflection analysis would provide an objective basis for constraint, thereby restoring Rule of Law values in this context. The rul...
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