Answer the following statements true (T) or false (F)

Question

1. Limited liability company members (owners) are responsible for the liabilities of their limited liability company.
2. The tax law encompasses administrative and judicial interpretations, such as Treasury regulations, revenue rulings, revenue procedures, and court decisions, as well as statutes.
3. Generally, tax legislation is introduced first in the Senate and referred to the Senate Finance Committee.
4. The Internal Revenue Service is the branch of the Treasury Department responsible for administering the federal tax law.
5. Generally, the statute of limitations is three years from the later of the date the tax return is filed or the due date.

Answer 1

1. FALSE
Limited liability company members have protection from entity-level liability in a manner similar to that of shareholders of corporations.
2. TRUE
Sources of tax law extend beyond the Internal Revenue Code itself.
3. FALSE
A tax bill is first introduced in the House and referred to the Ways and Means Committee.
4. TRUE
The IRS is the branch of the Treasury Department that is responsible for administration of the Internal Revenue Code.
5. TRUE
While there are exceptions that extend the statute of limitations, the general limit is three years from the later of the filing date or the due date of a return.