Question 1

Which of the following courts is not a trial court for tax cases?

Accepted Answer

A) U)S.Bankruptcy Court 
B) U)S.District Court 
C) U)S.Tax Court 
D) U)S.Court of Federal Claims 
A) U)S.Bankruptcy Court 
B) U)S.District Court 
C) U)S.Tax Court 
D) U)S.Court of Federal Claims

Question 2

When a court discusses issues not raised by the facts,the comments

Accepted Answer

A) are excluded from the formal court opinion. 
B) may be referenced by the parties in other cases having the same facts. 
C) are not dicta. 
D) will cause the court's decision to be declared invalid. 
A) are excluded from the formal court opinion. 
B) may be referenced by the parties in other cases having the same facts. 
C) are not dicta. 
D) will cause the court's decision to be declared invalid.

Question 3

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 4

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 5

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 6

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 7

George's case was handled under the "small tax case procedure." He does not agree with the findings of the Tax Court.He would like to appeal the decision.Which one of the following is true?

Accepted Answer

A) There is no appeal. 
B) He can appeal the case,but only if the amount of tax involved is greater than $5,000. 
C) He would appeal first to the U.S.Court of Appeals for the Federal Circuit. 
D) He would appeal first to the U.S.Court of Federal Claims. 
A) There is no appeal. 
B) He can appeal the case,but only if the amount of tax involved is greater than $5,000. 
C) He would appeal first to the U.S.Court of Appeals for the Federal Circuit. 
D) He would appeal first to the U.S.Court of Federal Claims.

Question 8

Statements on Standards for Tax Services are issued by

Accepted Answer

A) the SEC. 
B) the IRS. 
C) the AICPA. 
D) the FASB. 
A) the SEC. 
B) the IRS. 
C) the AICPA. 
D) the FASB.

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

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

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.

Question 12

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 13

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 14

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.

Question 15

Which regulation deals with Code Section 165?

Accepted Answer

A) Reg.Sec.1.165-5 
B) Reg.Sec.165.183-5 
C) Reg.Sec.1.5-165 
D) Reg.Sec.165-5 
A) Reg.Sec.1.165-5 
B) Reg.Sec.165.183-5 
C) Reg.Sec.1.5-165 
D) Reg.Sec.165-5

Question 16

What is the minimum information that should be contained in a citation?

Accepted Answer

A citation should contain,at a minimum,t

Question 17

If the U.S.Supreme Court decides to hear an appeal of a tax case,it will grant a

Accepted Answer

A) writ of appeal. 
B) writ of certiorari. 
C) writ of detainer. 
D) writ of habeas corpus. 
A) writ of appeal. 
B) writ of certiorari. 
C) writ of detainer. 
D) writ of habeas corpus.

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

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 20

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.

Exam 1: Tax Research

Which of the following courts is not a trial court for tax cases?

When a court discusses issues not raised by the facts,the comments

Identify which of the following statements is false.

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

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

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

George's case was handled under the "small tax case procedure." He does not agree with the findings of the Tax Court.He would like to appeal the decision.Which one of the following is true?

Statements on Standards for Tax Services are issued by

Identify which of the following statements is true.

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

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

Tax Court memorandum decisions

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

Identify which of the following statements is false.

Which regulation deals with Code Section 165?

What is the minimum information that should be contained in a citation?

If the U.S.Supreme Court decides to hear an appeal of a tax case,it will grant a

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

A jury trial is permitted in the

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

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