1. An individual taxpayer can deduct actual itemized deductions or the standard deduction, whichever is higher.

True

False

2. Generally, gifts and inheritances are taxable income to the recipient.

True

False

A taxpayer has no recourse and must accept an IRS tax assessment.

True

False

3. The return of capital principle prevents the cost of an investment made with after-tax dollars from being taxed.

True

False

4.The Internal Revenue Code is the highest tax law authority in the U.S.

True

False