Final answer:
Taxpayers should rely on revenue rulings as they provide authoritative interpretations of tax laws and enable taxpayers to understand the IRS's application of the law to specific situations. These rulings also offer protection during audits if followed in good faith.
Step-by-step explanation:
Revenue rulings are official interpretations by the United States Treasury concerning the Internal Revenue Code and are intended to provide guidance to taxpayers, tax professionals, and IRS agents. Taxpayers should rely on revenue rulings because they articulate how the IRS applies the law to particular factual situations. These official interpretations are informative and can help taxpayers understand how the tax law may apply to their specific circumstances.
As these rulings reflect the most current stance of the IRS on various tax matters, they are generally presumed to have a good level of authority, similar to case law. Furthermore, taxpayers that follow revenue rulings in good faith may have greater protection in case of an audit because they are adhering to the interpretations provided by the authority responsible for tax enforcement. Therefore, relying on revenue rulings can reduce uncertainty and the risk of non-compliance with tax laws.