Question 1

Proposed Regulations are binding on IRS agents.

Accepted Answer

A) True 
 B)False

Question 2

What statement is not true with respect to Temporary Regulations?

Accepted Answer

A) May not be cited as precedent. 
B) Issued as Proposed Regulations. 
C) Automatically expire within three years after the date of issuance. 
D) Found in the Federal Register. 
E) All of the above statements are true. 
A) May not be cited as precedent. 
B) Issued as Proposed Regulations. 
C) Automatically expire within three years after the date of issuance. 
D) Found in the Federal Register. 
E) All of the above statements are true.

Question 3

Section 1244 permits an investor to convert what would be a capital loss into an ordinary loss.

Accepted Answer

A) True 
 B)False

Question 4

Three judges will normally hear each U.S.Tax Court case.

Accepted Answer

A) True 
 B)False

Question 5

Revenue Rulings issued by the National Office of the IRS carry the same legal force and effect as Regulations.

Accepted Answer

A) True 
 B)False

Question 6

A professional must understand the relative weight of authority within the sources of tax law.

Accepted Answer

A) True 
 B)False

Question 7

Explain the tax appeals process from trial courts.

Accepted Answer

Appeals from a District Court or a Tax C

Question 8

What administrative release deals with a proposed transaction rather than a completed transaction?

Accepted Answer

A) Letter Ruling. 
B) Technical Advice Memorandum. 
C) Determination Letter. 
D) Field Service Advice. 
E) None of the above. 
A) Letter Ruling. 
B) Technical Advice Memorandum. 
C) Determination Letter. 
D) Field Service Advice. 
E) None of the above.

Question 9

A researcher can find tax information on home page sites of:

Accepted Answer

A) Governmental bodies. 
B) Tax academics. 
C) Publishers. 
D) CPA firms. 
E) All of the above. 
A) Governmental bodies. 
B) Tax academics. 
C) Publishers. 
D) CPA firms. 
E) All of the above.

Question 10

How do treaties fit within tax sources?

Accepted Answer

The U.S signs certain tax treaties (some

Question 11

Which tax source may override a Regulation section?

Accepted Answer

A) Revenue Ruling. 
B) Revenue Procedure. 
C) U.S.tax treaty. 
D) Technical Advice Memoranda. 
E) None of the above. 
A) Revenue Ruling. 
B) Revenue Procedure. 
C) U.S.tax treaty. 
D) Technical Advice Memoranda. 
E) None of the above.

Question 12

Post-1984 letter rulings may be substantial authority for purposes of the accuracy-related penalty in § 6662.

Accepted Answer

A) True 
 B)False

Question 13

Which court decision carries more weight?

Accepted Answer

A) Federal District Court. 
B) Fifth Circuit Court of Appeals. 
C) Memorandum U.S.Tax Court decision. 
D) Small Cases Division of U.S.Tax Court. 
E) U.S.Court of Federal Claims. 
A) Federal District Court. 
B) Fifth Circuit Court of Appeals. 
C) Memorandum U.S.Tax Court decision. 
D) Small Cases Division of U.S.Tax Court. 
E) U.S.Court of Federal Claims.

Question 14

Which company does not publish citators for tax purposes?

Accepted Answer

A) McGraw-Hill. 
B) Commerce Clearing House. 
C) Research Institute of America. 
D) Westlaw. 
E) Shepard's. 
A) McGraw-Hill. 
B) Commerce Clearing House. 
C) Research Institute of America. 
D) Westlaw. 
E) Shepard's.

Question 15

Federal tax legislation generally originates in what body?

Accepted Answer

A) Internal Revenue Service. 
B) Senate Finance Committee. 
C) House Ways and Means Committee. 
D) Senate Floor. 
E) None of the above. 
A) Internal Revenue Service. 
B) Senate Finance Committee. 
C) House Ways and Means Committee. 
D) Senate Floor. 
E) None of the above.

Question 16

The following citation can be a correct citation: Rev.Rul.95-271, I.R.B.No.54, 18.

Accepted Answer

A) True 
 B)False

Question 17

Which item may not be cited as a precedent?

Accepted Answer

A) Regulations. 
B) Temporary Regulations. 
C) Technical Advice Memoranda. 
D) U.S.District Court decision. 
E) None of the above. 
A) Regulations. 
B) Temporary Regulations. 
C) Technical Advice Memoranda. 
D) U.S.District Court decision. 
E) None of the above.

Question 18

The CPA examination is normally curved to produce a designated pass rate.

Accepted Answer

A) True 
 B)False

Question 19

A taxpayer must pay any tax deficiency assessed by the IRS and sue for a refund to bring suit in the U.S.District Court. Only in the Tax Court can jurisdiction be obtained without first paying the assessed tax deficiency.

Accepted Answer

A) True 
 B)False

Question 20

Where can a researcher not find a U.S. Court of Appeals decision?

Accepted Answer

A)  Federal 3d (West). 
B)  F. Supp. 2d Series (West). 
C)  AFTR (RI
A) . 
D)  USTC (CCH). 
E)  None of the above. 
A)  Federal 3d (West). 
B)  F. Supp. 2d Series (West). 
C)  AFTR (RI
A) . 
D)  USTC (CCH). 
E)  None of the above.

Exam 2: Working With the Tax Law

Proposed Regulations are binding on IRS agents.

What statement is not true with respect to Temporary Regulations?

Section 1244 permits an investor to convert what would be a capital loss into an ordinary loss.

Three judges will normally hear each U.S.Tax Court case.

Revenue Rulings issued by the National Office of the IRS carry the same legal force and effect as Regulations.

A professional must understand the relative weight of authority within the sources of tax law.

Explain the tax appeals process from trial courts.

What administrative release deals with a proposed transaction rather than a completed transaction?

A researcher can find tax information on home page sites of:

How do treaties fit within tax sources?

Which tax source may override a Regulation section?

Post-1984 letter rulings may be substantial authority for purposes of the accuracy-related penalty in § 6662.

Which court decision carries more weight?

Which company does not publish citators for tax purposes?

Federal tax legislation generally originates in what body?

The following citation can be a correct citation: Rev.Rul.95-271, I.R.B.No.54, 18.

Which item may not be cited as a precedent?

The CPA examination is normally curved to produce a designated pass rate.

A taxpayer must pay any tax deficiency assessed by the IRS and sue for a refund to bring suit in the U.S.District Court. Only in the Tax Court can jurisdiction be obtained without first paying the assessed tax deficiency.

Where can a researcher not find a U.S. Court of Appeals decision?

An Introduction to Taxation and Understanding the Federal Tax Law

Computing the Tax

Gross Income: Concepts and Inclusions

Gross Income: Exclusions

Deductions and Losses: in General

Deductions and Losses: Certain Business Expenses and Losses

Depreciation, Cost Recovery, Amortization, and Depletion

Deductions: Employee and Self-Employed Related Expenses

Deductions and Losses: Certain Itemized Deductions

Investor Losses

Tax Credits and Payments

A: Property Transactions: Determination of Gain or Loss, Basis Considerations, and Nontaxable Exchanges-Part 1

Property Transactions: Determination of Gain or Loss, Basis Considerations, and Nontaxable Exchanges-Part 2

Property Transactions: Capital Gains and Losses, 1231, Recapture Provisions

Alternative Minimum Tax

Accounting Periods and Methods

Corporations: Introduction and Operating Rules

Corporations: Organization and Capital Structure

Corporations: Distributions Not in Complete Liquidation

Corporations: Distributions in Complete Liquidation and an Overview of Reorganizations

Partnerships

S: Corporations

Exempt Entities

Multistate Corporate Taxation

Taxation of International Transactions

Tax Practice and Ethics

Income Taxation of Trusts and Estates

Filters