Question 1

Appeals from the Court of Appeals go to the Supreme Court under a writ of certiorari.The Supreme Court decides whether or not they will hear the case.

Accepted Answer

A) True 
 B)False

Question 2

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.Becau

Question 3

Identify which of the following statements is true.

Accepted Answer

A) RIA United States Tax Reporter and CCH Standard Federal Tax Reporter are topical tax services. 
B) An annotated tax service is organized by broad subject areas. 
C) Annotations are summaries of IRS pronouncements and court opinions. 
D) All of the above are false. 
A) RIA United States Tax Reporter and CCH Standard Federal Tax Reporter are topical tax services. 
B) An annotated tax service is organized by broad subject areas. 
C) Annotations are summaries of IRS pronouncements and court opinions. 
D) All of the above are false.

Question 4

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 5

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 6

Identify which of the following statements is false.

Accepted Answer

A) When tax advisors speak of the "tax law," they usually have in mind just the Internal Revenue Code. 
B) Members from both the House and the Senate are on the Conference Committee. 
C) Records of committee hearings are helpful in determining Congressional intent. 
D) All of the above are false. 
A) When tax advisors speak of the "tax law," they usually have in mind just the Internal Revenue Code. 
B) Members from both the House and the Senate are on the Conference Committee. 
C) Records of committee hearings are helpful in determining Congressional intent. 
D) All of the above are false.

Question 7

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 8

Which tax service is usually deemed to be the most authoritative?

Accepted Answer

A) United States Tax Reporter 
B) Standard Federal Tax Reporter 
C) Federal Tax Coordinator 2d 
D) All are equally authoritative. 
A) United States Tax Reporter 
B) Standard Federal Tax Reporter 
C) Federal Tax Coordinator 2d 
D) All are equally authoritative.

Question 9

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 10

Which of the following is secondary authority?

Accepted Answer

A) Internal Revenue Code 
B) Treasury Regulations 
C) RIA and CCH tax services 
D) Revenue Ruling 
A) Internal Revenue Code 
B) Treasury Regulations 
C) RIA and CCH tax services 
D) Revenue Ruling

Question 11

Regulations issued prior to the latest tax legislation dealing with a specific Code section are still effective to the extent they do not conflict with the provisions in the new legislation.

Accepted Answer

A) True 
 B)False

Question 12

The Tax Court decides an expenditure is deductible in the year the issue was first litigated.The government appealed and won a reversal in the Ninth Circuit Court of Appeals.It is the only appellate decision regarding the issue.If and when the Tax Court encounters this issue again,how will it hold?

Accepted Answer

The Tax Court will hold that t

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Explain the difference between a closed-fact and open-fact situation.

Accepted Answer

In a closed-fact situation,the transacti

Question 15

Are letter rulings of precedential value to third parties?

Accepted Answer

Not really.A letter ruling is binding on

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

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

Accepted Answer

An annotated tax service is organized by

Question 18

If the U.S.Supreme Court decides to hear an appeal of a tax case,it will grant a

Accepted Answer

A) writ of appeal. 
B) writ of certiorari. 
C) writ of detainer. 
D) writ of habeas corpus. 
A) writ of appeal. 
B) writ of certiorari. 
C) writ of detainer. 
D) writ of habeas corpus.

Question 19

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 20

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.

Exam 1: Tax Research

Appeals from the Court of Appeals go to the Supreme Court under a writ of certiorari.The Supreme Court decides whether or not they will hear the case.

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?"

Identify which of the following statements is true.

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

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

Identify which of the following statements is false.

The term "tax law" includes

Which tax service is usually deemed to be the most authoritative?

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

Which of the following is secondary authority?

Regulations issued prior to the latest tax legislation dealing with a specific Code section are still effective to the extent they do not conflict with the provisions in the new legislation.

The Tax Court decides an expenditure is deductible in the year the issue was first litigated.The government appealed and won a reversal in the Ninth Circuit Court of Appeals.It is the only appellate decision regarding the issue.If and when the Tax Court encounters this issue again,how will it hold?

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

Explain the difference between a closed-fact and open-fact situation.

Are letter rulings of precedential value to third parties?

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

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

If the U.S.Supreme Court decides to hear an appeal of a tax case,it will grant a

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

A Technical Advice Memorandum is usually

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

Taxes and Investment Planning

Filters