Question 1

Federal tax legislation generally originates in what body?

Accepted Answer

A)  Internal Revenue Service.
B)  Senate Finance Committee.
C)  House Ways and Means Committee.
D)  Senate Floor.
E)  None of the above.F) C) and D)
G) All of the above

Question 2

Proposed Regulations are binding on IRS agents.

Accepted Answer

A) True 
 B)False

Question 3

A taxpayer must pay any tax deficiency assessed by the IRS and sue for a refund to bring suit in the U.S.District Court. Only in the Tax Court can jurisdiction be obtained without first paying the assessed tax deficiency.

Accepted Answer

A) True 
 B)False

Question 4

Which item may not be cited as a precedent?

Accepted Answer

A)  Regulations.
B)  Temporary Regulations.
C)  Technical Advice Memoranda.
D)  U.S.District Court decision.
E)  None of the above.F) C) and D)
G) None of the above

Question 5

Which tax source may override a Regulation section?

Accepted Answer

A)  Revenue Ruling.
B)  Revenue Procedure.
C)  U.S.tax treaty.
D)  Technical Advice Memoranda.
E)  None of the above.F) A) and B)
G) A) and C)

Question 6

The following citation can be a correct citation: Rev.Rul.95-271, I.R.B.No.54, 18.

Accepted Answer

A) True 
 B)False

Question 7

What statement is not true with respect to Temporary Regulations?

Accepted Answer

A)  May not be cited as precedent.
B)  Issued as Proposed Regulations.
C)  Automatically expire within three years after the date of issuance.
D)  Found in the Federal Register.
E)  All of the above statements are true.F) A) and E)
G) A) and C)

Question 8

Explain the tax appeals process from trial courts.

Accepted Answer

Appeals from a District Court or a Tax C...

Question 9

What administrative release deals with a proposed transaction rather than a completed transaction?

Accepted Answer

A)  Letter Ruling.
B)  Technical Advice Memorandum.
C)  Determination Letter.
D)  Field Service Advice.
E)  None of the above.F) A) and B)
G) C) and E)

Question 10

How do treaties fit within tax sources?

Accepted Answer

The U.S signs certain tax treaties (some...

Question 11

A professional must understand the relative weight of authority within the sources of tax law.

Accepted Answer

A) True 
 B)False

Question 12

Post-1984 letter rulings may be substantial authority for purposes of the accuracy-related penalty in § 6662.

Accepted Answer

A) True 
 B)False

Question 13

Where can a researcher not find a U.S. Court of Appeals decision?

Accepted Answer

A)   Federal 3d (West) .
B)   F. Supp. 2d Series (West) .
C)   AFTR (RI
A)  .
D)   USTC (CCH) .
E)   None of the above.F) B) and E)
G) C) and E)

Question 14

Which company does not publish citators for tax purposes?

Accepted Answer

A)  McGraw-Hill.
B)  Commerce Clearing House.
C)  Research Institute of America.
D)  Westlaw.
E)  Shepard's.F) C) and E)
G) B) and C)

Question 15

Section 1244 permits an investor to convert what would be a capital loss into an ordinary loss.

Accepted Answer

A) True 
 B)False

Question 16

The CPA examination is normally curved to produce a designated pass rate.

Accepted Answer

A) True 
 B)False

Question 17

Which court decision carries more weight?

Accepted Answer

A)  Federal District Court.
B)  Fifth Circuit Court of Appeals.
C)  Memorandum U.S.Tax Court decision.
D)  Small Cases Division of U.S.Tax Court.
E)  U.S.Court of Federal Claims.F) A) and D)
G) A) and E)

Question 18

Revenue Rulings issued by the National Office of the IRS carry the same legal force and effect as Regulations.

Accepted Answer

A) True 
 B)False

Question 19

A researcher can find tax information on home page sites of:

Accepted Answer

A)  Governmental bodies.
B)  Tax academics.
C)  Publishers.
D)  CPA firms.
E)  All of the above.F) A) and D)
G) C) and D)

Question 20

Three judges will normally hear each U.S.Tax Court case.

Accepted Answer

A) True 
 B)False

Exam 2: Working With the Tax Law

Which company does not publish citators for tax purposes?

Correct AnswerverifiedShow Answer

Three judges will normally hear each U.S.Tax Court case.

Correct AnswerverifiedShow Answer

Federal tax legislation generally originates in what body?

Correct AnswerverifiedShow Answer

What statement is not true with respect to Temporary Regulations?

Correct AnswerverifiedShow Answer

The following citation can be a correct citation: Rev.Rul.95-271, I.R.B.No.54, 18.

Correct AnswerverifiedShow Answer

Which court decision carries more weight?

Correct AnswerverifiedShow Answer

Which tax source may override a Regulation section?

Correct AnswerverifiedShow Answer

How do treaties fit within tax sources?

Correct AnswerverifiedThe U.S signs certain tax treaties (some...View AnswerShow Answer

A professional must understand the relative weight of authority within the sources of tax law.

Correct AnswerverifiedShow Answer

A researcher can find tax information on home page sites of:

Correct AnswerverifiedShow Answer

Which item may not be cited as a precedent?

Correct AnswerverifiedShow Answer

The CPA examination is normally curved to produce a designated pass rate.

Correct AnswerverifiedShow Answer

Proposed Regulations are binding on IRS agents.

Correct AnswerverifiedShow Answer

Revenue Rulings issued by the National Office of the IRS carry the same legal force and effect as Regulations.

Correct AnswerverifiedShow Answer

What administrative release deals with a proposed transaction rather than a completed transaction?

Correct AnswerverifiedShow Answer

Where can a researcher not find a U.S. Court of Appeals decision?

Correct AnswerverifiedShow Answer

Explain the tax appeals process from trial courts.

Correct AnswerverifiedAppeals from a District Court or a Tax C...View AnswerShow Answer

A taxpayer must pay any tax deficiency assessed by the IRS and sue for a refund to bring suit in the U.S.District Court. Only in the Tax Court can jurisdiction be obtained without first paying the assessed tax deficiency.

Correct AnswerverifiedShow Answer

Section 1244 permits an investor to convert what would be a capital loss into an ordinary loss.

Correct AnswerverifiedShow Answer

Post-1984 letter rulings may be substantial authority for purposes of the accuracy-related penalty in § 6662.

Correct AnswerverifiedShow Answer

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The U.S signs certain tax treaties (some...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Appeals from a District Court or a Tax C...
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Correct Answer
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Correct Answer
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