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:

Conflict Management

The method of recognizing and managing disputes in a rational, equitable, and effective way.

Compromise

A method of resolving disputes by making mutual concessions to reach a mutually acceptable decision.

Bargaining

The process of negotiating terms and conditions between parties, often regarding employment contracts or purchase agreements.

Accommodation

Adaptation or adjustments made in order to make something suitable for a new use or purpose.