Questions: Multiple Select Question Select all that apply Select the manner in which a state adopts the federal Internal Revenue Code. Adopt a potential version of the Code Adopt the current version of the Code Adopt a previous version of the Code

Multiple Select Question
Select all that apply

Select the manner in which a state adopts the federal Internal Revenue Code.
Adopt a potential version of the Code
Adopt the current version of the Code
Adopt a previous version of the Code

Transcript text: Multiple Select Question Select all that apply Select the manner in which a state adopts the federal Internal Revenue Code. Adopt a potential version of the Code Adopt the current version of the Code Adopt a previous version of the Code

Solution

Answer

The answers are:

Adopt a potential version of the Code
Adopt the current version of the Code
Adopt a previous version of the Code

Explanation

Option 1: Adopt a potential version of the Code

Some states may choose to adopt a version of the Internal Revenue Code (IRC) that is anticipated to be enacted in the future. This allows them to align with expected federal changes proactively.

Option 2: Adopt the current version of the Code

Many states adopt the current version of the IRC to ensure their tax laws are consistent with federal tax laws. This approach simplifies tax compliance for residents and businesses operating in multiple jurisdictions.

Option 3: Adopt a previous version of the Code

Some states may choose to adopt an earlier version of the IRC. This can occur if a state prefers to maintain certain tax provisions that have been changed or removed in more recent versions of the federal code.

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