Question 1: When making decisions for your clients, your basis must be found in primary tax authority. Look up the following primary tax authority.

• IRC Section 61
• Regulation Section 1.61-1
• IRC Section 213
• Regulation Section 1.213-1

Answer the following questions regarding the above primary tax authority:

1A. Both the Internal Revenue Code and the tax Regulations are primary tax authority. However, primary tax authority is further broken down into three different categories.In what category is the Internal Revenue Code? In what category is the Tax Regulation?

1B. What is the title of the Internal Revenue Code Section 61 and 213? What is the title of Regulation 1.61-1 and 1.213-1? Whats the difference between the depth of information in the Internal Revenue Code and the tax regulations as it pertains to these two sections?