The Internal Revenue Code is the most authoritative source ofincome tax law. In trying to resolve an income taxâ question,however, a tax researcher also consults administrative rulingsâ(Income Taxâ Regulations, Revenueâ Rulings, etc.) and courtdecisions. Whyâ wouldn't the tax researcher just consult the Codesince it is the highestâ authority? Similarly, why is there a needfor administrative rulings and courtâ decisions?
A. The Code contains generallanguage and does not address the many specific situations andtransactions that occur. To resolve tax questions concerningspecificâ situations, administrative rulings and court decisionsare an integral part of the income tax law.
B.The Code does not include alltax laws. Administrative rulings and court decisions contain taxlaws that are not included in the Code.
C.Administrative rulings andcourt decisions contain rulings that can override the Code and thatprovide greater tax savings.
D.Administrative rulings andcourt decisions contain tax laws that are inconsistent with theCode. Tax researchers can use administrative rulings and courtdecisions in place of the law stated in the Code when it is morebeneficial.
The Internal Revenue Code is the most authoritative source ofincome tax law. In trying to resolve an income taxâ question,however, a tax researcher also consults administrative rulingsâ(Income Taxâ Regulations, Revenueâ Rulings, etc.) and courtdecisions. Whyâ wouldn't the tax researcher just consult the Codesince it is the highestâ authority? Similarly, why is there a needfor administrative rulings and courtâ decisions?
A. The Code contains generallanguage and does not address the many specific situations andtransactions that occur. To resolve tax questions concerningspecificâ situations, administrative rulings and court decisionsare an integral part of the income tax law.
B.The Code does not include alltax laws. Administrative rulings and court decisions contain taxlaws that are not included in the Code.
C.Administrative rulings andcourt decisions contain rulings that can override the Code and thatprovide greater tax savings.
D.Administrative rulings andcourt decisions contain tax laws that are inconsistent with theCode. Tax researchers can use administrative rulings and courtdecisions in place of the law stated in the Code when it is morebeneficial.
