Reference no: EM132465402

Question 1: The Internal Revenue Code is the most authoritative source of income tax law. In trying to resolve an income tax? question, however, a tax researcher also consults administrative rulings? (Income Tax? Regulations, Revenue? Rulings, etc.) and court decisions. Why? wouldn't the tax researcher just consult the Code since it is the highest? authority? Similarly, why is there a need for administrative rulings and court? decisions?

Point A. Administrative rulings and court decisions contain tax laws that are inconsistent with the Code. Tax researchers can use administrative rulings and court decisions in place of the law stated in the Code when it is more beneficial.

Point B. The Code contains general language and does not address the many specific situations and transactions that occur. To resolve tax questions concerning specific? situations, administrative rulings and court decisions are an integral part of the income tax law.

Point C. Administrative rulings and court decisions contain rulings that can override the Code and that provide greater tax savings.

Point D. The Code does not include all tax laws. Administrative rulings and court decisions contain tax laws that are not included in the Code. this question is from Tax Accounting