The Purpose of Revenue Rulings Is to Promote Uniform Application

question 80

True/False

The purpose of revenue rulings is to promote uniform application of the tax law to an entire set of facts. Therefore, IRS employees must follow the rulings, while taxpayers may appeal adverse return examination decisions based on these rulings.

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Definitions:

Annually Compounded

Pertaining to interest on investment or loans that is calculated once a year, adding to the sum each year.

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, often used as an indicator of inflation.

Real Rate Of Return

The annual percentage profit earned on an investment, adjusted for changes in the price level due to inflation.

Annually Compounded

Interest on an investment or loan calculated once per year, including interest on the initial amount and all previously accumulated interest.