Questions: Which of the following statements is correct?

The answer is the third one: Temporary Regulations expire three years after issuance.

Explanation for each option:

1. Private Letter Rulings are issued by the IRS and are considered to be general tax authority.

   • Incorrect. Private Letter Rulings (PLRs) are issued by the IRS to provide guidance to a specific taxpayer on a specific tax issue. They are not considered general tax authority and cannot be relied upon by other taxpayers.

2. The Internal Revenue Code pertains only to Income taxes.

   • Incorrect. The Internal Revenue Code (IRC) covers a wide range of taxes, not just income taxes. It includes estate taxes, gift taxes, excise taxes, and more.

3. Temporary Regulations expire three years after issuance.

   • Correct. Temporary Regulations are issued by the IRS and typically expire three years after they are issued unless they are finalized or extended.

4. Upon deciding a tax case, the court will issue a Revenue Ruling.

   • Incorrect. Revenue Rulings are issued by the IRS, not the courts. They provide the IRS's interpretation of the tax laws as they apply to specific factual situations. Courts issue opinions or decisions, not Revenue Rulings.