Question 1

When the House and Senate versions of a tax bill are not in agreement,the disagreements are resolved by the

Accepted Answer

A) Ways and Means Committee. 
B) Mediation Committee. 
C) Revenue Committee. 
D) Conference Committee. 
A) Ways and Means Committee. 
B) Mediation Committee. 
C) Revenue Committee. 
D) Conference Committee.

Question 2

Communicate the conclusions to the client.

Accepted Answer

To communicate the conclusions to the cl

Question 3

Identify which of the following statements is true.

Accepted Answer

A) The U.S.Court of Federal Claims hears cases only in Washington,DC. 
B) Each state has at least one U.S.District Court. 
C) Federal district court decisions and federal courts of appeals decisions are not printed by the U.S.Government Printing Office. 
D) All of the above are false. 
A) The U.S.Court of Federal Claims hears cases only in Washington,DC. 
B) Each state has at least one U.S.District Court. 
C) Federal district court decisions and federal courts of appeals decisions are not printed by the U.S.Government Printing Office. 
D) All of the above are false.

Question 4

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 5

The Tax Court departs from its general policy of ruling uniformly for all taxpayers where

Accepted Answer

A) a U.S.District Court has ruled differently on the issue in the taxpayer's jurisdiction. 
B) the U.S.Court of Federal Claims has ruled differently on the issue in the taxpayer's jurisdiction. 
C) the Court of Appeals in the circuit to which the Tax Court decision would be appealed has ruled differently on the issue. 
D) the IRS has indicated that it will acquiesce. 
A) a U.S.District Court has ruled differently on the issue in the taxpayer's jurisdiction. 
B) the U.S.Court of Federal Claims has ruled differently on the issue in the taxpayer's jurisdiction. 
C) the Court of Appeals in the circuit to which the Tax Court decision would be appealed has ruled differently on the issue. 
D) the IRS has indicated that it will acquiesce.

Question 6

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 7

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 8

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

Accepted Answer

A) True 
 B)False

Question 9

Identify which of the following statements is false.

Accepted Answer

A) Citations to the AFTR and the USTC are referred to as secondary citations. 
B) A circuit court of appeals must follow the opinion of another circuit court of appeals if the latter appeals court has previously ruled on the tax issue. 
C) A U.S.Supreme Court opinion in a tax matter has the same status as Congressional tax legislation. 
D) Circuit Court decisions are reported in the Federal Reporter. 
A) Citations to the AFTR and the USTC are referred to as secondary citations. 
B) A circuit court of appeals must follow the opinion of another circuit court of appeals if the latter appeals court has previously ruled on the tax issue. 
C) A U.S.Supreme Court opinion in a tax matter has the same status as Congressional tax legislation. 
D) Circuit Court decisions are reported in the Federal Reporter.

Question 10

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 11

Discuss the purposes and scope of temporary regulations.

Accepted Answer

Temporary regulations are issued by the

Question 12

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 13

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 14

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

Accepted Answer

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

Question 15

When a taxpayer contacts a tax advisor requesting advice as to the most advantageous way to dispose of a stock,the tax advisor is faced with

Accepted Answer

A) a restricted-fact situation. 
B) a closed-fact situation. 
C) an open-fact situation. 
D) a recognized-fact situation. 
A) a restricted-fact situation. 
B) a closed-fact situation. 
C) an open-fact situation. 
D) a recognized-fact situation.

Question 16

Determine which authorities are applicable.

Accepted Answer

To determine which authorities are appli

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A citation should contain,at a minimum,t

Question 19

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 20

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.

Exam 31: Tax Research

When the House and Senate versions of a tax bill are not in agreement,the disagreements are resolved by the

Communicate the conclusions to the client.

Identify which of the following statements is true.

Statements on Standards for Tax Services are issued by

The Tax Court departs from its general policy of ruling uniformly for all taxpayers where

A Technical Advice Memorandum is usually

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

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

Identify which of the following statements is false.

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

Discuss the purposes and scope of temporary regulations.

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

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

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

When a taxpayer contacts a tax advisor requesting advice as to the most advantageous way to dispose of a stock,the tax advisor is faced with

Determine which authorities are applicable.

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

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

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

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

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

Filters