Question

Explain what is encompassed by the term tax law as used by tax advisors.

A. "Tax law" is simply a way to refer to all of the transcripts incorporated into the Congressional Record.
B. "Tax law" refers to the Internal Revenue Code (IRC) as elaborated by Treasury Regulations and administrative pronouncements and as interpreted by federal courts.
C. "Tax law" is a term tax advisors use to refer to the interpretation of tax documents that Congress records since it is ambiguous.
D. "Tax law" refers only to the Internal Revenue Service (IRS) Commissioner's conclusions of any hearings and not the interpretations by federal courts.

Answer 1

Tax law refers to the Internal Revenue Code and its interpretation by federal courts and administrative agencies like the IRS. It encompasses statutes, regulations, court decisions, and administrative guidance.

Step-by-step explanation:

Tax law refers to the Internal Revenue Code (IRC) as elaborated by Treasury Regulations and administrative pronouncements and as interpreted by federal courts. Tax advisors use this term to encompass the legal framework surrounding taxation, which includes statutes, regulations, court decisions, and administrative guidance.

For example, tax law includes the provisions of the IRC that determine how income is taxed, the deductions and credits available to taxpayers, and the penalties for noncompliance. It also incorporates Treasury Regulations, which are detailed explanations and interpretations of the IRC. Additionally, tax law encompasses the decisions of federal courts and administrative pronouncements by the Internal Revenue Service (IRS).