Question 1

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

Accepted Answer

As a professional dealing with tax law, it is important to understand the relative weight of authority within the sources of tax law. This includes knowing which sources of law (such as statutes or court decisions) carry more weight or are considered more authoritative in different situations.

Question 2

Federal tax legislation generally originates in the Senate Finance Committee.

Accepted Answer

False

Question 3

Temporary Regulations are only published in the Internal Revenue Bulletin.

Accepted Answer

Temporary Regulations are first published in the Federal Register and later included in the Internal Revenue Bulletin.

Question 4

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

Accepted Answer

The answer of Subchapter P refers to the "Partners and...

Question 5

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

Accepted Answer

The answer of A Temporary Regulation under § 173 of...

Question 6

Technical Advice Memoranda deal with completed transactions.

Accepted Answer

Technical Advice Memoranda (TAM) provide guidance and advice to IRS personnel and taxpayers regarding the tax implications of completed transactions. They are not intended to provide advice on ongoing or proposed transactions.

Question 7

Determination letters usually involve proposed transactions.

Accepted Answer

Determination letters are issued by the IRS to confirm the tax-exempt status of retirement plans and nonprofit organizations, not typically for proposed transactions.

Question 8

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

Accepted Answer

Revenue Rulings are the IRS's official interpretation of how the law is applied to specific factual situations, whereas Regulations (also known as Treasury Regulations) are the IRS's official interpretation of the tax code itself and carry more legal weight. Regulations are generally issued following a notice and comment period and are published in the Federal Register, making them more formal and authoritative than Revenue Rulings.

Question 9

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

Accepted Answer

Post-1984 letter rulings are considered 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.

Accepted Answer

The answer of The Internal Revenue Code of 1986 was...

Question 11

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

Accepted Answer

Technical Advice Memoranda (TAMs) are not published in the Internal Revenue Bulletin and are not binding on the IRS, and therefore cannot be cited as precedents by taxpayers. TAMs provide guidance to IRS personnel on how to apply the law to a particular set of facts, but should not be relied upon as authoritative sources of law.

Question 12

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

Accepted Answer

The regulations are organized in the same order as the Internal Revenue Code, with each regulation corresponding to a section of the 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.

Accepted Answer

The answer of A taxpayer must pay any tax deficiency...

Question 14

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

Accepted Answer

The answer of Before a tax bill can become law,...

Question 15

The IRS is required to make a letter ruling public.

Accepted Answer

According to the IRS, letter rulings are generally made available to the public after all confidential information has been removed or redacted. This is in accordance with the Freedom of Information Act (FOIA).

Question 16

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

Accepted Answer

A Revenue Ruling is an administrative source of Federal tax law, issued by the Internal Revenue Service (IRS) to interpret the tax laws and guide taxpayers.

Question 17

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

Accepted Answer

The answer of The following citation can be a correct...

Question 18

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

Accepted Answer

The answer of House members have considerable latitude to make...

Question 19

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

Accepted Answer

The answer of Revenue Rulings deal with the internal management...

Question 20

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

Accepted Answer

A letter ruling is specific to the taxpayer who requested it and should not be relied upon by any other taxpayers.

Quiz 2: Working With the Tax Law