Deck 1: Understanding and Working With the Federal Tax Law

Question 1

Which statement is true with respect to letter rulings?

A)They are issued by the Regional Offices of the IRS.
B)They deal with completed transactions.
C)They may be requested for any area of taxation.
D)They are issued at the request of the taxpayer.
E)All of the above.

Answer 1

D

Question 2

Which trial court hears only tax cases?

A)U.S.District Court.
B)U.S.Court of Appeals.
C)U.S.Tax Court.
D)U.S.Court of Federal Claims.
E)None of the above.

Answer 2

C

Question 3

What statement is not true with respect to Temporary Regulations?

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.

Answer 3

A

Question 4

Which statement is true with respect to TAMs ?

A)They are issued by the Regional Office of the IRS.
B)They deal with completed transactions.
C)They may be cited or used as precedent.
D)They are issued at the request of the taxpayer.
E)None of the above.

Question 5

A taxpayer who loses in the U.S.Court of Federal Claims may appeal directly to the:

A)U.S.District Court.
B)U.S.Supreme Court.
C)U.S.Court of Appeals (Regional Circuit).
D)U.S.Court of Appeals (Federal Circuit).
E)None of the above.

Question 6

A taxpayer may not appeal a case from which court?

A)U.S.District Court.
B)U.S.Tax Court.
C)U.S.Court of Appeals.
D)Small Cases Division of the U.S.Tax Court.
E)All of the above.

Question 7

In § 2(a)(1)(A), the (a) stands for the:

A)Section number.
B)Subsection number.
C)Paragraph designation.
D)Subparagraph designation.
E)None of the above.

Question 8

Subchapter K of the Internal Revenue Code covers what topic?

A)Penalty taxes.
B)S Corporations.
C)Excise taxes.
D)Partners and Partnerships.
E)None of the above.