Question 1

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 2

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 3

Your client wants to deduct commuting expenses on his tax return. You explain to the client that there is no legal authority allowing this deduction. The client, however, continues to insist on this action. What guidance do the Statements on Standards for Tax Services provide in this dilemma?

Accepted Answer

According to Statement on Tax Standards,

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

The tax statutes with the popular name "The Internal Revenue Code of 1986" are contained in which Title of the Code?

Accepted Answer

A) 20 
B) 25 
C) 26 
D) 301 
A) 20 
B) 25 
C) 26 
D) 301

Question 6

The acquiescence policy of the IRS extends to the

Accepted Answer

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

Question 7

In 1998, Congress passed legislation concerning shifting the burden of proof to the IRS. The taxpayer must introduce "credible evidence" to shift the burden of proof to the IRS. What constitutes "credible evidence"?

Accepted Answer

The term is not defined in the IRC. Beca

Question 8

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 9

Identify which of the following statements is false.

Accepted Answer

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

Question 10

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 11

The tax consultant can give an opinion on a tax fact pattern without all the facts.

Accepted Answer

A) True 
 B)False

Question 12

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 13

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 14

What is "forum-shopping"?

Accepted Answer

Forum-shopping involves choosing where a

Question 15

What is an information release?

Accepted Answer

The IRS issues information rel

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 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 17

According to the Statements on Standards for Tax Services, what belief should a CPA have before taking a pro-taxpayer position on a tax return?

Accepted Answer

The CPA should have a good faith belief

Question 18

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 19

Small case procedures of the U.S. Tax Court requires that the amount in dispute not exceed

Accepted Answer

A) $5,000. 
B) $10,000. 
C) $50,000. 
D) $100,000. 
A) $5,000. 
B) $10,000. 
C) $50,000. 
D) $100,000.

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.

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

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

Your client wants to deduct commuting expenses on his tax return. You explain to the client that there is no legal authority allowing this deduction. The client, however, continues to insist on this action. What guidance do the Statements on Standards for Tax Services provide in this dilemma?

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

The tax statutes with the popular name "The Internal Revenue Code of 1986" are contained in which Title of the Code?

The acquiescence policy of the IRS extends to the

In 1998, Congress passed legislation concerning shifting the burden of proof to the IRS. The taxpayer must introduce "credible evidence" to shift the burden of proof to the IRS. What constitutes "credible evidence"?

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?

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

The tax consultant can give an opinion on a tax fact pattern without all the facts.

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

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

What is "forum-shopping"?

What is an information release?

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?

According to the Statements on Standards for Tax Services, what belief should a CPA have before taking a pro-taxpayer position on a tax return?

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

Small case procedures of the U.S. Tax Court requires that the amount in dispute not exceed

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

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

Us Taxation of Foreign-Related Transactions

Filters

Exam 1: Tax Research

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

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

Your client wants to deduct commuting expenses on his tax return. You explain to the client that there is no legal authority allowing this deduction. The client, however, continues to insist on this action. What guidance do the Statements on Standards for Tax Services provide in this dilemma?

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

The tax statutes with the popular name "The Internal Revenue Code of 1986" are contained in which Title of the Code?

The acquiescence policy of the IRS extends to the

In 1998, Congress passed legislation concerning shifting the burden of proof to the IRS. The taxpayer must introduce "credible evidence" to shift the burden of proof to the IRS. What constitutes "credible evidence"?

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?

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

The tax consultant can give an opinion on a tax fact pattern without all the facts.

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

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

What is "forum-shopping"?

What is an information release?

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?

According to the Statements on Standards for Tax Services, what belief should a CPA have before taking a pro-taxpayer position on a tax return?

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

Small case procedures of the U.S. Tax Court requires that the amount in dispute not exceed

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

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

Us Taxation of Foreign-Related Transactions

Filters