Deck 2: Working With the Tax Law

Question 1

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

Answer 1

True

Question 2

Federal tax legislation generally originates in the Senate Finance Committee.

Answer 2

False

Question 3

Temporary Regulations are only published in the Internal Revenue Bulletin.

Answer 3

False

Question 4

Subchapter P refers to the "Partners and Partnerships" section of the Internal Revenue Code.

Question 5

A Temporary Regulation under § 173 of the Code would be cited as follows: Temp.Reg.§ 173.

Question 6

Technical Advice Memoranda deal with completed transactions.

Question 7

Determination letters usually involve proposed transactions.

Question 8

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

Question 9

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

Question 10

The Internal Revenue Code of 1986 was substantially a re-codification of the existing Code.

Question 11

Technical Advice Memoranda may not be cited as precedents by taxpayers.

Question 12

Regulations are arranged in the same sequence as the Internal Revenue Code.

Question 13

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.

Question 14

Before a tax bill can become law, it must be approved by the President.

Question 15

The IRS is required to make a letter ruling public.

Question 16

A Revenue Ruling is a judicial source of Federal tax law.

Question 17

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

Question 18

House members have considerable latitude to make amendments on the House floor.

Question 19

Revenue Rulings deal with the internal management practices and procedures of the IRS.

Question 20

A letter ruling applies only to the taxpayer who asks for and obtains a letter ruling.

Question 21

The granting of a Writ of Certiorari indicates that at least four members of the Supreme Court believe that an issue is of sufficient importance to be heard by the full court.

Question 22

A U.S.District Court is the lowest trial court.

Question 23

In a U.S.District Court, a jury can decide both questions of fact and questions of law.

Question 24

Arizona is in the jurisdiction of the Ninth Circuit Court of Appeals.

Question 25

A taxpayer can obtain a jury trial in the U.S.Court of Federal Claims.

Question 26

The Golsen rule has been overturned by the U.S.Supreme Court.

Question 27

The IRS issues an acquiescence or nonacquiescence only for regular Tax Court decisions.

Question 28

The U.S.Tax Court meets most often in Washington,
D.C.

Question 29

Electronic databases are most frequently searched by the keyword approach.

Question 30

There is a direct conflict between a Code section adopted in 2004 and a treaty with France (signed in 2008).The Code section controls.

Question 31

The following citation is correct: Larry
G.Mitchell, 131 T.C.215 (2008).

Question 32

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

Question 33

The Index to Federal Tax Articles (published by Warren, Gorham, and Lamont) is available in print and electronic formats.

Question 34

A taxpayer must pay any tax deficiency assessed by the IRS and sue for a refund to bring suit in the U.S.Court of Federal Claims.

Question 35

Texas is in the jurisdiction of the Eighth Circuit Court of Appeals.

Question 36

The test for whether a child qualifies for dependency status is first conducted under the qualified child requirement.

Question 37

The research process should begin with a tax service.

Question 38

The "respondent" refers to the party against whom a suit is brought.

Question 39

The term "petitioner" is a synonym for "defendant."

Question 40

There are 11 geographic U.S.Circuit Court of Appeals.

Question 41

Which would not be a citation to a District Court case?

A) 2004-1 USTC ¶ 60,478.
B) 93 AFTR 2d 2004-668.
C) 306 F. Supp. 2d 668.
D) 97 TCM 1488.
E) All of the above are District Court cites.

Question 42

The Internal Revenue Code was first codified in what year?

A)1913.
B)1923.
C)1939.
D)1954.
E)1986.

Question 43

Which of the following is not an administrative source of tax law?

A)Reg.§ 301.6114-1.
B)Section 2(a)(1)(A).
C)Rev.Rul.2011-19.
D)Notice 90-20.
E)Ltr.Rul 201008049.

Question 44

A General Counsel Memorandum is a primary source of tax law.

Question 45

Which of these is not a correct citation to the Internal Revenue Code?

A)Section 211.
B)Section 1222(1).
C)Section 2(a)(1)(A).
D)Section 280B.
E)All of above are correct cites.

Question 46

Proposed Regulations are binding on IRS agents.

Question 47

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

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

Question 48

Which of the following cannot be found in the Federal Register?

A)Regulations.
B)Temporary Regulations.
C)Proposed Regulations.
D)Revenue Rulings.
E)All of the above may be found in the Federal Register.

Question 49

Subtitle A of the Internal Revenue Code covers which of the following taxes?

A)Income taxes.
B)Estate and gift taxes.
C)Excise taxes.
D)Employment taxes.
E)All of the above.

Question 50

Which of the following is not published in the Cumulative Bulletin?

A)Revenue Rulings.
B)Proposed Regulations.
C)Actions on Decisions.
D)Letter Rulings.
E)General Counsel Memoranda.

Question 51

Federal tax legislation generally originates in what body?

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

Question 52

Which of the following types of Regulations has the lowest tax validity?

A)Finalized.
B)Legislative.
C)Proposed.
D)Temporary.
E)Procedural.

Question 53

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

Question 54

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

Question 55

Which court decisions are published in paper format by the U.S.government?

A)U.S.Tax Court Memorandum decision.
B)U.S.Tax Court regular decision.
C)Fifth Circuit U.S.Court of Appeals decision.
D)Court of Federal Claims decision.
E)All of the above.

Question 56

Which item may not be cited as a precedent?

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

Question 57

In § 212(1), the number (1) stands for the:

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

Question 58

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.

Question 59

Which statement is not true with respect to a Treasury Regulation?

A)Issued by the U.S.Congress.
B)Issued as Treasury Decision.
C)Designed to provide interpretation of the tax law.
D)Carries more legal force than a Revenue Ruling.
E)All of the above statements are true.

Question 60

Tax bills are handled by which committee in the U.S.House of Representatives?

A)Taxation Committee.
B)Ways and Means Committee.
C)Finance Committee.
D)Budget Committee.
E)None of the above.

Question 61

Which tax source may override a Regulation section?

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

Question 62

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

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

Question 63

Which is not a primary source of tax law?

A) Notice 89-99, 1989-2 C.B. 422.
B) Estate of Harry Holmes v. Comm., 326 U.S. 480 (1946).
C) Rev. Rul. 79-353, 1979-2 C.B. 325.
D) Temp. Reg. § 1.752-4T(f).
E) All of the above are primary sources.

Question 64

Which tax-related website probably gives the best policy-orientation results?

A)taxalmanac.org.
B)irs.gov.
C)taxsites.com.
D)taxanalyst.com.
E)ustaxcourt.gov.

Question 65

Which publisher offers the Standard Federal Tax Reporter?

A)Research Institute of America.
B)Commerce Clearing House.
C)Prentice-Hall.
D)LexisNexis.
E)None of the above.

Question 66

Which publisher offers Tax Center that provides the Code, Regulations, and material from Matthew Bender, CCH, Kleinrock, and the Bureau of National Affairs?

A)Research Institute of America.
B)Commerce Clearing House.
C)LexisNexis.
D)Prentice-Hall.
E)None of the above.

Question 67

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

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

Question 68

Tax research involves which of the following procedures:

A)Identifying and refining the problem.
B)Locating the appropriate tax law sources.
C)Assessing the validity of the tax law sources.
D)Follow-up.
E)All of the above.

Question 69

Which of the following journals is published by the American Institute of CPAs?

A)Journal of Taxation.
B)Corporate Taxation.
C)Tax Law Review.
D)The Tax Advisor.
E)All of the above.

Question 70

What is the role of the Joint Conference Committee in the legislative process?

Question 71

Which is presently not a major tax service?

A)Standard Federal Tax Reporter.
B)Federal Taxes.
C)United States Tax Reporter.
D)Tax Management Portfolios.
E)All of the above are major tax services.

Question 72

What are Treasury Department Regulations?

Question 73

Which court decision carries more weight?

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.

Question 74

When searching on an online tax service, which approach is more frequently used?

A)Code section approach.
B)Keyword approach.
C)Table of contents approach.
D)Index.
E)All are about the same.

Question 75

Which company does not publish citators for tax purposes?

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

Question 76

Which publisher offers the United States Tax Reporter?

A)Research Institute of America.
B)Commerce Clearing House.
C)LexisNexis.
D)Tax Analysts.
E)None of the above.

Question 77

Which court decision would probably carry more weight?

A)Regular U.S.Tax Court decision.
B)Reviewed U.S.Tax Court decision.
C)U.S.District Court decision.
D)Memorandum Tax Court decision.
E)U.S.Court of Federal Claims.

Question 78

Which Regulations have the force and effect of law?

A)Procedural Regulations.
B)Finalized Regulations.
C)Legislative Regulations.
D)Interpretive Regulations.
E)All of the above.

Question 79

Which items tell taxpayers the IRS's reaction to certain court decisions?

A)Notices.
B)Revenue Procedures.
C)Revenue Rulings.
D)Actions on Decisions.
E)Procedural Regulations.

Question 80

Which statement is incorrect with respect to taxation on the CPA exam?

A)The CPA exam now has only four parts.
B)There are no longer case studies on the exam.
C)A candidate may not go back after exiting a testlet.
D)Simulations include a four-function pop-up calculator.
E)None of the above are incorrect.