Question 1

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 2

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

Accepted Answer

A) True 
 B)False

Question 3

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.

Question 4

What is the purpose of a citator?

Accepted Answer

Citators give a history of the

Question 5

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 6

Which of the following steps, related to a tax bill, occurs first?

Accepted Answer

A) signature or veto by the President of the United States 
B) consideration by the Senate Finance Committee 
C) consideration by the entire Senate 
D) consideration by the House Ways and Means Committee 
A) signature or veto by the President of the United States 
B) consideration by the Senate Finance Committee 
C) consideration by the entire Senate 
D) consideration by the House Ways and Means Committee

Question 7

The number appearing immediately following the decimal place in a regulation citation refers to the

Accepted Answer

A) general subject matter of the regulation. 
B) Code section being interpreted. 
C) sequential number of the regulation. 
D) subsection of the Code section being interpreted. 
A) general subject matter of the regulation. 
B) Code section being interpreted. 
C) sequential number of the regulation. 
D) subsection of the Code section being interpreted.

Question 8

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 9

Explain the legislative reenactment doctrine.

Accepted Answer

Under the legislative reenactment doctri

Question 10

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 11

Appeals from the U.S. Tax Court are to the Court of Appeals for the Federal Circuit.

Accepted Answer

A) True 
 B)False

Question 12

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 13

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 14

Investigation of a tax problem that involves a closed-fact situation means that

Accepted Answer

A) the client's transactions have already occurred and the tax questions must now be resolved. 
B) the client's tax return has yet to be filed. 
C) future events may be planned and controlled. 
D) research is primarily concerned with applying the law to the facts as they exist. 
A) the client's transactions have already occurred and the tax questions must now be resolved. 
B) the client's tax return has yet to be filed. 
C) future events may be planned and controlled. 
D) research is primarily concerned with applying the law to the facts as they exist.

Question 15

Identify which of the following statements is false.

Accepted Answer

A) Regular and memorandum decisions of the Tax Court are published by the government in the Tax Court of the United States Reports. 
B) The citation Cristofani, 97 T.C. 74 (1991)indicates that the decision is a regular decision of the Tax Court. 
C) The citation Estate of Newhouse, 94 T.C. 193 (1990), nonacq. 1991-1 C.B. 1 indicates that the IRS did not formally disagree with this 1990 Tax Court decision until 1991. 
D) The Board of Tax Appeals preceded the Tax Court. 
A) Regular and memorandum decisions of the Tax Court are published by the government in the Tax Court of the United States Reports. 
B) The citation Cristofani, 97 T.C. 74 (1991)indicates that the decision is a regular decision of the Tax Court. 
C) The citation Estate of Newhouse, 94 T.C. 193 (1990), nonacq. 1991-1 C.B. 1 indicates that the IRS did not formally disagree with this 1990 Tax Court decision until 1991. 
D) The Board of Tax Appeals preceded the Tax Court.

Question 16

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 17

A Technical Advice Memorandum is usually

Accepted Answer

A) an internal IRS document describing alternative legislative proposals. 
B) part of a Tax Court decision. 
C) requested by the taxpayer before entering into a taxable transaction. 
D) issued by the national office in response to an audit request. 
A) an internal IRS document describing alternative legislative proposals. 
B) part of a Tax Court decision. 
C) requested by the taxpayer before entering into a taxable transaction. 
D) issued by the national office in response to an audit request.

Question 18

Which of the following citations is the primary citation for a U.S. District Court case?

Accepted Answer

A) 43 AFTR 2d 79-1023 
B) 79-1 USTC &9323 
C) 55 F.2d 930 
D) 40 F.Supp. 453 
A) 43 AFTR 2d 79-1023 
B) 79-1 USTC &9323 
C) 55 F.2d 930 
D) 40 F.Supp. 453

Question 19

What are the purposes of citations in tax research?

Accepted Answer

Citations serve two purposes.

Question 20

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.

Identify which of the following statements is true.

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

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

What is the purpose of a citator?

A tax case cannot be appealed when initiated in the

Which of the following steps, related to a tax bill, occurs first?

The number appearing immediately following the decimal place in a regulation citation refers to the

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

Explain the legislative reenactment doctrine.

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

Appeals from the U.S. Tax Court are to the Court of Appeals for the Federal Circuit.

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

Which regulation deals with Code Section 165?

Investigation of a tax problem that involves a closed-fact situation means that

Identify which of the following statements is false.

Title 26 of the U.S. Code includes

A Technical Advice Memorandum is usually

Which of the following citations is the primary citation for a U.S. District Court case?

What are the purposes of citations in tax research?

The term "tax law" includes

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

Identify which of the following statements is true.

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

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

What is the purpose of a citator?

A tax case cannot be appealed when initiated in the

Which of the following steps, related to a tax bill, occurs first?

The number appearing immediately following the decimal place in a regulation citation refers to the

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

Explain the legislative reenactment doctrine.

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

Appeals from the U.S. Tax Court are to the Court of Appeals for the Federal Circuit.

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

Which regulation deals with Code Section 165?

Investigation of a tax problem that involves a closed-fact situation means that

Identify which of the following statements is false.

Title 26 of the U.S. Code includes

A Technical Advice Memorandum is usually

Which of the following citations is the primary citation for a U.S. District Court case?

What are the purposes of citations in tax research?

The term "tax law" includes

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