Exam 3: Constitutional and Legislative Sources

The "General Explanation" of tax legislation, called the "Blue Book," is prepared by the Joint Conference Committee.

Taxpayers whofile frivolous returns are subject toa $25,000 fine.

In Pollock v. Farmers' Loan and Trust Co., the Supreme Court held that the income tax was unconstitutional because it was a constitutionally prohibited "direct tax."

The United States - Mexico- Canada Agreement (USMCA)is a non-tax international treaty that addresses some tax-related issues.

A "technical corrections act" is:

Circuit Courts are administrative sources of the federal tax law.

A "tax protester" is:

Which of the following statements is CORRECT regarding the enactment intolaw of a tax bill?

Historically, the 1913 income tax was a tax on wealthy and high-income taxpayers.

Statutory sources of federal tax law come out of the legislative branch of the U.S. government.

Subparagraphs are the major divisions of the Internal Revenue Code covering such broad topics as Income Taxes, and Estate and Gift Taxes.

Which of the following sections of the Internal Revenue Code deal with partnerships?

If any differences exist between the House- and Senate-passed versions of a tax bill, the bill is referred to:

Trade or business deductions are contained in Code Section 62.

Regarding the taxing powers of the federal government, the U.S. Constitution requires that:

A report of Floor Debate is included in the Congressional Record and may include some detailed or technical information that is excluded from a Committee Report.

A subtitle of the Internal Revenue Code:

Whenever a major new tax law is passed, CCH and RIA both publish the related Committee Reports.

When a Code provision and a provision under a treaty conflict, the one adopted earlier in time generally rules.

Which of the following statements is INCORRECT regarding the structure of the Internal Revenue Code?