Question 1

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 2

The citation "Reg.Sec.1.199-2" refers to

Accepted Answer

A)  the first regulation issued in 1999. 
B)  the second regulation issued in 1999. 
C)  a regulation that interprets Code Section 199. 
D)  a regulation that can be found on page 199. 
A)  the first regulation issued in 1999. 
B)  the second regulation issued in 1999. 
C)  a regulation that interprets Code Section 199. 
D)  a regulation that can be found on page 199.

Question 3

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 4

Identify which of the following statements is true.

Accepted Answer

A)  Tax planning is an integral part of both closed-fact situations and open-fact situations. 
B)  The first step in conducting tax research is to clearly understand the issues involved. 
C)  The Statements on Standards for Tax Services recommend that only written tax advice be provided to the client in all situations. 
D)  All of the above are false. 
A)  Tax planning is an integral part of both closed-fact situations and open-fact situations. 
B)  The first step in conducting tax research is to clearly understand the issues involved. 
C)  The Statements on Standards for Tax Services recommend that only written tax advice be provided to the client in all situations. 
D)  All of the above are false.

Question 5

Final regulations have almost the same legislative weight as the IRC.

Accepted Answer

A) True 
 B)False

Question 6

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 7

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 8

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

Accepted Answer

In a closed-fact situation,the transacti

Question 9

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 10

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 11

Describe the format of a client memo.

Accepted Answer

A client memo should include a statement

Question 12

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 13

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 14

In which courts may litigation dealing with tax matters begin? Discuss the factors that might be considered in deciding where to begin litigation.

Accepted Answer

The Tax Court,the U.S.Court of Federal C

Question 15

Explain the legislative reenactment doctrine.

Accepted Answer

Under the legislative reenactment doctri

Question 16

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.

Question 17

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 18

Identify which of the following statements is false.

Accepted Answer

A)  A revenue ruling is issued by the Internal Revenue Service only in response to a written inquiry by a taxpayer. 
B)  Rev. Proc. 2006-19 is a revenue procedure that was published in 2006. 
C)  The citation Ltr. Rul. 200611075 usually indicates the ruling was made public in the 11th week of 2006. 
D)  A technical advice memorandum is made available as a letter ruling. 
A)  A revenue ruling is issued by the Internal Revenue Service only in response to a written inquiry by a taxpayer. 
B)  Rev. Proc. 2006-19 is a revenue procedure that was published in 2006. 
C)  The citation Ltr. Rul. 200611075 usually indicates the ruling was made public in the 11th week of 2006. 
D)  A technical advice memorandum is made available as a letter ruling.

Question 19

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 20

The tax statutes with the popular name "The Internal Revenue Code of 1986" are contained in which Title of the Code?

Accepted Answer

A)  20 
B)  25 
C)  26 
D)  301 
A)  20 
B)  25 
C)  26 
D)  301

Regulations are

The citation "Reg.Sec.1.199-2" refers to

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

Identify which of the following statements is true.

Final regulations have almost the same legislative weight as the IRC.

The term "tax law" includes

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?

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

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

The acquiescence policy of the IRS extends to the

Describe the format of a client memo.

Internet versions of topical tax services include

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

In which courts may litigation dealing with tax matters begin? Discuss the factors that might be considered in deciding where to begin litigation.

Explain the legislative reenactment doctrine.

A citator is used to find

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?

Identify which of the following statements is false.

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

The tax statutes with the popular name "The Internal Revenue Code of 1986" are contained in which Title of the Code?

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

Exam 15: Tax Research

Regulations are

The citation "Reg.Sec.1.199-2" refers to

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

Identify which of the following statements is true.

Final regulations have almost the same legislative weight as the IRC.

The term "tax law" includes

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?

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

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

The acquiescence policy of the IRS extends to the

Describe the format of a client memo.

Internet versions of topical tax services include

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

In which courts may litigation dealing with tax matters begin? Discuss the factors that might be considered in deciding where to begin litigation.

Explain the legislative reenactment doctrine.

A citator is used to find

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?

Identify which of the following statements is false.

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

The tax statutes with the popular name "The Internal Revenue Code of 1986" are contained in which Title of the Code?

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