Deck 2: Working With the Tax Law

Question 1

Determination letters usually involve finalized transactions.

Answer 1

True

Question 2

Technical Advice Memoranda deal with completed transactions.

Answer 2

True

Question 3

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

Answer 3

False

Question 4

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

Question 5

A tax professional need not worry about the relative weight of authority within the various tax law sources.

Question 6

Rules of tax law do not include Revenue Rulings and Revenue Procedures.

Question 7

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

Question 8

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

Question 9

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 10

Subchapter D refers to the "Corporate Distributions and Adjustments" section of the Internal Revenue Code.

Question 11

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

Question 12

In recent years,Congress has been relatively successful in simplifying the Internal Revenue Code.

Question 13

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

Question 14

Regulations are generally issued immediately after a statute is enacted.

Question 15

The Code section citation is incorrect: § 212(1).

Question 16

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

Question 17

The first codification of the tax law occurred in 1954.

Question 18

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

Question 19

Temporary Regulations are only published in the Internal Revenue Bulletin.
FALSE

Question 20

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

Question 21

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

Question 22

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

Question 23

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

Question 24

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 25

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

Question 26

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 27

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 28

The research process should begin with a tax service.

Question 29

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

Question 30

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.

Question 31

The Internal Revenue Code was first codified in what year?

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

Question 32

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

Question 33

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 34

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 35

The Regulation section of the CPA exam is 60% Taxation and 40% Law & Professional Responsibilities.

Question 36

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

Question 37

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

Question 38

There is a direct conflict between a Code section adopted in 2008 and a treaty with France (signed in 2012).The Code section controls.

Question 39

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

Question 40

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 41

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 42

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 43

Which statement is not true with respect to a Regulation that 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 44

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

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

Question 45

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 46

A taxpayer may not appeal a case from which court:

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

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 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 49

A taxpayer who loses in a U.S.District Court may appeal directly to the:

A)U.S.Supreme Court.
B)U.S.Tax Court.
C)U.S.Court of Federal Claims.
D)U.S.Circuit Court of Appeals.
E)All of the above.

Question 50

Which of the following sources has the highest tax validity?

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

Question 51

If a taxpayer decides not to pay a tax deficiency,he or she must go to which court?

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

Question 52

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 53

A jury trial is available in the following trial court:

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

Question 54

In addressing the importance of a Regulation,an IRS agent must:

A)Give equal weight to the Code and the 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 55

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 56

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

A)Field Service Advice.
B)Revenue Procedure.
C)Technical Advice Memoranda.
D)General Counsel Memorandum.
E)All of the above are administrative sources.

Question 57

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 58

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 59

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 60

The IRS will not acquiesce to the following tax decisions:

A)U.S.District Court.
B)U.S.Tax Court.
C)U.S.Court of Federal Claims.
D)Small Case Division of the U.S.Tax Court.
E)All of the above.

Question 61

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 62

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 63

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)Legislative Regulations.

Question 64

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 65

Distinguish between the jurisdiction of the U.S.Tax Court and a U.S.District Court.

Question 66

Which company does not publish citators for tax purposes?

A)John Wiley & Sons.
B)Commerce Clearing House.
C)Research Institute of America.
D)Westlaw.
E)Shepard's.

Question 67

Discuss the advantages and disadvantages of the Small Cases Division of the U.S.Tax Court.

Question 68

What is a Technical Advice Memorandum?

Question 69

Which court decision carries more weight?

A)Federal District Court.
B)Second 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 70

What are Treasury Department Regulations?

Question 71

Compare Revenue Rulings with Revenue Procedures.

Question 72

How do treaties fit within tax sources?