Question 1

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

Accepted Answer

In a closed-fact situation,the transacti

Question 2

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 3

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 4

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 5

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 6

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 7

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 8

Assume that you want to read a description of a particular area of the law,along with one or more illustrations of how that law is applied.You will not find that type of material in

Accepted Answer

A)  a citator. 
B)  the Treasury Regulations. 
C)  the Cumulative Bulletin. 
D)  the Committee Reports. 
A)  a citator. 
B)  the Treasury Regulations. 
C)  the Cumulative Bulletin. 
D)  the Committee Reports.

Question 9

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 10

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 11

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 12

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 13

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 14

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

Accepted Answer

A) True 
 B)False

Question 15

What is an information release?

Accepted Answer

The IRS issues information rel

Question 16

Are letter rulings of precedential value to third parties?

Accepted Answer

Not really.A letter ruling is binding on

Question 17

Identify which of the following statements is true.

Accepted Answer

A)  The U.S. Court of Federal Claims hears cases only in Washington, D.C. 
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, D.C. 
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 18

Tax Court memorandum decisions

Accepted Answer

A)  cannot be appealed. 
B)  are not published. 
C)  have less precedential value than regular decisions. 
D)  usually deal with factual variations of issues litigated previously. 
A)  cannot be appealed. 
B)  are not published. 
C)  have less precedential value than regular decisions. 
D)  usually deal with factual variations of issues litigated previously.

Question 19

Compare and contrast proposed,temporary,and final regulations.

Accepted Answer

Proposed regulations are not authoritati

Question 20

The phrase "Entered under Rule 155" indicates that

Accepted Answer

A)  the computation of the exact amount of the tax deficiency has been left to the litigating parties. 
B)  the court has not reached a decision concerning the appropriate tax treatment of an issue. 
C)  the parties have agreed not to appeal the decision. 
D)  only one Tax Court judge reviewed the case. 
A)  the computation of the exact amount of the tax deficiency has been left to the litigating parties. 
B)  the court has not reached a decision concerning the appropriate tax treatment of an issue. 
C)  the parties have agreed not to appeal the decision. 
D)  only one Tax Court judge reviewed the case.

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

Identify which of the following statements is false.

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

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?

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

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

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

Assume that you want to read a description of a particular area of the law,along with one or more illustrations of how that law is applied.You will not find that type of material in

A tax case cannot be appealed when initiated in the

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

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?

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

Title 26 of the U.S.Code includes

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

What is an information release?

Are letter rulings of precedential value to third parties?

Identify which of the following statements is true.

Tax Court memorandum decisions

Compare and contrast proposed,temporary,and final regulations.

The phrase "Entered under Rule 155" indicates that

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

US 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

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

Identify which of the following statements is false.

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

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?

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

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

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

Assume that you want to read a description of a particular area of the law,along with one or more illustrations of how that law is applied.You will not find that type of material in

A tax case cannot be appealed when initiated in the

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

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?

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

Title 26 of the U.S.Code includes

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

What is an information release?

Are letter rulings of precedential value to third parties?

Identify which of the following statements is true.

Tax Court memorandum decisions

Compare and contrast proposed,temporary,and final regulations.

The phrase "Entered under Rule 155" indicates that

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

US Corporations

The Gift Tax

The Estate Tax

Income Taxation of Trusts and Estates

Administrative Procedures

US Taxation of Foreign-Related Transactions

Filters