1. Which of the following statements are false?
1. One of the important objectives of the Federal tax law is to regulate the economy and encourage behavior and businesses that are desirable.
2. One of the objectives of the Federal tax law is to achieve equity within the tax law.
3. Secondary sources of tax law are generally considered to have authority.
4. The 16th Amendment to the Constitution was ratified in 1913.
5. Tax avoidance can lead to fines and jail.
2. Which of the following statements are false?
1. Jessica delivers pizzas for a pizza shop. On Wednesday, December 31, 2015, Jessica made several deliveries and collected $400 from customers. However, Jessica forgot to turn in the proceeds for the day to her employer until the following Friday, January 2, 2016. The pizza shop owner recognizes the income of $400 when he receives it from Jessica in 2016.
2. An inheritance tax is a tax on a decedent's right to pass property at death.
3. A taxpayer must pay any tax deficiency assessed by the IRS and sue for a refund to bring suit in the U.S. Court of Federal Claims. Only in the Tax Court can jurisdiction be obtained without first paying the assessed tax deficiency.
4. Jennifer is a cash basis taxpayer. When Jennifer failed to repay a loan, the bank garnished her salary. Each week $60 was withheld from Jennifer's salary and paid to the bank. Jennifer is required to include the $60 each week in her gross income even though it is the creditor that benefits from the income.
5. The IRS is not required to make a letter ruling public.