Question

Under the Golsen rule, the Tax Court must:

a. compute the tax liability due the government.
b. reach the same decision in each region of the county.
c. follow the Court of Appeals that has direct jurisdiction over the taxpayer.
d. None of the above.

Answer 1

The Golsen rule states that the Tax Court must follow the precedent set by the Court of Appeals that has direct jurisdiction over the taxpayer.

Step-by-step explanation:

The Golsen rule is a rule followed by the United States Tax Court. The rule states that the Tax Court must follow the precedent set by the Court of Appeals that has direct jurisdiction over the taxpayer. This means that if there is a case with similar facts and issues decided by the Court of Appeals, the Tax Court must reach the same decision.

For example, if a taxpayer in New York has a tax issue and the Second Circuit Court of Appeals has previously set a precedent on that issue, the Tax Court in New York would be bound by that precedent and reach the same decision.

Therefore, the correct answer is: c. follow the Court of Appeals that has direct jurisdiction over the taxpayer.