Question 1

What are the purposes of citations in tax research?

Accepted Answer

Citations serve two purposes.

Question 2

According to the Statements on Standards for Tax Services, CPAs must verify all tax return information submitted by reviewing client documentation.

Accepted Answer

A) True 
 B)False

Question 3

According to the AICPA's Statements on Standards for Tax Services, what duties does the tax practitioner owe the client?

Accepted Answer

The tax practitioner owes the client the

Question 4

The primary citation for a federal circuit court of appeals case would be

Accepted Answer

A)  40 AFTR 2d 78-1234. 
B)  44 F.Supp. 403. 
C)  3 F.3d 134. 
D)  79-2 USTC & 9693. 
A)  40 AFTR 2d 78-1234. 
B)  44 F.Supp. 403. 
C)  3 F.3d 134. 
D)  79-2 USTC & 9693.

Question 5

Assume that you want to read a description of a particular area of the law, along with one or more illustrations of how that law is applied. You will not find that type of material in

Accepted Answer

A)  a citator. 
B)  the Treasury Regulations. 
C)  the Cumulative Bulletin. 
D)  the Committee Reports. 
A)  a citator. 
B)  the Treasury Regulations. 
C)  the Cumulative Bulletin. 
D)  the Committee Reports.

Question 6

Identify which of the following statements is true.

Accepted Answer

A)  If regulations are issued prior to the latest tax legislation dealing with a specific Code section, the regulations are no longer effective to the extent they conflict with the provisions in the new legislation. 
B)  Legislative regulations are more likely to be invalidated by the courts than are interpretative regulations. 
C)  Regulations have more authoritative weight than tax statutes. 
D)  All of the above are false. 
A)  If regulations are issued prior to the latest tax legislation dealing with a specific Code section, the regulations are no longer effective to the extent they conflict with the provisions in the new legislation. 
B)  Legislative regulations are more likely to be invalidated by the courts than are interpretative regulations. 
C)  Regulations have more authoritative weight than tax statutes. 
D)  All of the above are false.

Question 7

The Senate equivalent of the House Ways and Means Committee is the Senate

Accepted Answer

A)  Finance Committee. 
B)  Ways and Means Committee. 
C)  Tax Committee. 
D)  Joint Conference Committee. 
A)  Finance Committee. 
B)  Ways and Means Committee. 
C)  Tax Committee. 
D)  Joint Conference Committee.

Question 8

Identify which of the following statements is false.

Accepted Answer

A)  The acquiescence policy was adopted by the U.S. Tax Court to permit litigating parties to agree on the exact amount of the tax due. 
B)  Letter rulings are binding only with respect to the taxpayer requesting the ruling. 
C)  The small cases procedure of the U.S. Tax Court allows a less formal hearing but provides for no appeal. 
D)  The IRS may retroactively revoke an acquiescence. 
A)  The acquiescence policy was adopted by the U.S. Tax Court to permit litigating parties to agree on the exact amount of the tax due. 
B)  Letter rulings are binding only with respect to the taxpayer requesting the ruling. 
C)  The small cases procedure of the U.S. Tax Court allows a less formal hearing but provides for no appeal. 
D)  The IRS may retroactively revoke an acquiescence.

Question 9

Compare and contrast "interpretative" and "statutory" regulations.

Accepted Answer

Both types of regulations are issued by

Question 10

Your client wants to deduct commuting expenses on his tax return. You explain to the client that there is no legal authority allowing this deduction. The client, however, continues to insist on this action. What guidance do the Statements on Standards for Tax Services provide in this dilemma?

Accepted Answer

According to Statement on Tax Standards,

Question 11

Explain the legislative reenactment doctrine.

Accepted Answer

Under the legislative reenactment doctri

Question 12

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

Accepted Answer

In a closed-fact situation, the transact

Question 13

Regulations are

Accepted Answer

A)  equal in authority to legislation. 
B)  equal in authority to legislation if statutory. 
C)  presumed to be valid and to have almost the same weight as the IRC. 
D)  equal in authority to legislation if interpretative. 
A)  equal in authority to legislation. 
B)  equal in authority to legislation if statutory. 
C)  presumed to be valid and to have almost the same weight as the IRC. 
D)  equal in authority to legislation if interpretative.

Question 14

Where must a tax researcher look to access all Tax Court cases?

Accepted Answer

The regular opinions are found in the Ta

Question 15

A tax case cannot be appealed when initiated in the

Accepted Answer

A)  U.S. Court of Federal Claims. 
B)  U.S. Tax Court. 
C)  U.S. Tax Court using the small case procedures. 
D)  none of the above 
A)  U.S. Court of Federal Claims. 
B)  U.S. Tax Court. 
C)  U.S. Tax Court using the small case procedures. 
D)  none of the above

Question 16

What is the difference between a taxpayer-requested letter ruling and a technical advice memorandum issued as a letter ruling?

Accepted Answer

A taxpayer-requested letter ru

Question 17

The citation "Rev. Rul. 2006-8, 2006-1 C.B. 541" refers to

Accepted Answer

A)  the eighth ruling of 2006 found on page 541 in Vol. 1 of the 2006 Cumulative Bulletin. 
B)  the eighth ruling of 2006 found on page 541 in the 2006 volume of the Cumulative Bulletin. 
C)  the 541st ruling of 2006 found on page eight in Vol. 1 of the 2006 Cumulative Bulletin. 
D)  the 1st ruling of 2006 found on page 541 in the 2006 volume of the Cumulative Bulletin. 
A)  the eighth ruling of 2006 found on page 541 in Vol. 1 of the 2006 Cumulative Bulletin. 
B)  the eighth ruling of 2006 found on page 541 in the 2006 volume of the Cumulative Bulletin. 
C)  the 541st ruling of 2006 found on page eight in Vol. 1 of the 2006 Cumulative Bulletin. 
D)  the 1st ruling of 2006 found on page 541 in the 2006 volume of the Cumulative Bulletin.

Question 18

Discuss the differences and similarities between regular and memorandum decisions issued by the U.S. Tax Court.

Accepted Answer

Differences:
1) Regular decisions involv

Question 19

Tax Court memorandum decisions

Accepted Answer

A)  cannot be appealed. 
B)  are not published. 
C)  have less precedential value than regular decisions. 
D)  usually deal with factual variations of issues litigated previously. 
A)  cannot be appealed. 
B)  are not published. 
C)  have less precedential value than regular decisions. 
D)  usually deal with factual variations of issues litigated previously.

Question 20

The phrase "Entered under Rule 155" indicates that

Accepted Answer

A)  the computation of the exact amount of the tax deficiency has been left to the litigating parties. 
B)  the court has not reached a decision concerning the appropriate tax treatment of an issue. 
C)  the parties have agreed not to appeal the decision. 
D)  only one Tax Court judge reviewed the case. 
A)  the computation of the exact amount of the tax deficiency has been left to the litigating parties. 
B)  the court has not reached a decision concerning the appropriate tax treatment of an issue. 
C)  the parties have agreed not to appeal the decision. 
D)  only one Tax Court judge reviewed the case.

What are the purposes of citations in tax research?

According to the Statements on Standards for Tax Services, CPAs must verify all tax return information submitted by reviewing client documentation.

According to the AICPA's Statements on Standards for Tax Services, what duties does the tax practitioner owe the client?

The primary citation for a federal circuit court of appeals case would be

Assume that you want to read a description of a particular area of the law, along with one or more illustrations of how that law is applied. You will not find that type of material in

Identify which of the following statements is true.

The Senate equivalent of the House Ways and Means Committee is the Senate

Identify which of the following statements is false.

Compare and contrast "interpretative" and "statutory" regulations.

Your client wants to deduct commuting expenses on his tax return. You explain to the client that there is no legal authority allowing this deduction. The client, however, continues to insist on this action. What guidance do the Statements on Standards for Tax Services provide in this dilemma?

Explain the legislative reenactment doctrine.

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

Regulations are

Where must a tax researcher look to access all Tax Court cases?

A tax case cannot be appealed when initiated in the

What is the difference between a taxpayer-requested letter ruling and a technical advice memorandum issued as a letter ruling?

The citation "Rev. Rul. 2006-8, 2006-1 C.B. 541" refers to

Discuss the differences and similarities between regular and memorandum decisions issued by the U.S. Tax Court.

Tax Court memorandum decisions

The phrase "Entered under Rule 155" indicates that

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

What are the purposes of citations in tax research?

According to the Statements on Standards for Tax Services, CPAs must verify all tax return information submitted by reviewing client documentation.

According to the AICPA's Statements on Standards for Tax Services, what duties does the tax practitioner owe the client?

The primary citation for a federal circuit court of appeals case would be

Assume that you want to read a description of a particular area of the law, along with one or more illustrations of how that law is applied. You will not find that type of material in

Identify which of the following statements is true.

The Senate equivalent of the House Ways and Means Committee is the Senate

Identify which of the following statements is false.

Compare and contrast "interpretative" and "statutory" regulations.

Your client wants to deduct commuting expenses on his tax return. You explain to the client that there is no legal authority allowing this deduction. The client, however, continues to insist on this action. What guidance do the Statements on Standards for Tax Services provide in this dilemma?

Explain the legislative reenactment doctrine.

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

Regulations are

Where must a tax researcher look to access all Tax Court cases?

A tax case cannot be appealed when initiated in the

What is the difference between a taxpayer-requested letter ruling and a technical advice memorandum issued as a letter ruling?

The citation "Rev. Rul. 2006-8, 2006-1 C.B. 541" refers to

Discuss the differences and similarities between regular and memorandum decisions issued by the U.S. Tax Court.

Tax Court memorandum decisions

The phrase "Entered under Rule 155" indicates that

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