Question 1

Final regulations can take effect on any of the following dates except

Accepted Answer

A) the effective date of the statutory language they interpret,provided they are issued within 18 months of the date of the change to the statute. 
B) the date on which final regulations were proposed. 
C) the date on which related temporary regulations were first published in the Federal Register. 
D) the date on which they were issued in final form. 
A) the effective date of the statutory language they interpret,provided they are issued within 18 months of the date of the change to the statute. 
B) the date on which final regulations were proposed. 
C) the date on which related temporary regulations were first published in the Federal Register. 
D) the date on which they were issued in final form.

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.

Question 3

Identify which of the following statements is false.

Accepted Answer

A) A revenue ruling is issued by the Internal Revenue Service only in response to a written inquiry by a taxpayer. 
B) Rev.Proc.2006-19 is a revenue procedure that was published in 2006. 
C) The citation Ltr.Rul.200611075 usually indicates the ruling was made public in the 11th week of 2006. 
D) A technical advice memorandum is made available as a letter ruling. 
A) A revenue ruling is issued by the Internal Revenue Service only in response to a written inquiry by a taxpayer. 
B) Rev.Proc.2006-19 is a revenue procedure that was published in 2006. 
C) The citation Ltr.Rul.200611075 usually indicates the ruling was made public in the 11th week of 2006. 
D) A technical advice memorandum is made available as a letter ruling.

Question 4

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 5

Describe the format of a client memo.

Accepted Answer

A client memo should include a statement

Question 6

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 7

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 8

During the course of an audit,a CPA discovers an error in a prior return.According to the Statements on Standards for Tax Services,the CPA should

Accepted Answer

A) ask the client for permission to disclose the error to the IRS. 
B) withdraw from the engagement. 
C) inform the IRS of the error,regardless of whether the client grants permission. 
D) correct the error in the current year's tax return. 
A) ask the client for permission to disclose the error to the IRS. 
B) withdraw from the engagement. 
C) inform the IRS of the error,regardless of whether the client grants permission. 
D) correct the error in the current year's tax return.

Question 9

Ralph's business records were lost as a result of Hurricane Katrina.CPA Jane prepares Ralph's return using estimates.What do the Statements on Standards for Tax Services state about the use of estimates?

Accepted Answer

A) Estimates may not be used. 
B) Estimates may be used without disclosing their use to the IRS. 
C) Estimates may be used,but Jane should disclose their use to the IRS. 
D) The Statements on Standards for Tax Services do not address the use of estimates. 
A) Estimates may not be used. 
B) Estimates may be used without disclosing their use to the IRS. 
C) Estimates may be used,but Jane should disclose their use to the IRS. 
D) The Statements on Standards for Tax Services do not address the use of estimates.

Question 10

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.

Question 11

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 12

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 13

Identify which of the following statements is true.

Accepted Answer

A) The citation,41 TCM 1272,refers to a Tax Court regular decision published by Commerce Clearing House. 
B) The Federal Supplement contains only tax cases. 
C) The American Federal Tax Reports contain only tax cases. 
D) All of the above are false. 
A) The citation,41 TCM 1272,refers to a Tax Court regular decision published by Commerce Clearing House. 
B) The Federal Supplement contains only tax cases. 
C) The American Federal Tax Reports contain only tax cases. 
D) All of the above are false.

Question 14

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 15

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

A) Golsen rule. 
B) Acquiescence rule. 
C) Forum shopping rule. 
D) Conformity rule. 
A) Golsen rule. 
B) Acquiescence rule. 
C) Forum shopping rule. 
D) Conformity rule.

Question 16

Which tax service is usually deemed to be the most authoritative?

Accepted Answer

A) United States Tax Reporter 
B) Standard Federal Tax Reporter 
C) Federal Tax Coordinator 2d 
D) All are equally authoritative. 
A) United States Tax Reporter 
B) Standard Federal Tax Reporter 
C) Federal Tax Coordinator 2d 
D) All are equally authoritative.

Question 17

The number appearing immediately following the decimal place in a regulation citation refers to the

Accepted Answer

A) general subject matter of the regulation. 
B) Code section being interpreted. 
C) sequential number of the regulation. 
D) subsection of the Code section being interpreted. 
A) general subject matter of the regulation. 
B) Code section being interpreted. 
C) sequential number of the regulation. 
D) subsection of the Code section being interpreted.

Question 18

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 19

The citation "Reg.Sec.1.199-2" refers to

Accepted Answer

A) the first regulation issued in 1999. 
B) the second regulation issued in 1999. 
C) a regulation that interprets Code Section 199. 
D) a regulation that can be found on page 199. 
A) the first regulation issued in 1999. 
B) the second regulation issued in 1999. 
C) a regulation that interprets Code Section 199. 
D) a regulation that can be found on page 199.

Question 20

Which of the following is a true statement regarding primary authority of tax law?

Accepted Answer

A) Articles in The Journal of Taxation are viewed as primary authority. 
B) Primary authority includes the Code,as well as administrative and judicial interpretations. 
C) The Bloomberg BNA Daily Tax Reporter is a source of primary tax authority. 
D) Tax services are sources of primary tax authority. 
A) Articles in The Journal of Taxation are viewed as primary authority. 
B) Primary authority includes the Code,as well as administrative and judicial interpretations. 
C) The Bloomberg BNA Daily Tax Reporter is a source of primary tax authority. 
D) Tax services are sources of primary tax authority.

Exam 31: Tax Research

Final regulations can take effect on any of the following dates except

Identify which of the following statements is false.

Identify which of the following statements is false.

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

Describe the format of a client memo.

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

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

During the course of an audit,a CPA discovers an error in a prior return.According to the Statements on Standards for Tax Services,the CPA should

Ralph's business records were lost as a result of Hurricane Katrina.CPA Jane prepares Ralph's return using estimates.What do the Statements on Standards for Tax Services state about the use of estimates?

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

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

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

Identify which of the following statements is true.

Tax Court memorandum decisions

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

Which tax service is usually deemed to be the most authoritative?

The number appearing immediately following the decimal place in a regulation citation refers to the

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

The citation "Reg.Sec.1.199-2" refers to

Which of the following is a true statement regarding primary authority of tax law?

Tax Research

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

U.S. Taxation of Foreign-Related Transactions

an Introduction to Taxation

Determination of Tax

Gross Income: Inclusions

Gross Income: Exclusions

Property Transactions: Capital Gains and Losses

Deductions and Losses

Business Expenses and Deferred Compensation

Itemized Deductions

Losses and Bad Debts

Depreciation,cost Recovery,amortization,and Depletion

Accounting Periods and Methods

Property Transactions: Nontaxable Exchanges

Property Transactions: Sec1231 and Recapture

Special Tax Computation Methods,tax Credits,and Payment of Tax

Corporations

Partnerships and S Corporations

Taxes and Investment Planning

Filters