Written Assignment #1–Module #1 1. What is the difference between the open and closed rules used during the legislative process? a. The House of Representative operates under a closed rule when debating a bill. Under the close rule, only members of the Ways and Means Committee can make changes, additions, or further updates to the bill being debated. b. The Senate operates under an open rule when debating a bill. Under the open rule, senators, both within and outside of the Senate Finance Committee, can propose changes, additions, or further updates to the bill being debated. 2. Is the content located within the Internal Revenue Code and the related acts comparable? a. The basic content available in the Internal Revenue Code and the related acts are comparable, …show more content…
What was the significance of the Pollock v Farmers’ Loan and Trust Co. case in 1895? a. This case is significant for a couple of reasons. First, this was the first case where the court focused on the potential constitutional conflict of tax laws in place. Second, this case when reviewed at a time when any direct tax imposed had to apply proportionally based on a census, which was later replaced in 1913 by the progressive tax rate structure still used today. Finally, this was the last case to successfully challenge tax laws on the basis of them being in violation of the constitution. 4. Does pending and un-enacted legislation hold any value to tax individuals conducting research? a. Pending legislation does not have the authority of enacted legislation, but it is important for tax research to be aware of pending legislation so that they can be up-to-date when the legislation becomes enacted or recognize to the IRS’s position if the legislation is suspended or withdrawn for changes. b. In addition to pending legislation, un-enacted legislation provided clues to the tax researches as to the mindset of the IRS. Specifically, it can help to identify what the IRS does not intend to enact under a specific