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NEW QUESTION: 1
A. Option C
B. Option B
C. Option A
D. Option E
E. Option D
Answer: A,B
NEW QUESTION: 2
In evaluating the hierarchy of authority in tax law, which of the following carries the greatest authoritative
value for tax planning of transactions?
A. Internal Revenue Code.
B. IRS agents' reports.
C. IRS regulations.
D. Tax court decisions.
Answer: A
Explanation:
Explanation
Note: This question is addressed in your Appendix D text materials. We are confident that our students
would be able to respond correctly over 85% of the time without any guidance on this topic. The answer is
rather obvious. Just by looking at the answer options, you will immediately notice that Option A is
presented in title case. This would be a quick sign that it may be the correct response. Further, we
suspect that most students would narrow the options down to "a" or "b" by simply using common sense.
While we are confident that our students would fare well on this question if it appeared on their exams, we
present the following detailed explanation of the answer options.
Choice "a" is correct. According to the IRS's website under Tax Code, Regulations and Official Guidance,
the "federal tax law begins with the Internal Revenue Code (IRC), [which was] enacted by Congress in
Title 26 of the United States Code (26 U.S.C.)." The IRC holds the most authoritative value.
Choice "b" is incorrect. According to the IRS's website under Tax Code, Regulations and Official
Guidance, the IRS regulations or "Treasury regulations (26 C.F.R.)-commonly referred to as Federal tax
regulations-pick up where the Internal Revenue Code (IRC) leaves off by providing the official
interpretation of the IRS by the U.S. Department of Treasury." Regulations give directions on how to apply
the law outlined in the Internal Revenue Code. Regulations have the second most force and effect,
second only to the IRC.
Choice "c" is incorrect. Tax court decisions interpret the Internal Revenue Code. They do not have the
authority of the IRC.
Choice "d" is incorrect. The reports of IRS agents are used to report on specific taxpayer situations. IRS
agents' reports apply the Internal Revenue Code, IRS regulations, and other forms of authoritative
literature, but they do not hold the value that the IRC, the IRS regulations, or even tax court decisions
have.
Individual Taxation - Exemptions
NEW QUESTION: 3
Which of the following is true about SAP Asset Intelligence Network cloud application?
A. A remote service technician is a typical user of this application.
B. A constructing engineer is the typical user of this application.
C. It is the target of the application to maintain a global directory of pieces ofequipment, that uses general definitions.
D. It is the target of the application, to improve the visibility of machines.
Answer: B,C
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