Identify Which of the Following Statements Is False

question 58

Multiple Choice

Identify which of the following statements is false.

• A)The acquiescence policy was adopted by the U.S. Tax Court to permit litigating parties to agree on the exact amount of the tax due.
• B)Letter rulings are binding only with respect to the taxpayer requesting the ruling.
• C)The small cases procedure of the U.S. Tax Court allows a less formal hearing but provides for no appeal.
• D)The IRS may retroactively revoke an acquiescence.

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Definitions:

Algorithm

A set of rules or a step-by-step process designed to perform a specific task or solve a particular problem.

Heuristic

A simple thinking strategy that often allows us to make judgments and solve problems efficiently; usually speedier but also more error-prone than an algorithm.

Tools

Devices or implements used to carry out a function or perform a task, often making jobs easier or possible.

Heuristics

Mental shortcuts or "rules of thumb" that simplify decision making by reducing the amount of information processed.