Final answer:
The IRS issues an acquiescence when they agree with a court decision, a nonacquiescence when they disagree, and an action on decision to provide additional guidance. The correct option is a.
Step-by-step explanation:
An acquiescence is issued by the IRS when they agree with a court decision and decide to follow it. This means that they accept the court's interpretation of the law and will apply it to future cases.
A nonacquiescence, on the other hand, is issued when the IRS disagrees with a court decision and decides not to follow it. They may believe that the court's interpretation of the law is incorrect and choose to interpret it differently.
An action on decision is a statement issued by the IRS to provide additional guidance on a court decision. It clarifies how the IRS will apply the court's decision in similar cases. The correct option is a.