Question 1

Technical Advice Memoranda deal with proposed transactions.

Accepted Answer

False

Question 2

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

Accepted Answer

False

Question 3

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

Accepted Answer

False

Question 4

Determination letters usually involve completed transactions.

Accepted Answer

The answer of Determination letters usually involve completed transactions....

Question 5

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

Accepted Answer

This is true. Under the US Constitution, all tax legislation must originate in the House of Representatives, specifically in the Ways and Means Committee. The Senate may propose changes to tax bills but cannot initiate them.

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.

Accepted Answer

The U.S. Tax Court allows taxpayers to dispute their tax deficiencies before paying them, unlike the U.S. Court of Federal Claims, where the taxpayer must first pay the assessed tax and then sue for a refund.

Question 7

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 8

Temporary Regulations are first published in the Internal Revenue Bulletin.

Accepted Answer

Temporary Regulations are first published in the Federal Register, not the Internal Revenue Bulletin.

Question 9

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

Accepted Answer

Regulations are arranged in the same sequence as the Internal Revenue Code for ease of reference and compliance.

Question 10

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

Accepted Answer

The answer of The IRS is not required to make...

Question 11

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 12

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 13

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 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,it...

Question 15

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

Accepted Answer

According to the Internal Revenue Service (IRS), post-1984 letter rulings may be used as substantial authority for purposes of the accuracy-related penalty in § 6662. This means that taxpayers can rely on these rulings when determining the appropriate tax treatment of specific transactions or situations, and potentially avoid penalties for inaccuracies on their tax returns.

Question 16

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 17

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

Accepted Answer

Technical Advice Memoranda (TAMs) are documents issued by the IRS to provide guidance to its personnel on how to handle certain tax issues. However, they are not binding and cannot be used as precedents by taxpayers.

Question 18

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

Accepted Answer

Letter rulings are specific to the individual taxpayer who requested the ruling and only provide guidance for their specific situation. Other taxpayers cannot rely on the ruling unless their circumstances are identical to those described in the ruling.

Question 19

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 20

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

Accepted Answer

Understanding the relative weight of authority within the sources of tax law is a crucial skill for tax professionals.

Quiz 2: Working With the Tax Law

Technical Advice Memoranda deal with proposed transactions.

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

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

Determination letters usually involve completed transactions.

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

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.

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

Temporary Regulations are first published in the Internal Revenue Bulletin.

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

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

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

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

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

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

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

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

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

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

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

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