Multiple Choice Question

Which statement is correct regarding the statutory authority of the U$.$S$.$ Internal Revenue Code?

The U$.$S$.$ Internal Revenue Code and related regulations guide corporations in avoiding paying taxes.

The U$.$S$.$ Internal Revenue Code and related regulations provide the rules to be followed in minimizing an entity's income tax liability.

The U$.$S$.$ Internal Revenue Code and related regulations provide guidelines for financial accounting and reporting by state governmental units.

The U$.$S$.$ Internal Revenue Code and related regulations specify the rules to be followed in determining an entity's income tax liability.