to the Appeals Oﬃce. True. Secondary sources such as tax services, citators, and legal periodicals explain and comment on primary 45. sources of authority. False. Regulations are the Secretary of the Treasury’s interpretations of the provisions in the Code, not the 46. President’s interpretations. False. AICPA Statements on Standards for Tax Service are enforceable only against AICPA members.47. True. The Internal Revenue Code of 1939 was the first codification of the previous annual revenue acts.48. False. Revenue legislation begins in the House of Representatives, more specifically the House Ways and Means 49. Committee.True. The internal revenue laws as revised by the Tax Reform Act of 1986 resulted in the naming of the Code as 50. the Internal Revenue Code of 1986.True.51. False. The Supreme Court is not obligated to hear all federal tax cases that it has been requested to review. The 52. Court frequently denies certiorari. True. These are three types of regulations which have different weight.53. True.54. True. IRS employees follow the rulings, but taxpayers may appeal adverse return examination decisions based 55. on these rulings.True.56. True.57. False. Practice before the IRS is available for CPAs and attorneys also as well as a few other groups.58. True.59.
571Testbank©2012 CCH. All Rights Reserved.Chapter 2True. The Code and revenue rulings are primary sources of authority.60. False. Research products of publishing companies are secondary sources of authority, not primary sources of 61. authority.True.62. False. Taxpayers cannot go directly to the IRS Appeals Oﬃce.63. False. The amount involved must be $50,000 or less.64.
572CCH Federal Taxation—Comprehensive TopicsChapter 2©2012 CCH. All Rights Reserved.ANSWERS TO MULTIPLE CHOICE QUESTIONS—CHAPTER 2c. This is the customary format, which does not correspond with traditional outline format described in various 65. style manuals. b. However, an acceptable variation could allow for the omission of 1972. 66. b. The court and date are sometimes omitted. 67. d. Additionally, the Compilations reflect the pertinent court cases, Revenue Rulings, and Revenue Procedures as 68. annotations to the Code Sections and Regulations. d. LEXIS/NEXIS accesses the full texts of primary source materials. 69. c. The 16th Amendment to the Constitution. 70. b. Revenue Rulings present administrative interpretations of tax law. 71. b. Courts are not bound to follow Treasury Regulations when they are in conflict with the law. 72. c. Treasury Regulations are cross-referenced to related Code sections. For example, a Treasury Regulation in 73. support of Code Section 453 would be cited as Reg. Sec. 1.453. In contrast, the other sources of tax law have their own unique numbering system. d. The IRS Form—Revenue Agent’s Report is typically referred to as the “RAR.” 74. b. The Treasury Department is authorized by the Internal Revenue Code to publish interpretations of the law. 75.
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