In the hierarchy of tax authority, which of the following carries the GREATEST authoritative weight?

Answer options:

Temporary Treasury Regulations

Legislative Treasury Regulations

Internal Revenue Code

U.S. Tax Court Regular Decision

How to approach this question

Hierarchy: IRC > Regulations > Judicial Decisions > IRS Rulings.

Full Answer

C.Internal Revenue Code✓ Correct

The Internal Revenue Code (IRC) is the primary statutory authority and carries the greatest weight. Treasury Regulations (even legislative ones) are administrative interpretations of the Code. Court decisions interpret the Code.

Common mistakes

Thinking Legislative Regulations are equal to the Code (they are very strong, but the Code is the source).

Question 06 All questions Question 08

Practice the full CPA REG Practice Exam 5

72 questions · hints · full answers · grading

More questions from this exam

Q01A CPA is representing a client, TechSolutions Inc., in an IRS examination regarding a large resea...Hard Q02A tax return preparer is engaged to prepare a return for a client who has engaged in a transactio...Hard Q03Which of the following statements accurately describes the disciplinary authority of a State Boar...Hard Q04A taxpayer filed their Year 1 individual income tax return on March 15, Year 2. The return showed...Hard Q05A taxpayer disagrees with a proposed IRS deficiency and wishes to litigate the matter. The taxpay...Hard

View all 72 questions →