Question 1

Statements on Standards for Tax Services are issued by

Accepted Answer

A)  the SEC. 
B)  the IRS. 
C)  the AICPA. 
D)  the FASB. 
A)  the SEC. 
B)  the IRS. 
C)  the AICPA. 
D)  the FASB. C

Question 2

Identify which of the following statements is false.

Accepted Answer

A)  When a court opinion discusses facts and issues on which the court does not rule, the comments are called dicta. 
B)  Dicta in a court opinion has no influence on other tax proceedings. 
C)  Published articles and tax services are examples of secondary sources of authority. 
D)  Dicta are not authoritative. 
A)  When a court opinion discusses facts and issues on which the court does not rule, the comments are called dicta. 
B)  Dicta in a court opinion has no influence on other tax proceedings. 
C)  Published articles and tax services are examples of secondary sources of authority. 
D)  Dicta are not authoritative. B

Question 3

What are some of the consequences of the small cases procedure of the Tax Court?

Accepted Answer

The small cases procedure allows a taxpayer the advantage of having a day in court without the expense of an attorney. But if the taxpayer loses, the decision cannot be appealed.

Question 4

In list form, outline the steps to follow when using a tax service.

Accepted Answer

1) Use a key word search.
2) Read the ap

Question 5

George's case was handled under the "small tax case procedure." He does not agree with the findings of the Tax Court. He would like to appeal the decision. Which one of the following is true?

Accepted Answer

A)  There is no appeal. 
B)  He can appeal the case, but only if the amount of tax involved is greater than $5,000. 
C)  He would appeal first to the U.S. Court of Appeals for the Federal Circuit. 
D)  He would appeal first to the U.S. Court of Federal Claims. 
A)  There is no appeal. 
B)  He can appeal the case, but only if the amount of tax involved is greater than $5,000. 
C)  He would appeal first to the U.S. Court of Appeals for the Federal Circuit. 
D)  He would appeal first to the U.S. Court of Federal Claims.

Question 6

Which of the following is secondary authority?

Accepted Answer

A)  Internal Revenue Code 
B)  Treasury Regulations 
C)  RIA and CCH tax services 
D)  Revenue Ruling 
A)  Internal Revenue Code 
B)  Treasury Regulations 
C)  RIA and CCH tax services 
D)  Revenue Ruling

Question 7

A client wants to take a tax return position with less than a 10% probability of being upheld in court. The CPA should

Accepted Answer

A)  take the client's desired position, but not sign the tax return. 
B)  inform the client that the position does not have a realistic possibility of success. 
C)  ask the client to sign a waiver of his right to sue the CPA in the event the IRS disallows the position. 
D)  take the client's desired position and sign the return as usual. 
A)  take the client's desired position, but not sign the tax return. 
B)  inform the client that the position does not have a realistic possibility of success. 
C)  ask the client to sign a waiver of his right to sue the CPA in the event the IRS disallows the position. 
D)  take the client's desired position and sign the return as usual.

Question 8

Identify which of the following statements is false.

Accepted Answer

A)  Citations to the AFTR and the USTC are referred to as secondary citations. 
B)  A circuit court of appeals must follow the opinion of another circuit court of appeals if the latter appeals court has previously ruled on the tax issue. 
C)  A U.S. Supreme Court opinion in a tax matter has the same status as Congressional tax legislation. 
D)  Circuit Court decisions are reported in the Federal Reporter. 
A)  Citations to the AFTR and the USTC are referred to as secondary citations. 
B)  A circuit court of appeals must follow the opinion of another circuit court of appeals if the latter appeals court has previously ruled on the tax issue. 
C)  A U.S. Supreme Court opinion in a tax matter has the same status as Congressional tax legislation. 
D)  Circuit Court decisions are reported in the Federal Reporter.

Question 9

When the House and Senate versions of a tax bill are not in agreement, the disagreements are resolved by the

Accepted Answer

A)  Ways and Means Committee. 
B)  Mediation Committee. 
C)  Revenue Committee. 
D)  Conference Committee. 
A)  Ways and Means Committee. 
B)  Mediation Committee. 
C)  Revenue Committee. 
D)  Conference Committee.

Question 10

Identify which of the following statements is false.

Accepted Answer

A)  The U.S. Tax Court must follow the previous decisions of the U.S. District Court for the district in which the taxpayer lives. 
B)  The U.S. Tax Court follows the previous decisions of the U.S. Court of Appeals to which the tax matter is appealable. 
C)  The opportunity for "forum shopping" occurs when different precedents on the same point exist. 
D)  The U.S. Tax Court may intentionally issue conflicting decisions. 
A)  The U.S. Tax Court must follow the previous decisions of the U.S. District Court for the district in which the taxpayer lives. 
B)  The U.S. Tax Court follows the previous decisions of the U.S. Court of Appeals to which the tax matter is appealable. 
C)  The opportunity for "forum shopping" occurs when different precedents on the same point exist. 
D)  The U.S. Tax Court may intentionally issue conflicting decisions.

Question 11

Identify which of the following statements is true.

Accepted Answer

A)  The U.S. Court of Federal Claims hears cases only in Washington, D.C. 
B)  Each state has at least one U.S. District Court. 
C)  Federal district court decisions and federal courts of appeals decisions are not printed by the U.S. Government Printing Office. 
D)  All of the above are false. 
A)  The U.S. Court of Federal Claims hears cases only in Washington, D.C. 
B)  Each state has at least one U.S. District Court. 
C)  Federal district court decisions and federal courts of appeals decisions are not printed by the U.S. Government Printing Office. 
D)  All of the above are false.

Question 12

What is the minimum information that should be contained in a citation?

Accepted Answer

A citation should contain, at a minimum,

Question 13

Which regulation deals with the gift tax?

Accepted Answer

A)  Reg. Sec. 1.165-5 
B)  Reg. Sec. 20.2014-5 
C)  Reg. Sec. 25.2518-5 
D)  Reg. Sec. 301.7002-5 
A)  Reg. Sec. 1.165-5 
B)  Reg. Sec. 20.2014-5 
C)  Reg. Sec. 25.2518-5 
D)  Reg. Sec. 301.7002-5

Question 14

A tax bill introduced in the House of Representatives is then

Accepted Answer

A)  referred to the House Ways and Means Committee for hearings and approval. 
B)  referred to the entire House for hearings. 
C)  voted upon by the entire House. 
D)  forwarded to the Senate Finance Committee for consideration. 
A)  referred to the House Ways and Means Committee for hearings and approval. 
B)  referred to the entire House for hearings. 
C)  voted upon by the entire House. 
D)  forwarded to the Senate Finance Committee for consideration.

Question 15

When Congress passes a statute with language such as, "The Secretary shall prescribe such regulations as he may deem necessary," the regulations ultimately issued for that statute are

Accepted Answer

A)  congressional regulations. 
B)  statutory regulations. 
C)  interpretative regulations. 
D)  legislative regulations. 
A)  congressional regulations. 
B)  statutory regulations. 
C)  interpretative regulations. 
D)  legislative regulations.

Question 16

A jury trial is permitted in the

Accepted Answer

A)  U.S. District Court. 
B)  U.S. Tax Court. 
C)  U.S. Court of Federal Claims. 
D)  U.S. Tax Court when the small case procedures are used. 
A)  U.S. District Court. 
B)  U.S. Tax Court. 
C)  U.S. Court of Federal Claims. 
D)  U.S. Tax Court when the small case procedures are used.

Question 17

According to the Statements on Standards for Tax Services, if a CPA believes that a client's prior-year tax return contains false information, the CPA should report this to the

Accepted Answer

A)  IRS. 
B)  SEC. 
C)  AICPA. 
D)  None of the above. The CPA does not report the false information to any external agencies, unless required by law. 
A)  IRS. 
B)  SEC. 
C)  AICPA. 
D)  None of the above. The CPA does not report the false information to any external agencies, unless required by law.

Question 18

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

A)  a restricted-fact situation. 
B)  a closed-fact situation. 
C)  an open-fact situation. 
D)  a recognized-fact situation. 
A)  a restricted-fact situation. 
B)  a closed-fact situation. 
C)  an open-fact situation. 
D)  a recognized-fact situation.

Question 19

Identify which of the following statements is true.

Accepted Answer

A)  RIA United States Tax Reporter and CCH Standard Federal Tax Reporter are topical tax services. 
B)  An annotated tax service is organized by broad subject areas. 
C)  Annotations are summaries of IRS pronouncements and court opinions. 
D)  All of the above are false. 
A)  RIA United States Tax Reporter and CCH Standard Federal Tax Reporter are topical tax services. 
B)  An annotated tax service is organized by broad subject areas. 
C)  Annotations are summaries of IRS pronouncements and court opinions. 
D)  All of the above are false.

Question 20

The taxpayer need not pay the disputed tax in advance when the suit is initiated in

Accepted Answer

A)  U.S. Court of Federal Claims. 
B)  U.S. Tax Court. 
C)  U.S. District Court. 
D)  both A and B. 
A)  U.S. Court of Federal Claims. 
B)  U.S. Tax Court. 
C)  U.S. District Court. 
D)  both A and B.

Statements on Standards for Tax Services are issued by

Identify which of the following statements is false.

What are some of the consequences of the small cases procedure of the Tax Court?

In list form, outline the steps to follow when using a tax service.

George's case was handled under the "small tax case procedure." He does not agree with the findings of the Tax Court. He would like to appeal the decision. Which one of the following is true?

Which of the following is secondary authority?

A client wants to take a tax return position with less than a 10% probability of being upheld in court. The CPA should

Identify which of the following statements is false.

When the House and Senate versions of a tax bill are not in agreement, the disagreements are resolved by the

Identify which of the following statements is false.

Identify which of the following statements is true.

What is the minimum information that should be contained in a citation?

Which regulation deals with the gift tax?

A tax bill introduced in the House of Representatives is then

When Congress passes a statute with language such as, "The Secretary shall prescribe such regulations as he may deem necessary," the regulations ultimately issued for that statute are

A jury trial is permitted in the

According to the Statements on Standards for Tax Services, if a CPA believes that a client's prior-year tax return contains false information, the CPA should report this to the

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

Identify which of the following statements is true.

The taxpayer need not pay the disputed tax in advance when the suit is initiated in

Corporate Formations and Capital Structure

The Corporate Income Tax

Corporate Nonliquidating Distributions

Other Corporate Tax Levies

Corporate Liquidating Distributions

Corporate Acquisitions and Reorganizations

Consolidated Tax Returns

Partnership Formation and Operation

Special Partnership Issues

S Corporations

The Gift Tax

The Estate Tax

Income Taxation of Trusts and Estates

Administrative Procedures

Us Taxation of Foreign-Related Transactions

Filters

Exam 1: Tax Research

Statements on Standards for Tax Services are issued by

Identify which of the following statements is false.

What are some of the consequences of the small cases procedure of the Tax Court?

In list form, outline the steps to follow when using a tax service.

George's case was handled under the "small tax case procedure." He does not agree with the findings of the Tax Court. He would like to appeal the decision. Which one of the following is true?

Which of the following is secondary authority?

A client wants to take a tax return position with less than a 10% probability of being upheld in court. The CPA should

Identify which of the following statements is false.

When the House and Senate versions of a tax bill are not in agreement, the disagreements are resolved by the

Identify which of the following statements is false.

Identify which of the following statements is true.

What is the minimum information that should be contained in a citation?

Which regulation deals with the gift tax?

A tax bill introduced in the House of Representatives is then

When Congress passes a statute with language such as, "The Secretary shall prescribe such regulations as he may deem necessary," the regulations ultimately issued for that statute are

A jury trial is permitted in the

According to the Statements on Standards for Tax Services, if a CPA believes that a client's prior-year tax return contains false information, the CPA should report this to the

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

Identify which of the following statements is true.

The taxpayer need not pay the disputed tax in advance when the suit is initiated in

Corporate Formations and Capital Structure

The Corporate Income Tax

Corporate Nonliquidating Distributions

Other Corporate Tax Levies

Corporate Liquidating Distributions

Corporate Acquisitions and Reorganizations

Consolidated Tax Returns

Partnership Formation and Operation

Special Partnership Issues

S Corporations

The Gift Tax

The Estate Tax

Income Taxation of Trusts and Estates

Administrative Procedures

Us Taxation of Foreign-Related Transactions

Filters