Question 1

Which of the following statements about the Statements on Standards for Tax Services is true?

Accepted Answer

A)  A CPA is never allowed to use a taxpayer's estimates when preparing a tax return. 
B)  The CPA must tell the IRS upon becoming aware that an error has been made on a past tax return. 
C)  The CPA may in good faith rely on information provided by the taxpayer, without verifying the reliability of that information if reasonable inquiries are made where the information furnished appears to be incorrect. 
D)  The CPA should not recommend that a taxpayer take a certain position if there is any doubt as to whether the position would be approved by the IRS upon audit. 
A)  A CPA is never allowed to use a taxpayer's estimates when preparing a tax return. 
B)  The CPA must tell the IRS upon becoming aware that an error has been made on a past tax return. 
C)  The CPA may in good faith rely on information provided by the taxpayer, without verifying the reliability of that information if reasonable inquiries are made where the information furnished appears to be incorrect. 
D)  The CPA should not recommend that a taxpayer take a certain position if there is any doubt as to whether the position would be approved by the IRS upon audit.

Question 2

In 1998, Congress passed legislation concerning shifting the burden of proof to the IRS. The taxpayer must introduce "credible evidence" to shift the burden of proof to the IRS. What constitutes "credible evidence"?

Accepted Answer

The term is not defined in the IRC. Beca

Question 3

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

Accepted Answer

A)  The taxpayer, Joel Munro, won the case because there is no reference to the IRS. 
B)  The case appears on page 71 in Volume 92 of the official Tax Court of the United States Reports and the case was decided in 1989. 
C)  This citation refers to a taxpayer conference between the IRS and the taxpayer. 
D)  The case was tried in 1989 and was appealed in 1992. 
A)  The taxpayer, Joel Munro, won the case because there is no reference to the IRS. 
B)  The case appears on page 71 in Volume 92 of the official Tax Court of the United States Reports and the case was decided in 1989. 
C)  This citation refers to a taxpayer conference between the IRS and the taxpayer. 
D)  The case was tried in 1989 and was appealed in 1992.

Question 4

What is the purpose of a citator?

Accepted Answer

Citators give a history of the

Question 5

Which of the following statements regarding proposed regulations is not correct?

Accepted Answer

A)  Proposed regulations expire after three years. 
B)  Practitioners and other interested parties may comment on proposed regulations. 
C)  Proposed and temporary regulations are generally issued simultaneously. 
D)  Proposed regulations do not provide any insight into the IRS's interpretation of the tax law. 
A)  Proposed regulations expire after three years. 
B)  Practitioners and other interested parties may comment on proposed regulations. 
C)  Proposed and temporary regulations are generally issued simultaneously. 
D)  Proposed regulations do not provide any insight into the IRS's interpretation of the tax law.

Question 6

Identify which of the following statements is true.

Accepted Answer

A)  Paragraph references are most commonly used when citing or referring to the tax statutes. 
B)  Title 26 of the United States Code and the Internal Revenue Code of 1986 are synonymous. 
C)  Before 1939, tax statutes were codified or compiled into one document. 
D)  The Internal Revenue Code contains chapters, which are further subdivided into titles. 
A)  Paragraph references are most commonly used when citing or referring to the tax statutes. 
B)  Title 26 of the United States Code and the Internal Revenue Code of 1986 are synonymous. 
C)  Before 1939, tax statutes were codified or compiled into one document. 
D)  The Internal Revenue Code contains chapters, which are further subdivided into titles.

Question 7

Identify which of the following statements is false.

Accepted Answer

A)  Letter rulings are not published by the U.S. Government Printing Office. 
B)  Technical advice memoranda are issued by the Internal Revenue Service's National Office to provide an answer to a technical question that arises in an audit. 
C)  The citation Ann. 2006-12, I.R.B. 2006-51, 22 refers to an annotation of an Internal Revenue Service release. 
D)  Announcements are more technical than information releases. 
A)  Letter rulings are not published by the U.S. Government Printing Office. 
B)  Technical advice memoranda are issued by the Internal Revenue Service's National Office to provide an answer to a technical question that arises in an audit. 
C)  The citation Ann. 2006-12, I.R.B. 2006-51, 22 refers to an annotation of an Internal Revenue Service release. 
D)  Announcements are more technical than information releases.

Question 8

Identify which of the following statements is false.

Accepted Answer

A)  Regular and memorandum decisions of the Tax Court are published by the government in the Tax Court of the United States Reports. 
B)  The citation Cristofani, 97 T.C. 74 (1991) indicates that the decision is a regular decision of the Tax Court. 
C)  The citation Estate of Newhouse, 94 T.C. 193 (1990), nonacq. 1991-1 C.B. 1 indicates that the IRS did not formally disagree with this 1990 Tax Court decision until 1991. 
D)  The Board of Tax Appeals preceded the Tax Court. 
A)  Regular and memorandum decisions of the Tax Court are published by the government in the Tax Court of the United States Reports. 
B)  The citation Cristofani, 97 T.C. 74 (1991) indicates that the decision is a regular decision of the Tax Court. 
C)  The citation Estate of Newhouse, 94 T.C. 193 (1990), nonacq. 1991-1 C.B. 1 indicates that the IRS did not formally disagree with this 1990 Tax Court decision until 1991. 
D)  The Board of Tax Appeals preceded the Tax Court.

Question 9

Discuss the conflict between advocacy for a client and responsibility to the IRS.

Accepted Answer

The CPA's primary duty is to his or her

Question 10

Discuss the purposes and scope of temporary regulations.

Accepted Answer

Temporary regulations are issued by the

Question 11

Identify which of the following statements is true.

Accepted Answer

A)  Tax planning is an integral part of both closed-fact situations and open-fact situations. 
B)  The first step in conducting tax research is to clearly understand the issues involved. 
C)  The Statements on Standards for Tax Services recommend that only written tax advice be provided to the client in all situations. 
D)  All of the above are false. 
A)  Tax planning is an integral part of both closed-fact situations and open-fact situations. 
B)  The first step in conducting tax research is to clearly understand the issues involved. 
C)  The Statements on Standards for Tax Services recommend that only written tax advice be provided to the client in all situations. 
D)  All of the above are false.

Question 12

Are letter rulings of precedential value to third parties?

Accepted Answer

Not really. A letter ruling is binding o

Question 13

Under what circumstances might a tax advisor find the provisions of a tax treaty useful?

Accepted Answer

A tax advisor might consult th

Question 14

The acquiescence policy of the IRS extends to the

Accepted Answer

A)  U.S. Supreme Court decisions. 
B)  U.S. Tax Court regular decisions. 
C)  U.S. District Court decisions. 
D)  both B and C 
A)  U.S. Supreme Court decisions. 
B)  U.S. Tax Court regular decisions. 
C)  U.S. District Court decisions. 
D)  both B and C

Question 15

What is "forum-shopping"?

Accepted Answer

Forum-shopping involves choosing where a

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

A citator is used to find

Accepted Answer

A)  the judicial history of a case. 
B)  the cases that have cited a case subsequent to the issuance of the opinion. 
C)  whether a case has been overturned. 
D)  all of the above. 
A)  the judicial history of a case. 
B)  the cases that have cited a case subsequent to the issuance of the opinion. 
C)  whether a case has been overturned. 
D)  all of the above.

Question 18

Compare and contrast proposed, temporary, and final regulations.

Accepted Answer

Proposed regulations are not authoritati

Question 19

Which of the following best describes the weight of a revenue ruling?

Accepted Answer

A)  Revenue rulings carry more weight than regulations. 
B)  Revenue rulings carry more weight than federal court decisions. 
C)  Regulations carry more weight than revenue rulings. 
D)  Revenue rulings should never be used as authority since they only apply to the taxpayer requesting the ruling. 
A)  Revenue rulings carry more weight than regulations. 
B)  Revenue rulings carry more weight than federal court decisions. 
C)  Regulations carry more weight than revenue rulings. 
D)  Revenue rulings should never be used as authority since they only apply to the taxpayer requesting the ruling.

Question 20

In which courts may litigation dealing with tax matters begin? Discuss the factors that might be considered in deciding where to begin litigation.

Accepted Answer

The Tax Court, the U.S. Court of Federal

Which of the following statements about the Statements on Standards for Tax Services is true?

In 1998, Congress passed legislation concerning shifting the burden of proof to the IRS. The taxpayer must introduce "credible evidence" to shift the burden of proof to the IRS. What constitutes "credible evidence"?

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

What is the purpose of a citator?

Which of the following statements regarding proposed regulations is not correct?

Identify which of the following statements is true.

Identify which of the following statements is false.

Identify which of the following statements is false.

Discuss the conflict between advocacy for a client and responsibility to the IRS.

Discuss the purposes and scope of temporary regulations.

Identify which of the following statements is true.

Are letter rulings of precedential value to third parties?

Under what circumstances might a tax advisor find the provisions of a tax treaty useful?

The acquiescence policy of the IRS extends to the

What is "forum-shopping"?

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

A citator is used to find

Compare and contrast proposed, temporary, and final regulations.

Which of the following best describes the weight of a revenue ruling?

In which courts may litigation dealing with tax matters begin? Discuss the factors that might be considered in deciding where to begin litigation.

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

Which of the following statements about the Statements on Standards for Tax Services is true?

In 1998, Congress passed legislation concerning shifting the burden of proof to the IRS. The taxpayer must introduce "credible evidence" to shift the burden of proof to the IRS. What constitutes "credible evidence"?

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

What is the purpose of a citator?

Which of the following statements regarding proposed regulations is not correct?

Identify which of the following statements is true.

Identify which of the following statements is false.

Identify which of the following statements is false.

Discuss the conflict between advocacy for a client and responsibility to the IRS.

Discuss the purposes and scope of temporary regulations.

Identify which of the following statements is true.

Are letter rulings of precedential value to third parties?

Under what circumstances might a tax advisor find the provisions of a tax treaty useful?

The acquiescence policy of the IRS extends to the

What is "forum-shopping"?

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

A citator is used to find

Compare and contrast proposed, temporary, and final regulations.

Which of the following best describes the weight of a revenue ruling?

In which courts may litigation dealing with tax matters begin? Discuss the factors that might be considered in deciding where to begin litigation.

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