Congress reacts to judicial decisions that interpret the tax law in different ways. When it approves of a decision, Congress may act to amend the Code to incorporate the holding. When it disapproves, Congress may amend the Code to nullify its effect. Give an example of each one of these congressional reactions
Congress approved of the judicial conclusion that most stock dividends should be nontaxable and amended the Code to this effect. However, it disagreed as to when leasehold improvements should be taxed to a lessor. Consistent with the wherewithal to pay concept, the improvements are to be taxed on the termination of the lease. Thus, Congress overturned a judicial holding that would have taxed such improvements in the year they are made by the lessee.
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The Robinson-Patman Act of 1936 was added to the panoply of American anti-trust law to make ________ illegal
A. anticompetitive mergers B. tying arrangements C. monopolization D. price discrimination
All of the following statements about the requirements to reinstate a lapsed life insurance policy are true EXCEPT
A) Evidence of insurability is required. B) The lapse must have resulted from other than the surrender of the policy for its cash value. C) All overdue premiums must be paid along with interest from the premium due dates. D) There is no time limit on when the policy may be reinstated.