Question

A- The Tax Court decides an expenditure is deductible in the year the issue was first litigated. The government appealed and won a reversal in the Ninth Circuit Court of Appeals. It is the only appellate decision regarding the issue. If and when the Tax Court encounters this issue again, how will it hold?

B- The committee that is responsible for holding hearings on tax legislation for the House of Representatives is the

Joint Committee on Taxation.

Conference Committee.

Finance Committee.

Ways and Means Committee.

Answer 1

A) The Tax Court will hold the expenditure is deductible except in the Ninth Circuit. The taxpayers in the Ninth Circuit will be denied the deduction.
B) Ways and Means Committee.

Explanation:

Ways and Means Committee is responsible for holding hearings on tax legislation for the House of Representatives