RulesoftaxlawdonotincludeRevenueRulingsandRevenueProcedures. True False ANSWER: RATIONALE:RulesoftaxlawdoincludeTreasuryDepartmentpronouncements. Ataxprofessionalneednotworryabouttherelativeweightofauthoritywithinthevarioustaxlawsources. True False False ANSWER: RATIONALE:Quitethecontrary. Inrecentyears,CongresshasbeenrelativelysuccessfulinsimplifyingtheInternalRevenueCode. True False False ANSWER: RATIONALE:EachyeartheCodebecomesmoreandmorecomplex. Ataxpayershouldalwaysminimizehisorhertaxliability. True False False ANSWER: RATIONALE:Ataxpayershouldmaximizetheafter-taxreturninconjunctionwiththeoveralleconomiceffect. Thefirstcodificationofthetaxlawoccurredin1954. True False False ANSWER: RATIONALE:Thefirstcodificationofthetaxlawoccurredin1939. TheCodesectioncitationisincorrect:§212(1). True False ANSWER: RATIONALE:SomeCodesectionsomitthesubsectionanduseparagraphdesignationasthefirstsubpartasdoes§212. SubchapterDreferstothe“CorporateDistributionsandAdjustments”sectionoftheInternalRevenueCode. True False
RulesoftaxlawdonotincludeRevenueRulingsandRevenueProcedures. True False ANSWER: RATIONALE:RulesoftaxlawdoincludeTreasuryDepartmentpronouncements. Ataxprofessionalneednotworryabouttherelativeweightofauthoritywithinthevarioustaxlawsources. True False ANSWER: False RATIONALE:Quitethecontrary. Inrecentyears,CongresshasbeenrelativelysuccessfulinsimplifyingtheInternalRevenueCode. True False ANSWER: False RATIONALE:EachyeartheCodebecomesmoreandmorecomplex. Ataxpayershouldalwaysminimizehisorhertaxliability. True False ANSWER: False RATIONALE:Ataxpayershouldmaximizetheafter-taxreturninconjunctionwiththeoveralleconomiceffect. Thefirstcodificationofthetaxlawoccurredin1954. True False ANSWER: False RATIONALE:Thefirstcodificationofthetaxlawoccurredin1939. TheCodesectioncitationisincorrect:§212(1). True ANSWER: False RATIONALE:SomeCodesectionsomitthesubsectionanduseparagraphdesignationasthefirstsubpartasdoes§212. SubchapterDreferstothe“CorporateDistributionsandAdjustments”sectionoftheInternalRevenueCode. True False
Testbank-for-South-Western-Federal-Taxation-2015-Comprehensive-38th-Edition-by-William-H-Hoffman-Jr-.docx