1. Which of the following statements are true?
Treasury Department Regulations that are issued in Final form do not have the force and effect of law.
Revenue Procedures is one of the administrative sources of tax law.
When gifts between family members are material and exceed the annual exclusion, a gift tax return needs to be filed.
Tax avoidance is the illegal minimization of tax liabilities.
One of the objectives of the Federal tax law is to encourage socially desirable behavior.
2. Which of the following statements are false?
Revenue Rulings have the same legal force as tax regulations.
Raising revenue for the federal government is the sole objective of the federal tax law.
Proposed tax regulations have the full force and effect of law.
The installment method of accounting is acceptable for tax purposes.
According to the AICPA, if a CPA discovers that a client made an error in his/her prior year tax return, the CPA should advise the client to correct the return.