Question

Which of the following statements is CORRECT regarding the definition of terms in the Internal Revenue Code?

a. All definitions are included in Section 7701.
b. Definitions are always included within the Code section to which they apply.
c. Definitions are written into the Code by the IRS rather than included in tax laws passed by Congress.
d. Sometimes, a researcher may need to consult the regulations to find a complete definition of a term.

Answer 1

The correct statement regarding definitions in the Internal Revenue Code is that sometimes, a researcher may need to consult regulations for a complete term definition, which can be located throughout the Code or in accompanying regulations.

Step-by-step explanation:

The correct statement regarding the definition of terms in the Internal Revenue Code (IRC) is d. Sometimes, a researcher may need to consult the regulations to find a complete definition of a term. While the IRC does include definitions within its provisions, not all definitions are provided in a single section, such as Section 7701. Moreover, definitions are not solely located within the specific Code section to which they apply; they can be scattered throughout the Code or elucidated in the accompanying regulations. Lastly, definitions are typically written into the Code through tax laws passed by Congress, not directly by the IRS itself. It is important for those studying the tax code or doing research to be aware that to fully understand a term, they may need to look beyond the IRC to the associated regulations crafted to implement and interpret the Code's provisions.