Identify which of the following statements is false.
A)The IRS issues annually a revenue procedure that prescribes how a letter ruling should be requested and the information to be contained in the ruling request.
B)The request for a ruling may contain a suggested conclusion (or answer)that the taxpayer proposes that the IRS adopt in the described situation.
C)As a practical consideration, taxpayers always find it preferable to obtain an advance ruling on questionable tax situations.
D)Third parties may not cite private letter rulings as authority for the tax consequences of their transactions.

Question

Quizplus · Accepted Answer

It is not always preferable for taxpayers to obtain an advance ruling on questionable tax situations. In some cases, the cost of obtaining the ruling may outweigh the potential tax consequences and it may be more beneficial to take a risk and handle the situation without a ruling.

Identify Which of the Following Statements Is False