Review of Pre-assessment question and answer verified.

Pre-assessment 1. After reinstatement of the individual federal income tax in 1894, why was the tax challenged in the courts?  Revenue from taxes was no longer necessary because the Civil War was over  Administration would be difficult since the tax was apportioned in proportion to state populations  The preferred method of taxation was on business transactions as opposed to individual income tax 2. What is the highest level of legislative authority of tax law in the United States?  Journal of Taxation  Revenue procedures  Internal Revenue Code (Note: a Tax Treaty would actually supersede the Internal Revenue Code) 3. What are two primary sources of tax law in the United States? Choose 2 answers  Tax adviser  Court decisions  Revenue rulings  CCH's Master Tax Guide 4. What is a desirable characteristic when evaluating a tax system?  Tax rules and regulations are changed frequently. (No. This leads to uncertainty).