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https://testbankfan.com/download/south-western-federal-taxation-2015-comprehensiv
e-38th-edition-hoffman-test-bank/
ANSWER: False
RATIONALE: Rules of tax law do include Treasury Department pronouncements.
2. A tax professional need not worry about the relative weight of authority within the various tax law sources.
a. True
b. False
ANSWER: False
RATIONALE: Quite the contrary.
3. In recent years, Congress has been relatively successful in simplifying the Internal Revenue Code.
a. True
b. False
ANSWER: False
RATIONALE: Each year the Code becomes more and more complex.
ANSWER: False
RATIONALE: A taxpayer should maximize the after-tax return in conjunction with the overall economic effect.
ANSWER: False
RATIONALE: The first codification of the tax law occurred in 1939.
ANSWER: False
RATIONALE: Some Code sections omit the subsection and use paragraph designation as the first subpart as
does § 212.
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
7. Subchapter D refers to the “Corporate Distributions and Adjustments” section of the Internal Revenue Code.
a. True
b. False
ANSWER: False
RATIONALE: The correct subchapter for “Corporate Distributions and Adjustments” is Subchapter C.
ANSWER: False
RATIONALE: The reverse is true. Regulations require time to be issued and may never be issued on a particular
statutory change in a Code section.
ANSWER: False
RATIONALE: They are published in the Federal Register and the Internal Revenue Bulletin.
10. Revenue Rulings issued by the National Office of the IRS carry the same legal force and effect as Regulations.
a. True
b. False
ANSWER: False
RATIONALE: They do not contain the same legal force as Regulations. That is, the legal force is less.
ANSWER: False
RATIONALE: A Revenue Ruling is an administrative source.
12. The following citation can be a correct citation: Rev. Rul. 95-271,1995-64 I.R.B. 18.
a. True
b. False
ANSWER: False
RATIONALE: The citation given refers to the Bulletin issued in the 64th week of 1995. Because a year contains
only 52 weeks, the citation cannot be correct.
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 2 Working With the Tax Law
13. Revenue Procedures deal with the internal management practices and procedures of the IRS.
a. True
b. False
ANSWER: True
14. Post-1984 letter rulings may be substantial authority for purposes of the accuracy-related penalty in § 6662.
a. True
b. False
ANSWER: True
15. A letter ruling applies only to the taxpayer who asks for and obtains a letter ruling.
a. True
b. False
ANSWER: True
ANSWER: False
RATIONALE: The law now requires the IRS to make letter rulings available for public inspection after
identifying details are deleted.
ANSWER: True
ANSWER: True
RATIONALE: TAMs deal with completed transactions.
ANSWER: True
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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“1. That the problem of the working child is not an immigrant
problem, since over 50 per cent of those reported as at work are of
the second generation of American birth.
“2. That this is not the problem of the boy alone, since over 49
per cent of the workers are girls.
“3. That the vast majority of children who leave school at
fourteen to enter industry go into those kinds of employment
which offer a large initial wage for simple mechanical processes,
but which hold out little or no opportunity for improvement and no
competence at maturity.
“4. That wages received are so low as to force a parasitic life.
“5. That but slight advancement is offered the fifteen-year-old
over the fourteen-year-old child worker.”
ILLITERACY AND THE RURAL SCHOOL
Hardly are we given time to grasp the Census Bureau’s new facts
about illiteracy in the United States before the Bureau of Education
gives us its own interpretation of some of them. Illiteracy, as viewed
by the Census Bureau, means inability to write on the part of those
ten years old and over. As a nation the number of illiterates among
us decreased from 10.7 per cent of the population in 1900 to 7.7 per
cent in 1910. In spite of this decrease a bulletin by A. C. Monahan of
the Bureau of Education refers to the “relatively high rate of
illiteracy” in the country and says that this rate is due not to
immigration but to the lack of educational opportunities in rural
districts. The percentage of rural illiteracy is twice that of urban,
although approximately three-fourths of the immigrants are in the
cities. Still more significant is a comparison between children born in
this country of foreign parents with those born of native parents.
Illiteracy among the latter is more than three times as great as that
among the former, “largely,” says Mr. Monahan, “on account of the
lack of opportunities for education in rural America.”
The decrease in national illiteracy during the decade 1900–1910
was not only relative but absolute, despite the growth of the
population. In 1900 the figure was 6,180,069. In 1910 it was
5,516,163. But while illiteracy among the total population was
decreasing, that among the foreign born whites remained almost
stationary. In 1900 the percentage was 12.9, in 1910 12.7. Among the
whites born in this country the decrease during the decade was from
4.6 to 3 per cent. Illiteracy among the Negroes showed a decrease of
almost one-third. In 1900 44.5 of the whole Negro population could
not write; in 1910 the percentage was 30.4.
The distribution of illiteracy between the sexes was very even.
Among males it amounted 7.6 of the total, among females to 7.8.
There was less of it among white females, however, than among
white males, the percentage for the former being 4.9, for the latter 5.
White girls and women born outside of this country show more
illiteracy than men and boys of the same class, but those born in the
United States show less than native males, as follows:
This naturally raises the great question of what these students will
do with their experience after they graduate from college.