Question

True and False. Explain all false answers.

1. Subchapter S refers to the " Partners and Partnership" Section of the Internal Revenue Code.

2. A court generally will hold a legislative regulation to be invalid if warranted.

3. The IRS responds to a taxpayer request concerning the tax treatment of a completed transaction in a letter ruling.

4. The head of the IRS opertions is the chief.

5. Recently, the overall Federal income tax audit rate for individual returns has been about 20%.

Answer 1

1. False,

shareholders of subchapter S of internal codemay file form 2553 “election by a small business corporation” it does not refers to partners and partnership

2.False.

A court will not hold a legislative regulation to be invalid if warranted.It is difficult to reverse the legislative regulations.Instead of legislstive regulations, general or interpretive regulations are easier.

3.True

4.False, The head of IRS is the commissioner

5.False, Percentage of error rates would be around 20% but the percentage of audit rate are sma