Identify Which of the Following Statements Is False

question 24

Multiple Choice

Identify which of the following statements is false.

• A)The IRS issues annually a revenue procedure that prescribes how a letter ruling should be requested and the information to be contained in the ruling request.
• B)The request for a ruling may contain a suggested conclusion (or answer)that the taxpayer proposes that the IRS adopt in the described situation.
• C)As a practical consideration, taxpayers always find it preferable to obtain an advance ruling on questionable tax situations.
• D)Third parties may not cite private letter rulings as authority for the tax consequences of their transactions.

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Definitions:

Economic Interests

The financial stakes or concerns in a policy, project, or action that motivates individuals, groups, or nations.

Popular Sovereignty

The idea that a state's power and governance are established and upheld with the approval of its citizens, via their chosen delegates.

Articles of Confederation

The first constitution of the United States, ratified in 1781, which established a weak federal government and was eventually replaced by the current U.S. Constitution in 1789.

Armed Forces

The combined military forces of a nation, including its army, navy, air force, and other branches, responsible for defense and other state-sanctioned activities.