Are Proposed Regulations Authoritative?

Proposed regulations are not considered to be binding until they are finalized. ... During this three year period the regulations are as authoritative as the final regulations.

Can you rely on proposed regulations?

Proposed regulations do not have the force and effect of law. Taxpayers generally may not rely on them to establish the substantive interpretation of the Internal Revenue Code for planning purposes, unless there is an express statement in the preamble that permits such reliance.

What is a proposed regulation?

"Generally, regulations are first published in proposed form in a Notice of Proposed Rulemaking (NPRM)." (IRS website) Proposed regulations are published in the Federal Register and in the Internal Revenue Bulletin. "Proposed regulations provide guidance concerning Treasury's interpretation of a Code section.