Question

The Golsen rule provides that the Tax Court rules consistently with the decisions of the circuit court.

of appeals to which the taxpayer's case is appealable. If the new case is appealable to the Tenth Circuit,
The Tax Court will hold that the expenditure is deductible, thereby following its own precedent. In a case
appealable to the Fifth Circuit, the Tax Court will rule that it is not deductible, thereby following the
appellate court's earlier decision.

Answer 1

The Golsen rule in the Tax Court dictates that the decisions of the circuit court of appeals to which the taxpayer's case is appealable must be followed. The Tax Court's ruling on the deductibility of an expenditure depends on the circuit court to which the case can be appealed. If it can be appealed to the Tenth Circuit, the expenditure is deductible, whereas if it can be appealed to the Fifth Circuit, the expenditure is not deductible.

Step-by-step explanation:

The subject of this question is Law. The question discusses the application of the Golsen rule in the Tax Court. The Golsen rule states that the Tax Court must follow the decisions of the circuit court of appeals to which the taxpayer's case is appealable.

If the taxpayer's case is appealable to the Tenth Circuit, the Tax Court will hold that the expenditure is deductible, following its own precedent. However, if the case is appealable to the Fifth Circuit, the Tax Court will rule that the expenditure is not deductible, following the earlier decision of the appellate court.