ExpertHard1 markMultiple Choice
CPA · Question 09 · Area I: Ethics & Tax Procedures
Which of the following authorities carries the highest weight in the federal tax hierarchy?
Which of the following authorities carries the highest weight in the federal tax hierarchy?
Answer options:
A.
Temporary Treasury Regulations
B.
Revenue Rulings
C.
Proposed Treasury Regulations
D.
Private Letter Rulings
How to approach this question
Hierarchy: IRC > Regulations (Final/Temp) > Revenue Rulings > PLRs/Proposed Regs.
Full Answer
A.Temporary Treasury Regulations✓ Correct
A
Temporary Treasury Regulations have the same authoritative weight as Final Regulations. They are binding on both the IRS and the taxpayer. Revenue Rulings and PLRs are administrative pronouncements with less weight.
Common mistakes
Thinking Temporary Regulations are weak because they are 'temporary'. They are fully binding for 3 years.
Practice the full CPA REG Practice Exam 3
72 questions · hints · full answers · grading
More questions from this exam
Q01A CPA is preparing an original tax return for a client who is claiming a refund based on a positi...HardQ02A practitioner is representing a taxpayer in an IRS examination. The taxpayer has a 25% ownership...HardQ03A tax return preparer willfully attempts to understate the tax liability on a client's return by ...HardQ04Which of the following scenarios would most likely result in the assessment of a penalty for fail...HardQ05Regarding the disciplinary authority of State Boards of Accountancy, which of the following state...Hard