REG 47 - Tax Research and Practice 1 - Authoritative Sources

Question 1

All of the following are administrative sources of the tax law except:
	A.  	Private letter rulings.
	B.  	Technical advice memoranda.
	C.  	Revenue rulings.
	D.  	Committee reports

Answer 1

D. Committee reports are legislative sources of authority which provide insight into the intention of the House Ways & Means Committee, Senate Finance Committee, and Joint Conference Committee.

Question 2

Which of the following courts is not a court of original jurisdiction?
A. United States Tax Court.
B. United States District Court.
C. United States Court of Appeals.
D. United States Court of Federal Claims.

Answer 2

C. The United States Court of Appeals hears appeals from the U.S. Tax Court and the U.S. District Court. It is not a court of original jurisdiction.

Question 3

Which Senate committee considers new tax legislation?
	A.  	Budget.
	B.  	Finance.
	C.  	Appropriations.
	D.  	Rules and Administration.

Answer 3

B. Tax legislation in the Senate begins in the Senate Finance Committee.

Question 4

T/F: For a private letter ruling to be issued by the IRS, the transaction being addressed cannot have yet been completed by the taxpayer.

Answer 4

True

Question 5

T/F: Temporary regulations have the effect of law for 12 months.

Answer 5

False.
Temporary – These regulations do have the effect of law but only for three years. Temporary regulations are usually issued when taxpayers need immediate guidance on a substantive matter of the law.

Question 6

T/F: If Congress authorizes Treasury to develop regulations dealing with a specific issue, the regulations are known as interpretive regulations.

Answer 6

False.
a.
Legislative – These regulations have almost as much weight as the statute (IRC), since Congress has authorized the Treasury to develop regulations dealing with a specific issue.
b.
Interpretative – These regulations are written under the general mandate given to Treasury to develop regulations to interpret the laws legislated by Congress.

Question 7

T/F: All tax bills must originate in the Senate Finance Committee.

Answer 7

False.

All tax bills must originate in the House Ways and Means Committee.