Deck 2: Working With the Tax Law

Question 1

Technical Advice Memoranda deal with proposed transactions.

Answer 1

False

Question 2

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

Answer 2

False

Question 3

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

Answer 3

False

Question 4

Determination letters usually involve completed transactions.

Question 5

Federal tax legislation generally originates in the House Ways and Means Committee.

Question 6

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.Only in the Tax Court can jurisdiction be obtained without first paying the assessed tax deficiency.

Question 7

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

Question 8

Temporary Regulations are first published in the Internal Revenue Bulletin.

Question 9

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

Question 10

The IRS is not required to make a letter ruling public.

Question 11

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

Question 12

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

Question 13

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

Question 14

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

Question 15

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

Question 16

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

Question 17

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

Question 18

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

Question 19

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

Question 20

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

Question 21

A court will never invalidate a Regulation or portion thereof on the grounds that the Regulation is contrary to the intent of Congress.

Question 22

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 23

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

Question 24

Before 1943,the U.S.Tax Court was called the Board of Tax Appeals.

Question 25

Most major tax services are available in electronic format.

Question 26

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

Question 27

When dealing with proposed transactions,the tax research process is directed toward the determination of possible alternative consequences.

Question 28

An easy way to locate a journal article pertinent to a tax problem is through Commerce Clearing House's Federal Tax Articles.

Question 29

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

Question 30

A scholarship received by a student is excluded for purposes of computing whether a person is self-supporting under the qualified child provision.

Question 31

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 32

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

Question 33

The following citation is correct: James
E. Wiese, T.C. Summary Opinion, 2005-91.

Question 34

The Golsen rule has not been overturned by the U.S.Supreme Court.

Question 35

The Internet provides a wealth of tax information in several popular forms,sometimes at no direct cost to the researcher.

Question 36

The term "respondent" is a synonym for plaintiff.

Question 37

Among the approaches available for online tax research are a keyword approach,a table of contents approach,an index approach,and a citation approach.

Question 38

A taxpayer can obtain a jury trial in the U.S.Tax Court.

Question 39

Accessing tax documents through electronic means offers limited advantages over a strictly paper-based approach.

Question 40

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

Question 41

Which is not a Code section number?

A) § 212(1).
B) § 2(a)(1).
C) § 280B.
D) § 6(a).
E) All are current Code sections.

Question 42

IRS agents must give the Code and Regulations issued thereunder equal weight when dealing with taxpayers and their representatives.

Question 43

Proposed Regulations are often cited by the various courts.

Question 44

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

A) General Counsel Memoranda.
B) Revenue Procedures.
C) Technical Advice Memoranda.
D) Actions on Decisions.
E) All of the above are administrative sources.

Question 45

Interpretive Regulations do not have the force and effect of law.

Question 46

A U.S.Tax Court decision carries less weight than a decision issued by the Fifth Circuit Court of Appeals.

Question 47

Which committee reconciles the tax bills between the Senate and the House?

A) Joint Committee on Taxation.
B) Joint Conference Committee.
C) Joint Reconciliation Committee.
D) Joint Resolving Committee.
E) None of the above.

Question 48

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 49

Which statement is false with respect to tax treaties?

A) There is a $1,000 penalty per failure to disclose on the tax return where there is a direct treaty conflict for an individual.
B) There is a $10,000 penalty per failure to disclose on the tax return where there is a direct treaty conflict for a corporation.
C) Treaties override the Code when in conflict.
D) Treaties may override a Code section when in conflict.
E) None of the above.

Question 50

What statement is not true with respect to a regulation which interprets the tax law?

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

Question 51

Tax bills are handled by which committee in the U.S.Senate?

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

Question 52

Which of the following sources has the highest tax validity?

A) Revenue Ruling.
B) Letter ruling.
C) Regulations.
D) Internal Revenue Code section.
E) None of the above.

Question 53

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 54

The Internal Revenue Code was codified in which of the following years?

A) 1913.
B) 1933.
C) 1954.
D) 1957.
E) None of the above.

Question 55

The computer-based CPA examination has four sections with true-false,multiple-choice,and case studies (called simulations).

Question 56

Subchapter S covers which specific area of tax law?

A) Simplification.
B) Deductions.
C) Capital gains and losses.
D) Tax rates.
E) None of the above.

Question 57

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 58

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

A) Temporary.
B) Legislative.
C) Interpretative.
D) Procedural.
E) None of the above.

Question 59

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 60

In assessing the importance of a regulation,an IRS agent must:

A) Give equal weight to the Code and regulations.
B) Give more weight to the Code rather than to a regulation.
C) Give more weight to the regulation rather than to the Code.
D) Give less weight to the Code rather than to a regulation.
E) None of the above.

Question 61

Which court decision carries less 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 62

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 63

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 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

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

Question 66

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 67

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 68

Compare Revenue Rulings with Revenue Procedures.

Question 69

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 70

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 71

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 72

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 73

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 74

Compare a determination letter with a letter ruling.

Question 75

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 76

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 77

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.

Question 78

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 79

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 80

What are Treasury Department Regulations?