Federal Tax Authorities, Procedures, and Individual Taxation Flashcards
In order to show that a tax preparer’s application of tax law was in line with the intent of the tax law, the preparer should cite what authoritative source to make the most convincing case?
A committee report. Committee reports are useful tools in determining Congressional intent behind certain tax laws and helping examiners apply the law properly. The committee reports are very high authority to which the courts are bound.
An employee who has had Social Security tax withheld in an amount greater than the maximum for a particular year may claim what?
When an employee overpays the Social Security tax, proper adjustments must be made. If the overpayment cannot be adjusted, the amount must be refunded. If the overpayment resulted from correct withholding by two or more employers, the extra Social Security tax may be used to reduce income taxes.
