The Statements on Standards for Tax Services provide guidance for CPAs in tax
With regard to tax research, in a closed-fact situation, the client contacts the tax
advisor after completing a transaction and facts cannot be modified. T
The term tax law as used by most tax advisors encompasses administrative and
judicial interpretations in addition to the Internal Revenue Code. T, p. I:15-7.
If the House and Senate versions of a bill differ, it is referred to the Joint
Committee on Taxation. F,
Solution: The bill is referred to a House-Senate
The Internal Revenue Code is the foundation of all tax law. T,
The Internal Revenue Code includes provisions dealing with the federal income
tax only. F, Solution: The IRC contains provisions dealing with income taxes,
estate and gift taxes, employment taxes, alcohol and tobacco taxes, and other
If regulations are issued prior to the latest tax legislation dealing with a specific
Code section, the regulations are no longer effective to the extent they conflict
with the provisions in the new legislation. T, .
Interpretive regulations are issued by the Treasury Department to provide
interpretations and illustrations of the Code. T,.
Generally, tax statutes are controlling where they conflict with the regulations. T,
. A court is unlikely to invalidate a legislative regulation because it recognizes that
Congress has delegated to the Treasury Department authority to issue a specific
set of rules. T,.
A revenue ruling, which represents the IRSs view of the tax law, is considered
the same level of authority as the regulations. F,
Rev. Proc. 98-19 is a revenue procedure that was published in 1998. T
A letter ruling is binding only to the taxpayer to whom the ruling was issued. T, p.
Because letter rulings apply only to the taxpayer to whom it is addressed, letter
rulings are not accessible to the general public. F
Technical advice memoranda are issued by the Internal Revenue Service
National Office to provide an answer to a technical question that arises in an
In tax matters, there are three trial courts in which litigation may begin: the U.S.
Tax Court, U. S. District Courts, and the U.S. Supreme Court. F
Court precedents are important in deciding in which of the three trial courts to
begin tax litigation. T
In order to file a claim in the U. S. District Court, the tax deficiency must first be
The Tax Court is the only venue in which a jury trial may be requested with
regard to a tax issue. F,
The small cases procedure of the U.S. Tax Court allows a less formal hearing in
front of commissioners rather than Tax Court judges but provides for no appeal.