ACCT M50 PRINCIPLES OF INCOME TAXATION PRACTICE EXAM | FREE SOLVED ANSWERS
Which of the following types of Regulations take the place of the Internal Revenue Code and have the full effect of law?
Which of the following types of Regulations take the place of the Internal Revenue Code and have the full effect of law?
Multiple Choice
- a. Final
- b. Legislative.
- c. Temporary.
- d. Proposed
Correct Answer: (b) Legislative.
Legislative regulations, also known as statutory regulations, are issued by the Treasury Department under a specific grant of authority from Congress within the Internal Revenue Code. Because they are authorized directly by the statute, they carry the full force and effect of law, essentially filling in the details where Congress has given the Treasury the power to do so. They are distinct from other types like final, temporary, or proposed regulations, which have different levels of authority and legal standing.