Question 1

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 2

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 3

A citator enables tax researchers to locate authorities (e.g.,cases and IRS pronouncements)that have cited a particular case.

Accepted Answer

A) True 
 B)False

Question 4

Internet versions of topical tax services include

Accepted Answer

A) Code and Regulations. 
B) Revenue rulings,letter rulings,and revenue procedures. 
C) Court cases involving tax issues. 
D) All of the above. 
A) Code and Regulations. 
B) Revenue rulings,letter rulings,and revenue procedures. 
C) Court cases involving tax issues. 
D) All of the above.

Question 5

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 6

Title 26 of the U.S.Code includes

Accepted Answer

A) income tax legislation only. 
B) gift tax and estate tax legislation only. 
C) alcohol and tobacco tax legislation only. 
D) all of the tax legislation mentioned above. 
A) income tax legislation only. 
B) gift tax and estate tax legislation only. 
C) alcohol and tobacco tax legislation only. 
D) all of the tax legislation mentioned above.

Question 7

Why does a researcher use a citator?

Accepted Answer

A) to check on authorities issued subsequent to a court decision 
B) to determine whether a private letter ruling exists on the subject 
C) for examples of the application of a tax provision 
D) none of the above 
A) to check on authorities issued subsequent to a court decision 
B) to determine whether a private letter ruling exists on the subject 
C) for examples of the application of a tax provision 
D) none of the above

Question 8

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 9

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 10

Which of the following documents is issued by the IRS to a specific taxpayer?

Accepted Answer

A) regulation 
B) revenue procedure 
C) letter ruling 
D) information release 
A) regulation 
B) revenue procedure 
C) letter ruling 
D) information release

Question 11

The Internal Revenue Code of 1986 contains the current version of the tax law.

Accepted Answer

A) True 
 B)False

Question 12

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 13

Regulations issued prior to the latest tax legislation dealing with a specific Code section are still effective to the extent they do not conflict with the provisions in the new legislation.

Accepted Answer

A) True 
 B)False

Question 14

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 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

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

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.

Question 18

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 19

The Tax Court departs from its general policy of ruling uniformly for all taxpayers where

Accepted Answer

A) a U.S.District Court has ruled differently on the issue in the taxpayer's jurisdiction. 
B) the U.S.Court of Federal Claims has ruled differently on the issue in the taxpayer's jurisdiction. 
C) the Court of Appeals in the circuit to which the Tax Court decision would be appealed has ruled differently on the issue. 
D) the IRS has indicated that it will acquiesce. 
A) a U.S.District Court has ruled differently on the issue in the taxpayer's jurisdiction. 
B) the U.S.Court of Federal Claims has ruled differently on the issue in the taxpayer's jurisdiction. 
C) the Court of Appeals in the circuit to which the Tax Court decision would be appealed has ruled differently on the issue. 
D) the IRS has indicated that it will acquiesce.

Question 20

Identify which of the following statements is false.

Accepted Answer

A) The number "5" in the citation Reg.Sec.1.166-5 refers to the paragraph number. 
B) The Cumulative Bulletin is issued semiannually while the Internal Revenue Bulletin is issued weekly. 
C) The citation Rev.Rul.2006-5,I.R.B.2006-1,33,indicates that the revenue ruling can be found on page 33 of the 1st I.R.B.for 2006. 
D) All of the above are false. 
A) The number "5" in the citation Reg.Sec.1.166-5 refers to the paragraph number. 
B) The Cumulative Bulletin is issued semiannually while the Internal Revenue Bulletin is issued weekly. 
C) The citation Rev.Rul.2006-5,I.R.B.2006-1,33,indicates that the revenue ruling can be found on page 33 of the 1st I.R.B.for 2006. 
D) All of the above are false.

Exam 31: Tax Research

Identify which of the following statements is true.

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

A citator enables tax researchers to locate authorities (e.g.,cases and IRS pronouncements)that have cited a particular case.

Internet versions of topical tax services include

Identify which of the following statements is true.

Title 26 of the U.S.Code includes

Why does a researcher use a citator?

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

Identify which of the following statements is true.

Which of the following documents is issued by the IRS to a specific taxpayer?

The Internal Revenue Code of 1986 contains the current version of the tax law.

A tax bill introduced in the House of Representatives is then

Regulations issued prior to the latest tax legislation dealing with a specific Code section are still effective to the extent they do not conflict with the provisions in the new legislation.

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

A tax case cannot be appealed when initiated in the

A jury trial is permitted in the

The phrase "Entered under Rule 155" indicates that

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

The Tax Court departs from its general policy of ruling uniformly for all taxpayers where

Identify which of the following statements is false.

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