Question 1

Identify which of the following statements is false.

Accepted Answer

A)  The opportunity for "forum shopping" occurs when different precedents on the same point exist. 
B)  The U.S. Tax Court follows the previous decisions of the U.S. Court of Appeals to which the tax matter is appealable. 
C)  The U.S. Tax Court must follow the previous decisions of the U.S. District Court for the district in which the taxpayer lives. 
D)  The U.S. Tax Court may intentionally issue conflicting decisions. 
A)  The opportunity for "forum shopping" occurs when different precedents on the same point exist. 
B)  The U.S. Tax Court follows the previous decisions of the U.S. Court of Appeals to which the tax matter is appealable. 
C)  The U.S. Tax Court must follow the previous decisions of the U.S. District Court for the district in which the taxpayer lives. 
D)  The U.S. Tax Court may intentionally issue conflicting decisions.

Question 2

According to the AICPA's Statements on Standards for Tax Services, what duties does the tax practitioner owe the client?

Accepted Answer

The tax practitioner owes the client the

Question 3

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)  interpretative regulations. 
B)  legislative regulations. 
C)  congressional regulations. 
D)  statutory regulations. 
A)  interpretative regulations. 
B)  legislative regulations. 
C)  congressional regulations. 
D)  statutory regulations.

Question 4

What is the purpose of Treasury Regulations?

Accepted Answer

The Treasury Department issues regulatio

Question 5

Is it possible for the Tax Court to intentionally issue conflicting decisions?

Accepted Answer

Yes. If the Tax Court is issuing two dec

Question 6

Identify which of the following statements is false.

Accepted Answer

A)  The IRS may retroactively revoke an acquiescence. 
B)  Letter rulings are binding only with respect to the taxpayer requesting the ruling. 
C)  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. 
D)  The small cases procedure of the U.S. Tax Court allows a less formal hearing but provides for no appeal. 
A)  The IRS may retroactively revoke an acquiescence. 
B)  Letter rulings are binding only with respect to the taxpayer requesting the ruling. 
C)  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. 
D)  The small cases procedure of the U.S. Tax Court allows a less formal hearing but provides for no appeal.

Question 7

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

Accepted Answer

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

Question 8

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

Accepted Answer

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

Question 9

Why does a researcher use a citator?

Accepted Answer

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

Question 10

Identify which of the following statements is true.

Accepted Answer

A)  The first step in conducting tax research is to clearly understand the issues involved. 
B)  Tax planning is an integral part of both closed- fact situations and open- fact situations. 
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)  The first step in conducting tax research is to clearly understand the issues involved. 
B)  Tax planning is an integral part of both closed- fact situations and open- fact situations. 
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 11

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

Accepted Answer

A)  Ways and Means Committee. 
B)  Joint Conference Committee. 
C)  Tax Committee. 
D)  Finance Committee. 
A)  Ways and Means Committee. 
B)  Joint Conference Committee. 
C)  Tax Committee. 
D)  Finance Committee.

Question 12

The term "tax law" includes

Accepted Answer

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

Question 13

If the U.S. District Court for Rhode Island, the Tax Court, and the Eleventh Circuit have all ruled on a particular issue, then what precedents have been set for which courts in the future?

Accepted Answer

Any U.S. District court within the Eleve

Question 14

A citator is used to find

Accepted Answer

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

Question 15

Why should tax researchers take note of the date on which a Treasury Regulation was adopted?

Accepted Answer

Researchers should note the date on whic

Question 16

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

Question 17

The acquiescence policy of the IRS extends to the

Accepted Answer

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

Question 18

Identify which of the following statements is false.

Accepted Answer

A)  Dicta are not authoritative. 
B)  Dicta in a court opinion has no influence on other tax proceedings. 
C)  When a court opinion discusses facts and issues on which the court does not rule, the comments are called dicta. 
D)  Published articles and tax services are examples of secondary sources of authority. 
A)  Dicta are not authoritative. 
B)  Dicta in a court opinion has no influence on other tax proceedings. 
C)  When a court opinion discusses facts and issues on which the court does not rule, the comments are called dicta. 
D)  Published articles and tax services are examples of secondary sources of authority.

Question 19

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

Accepted Answer

A)  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. 
B)  The case was tried in 1989 and was appealed in 1992. 
C)  The taxpayer, Joel Munro, won the case because there is no reference to the IRS. 
D)  This citation refers to a taxpayer conference between the IRS and the taxpayer. 
A)  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. 
B)  The case was tried in 1989 and was appealed in 1992. 
C)  The taxpayer, Joel Munro, won the case because there is no reference to the IRS. 
D)  This citation refers to a taxpayer conference between the IRS and the taxpayer.

Question 20

Assume that you want to read a description of a particular area of the law, along with one or more illustrations of how that law is applied. You will not find that type of material in

Accepted Answer

A)  the Treasury Regulations. 
B)  the Cumulative Bulletin. 
C)  the Committee Reports. 
D)  a citator. 
A)  the Treasury Regulations. 
B)  the Cumulative Bulletin. 
C)  the Committee Reports. 
D)  a citator.

Identify which of the following statements is false.

According to the AICPA's Statements on Standards for Tax Services, what duties does the tax practitioner owe the client?

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

What is the purpose of Treasury Regulations?

Is it possible for the Tax Court to intentionally issue conflicting decisions?

Identify which of the following statements is false.

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

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

Why does a researcher use a citator?

Identify which of the following statements is true.

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

The term "tax law" includes

If the U.S. District Court for Rhode Island, the Tax Court, and the Eleventh Circuit have all ruled on a particular issue, then what precedents have been set for which courts in the future?

A citator is used to find

Why should tax researchers take note of the date on which a Treasury Regulation was adopted?

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 acquiescence policy of the IRS extends to the

Identify which of the following statements is false.

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

Assume that you want to read a description of a particular area of the law, along with one or more illustrations of how that law is applied. You will not find that type of material in

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

Tax Deductions and Travel Expenses for Employees and Self-Employed Individuals

Filters

Exam 1: Tax Research

Identify which of the following statements is false.

According to the AICPA's Statements on Standards for Tax Services, what duties does the tax practitioner owe the client?

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

What is the purpose of Treasury Regulations?

Is it possible for the Tax Court to intentionally issue conflicting decisions?

Identify which of the following statements is false.

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

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

Why does a researcher use a citator?

Identify which of the following statements is true.

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

The term "tax law" includes

If the U.S. District Court for Rhode Island, the Tax Court, and the Eleventh Circuit have all ruled on a particular issue, then what precedents have been set for which courts in the future?

A citator is used to find

Why should tax researchers take note of the date on which a Treasury Regulation was adopted?

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 acquiescence policy of the IRS extends to the

Identify which of the following statements is false.

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

Assume that you want to read a description of a particular area of the law, along with one or more illustrations of how that law is applied. You will not find that type of material in

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

Tax Deductions and Travel Expenses for Employees and Self-Employed Individuals

Filters