Question 1

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 2

In all situations,tax considerations are of primary importance.Do you agree or disagree? Support your answer.

Accepted Answer

It is important to consider nontax objec

Question 3

Are letter rulings of precedential value to third parties?

Accepted Answer

Not really.A letter ruling is binding on

Question 4

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 5

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 6

Explain how committee reports can be used in tax research.What do they indicate?

Accepted Answer

Committee reports can help res

Question 7

Discuss the differences and similarities between regular and memorandum decisions issued by the U.S.Tax Court.

Accepted Answer

The answer of Discuss the differences and similarities between regular...

Question 8

What are the purposes of citations in tax research?

Accepted Answer

Citations serve two purposes.F

Question 9

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 10

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 11

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

Accepted Answer

The small cases procedure allo

Question 12

Why does a researcher use a citator?

Accepted Answer

A) to check on authorities issued subsequent to a court decision 
B) to determine whether a private letter ruling exists on the subject 
C) for examples of the application of a tax provision 
D) none of the above 
A) to check on authorities issued subsequent to a court decision 
B) to determine whether a private letter ruling exists on the subject 
C) for examples of the application of a tax provision 
D) none of the above

Question 13

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 14

Assume that the Tax Court decided an expenditure in question was deductible.The government appealed to the Fifth Circuit,which reversed the decision and held it was not deductible.No other circuits have ruled on the issue.
A new case has just been filed in the Tax Court.How will the Tax Court rule if this new case is appealable to the Tenth Circuit? Would your answer be different if the case was appealable to the Fifth Circuit?

Accepted Answer

The Golsen rule provides that the Tax Co

Question 15

The primary citation for a federal circuit court of appeals case would be

Accepted Answer

A) 40 AFTR 2d 78-1234. 
B) 44 F.Supp.403. 
C) 3 F.3d 134. 
D) 79-2 USTC & 9693. 
A) 40 AFTR 2d 78-1234. 
B) 44 F.Supp.403. 
C) 3 F.3d 134. 
D) 79-2 USTC & 9693.

Question 16

According to the AICPA's Statements on Standards for Tax Services,what duties does the tax practitioner owe the client?

Accepted Answer

The tax practitioner owes the client the

Question 17

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 18

Discuss the purposes and scope of temporary regulations.

Accepted Answer

Temporary regulations are issued by the

Question 19

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 20

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.

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

In all situations,tax considerations are of primary importance.Do you agree or disagree? Support your answer.

Are letter rulings of precedential value to third parties?

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

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?

Explain how committee reports can be used in tax research.What do they indicate?

Discuss the differences and similarities between regular and memorandum decisions issued by the U.S.Tax Court.

What are the purposes of citations in tax research?

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

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

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

Why does a researcher use a citator?

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

The primary citation for a federal circuit court of appeals case would be

According to the AICPA's Statements on Standards for Tax Services,what duties does the tax practitioner owe the client?

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?

Discuss the purposes and scope of temporary regulations.

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?

Identify which of the following statements is false.

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

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

In all situations,tax considerations are of primary importance.Do you agree or disagree? Support your answer.

Are letter rulings of precedential value to third parties?

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

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?

Explain how committee reports can be used in tax research.What do they indicate?

Discuss the differences and similarities between regular and memorandum decisions issued by the U.S.Tax Court.

What are the purposes of citations in tax research?

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

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

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

Why does a researcher use a citator?

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

The primary citation for a federal circuit court of appeals case would be

According to the AICPA's Statements on Standards for Tax Services,what duties does the tax practitioner owe the client?

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?

Discuss the purposes and scope of temporary regulations.

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?

Identify which of the following statements is false.

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