13.1 - Tax Legislation

Question 1

Tax Legislation

What is the tax legislation process?

Answer 1

• House
• Senate
• Possible Joint Committee
• President

Question 2

Tax Legislation

What does the House in tax legislation consist of?

Answer 2

1. House Ways & Means Committee
2. Full House of Representatives

Question 3

Tax Legislation

What does the “Senate” consist of in tax legislation?

Answer 3

• Senate Finance Committee
• Full Senate

Question 4

Tax Legislation

At what point does the “Possible Joint Committee” get involved in tax legislation?

Answer 4

• If Senate revises the House version

Question 5

Tax Legislation

What vote does Congree need to veto President?

Answer 5

2/3rd vote

Question 6

Authoritative Tax Law

Identify the 3 types of authoritative tax law

Answer 6

• Legislative law
• Administrative law
• Judicial law

Question 7

Legislative Law:

What does legislative law consist of?

Answer 7

• internal revenue code
• committee reports

Question 8

Legislative Law:

Where does legislative law come from?

Answer 8

Congress

Question 9

Legislative Law:

How is legislative law authorized?

Answer 9

by the Constitution

Question 10

Legislative Law:

What is the most referenced form of legislative law for tax legislation?

Answer 10

Internal Revenue Code

Question 11

Legislative Law:

What is the purpose of committee reports in legislative law?

Answer 11

• Outlines the purpose of the law
• Ensure proper application of tax law

Question 12

Who puts adminstrative law into practice?

Answer 12

Treasury Department

Question 13

Administrative Law:

What does administrative law consist of?

Answer 13

• Regulations
• Revenue Rulings
• Revenue Procedure

Question 14

Administrative Law:

What are regulations?

Answer 14

• Interpretations of specific code sections authorized by law

Question 15

Administrative Law:

Identify the party bound by regulations in administrative law

Answer 15

• IRS bound by regulations courts are not

Question 16

Administrative Law:

Define revenue rulings in administrative law

Answer 16

• Official interpretation of revenue law as applied to a given set of facts and is issued by the IRS

Question 17

Administrative Law:

Are revenue ruling binding on courts?

Answer 17

No

Question 18

Administrative Law:

What is the distinction between revenue rulings and regulations?

Answer 18

• Regulations — general interpretation of a code section
• Revenue Ruling — IRS interpretation of how a code section should be applied to a specific set of facts

Question 19

Administrative Law:

Where are revenue rulings published and for what purpose?

Answer 19

• in Internal Revenue Bulletins to inform and advise taxpayers, IRS and others on substantive tax issues

Question 20

Administrative Law:

True or False >>>

a revenue ruling is cited as inferior and not relied upon in disputes

Answer 20

False -

• Cited as precedence and relied upon when resolving disputes, but no force & effect of regulations

Question 21

Administrative Law:

What is a revenue procedure?

Answer 21

• official IRS statement that prescribe the procedures that affect the rights or duties of tax payers

Question 22

Administrative Law:

What type of matters do revenue procedures primarily address?

Answer 22

• Administrative and procedure matters

Question 23

Administrative Law:

Do revenue procedures have the force and effect of law?

Answer 23

No, but they may be cited as precedent

Question 24

Administrative Law

Identify other IRS releases under administrative law

Answer 24

• Internal Revenue Bulletin
• IRS Publications
• Private Letter Rulings & Technical Advice Memoranda

Question 25

# Administrative Law Define IRB or an Internal Revenue Bulletin

Answer 25

authoritative instrument of the Commissioner of Internal Revenue for - announcing official IRS rulings and procedures - publishing Treasury Decisions, Executive Orders, Tax Conventions, legislation, court decisions, etc.

Question 26

# Administrative Law What are IRS publications?

Answer 26

* Not cited to sustain a position * Explain law in plain language

Question 27

# Administrative Law What is a private letter ruling?

Answer 27

- represents the conclusion of the Service for an individual taxpayer - confined to the specific case issued for unless issue covered by statute

Question 28

# Judicial Law: Where does judicial law originate from?

Answer 28

federal court system

Question 29

# Judicial Law: Define the 3 courts where tax cases begin at

Answer 29

* Tax court * District court * Court of federal claims

Question 30

# Judicial Law: Identify the 5 courts under judicial law

Answer 30

* Tax court * District court * Court of federal claims * Circuit courts of appeal * Appellate court * Supreme court * Final

Question 31

# Tax Court How are decisions issued in tax court?

Answer 31

* Decisions issued as either regular decision or memorandum decisions

Question 32

# Tax Court When may a taxpayer dispute a tax deficiency in tax court?

Answer 32

before payment

Question 33

# Supreme Court What is the purpose of the Supreme Court?

Answer 33

* Resolves inconsistent decisions between lower courts

Question 34

# Supreme Court What steps or processes does the Supreme Court take when reviewing decisions of lower courts?

Answer 34

* Issues a writ of certiorari to lower court to start review process

Question 35

# Supreme Court What opinion is expressed if the Supreme Court refuses to issue a writ of certiorari to lower courts?

Answer 35

* Denial of writ of certiorari by Supreme Court expresses no opinion on the merit of the case

Question 36

# Supreme Court Can the Supreme Court exercise discretion over which decisions to review?

Answer 36

Yes

Question 37

# Authority Hierarchy How does authority higher in the hierarchy impact lower conflicting authority?

Answer 37

* Authority higher in the hierarchy overrules lower conflicting authority

Question 38

# Authority Hierarchy If two separate authorities or tax legislations are within the same tier, which rule would take precedence?

Answer 38

most recent rule stands

Question 39

Define tax research

Answer 39

* Process of gathering situational facts, applying appropriate tax authorities and communicating the findings

Question 40

Identify the 3 primary authorities for tax research

Answer 40

* Internal Revenue Code * Tax Court Cases * Treasury Regulations

Question 41

Identify the secondary authority for tax research

Answer 41

* IRS publications

Question 42

# Administrative Law Define the types of regulations that fall under administrative law

Answer 42

- proposed - temporary - final

Question 43

# Administrative Law Define a proposed regulation under administrative law

Answer 43

* Issued to elicit comments from the public

Question 44

# Administrative Law When is a public hearing made regarding a proposed regulation under administrative law?

Answer 44

* Public hearing held if written request made

Question 45

# Administrative Law Is a proposed regulation considered an authoritative resource when taking a tax position?

Answer 45

* Weak authority * Used as somewhat of an authority for taking a tax position

Question 46

# Administrative Law Define a temporary regulation under administrative law

Answer 46

* Provide guidance to the IRS, tax practitioners and the public until final regulations are issued

Question 47

# Administrative Law When is a public hearing made for a temporary regulation under administrative law?

Answer 47

* No public hearing unless written requests are made

Question 48

# Administrative Law What level of authority do temporary regulations have?

Answer 48

- somewhat of an authority * Same force and effect of law as final regulations until final regulation is issued

Question 49

# Administrative Law How long are temporary regulations effective for under administrative law?

Answer 49

* Effective max 3 years

Question 50

# Administrative Law Are temporary regulations and proposed regulations the same?

Answer 50

* Must be issued concurrently as proposed regulations

Question 51

# Administrative Law Define a final regulation under administrative law

Answer 51

* Adopted after public comment on proposed versions are evaluated by Treasury

Question 52

What is a treasury decision?

Answer 52

* Doc describing finalization or amendment is referred to as a Treasury Decision (TD).