Question 1

Discuss the conflict between advocacy for a client and responsibility to the IRS.

Accepted Answer

The CPA's primary duty is to his or her

Question 2

What is an information release?

Accepted Answer

The IRS issues information rel

Question 3

Distinguish between an annotated tax service and a topical tax service.

Accepted Answer

An annotated tax service is organized by

Question 4

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 5

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 6

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

Accepted Answer

Yes.If the Tax Court is issuing two deci

Question 7

Which of the following citations denotes a regular decision of the Tax Court?

Accepted Answer

A) 41 TCM 1272 
B) 35 T.C.1083 (2003) 
C) 39 AFTR 2d 77-640 
D) All of the above. 
A) 41 TCM 1272 
B) 35 T.C.1083 (2003) 
C) 39 AFTR 2d 77-640 
D) All of the above.

Question 8

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 9

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 10

Indicate which courts decided the case cited below.Also indicate on which pages and in which publications the authority is reported.
U.S.v.Maclin P.Davis,397 U.S.301,25AFTR 2d 70-827,70-1 USTC &9289 (1970).

Accepted Answer

This case appears in Vol.397,page 301,of

Question 11

Analyze the information; make analogies and reach a conclusion.

Accepted Answer

To analyze the information, we need to c

Question 12

The IRS's acquiescence policy extends to regular decisions but not to memorandum decisions.

Accepted Answer

The IRS's acquiescence policy refers to

Question 13

Describe the appeals process in tax litigation.

Accepted Answer

Appeals from Tax Court and U.S.district

Question 14

The facts must be determined.However,some facts may not have occurred in an open-fact situation.Where facts have not yet occurred,it is useful to review tax research material to determine which facts would produce the most favorable outcome.

Accepted Answer

In situations where the facts must be de

Question 15

Does Title 26 contain statutory provisions dealing only with income taxation? Explain.

Accepted Answer

No; Title 26 deals with all ta

Question 16

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 17

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 18

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 19

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 Eleven

Question 20

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.

Exam 31: Tax Research

Discuss the conflict between advocacy for a client and responsibility to the IRS.

What is an information release?

Distinguish between an annotated tax service and a topical tax service.

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?

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?

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

Which of the following citations denotes a regular decision of the Tax Court?

Identify which of the following statements is false.

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?

Indicate which courts decided the case cited below.Also indicate on which pages and in which publications the authority is reported. U.S.v.Maclin P.Davis,397 U.S.301,25AFTR 2d 70-827,70-1 USTC &9289 (1970).

Analyze the information; make analogies and reach a conclusion.

The IRS's acquiescence policy extends to regular decisions but not to memorandum decisions.

Describe the appeals process in tax litigation.

The facts must be determined.However,some facts may not have occurred in an open-fact situation.Where facts have not yet occurred,it is useful to review tax research material to determine which facts would produce the most favorable outcome.

Does Title 26 contain statutory provisions dealing only with income taxation? Explain.

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

The term "tax law" includes

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

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

Tax Research

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

Ustaxation 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

Itemized Deductions

Losses and Bad Debts

Employee Expenses and Deferred Compensation

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

Corporations

Partnerships and S Corporations

Taxes and Investment Planning

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