Chapter 02 Solutions

Chapter 02 Solutions - Chapter Two Problem Solutions 7 Income tax Reg 1 702 1(a(8 Type of Regulation Related Code Section Regulation Number

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Chapter Two Problem Solutions 7. Income tax Reg. § 1. 702 – 1 (a) (8) Type of Regulation Related Code Section Regulation Number Regulation Paragraph Regulation Subparagraph p. 2-6 9. In many Code sections, Congress has given to the “Secretary or his delegate” the authority to prescribe Regulations to carry out the details of administration or otherwise to complete the prevailing administrative rules. Under such circumstances, it almost could be said that Congress is delegating its legislative powers to the Treasury Department. Regulations that are issued pursuant to this type of authority truly possess the force and effect of law and often are called “legislative” Regulations. Examples of “legislative” Regulations include those that address consolidated returns issued under §§ 1501 through 1505 and those that addressed the debt/equity question issued under § 385 (withdrawn). Legislative Regulations are to be distinguished from “interpretive” Regulations, which purport to rephrase and elaborate on the meaning (i.e., intent of Congress) of a particular Code Section. An example of interpretive Regulations are those issued under § 1031 for like-kind exchanges. 16.
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This note was uploaded on 03/14/2009 for the course ACCT 575 taught by Professor Generalaccounting during the Spring '09 term at Binghamton University.

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Chapter 02 Solutions - Chapter Two Problem Solutions 7 Income tax Reg 1 702 1(a(8 Type of Regulation Related Code Section Regulation Number

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