Question 1

Regarding technical advice memoranda, which statement is incorrect?

Accepted Answer

A)  Issued by the National Office of IRS. 
B)  Most often deal with a completed transaction. 
C)  May be cited and used as precedent. 
D)  Issued with multi-digit file numbers. 
E)  None are incorrect. 
A)  Issued by the National Office of IRS. 
B)  Most often deal with a completed transaction. 
C)  May be cited and used as precedent. 
D)  Issued with multi-digit file numbers. 
E)  None are incorrect.

Question 2

The Federal tax law allows a taxpayer to claim a deduction for state and local income taxes.

Accepted Answer

A) True 
 B)False

Question 3

A Memorandum decision of the U.S. Tax Court could be cited as:

Accepted Answer

A)  37 AFTR 2d 456. 
B)  T.C. Memo. 1990-650. 
C)  68­1 USTC ¶ 9200. 
D)  All of the above. 
E)  None of the above. 
A)  37 AFTR 2d 456. 
B)  T.C. Memo. 1990-650. 
C)  68­1 USTC ¶ 9200. 
D)  All of the above. 
E)  None of the above.

Question 4

One Code section enables shareholders in a small business corporation to obtain an ordinary deduction for any loss recognized on a stock investment.

Accepted Answer

A) True 
 B)False

Question 5

Unlike determination letters, letter rulings are issued by the National Office of the IRS.

Accepted Answer

A) True 
 B)False

Question 6

A Technical Advice Memorandum is issued by:

Accepted Answer

A)  Treasury Department. 
B)  National Office of the IRS. 
C)  Office of Chief Council. 
D)  Area Director. 
E)  None of the above. 
A)  Treasury Department. 
B)  National Office of the IRS. 
C)  Office of Chief Council. 
D)  Area Director. 
E)  None of the above.

Question 7

Which of the following sources has the highest tax validity?

Accepted Answer

A)  Treasury Regulation. 
B)  Revenue Procedure. 
C)  Internal Revenue Code. 
D)  Temporary Regulation. 
E)  All have the same weight. 
A)  Treasury Regulation. 
B)  Revenue Procedure. 
C)  Internal Revenue Code. 
D)  Temporary Regulation. 
E)  All have the same weight.

Question 8

Regulations may first be found in:

Accepted Answer

A)  Federal Register. 
B)  Cumulative Bulletin. 
C)  Internal Revenue Bulletin. 
D)  I.R.S. Digest. 
E)  All of the above. 
A)  Federal Register. 
B)  Cumulative Bulletin. 
C)  Internal Revenue Bulletin. 
D)  I.R.S. Digest. 
E)  All of the above.

Question 9

Which court decision is generally more authoritative?

Accepted Answer

A)  A U.S. Tax Court decision. 
B)  Court of Federal Claims decision. 
C)  District Court decision. 
D)  U.S. Court of Appeals decision. 
E)  U.S. Tax Court Memorandum decision. 
A)  A U.S. Tax Court decision. 
B)  Court of Federal Claims decision. 
C)  District Court decision. 
D)  U.S. Court of Appeals decision. 
E)  U.S. Tax Court Memorandum decision.

Question 10

Subchapter P refers to the subchapter in the Internal Revenue Code that deals with partners and partnerships.

Accepted Answer

A) True 
 B)False

Question 11

The domestic production activities deduction is structured so as to create jobs.

Accepted Answer

A) True 
 B)False

Question 12

Proposed Regulations are not published in the Federal Register.

Accepted Answer

A) True 
 B)False

Question 13

Taxpayers may look at Committee Reports to determine the intent of Congress.

Accepted Answer

A) True 
 B)False

Question 14

A jury trial is available in a Court of Appeals situation.

Accepted Answer

A) True 
 B)False

Question 15

Although a corporation is subject to a Federal income tax, a partnership is not.

Accepted Answer

A) True 
 B)False

Question 16

Which citation refers to a Fourth Circuit Court of Appeals decision?

Accepted Answer

A)  40 T.C. 1018. 
B)  2 TCM 205 (1951). 
C)  354 F.Supp. 1003 (D. Ct. Ga, 1972). 
D)  914 F.2d 396 (CA-3, 1990). 
E)  None of the above. 
A)  40 T.C. 1018. 
B)  2 TCM 205 (1951). 
C)  354 F.Supp. 1003 (D. Ct. Ga, 1972). 
D)  914 F.2d 396 (CA-3, 1990). 
E)  None of the above.

Question 17

When there is a direct conflict between a Code section and a treaty provision, the most recent item takes precedence.

Accepted Answer

A) True 
 B)False

Question 18

What impact has the community property system had on our Federal tax laws?

Accepted Answer

The position of the residents of communi

Question 19

A Revenue Ruling is a legislative source of Federal tax law.

Accepted Answer

A) True 
 B)False

Question 20

Revenue Rulings carry the same legal force and effect as Regulations.

Accepted Answer

A) True 
 B)False

Regarding technical advice memoranda, which statement is incorrect?

The Federal tax law allows a taxpayer to claim a deduction for state and local income taxes.

A Memorandum decision of the U.S. Tax Court could be cited as:

One Code section enables shareholders in a small business corporation to obtain an ordinary deduction for any loss recognized on a stock investment.

Unlike determination letters, letter rulings are issued by the National Office of the IRS.

A Technical Advice Memorandum is issued by:

Which of the following sources has the highest tax validity?

Regulations may first be found in:

Which court decision is generally more authoritative?

Subchapter P refers to the subchapter in the Internal Revenue Code that deals with partners and partnerships.

The domestic production activities deduction is structured so as to create jobs.

Proposed Regulations are not published in the Federal Register.

Taxpayers may look at Committee Reports to determine the intent of Congress.

A jury trial is available in a Court of Appeals situation.

Although a corporation is subject to a Federal income tax, a partnership is not.

Which citation refers to a Fourth Circuit Court of Appeals decision?

When there is a direct conflict between a Code section and a treaty provision, the most recent item takes precedence.

What impact has the community property system had on our Federal tax laws?

A Revenue Ruling is a legislative source of Federal tax law.

Revenue Rulings carry the same legal force and effect as Regulations.

Corporations: Introduction and Operating Rules

Corporations: Special Situations

Corporations: Organization and Capital Structure

Corporations: Earnings Profits and Dividend Distributions

Corporations: Redemptions and Liquidations

Corporations: Reorganizations

Consolidated Tax Returns

Taxation of International Transactions

Partnerships: Formation, Operation, and Basis

Partnerships: Distributions, Transfer of Interests, and Terminations

S: Corporations

Comparative Forms of Doing Business

Taxes on the Financial Statements

Exempt Entities

Multistate Corporate Taxation

Tax Practice and Ethics

The Federal Gift and Estate Taxes

Family Tax Planning

Income Taxation of Trusts and Estates

Filters

Exam 1: Understanding and Working With the Federal Tax Law

Regarding technical advice memoranda, which statement is incorrect?

The Federal tax law allows a taxpayer to claim a deduction for state and local income taxes.

A Memorandum decision of the U.S. Tax Court could be cited as:

One Code section enables shareholders in a small business corporation to obtain an ordinary deduction for any loss recognized on a stock investment.

Unlike determination letters, letter rulings are issued by the National Office of the IRS.

A Technical Advice Memorandum is issued by:

Which of the following sources has the highest tax validity?

Regulations may first be found in:

Which court decision is generally more authoritative?

Subchapter P refers to the subchapter in the Internal Revenue Code that deals with partners and partnerships.

The domestic production activities deduction is structured so as to create jobs.

Proposed Regulations are not published in the Federal Register.

Taxpayers may look at Committee Reports to determine the intent of Congress.

A jury trial is available in a Court of Appeals situation.

Although a corporation is subject to a Federal income tax, a partnership is not.

Which citation refers to a Fourth Circuit Court of Appeals decision?

When there is a direct conflict between a Code section and a treaty provision, the most recent item takes precedence.

What impact has the community property system had on our Federal tax laws?

A Revenue Ruling is a legislative source of Federal tax law.

Revenue Rulings carry the same legal force and effect as Regulations.

Corporations: Introduction and Operating Rules

Corporations: Special Situations

Corporations: Organization and Capital Structure

Corporations: Earnings Profits and Dividend Distributions

Corporations: Redemptions and Liquidations

Corporations: Reorganizations

Consolidated Tax Returns

Taxation of International Transactions

Partnerships: Formation, Operation, and Basis

Partnerships: Distributions, Transfer of Interests, and Terminations

S: Corporations

Comparative Forms of Doing Business

Taxes on the Financial Statements

Exempt Entities

Multistate Corporate Taxation

Tax Practice and Ethics

The Federal Gift and Estate Taxes

Family Tax Planning

Income Taxation of Trusts and Estates

Filters