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:

Foreign-exchange Reserves

Assets held by a central bank in foreign currencies, which are used to back liabilities on their own issued currency as well as to influence monetary policy.

Pegged Exchange Rate

A currency system where a country's currency value is fixed or linked to another currency or a basket of currencies.

Fixed Exchange-rate System

A currency system where the value of a country's currency is pegged to another currency, a basket of currencies, or a commodity like gold.