Question 1

You have the following citation: Joel Munro,92 T.C.71 (1989).Which of the following statements is true?

Accepted Answer

The citation "Joel Munro, 92 T.C. 71 (1989)" indicates that the case involving taxpayer Joel Munro was decided by the Tax Court of the United States and appears on page 71 in Volume 92 of the official reports. The year 1989 refers to the year in which the case was decided. There is no information to suggest that the taxpayer won or that there was a taxpayer conference with the IRS or an appeal.

Question 2

A revenue ruling is issued by the Internal Revenue Service only in response to a verbal inquiry by a taxpayer.

Accepted Answer

A revenue ruling is an official interpretation by the IRS of the tax laws, regulations, and procedures that apply to particular situations. They are issued and published by the IRS for the public to rely on. They are not issued in response to a verbal inquiry by a taxpayer.

Question 3

Appeals from the Court of Appeals go to the Supreme Court under a writ of certiorari.The Supreme Court decides whether or not they will hear the case.

Accepted Answer

This is the standard process for appeals to the Supreme Court. The Supreme Court has discretion over which cases it chooses to hear on appeal.

Question 4

Investigation of a tax problem that involves a closed-fact situation means that

Accepted Answer

A closed-fact situation refers to a situation where the transactions have already occurred, and there is no scope of changing them. Therefore, the investigation of a tax problem in a closed-fact situation involves resolving tax questions related to historical transactions. The research is primarily focused on analyzing the law and applying it to the existing facts. Future events cannot be planned or controlled in a closed-fact situation.

Question 5

Tax planning is not an integral part of open-fact situations.

Accepted Answer

Tax planning is an integral part of open-fact situations, as it involves analyzing and strategizing ways to minimize tax liability while remaining compliant with tax laws and regulations.

Question 6

The term "tax law" includes

Accepted Answer

Tax law includes all three aspects mentioned in the options - legislation, treasury regulations, and judicial decisions. Legislation refers to the laws passed by Congress, while treasury regulations are rules issued by the Department of Treasury in interpreting and implementing various tax laws. Judicial decisions are rulings made by courts in deciding tax-related cases. Therefore, all of the above options are included in the term "tax law".

Question 7

A tax bill introduced in the House of Representatives is then

Accepted Answer

According to the legislative process in the House of Representatives, bills related to taxation are usually referred to the House Ways and Means Committee for hearings and approval before being considered by the entire House. Therefore, option A is the correct answer.

Question 8

Identify which of the following statements is true.

Accepted Answer

The answer of Identify which of the following statements is...

Question 9

Identify which of the following statements is false.

Accepted Answer

The answer of Identify which of the following statements is...

Question 10

Taxpayers must pay the disputed tax prior to filing a case with the Tax Court.

Accepted Answer

Taxpayers can dispute their tax liability in the U.S. Tax Court before paying the disputed amount.

Question 11

The Internal Revenue Code of 1986 contains the current version of the tax law.

Accepted Answer

The Internal Revenue Code of 1986 has been amended and updated since its initial enactment, but it remains the primary source of federal tax law in the United States.

Question 12

The committee that is responsible for holding hearings on tax legislation for the House of Representatives is the

Accepted Answer

The Ways and Means Committee is the main committee in the House of Representatives responsible for holding hearings on tax legislation. The Finance Committee is actually a committee in the Senate, and the Joint Committee on Taxation is a congressional committee that assists in the analysis of tax legislation but does not hold hearings. The Conference Committee is a temporary committee that is formed to resolve differences between the House and Senate versions of a bill, but it does not hold hearings on tax legislation.

Question 13

Regulations issued prior to the latest tax legislation dealing with a specific Code section are still effective to the extent they do not conflict with the provisions in the new legislation.

Accepted Answer

Regulations issued prior to new tax legislation are still effective unless they conflict with the new provisions.

Question 14

When the Tax Court follows the opinion of the circuit court of appeals to which the case is appealable,the court is following the

Accepted Answer

When the Tax Court follows the opinion of the circuit court of appeals to which the case is appealable, it is following the Golsen rule. The Golsen rule requires the Tax Court to follow the precedent of the circuit court of appeals to which it would appeal the case if a notice of appeal was filed. However, the Tax Court is not bound by the precedent of other circuit courts of appeals.

Question 15

When a taxpayer contacts a tax advisor requesting advice as to the most advantageous way to dispose of a stock,the tax advisor is faced with

Accepted Answer

An open-fact situation means that there are unknown or uncertain facts that could impact the advice given by the tax advisor. In this case, the taxpayer's request for advice on the most advantageous way to dispose of a stock leaves room for interpretation and details about the stock's cost basis, holding period, and sale price are still unknown. Therefore, the tax advisor must gather more information and make assumptions or estimates in order to provide advice.

Question 16

Appeals from the U.S.Tax Court are to the Court of Appeals for the Federal Circuit.

Accepted Answer

Appeals from the U.S. Tax Court are typically made to the United States Court of Appeals for the circuit in which the taxpayer resides, not directly to the Court of Appeals for the Federal Circuit.

Question 17

In all situations,tax considerations are of primary importance.Do you agree or disagree? Support your answer.

Accepted Answer

The answer of In all situations,tax considerations are of primary...

Question 18

Explain the difference between a closed-fact and open-fact situation.

Accepted Answer

The answer of Explain the difference between a closed-fact and...

Question 19

Final regulations have almost the same legislative weight as the IRC.

Accepted Answer

Final regulations are issued by the Treasury Department and have almost the same legislative weight as the Internal Revenue Code (IRC). They are considered authoritative interpretations of the tax laws and taxpayers are generally bound by them.

Question 20

Describe the format of a client memo.

Accepted Answer

The answer of Describe the format of a client memo....

Quiz 1: Tax Research

You have the following citation: Joel Munro,92 T.C.71 (1989) .Which of the following statements is true?