Question

1. A Private Letter Ruling:

a.         is a District Director's response to a taxpayer's query regarding the tax consequences of a specific transaction or event.

b.         is a response to a specific taxpayer's request for an official IRS interpretation of a tax law provision as applied to the taxpayer's given fact situation.

c.    is issued in response to a question that arises during an audit.

d.    None of the above.

2.  Pursuant to the GolsenRule:

a.    the Tax Court must follow all Circuit Court of Appeals decisions.

b.         the Tax Court must follow decisions of the Court of Appeals for the Circuit in which the taxpayer's appeal may be filed.

c.         the Tax Court must obtain a ruling from the Supreme Court of the state where the taxpayer resides if there is no Federal Circuit Court of Appeals decision on the matter.

d.    Two of the above.

e.    None of the above.

3. The following is true of a Circuit Court of Appeals:

a. The taxpayer who originated a claim in a U.S. District Court may appeal the decision to any Circuit Court of Appeals the taxpayer chooses.

b.    The Court of Appeals may affirm the lower court decision, reverse the decision or retry the facts on appeal.

c.    The Circuit Courts of Appeal follow stare decisisand are bound by their previous decisions, but they are not required to follow the decisions of other Circuits.

d.    All of the above.

Answer 1

Answer to Question 1: Option- a

A Private Letter Ruling is a District Director's response to a taxpayer's query regarding the tax consequences of a specific transaction or event

Answer to Question 2: Option b

Pursuant to Golsen Rule the tax court must follow decisions of the court of appeals for the circuit in which the tax payer's appeal may be filed.

Answer to Quesiton 3: Option d

All of the above

i.e. The taxpayer who originated a claim in a U.S. District Court may appeal the decision to any Circuit Court of Appeals the taxpayer chooses.

The Court of Appeals may affirm the lower court decision, reverse the decision or retry the facts on appeal.

The Circuit Courts of Appeal follow stare decisisand are bound by their previous decisions, but they are not required to follow the decisions of other Circuits.