Which of the Following Is Correct with Respect to Private

question 114

Multiple Choice

Which of the following is correct with respect to Private Letter Rulings?

• A)Can be relied upon by all taxpayers in a similar tax situation.
• B)Issued when a taxpayer wants to know the tax treatment of a specific tax situation.
• C)Provides tax authority only to the taxpayer to whom it is issued.
• D)Both issued when a taxpayer wants to know the tax treatment of a specific tax situation and provides tax authority only to the taxpayer to whom it is issued.

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Definitions:

Lowest Terms

The simplest form of a fraction, where the numerator and the denominator are reduced to their smallest whole numbers.

Quarts

A unit of volume in the U.S. customary and the British imperial systems, equal to a quarter of a gallon, or approximately 0.946 liters.

Tint

A slight or faint shade of color or a small amount of a particular color added to something.

Ounces

A measure of mass in the avoirdupois system, equivalent to 1/16th of a pound or about 28.35 grams.