Question

which statements is not true about tax law sources? a. The Internal Revenue Code serves as the highest legislative authority for tax research, planning and compliance activities. b. Administrative tax law sources include regulations and revenue rulings. C. A taxpayer can choose any trial court and be assured that the ruling will be the same for all taxpayers with the same fact situation. d. A Tax Court Regular decision has the same authoritative weight as a Memo decision. e. None

Answer 1

Following is not True about Tax Law sources.

d. A Tax Court Regular decision has the same authoritative weight as a memo decision.

This is because:

• Regular decision is new decision on points or principles of Law while memo decisions are factual determinations based on well established legal principles.
• Regular decisions are binding and set precedents. Memo decisions are Stare Decisis where decisions are made on the basis of established principles and legal precedents. These may be pervasive in subsequent cases but not binding.

From the above discussion regular decisions are sources of Tax Laws while memo decisions are not sources. This means both of them will not have same authoritative value.

a) IRC is the primary and legislative source.

b) Regulations and Revenue rulings are administrative sources backed by authority from legislature.

c) Trial courts - Tax Courts, District Courts or Courts of Federal Claims can be selected by Tax Payer and some of their rulings can set legal precedents and interpretations of Tax Laws and these can be legal sources of Tax Laws.