What is the basic issue in this letter ruling?

 b. What does $ 132(a)(4) allow?

 c. What does Reg. $ 1.132-6(e)(1) say about holiday gifts? 

d. Are gift transfers from an employer to an employee excluded from the employee's income? What is the code citation that supports your answer? 

e. What was the IRS's ruling and its reasoning in this TAM?

4. The Hope scholarship and the lifetime learning credits were created in 1997 by P.L., 105 34 (Taxpayer Relief Act of 1997). What was the reason for creating these credits? (Find the relevant code section and select the committee report link to find the answer.)

 5. The American Opportunity Tax Credit (AOTC) is a new version of the Hope scholarship credit. It was added as temporary education credit that covered the first 4 years of postsecondary education. Use the history link to answer the following questions. a. What law (public law number and act name) made this change? b. What was the effective date of this change? c. What law (public law number and act name) made this provision permanent?

Required: Determine the relevant code section(s) for each of the questions. We will work through the rest of the process during our class meeting. 

6. Bryce Davis is auto parts shop manager. To advance his management skills, he enrolled in a weekend MBA program at State University which is located 10 miles from his home. Bryce's employer does not provide any education assistance. What tax deductions and/or tax credits is eligible for his 2022 tuition, fees, textbooks, and mileage to and from school? Required: Use only the IRC and Treasury regulations to provide the answer to the question. Be sure cite the relevant sources and to explain your conclusion.

 7. Tony and Amy Morrison were divorced in February 2022. Neither has remarried. Under their divorce decree, Amy has custody of their 3-year-old daughter Rose, who has lived with her in the family home throughout 2022. However, Rose stayed with Tony at his new home during July and August (as she will every year until age 19). Tony pays $1,600 each month in child support (more than one-half of Rose's support). Amy wants to know if she will be allowed to claim a Rose as a dependent of the 2022 tax year. Required: Use only the IRC and Treasury regulations to provide the answer to the question. Be sure cite the relevant sources and to explain your conclusion

Read TAM 200437030  and answer the questions

Answer rating: 100% (QA)

a A letter ruling is an official written statement issued by a tax authority typically the Internal Revenue Service IRS in the United States in response to a taxpayers request for guidance on a specif... View the full answer