ACC 331 Chapter 2

Question 1

Writes the law

Answer 1

Legislative

Question 2

Interprets the law

Answer 2

Judicial

Question 3

Applies the law

Answer 3

Administrative

Question 4

When 2 laws hold the same weight what happens

Answer 4

The newest supersedes the older ones

Question 5

16th admendment

Answer 5

Provides congress the ability to directly tax income from whatever source derived, without apportionment across the states

Question 6

Internal revenue code

Answer 6

Codification of federal tax law provisions

Question 7

Committee reports

Answer 7

Produced by house ways and means, senate finance, and conference committees, explain provisions

Question 8

Intent of congress

Answer 8

Key to interpreting legislation especially in the absence of administrative guidance

Question 9

Proposed regulation

Answer 9

Treasury department. Initial regulation issued to obtain comments from public

Question 10

Proposed regulation authority

Answer 10

Carries little weight in the court

Question 11

Final regulations

Answer 11

Treasury department. Provide interpretation procedure guidance in applying code

Question 12

Final regulations authority

Answer 12

Force and effect of law. May be cited as precedent

Question 13

Temporary regulations

Answer 13

Treasury department. Issued when guidance needed quickly, expires in 3 years

Question 14

Temp regulations

Answer 14

May be cited as precedent. Same weight as final regulations

Question 15

Revenue rulings

Answer 15

IRS. Describes application of law to specific facts, often contains examples

Question 16

Revenue rulings authority

Answer 16

IRS interpretation, weak precedent

Question 17

Revenue procedures

Answer 17

IRS. Relate to internal IRS procedures and practices

Question 18

Revenue rulings authority

Answer 18

IRS interpretation. Weak precedent

Question 19

Letter rulings

Answer 19

IRS. Requested by taxpayer. Describe treatment of a proposed transaction

Question 20

Letter ruling authority

Answer 20

Applicable to a specific taxpayer. No precedent

Question 21

Tax courts

Answer 21

Nationwide, tax cases only, no need to pay before, US court of appeals

Question 22

District court

Answer 22

Location of taxpayer, criminal and civil issues, need to pay before and sue for money back, US court of appeals

Question 23

Court of federal claims

Answer 23

Nationwide, claims against the US, need to pay before and sue for money back, court of appeals for the federal circuit

Question 24

Responsibilities of the appellate courts

Answer 24

Determine whether trial court applied the proper law in its decision not a consideration of trial courts factual findings

Question 25

Corps and partnerships tax filing

Answer 25

Files annually regardless of income

Question 26

Individual tax filing

Answer 26

Depends on filing status, age, gross income

Question 27

Estates and trusts tax filing

Answer 27

Require to file annually if gross income is greater than 600

Question 28

Tax return filings April 15th

Answer 28

C corps, individuals, and estates and trusts

Question 29

March 15th file date

Answer 29

S corps and partnerships

Question 30

Estates and trusts extentions

Answer 30

5.5 months

Question 31

Statute of limintations

Answer 31

Period during which the taxpayer can file an amended return or the IRS can audit. Generally 3 years

Question 32

Exceptions to statute of limitations

Answer 32

6 years if omit more than 25% of gross income. Indefinite if not filed or fraudulent

Question 33

Discriminating function system

Answer 33

Selects the returns with the highest prob of containing errors

Question 34

Document perfection program

Answer 34

Checks for math errors and tax calc

Question 35

Info matching

Answer 35

IRS matches info on returns with info received from employers and banks

Question 36

Special audit programs

Answer 36

Focus on specific industry

Question 37

Lifestyle audit

Answer 37

Living a lifestyle that does not match your taxable income

Question 38

Correspondence exam

Answer 38

Most common, least complex, through the mail, one or two items on return

Question 39

Office exam

Answer 39

More complex, small businesses, sole proprietorships, and middle to high income taxpayers, at local IRS

Question 40

Field exam

Answer 40

Most complex, business returns and most complex individual, IRS comes to the business or where the books are, can take years

Question 41

Audit process

Answer 41

IRS conducts exam and provides deficiencies. If disputed then request appeals with IRS, most settled here can get taken to court