Question 1

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

Accepted Answer

A) True 
 B)False  False

Question 2

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. C

Question 3

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. C

Question 4

The term "tax law" includes

Accepted Answer

A) legislation. 
B) treasury regulations. 
C) judicial decisions. 
D) all of the above. 
A) legislation. 
B) treasury regulations. 
C) judicial decisions. 
D) all of the above.

Question 5

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 6

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 7

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 8

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 9

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 10

Appeals from the Court of Appeals go to the Supreme Court under a writ of certiorari.The Supreme Court decides whether or not they will hear the case.

Accepted Answer

A) True 
 B)False

Question 11

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 12

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 13

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 14

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 15

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 16

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 17

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 18

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 19

A revenue ruling is issued by the Internal Revenue Service only in response to a verbal inquiry by a taxpayer.

Accepted Answer

A) True 
 B)False

Question 20

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.

Exam 1: Tax Research

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

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

Identify which of the following statements is true.

The term "tax law" includes

A citator is used to find

A tax case cannot be appealed when initiated in the

Identify which of the following statements is true.

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

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

Appeals from the Court of Appeals go to the Supreme Court under a writ of certiorari.The Supreme Court decides whether or not they will hear the case.

Internet versions of topical tax services include

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 false.

Identify which of the following statements is true.

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

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

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 regulation deals with the gift tax?

A revenue ruling is issued by the Internal Revenue Service only in response to a verbal inquiry by a taxpayer.

Identify which of the following statements is true.

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

Tax Research

Corporations

Partnerships and S Corporations

Taxes and Investment Planning

Filters