Federal tax procedures

Question 1

Most authoritative value

Answer 1

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.

Question 2

Penalties

Answer 2

Accuracy-related penalties apply to the portion of tax underpayments attributable
to negligence or disregard of tax rules and regulations as well as to any substantial understatement of
income tax

Question 3

Under accrued

Answer 3

Under the accrual basis of accounting, when you include an amount in gross
income on the basis of a reasonable estimate, and you later determine the exact amount, the difference
(if any) is taken into account in the tax year in which the determination is made. Therefore, in this case,
the additional $2,000 is included in Brun’s Year 2 income.

Question 4

Negligence penalty

Answer 4

The negligence penalty with respect to understatement of tax is an accuracy-based
penalty for negligence or for disregard of tax rules and regulations

Question 5

US Supreme court

Answer 5

U.S. District Court cases are heard before one judge, not a panel of judges.The U.S. Court of Federal Claims follows the decisions of the Federal Court of
Appeals. Judges for the U.S. Tax Court hear cases at various locations in the country. The Supreme Court hears cases in Washington, DC with
all nine justices present.

Question 6

post audit

Answer 6

Following an audit, if agreement is reached with the taxpayer, the taxpayer signs
Form 870 (Waiver of Restrictions on Assessment and Collection of Deficiency in Tax).

Question 7

judicial process when a taxpayer and the Internal

Revenue Service cannot reach agreement on a tax issue using the administrative appeals process?

Answer 7

The U.S. Court of Federal Claims has jurisdiction over most claims for moneydamages against the United States, one type of which is tax refunds

Question 8

courts of origin jurisdiction or trial courts

Answer 8

The courts of original jurisdiction for tax cases, i.e., the courts in which a taxpayer
would first bring a lawsuit against the IRS, are the Tax Court, the U.S. District Court, and the U.S. Court
of Federal Claims