Question 1

General Counsel Memoranda may be cited as precedents by taxpayers.

Accepted Answer

A) True 
 B)False

Question 2

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 3

Often a court will invalidate a Regulation or portion thereof on the grounds that the Regulation is contrary to the intent of Congress.

Accepted Answer

A) True 
 B)False

Question 4

Individual Senators have considerable latitude to make amendments on the Senate floor.

Accepted Answer

A) True 
 B)False

Question 5

Tax bills are handled by which committee in the U.S.Senate?

Accepted Answer

A) Taxation Committee. 
B) Ways and Means Committee. 
C) Finance Committee. 
D) Budget Committee. 
E) None of the above. 
A) Taxation Committee. 
B) Ways and Means Committee. 
C) Finance Committee. 
D) Budget Committee. 
E) None of the above.

Question 6

An easy way to locate a journal article pertinent to a tax problem is through Commerce Clearing House's Federal Tax Articles.

Accepted Answer

A) True 
 B)False

Question 7

Which statement is false with respect to tax treaties?

Accepted Answer

A) There is a $1,000 penalty per failure to disclose on the tax return where there is a direct treaty conflict for an individual. 
B) There is a $10,000 penalty per failure to disclose on the tax return where there is a direct treaty conflict for a corporation. 
C) Treaties override the Code when in conflict. 
D) Treaties may override a Code section when in conflict. 
E) None of the above. 
A) There is a $1,000 penalty per failure to disclose on the tax return where there is a direct treaty conflict for an individual. 
B) There is a $10,000 penalty per failure to disclose on the tax return where there is a direct treaty conflict for a corporation. 
C) Treaties override the Code when in conflict. 
D) Treaties may override a Code section when in conflict. 
E) None of the above.

Question 8

Technical Advice Memoranda deal with completed transactions.

Accepted Answer

A) True 
 B)False

Question 9

The computer-based CPA examination has four sections with true-false,multiple-choice,and case studies (called simulations).

Accepted Answer

A) True 
 B)False

Question 10

The Golsen doctrine applies to which court?

Accepted Answer

A) U.S.District Court. 
B) U.S.Court of Federal Claims. 
C) U.S.Tax Court. 
D) U.S.Supreme Court. 
E) Some other court. 
A) U.S.District Court. 
B) U.S.Court of Federal Claims. 
C) U.S.Tax Court. 
D) U.S.Supreme Court. 
E) Some other court.

Question 11

Before 1943,the U.S.Tax Court was called the Board of Tax Appeals.

Accepted Answer

A) True 
 B)False

Question 12

Letter rulings may not be substantial authority for purposes of the accuracy-related penalty in § 6662.

Accepted Answer

A) True 
 B)False

Question 13

Which statement is incorrect with respect to taxation on the CPA exam?

Accepted Answer

A) The CPA exam now has only four parts. 
B) There are no longer case studies on the exam. 
C) A candidate may not go back after exiting a testlet. 
D) Simulations include a four-function pop-up calculator. 
E) None of the above are incorrect. 
A) The CPA exam now has only four parts. 
B) There are no longer case studies on the exam. 
C) A candidate may not go back after exiting a testlet. 
D) Simulations include a four-function pop-up calculator. 
E) None of the above are incorrect.

Question 14

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 15

A large part of tax research involves determining the intent of Congress.

Accepted Answer

A) True 
 B)False

Question 16

Compare a determination letter with a letter ruling.

Accepted Answer

Like letter rulings,determination letter

Question 17

Among the approaches available for online tax research are a keyword approach,a table of contents approach,an index approach,and a citation approach.

Accepted Answer

A) True 
 B)False

Question 18

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 19

Explain the function of Temporary Regulations.

Accepted Answer

Sometimes the U.S.Treasury Department is

Question 20

Why are some Code section numbers intentionally omitted from the Internal Revenue Code?

Accepted Answer

Some Code section numbers are

Exam 2: Working With the Tax Law

General Counsel Memoranda may be cited as precedents by taxpayers.

Which court decision is generally more authoritative?

Often a court will invalidate a Regulation or portion thereof on the grounds that the Regulation is contrary to the intent of Congress.

Individual Senators have considerable latitude to make amendments on the Senate floor.

Tax bills are handled by which committee in the U.S.Senate?

An easy way to locate a journal article pertinent to a tax problem is through Commerce Clearing House's Federal Tax Articles.

Which statement is false with respect to tax treaties?

Technical Advice Memoranda deal with completed transactions.

The computer-based CPA examination has four sections with true-false,multiple-choice,and case studies (called simulations).

The Golsen doctrine applies to which court?

Before 1943,the U.S.Tax Court was called the Board of Tax Appeals.

Letter rulings may not be substantial authority for purposes of the accuracy-related penalty in § 6662.

Which statement is incorrect with respect to taxation on the CPA exam?

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

A large part of tax research involves determining the intent of Congress.

Compare a determination letter with a letter ruling.

Among the approaches available for online tax research are a keyword approach,a table of contents approach,an index approach,and a citation approach.

Which item may not be cited as a precedent?

Explain the function of Temporary Regulations.

Why are some Code section numbers intentionally omitted from the Internal Revenue Code?

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

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

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

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

Alternative Minimum Tax

Accounting Periods and Methods

Corporations: Introduction and Operating Rules

Corporations: Organization and Capital Structure

Corporations: Distributions Not in Complete Liquidation

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

The Federal Gift and Estate Taxes

Income Taxation of Trusts and Estates

Filters