Which of the following statements is INCORRECT regarding tax treaties?
A)They are authorized by the U.S. Constitution.
B)They are usually initiated by the State Department, not the Treasury.
C)The United States can have multiple types of tax treaties with one country.
D)All of these are correct.

Question

Quizplus · Accepted Answer

Tax treaties are usually initiated by the Treasury Department, not the State Department, because they primarily deal with tax matters. The Treasury Department has the expertise and authority in matters related to taxation, making it the appropriate body to initiate and negotiate tax treaties.

Which of the Following Statements Is INCORRECT Regarding Tax Treaties