**Understanding the Golsen Rule**The Golsen Rule is an important concept in legal and judicial processes. This principle mandates that the United States Tax Court must follow the decisions of the court of appeals to which an appeal from the Tax Court's decision would lie, when the Court of Appeals has previously ruled on the issue at hand. This rule essentially ensures consistency in the application of legal precedent within specific jurisdictions.**Example of the Application of the Golsen Rule**Consider a scenario where a taxpayer disputes a tax deduction, and the case is brought before the Tax Court. The relevant Court of Appeals for the geographic location of the taxpayer has previously ruled that such a deduction is not allowable. According to the Golsen Rule, the Tax Court must follow the precedent set by the Court of Appeals and rule against the taxpayer, even if the Tax Court judges feel differently about the deduction.This principle ensures that taxpayers within a certain jurisdiction are subject to the same legal interpretations and judgments, thereby maintaining a uniform application of tax laws.

The term "Golden Rule" refers to a fundamental ethical principle that is found in various cultural,…

Answered: Explain the Golsen Rule and, in your…

Business

Accounting

Explain the Golsen Rule and, in your own words, provide an example of the application of the Golsen Rule.

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter2: Working With The Tax Law

Section: Chapter Questions

Problem 12P

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Which U.S. court's summary opinion may not be treated as precedent for another case? U.S. Tax Court's Small Claims Division U.S. District Court's Small Claims Division U.S. Court of Appeals Small Claims Division O U.S. Court of Federal Claims Small Claims Division
Pursuant to the Golsen Rule: a. the Tax Court must follow all Circuit Court of Appeals decisions. b. the Tax Court must follow decisions of the Court of Appeals for the Circuit in which the taxpayer's appeal may be filed. c. the Tax Court may adopt its own interpretation of the tax law, if the taxpayer's Circuit Court has not ruled on the matter. d. Two of the above.
The following is true of a Circuit of Appeals: a. The taxpayer who originated his claim in a US District Court may be appeal decision to any Circuit Court of Appeals the taxpayer chooses b. The Court of Appeals may affirm the lower court decision, reverse the decision or retry the facts on appeal. c. The Circuit Courts of Appeal follow stare decisis and are bound by their previous decisions, but they are not required to follow the decisions of other Circuits d. All of the above.
Rules of thumb to be used in determining the authoritative value of a judicial decision include: a. Tax Court decisions carry less weight than District Court opinions b. Tax Court Memorandum decisions carry more weight than Tax Court Regular opinions c. a concurring opinion carries more weight than a majority opinion d. all of the above.
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The power to tax is provided for by the Constitution, the National Internal Revenue Code, Special Laws, and administrative revenue issuances. Group of answer choices True False