Question 1

The taxpayer need not pay the disputed tax in advance when the suit is initiated in

Accepted Answer

A) U)S.Court of Federal Claims. 
B) U)S.Tax Court. 
C) U)S.District Court. 
D) both A and B. 
A) U)S.Court of Federal Claims. 
B) U)S.Tax Court. 
C) U)S.District Court. 
D) both A and B.

Question 2

The committee that is responsible for holding hearings on tax legislation for the House of Representatives is the

Accepted Answer

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

Question 3

According to the Statements on Standards for Tax Services,if a CPA believes that a client's prior-year tax return contains false information,the CPA should report this to the

Accepted Answer

A) IRS. 
B) SEC. 
C) AICPA. 
D) None of the above.The CPA does not report the false information to any external agencies,unless required by law. 
A) IRS. 
B) SEC. 
C) AICPA. 
D) None of the above.The CPA does not report the false information to any external agencies,unless required by law.

Question 4

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 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

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 7

Internet versions of topical tax services include

Accepted Answer

A) Code and Regulations. 
B) Revenue rulings,letter rulings,and revenue procedures. 
C) Court cases involving tax issues. 
D) All of the above. 
A) Code and Regulations. 
B) Revenue rulings,letter rulings,and revenue procedures. 
C) Court cases involving tax issues. 
D) All of the above.

Question 8

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 9

What is "forum-shopping"?

Accepted Answer

Forum-shopping involves choosing where a

Question 10

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 11

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 12

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 13

Final regulations can take effect on any of the following dates except

Accepted Answer

A) the effective date of the statutory language they interpret,provided they are issued within 18 months of the date of the change to the statute. 
B) the date on which final regulations were proposed. 
C) the date on which related temporary regulations were first published in the Federal Register. 
D) the date on which they were issued in final form. 
A) the effective date of the statutory language they interpret,provided they are issued within 18 months of the date of the change to the statute. 
B) the date on which final regulations were proposed. 
C) the date on which related temporary regulations were first published in the Federal Register. 
D) the date on which they were issued in final form.

Question 14

Regulations are

Accepted Answer

A) equal in authority to legislation. 
B) equal in authority to legislation if statutory. 
C) presumed to be valid and to have almost the same weight as the IRC. 
D) equal in authority to legislation if interpretative. 
A) equal in authority to legislation. 
B) equal in authority to legislation if statutory. 
C) presumed to be valid and to have almost the same weight as the IRC. 
D) equal in authority to legislation if interpretative.

Question 15

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 16

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 17

A tax bill introduced in the House of Representatives is then

Accepted Answer

A) referred to the House Ways and Means Committee for hearings and approval. 
B) referred to the entire House for hearings. 
C) voted upon by the entire House. 
D) forwarded to the Senate Finance Committee for consideration. 
A) referred to the House Ways and Means Committee for hearings and approval. 
B) referred to the entire House for hearings. 
C) voted upon by the entire House. 
D) forwarded to the Senate Finance Committee for consideration.

Question 18

What are some of the consequences of the small cases procedure of the Tax Court?

Accepted Answer

The small cases procedure allo

Question 19

Compare and contrast proposed,temporary,and final regulations.

Accepted Answer

Proposed regulations are not authoritati

Question 20

A client wants to take a tax return position with less than a 10% probability of being upheld in court.The CPA should

Accepted Answer

A) take the client's desired position,but not sign the tax return. 
B) inform the client that the position does not have a realistic possibility of success. 
C) ask the client to sign a waiver of his right to sue the CPA in the event the IRS disallows the position. 
D) take the client's desired position and sign the return as usual. 
A) take the client's desired position,but not sign the tax return. 
B) inform the client that the position does not have a realistic possibility of success. 
C) ask the client to sign a waiver of his right to sue the CPA in the event the IRS disallows the position. 
D) take the client's desired position and sign the return as usual.

Exam 1: Tax Research

The taxpayer need not pay the disputed tax in advance when the suit is initiated in

The committee that is responsible for holding hearings on tax legislation for the House of Representatives is the

According to the Statements on Standards for Tax Services,if a CPA believes that a client's prior-year tax return contains false information,the CPA should report this to the

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

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

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?

Internet versions of topical tax services include

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

What is "forum-shopping"?

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

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

The acquiescence policy of the IRS extends to the

Final regulations can take effect on any of the following dates except

Regulations are

Statements on Standards for Tax Services are issued by

Identify which of the following statements is false.

A tax bill introduced in the House of Representatives is then

What are some of the consequences of the small cases procedure of the Tax Court?

Compare and contrast proposed,temporary,and final regulations.

A client wants to take a tax return position with less than a 10% probability of being upheld in court.The CPA should

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

Tax Research

Corporations

Partnerships and S Corporations

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