Question 1

Revenue rulings and revenue procedures are written by:

Accepted Answer

Revenue rulings and revenue procedures are written by the Internal Revenue Service to provide guidance to taxpayers on how to interpret and apply tax laws and regulations.

Question 2

Which of the following is not considered administrative authority?

Accepted Answer

Tax Court decisions are judicial authorities, not administrative authorities. Administrative authorities include Treasury regulations and revenue rulings.

Question 3

A revenue ruling is an example of:

Accepted Answer

A revenue ruling is issued by the Internal Revenue Service (IRS) which is an administrative agency of the federal government. Therefore, it is an example of administrative authority.

Question 4

Forrest Township levies a tax on the assessed value of real property located within the town limits.The tax equals 1.4% of the value up to $300,000 plus 2% of any value in excess of $300,000.Mildred Payne owns real estate with a $983,500 assessed value.Compute her property tax.

Accepted Answer

The answer of Forrest Township levies a tax on the...

Question 5

Which of the following sources of tax law carries the least authority?

Accepted Answer

Revenue rulings carry the least authority as they are interpretations by the IRS and not legally binding like the Internal Revenue Code or Treasury regulations.

Question 6

Which of the following statements concerning judicial authority is false?

Accepted Answer

All the statements are true: appellate courts have more authority than trial courts, Supreme Court decisions have more authority than appellate courts, and Supreme Court decisions are considered equivalent to law.

Question 7

Ms.Penser resides in the city of Lanock,Tennessee.She owns 100% of the stock of PSW Inc.,which is incorporated under Tennessee law and conducts business in six different local jurisdictions in Tennessee.
A.How many taxpayers are identified in the above statement of facts?
B.Identify the governments with jurisdiction to tax each of these taxpayers.

Accepted Answer

The answer of Ms.Penser resides in the city of Lanock,Tennessee.She...

Question 8

Richton Company operates its business solely in Jurisdiction H,which levies a 6% sales and use tax.This year,Richton paid $1,438,000 to purchase tangible property from a dealer located in Jurisdiction W.This purchase was subject to W's 3.5% sales tax.The property was shipped to Richton's office in Jurisdiction H for use in its business.Compute Richton's sales or use tax with respect to this transaction.

Accepted Answer

The answer of Richton Company operates its business solely in...

Question 9

Grant Wilson is an employee of Market Enterprises,a corporation operating in State A.Identify the different types of potential taxes to be paid by both Grant and Market Enterprises with respect to this employment relationship.

Accepted Answer

The answer of Grant Wilson is an employee of Market...

Question 10

Which of the following sources of tax law carries the most authority?

Accepted Answer

Supreme Court decisions carry the most authority because they interpret the Constitution and are binding on all lower courts. Revenue procedures and Treasury regulations are administrative rules issued by the IRS and are subject to change, while Supreme Court decisions have a more permanent impact on tax law. The three sources of tax law do not have equal authority.

Quiz 1: Taxes and Taxing Jurisdictions