Question

If the IRS loses a decision, it may indicate whether it disagrees with the results reached by the court by publishing a nonacquiescence.

1) True
2) False

Answer 1

The statement is true; the IRS can issue a nonacquiescence when it disagrees with a court decision, indicating it may choose not to follow the ruling in other cases.

Step-by-step explanation:

The statement that the IRS may publish a nonacquiescence if it disagrees with a court's decision is true. When the IRS loses a case, it may indeed indicate its disagreement with the court's conclusion by issuing what is known as a nonacquiescence.

This signals that the IRS does not agree with the legal reasoning of the decision and, as such, it may choose not to follow the ruling in other cases. It's important to understand that while court opinions set precedents, the IRS may take a different interpretive stance on the application of the law.

This can sometimes lead to conflicts and additional legal challenges, highlighting the complex nature of legal interpretation and the administration of tax laws.