Question 1

Tax research involves which of the following procedures:

Accepted Answer

A)  Identifying and refining the problem. 
B)  Locating the appropriate tax law sources. 
C)  Assessing the validity of the tax law sources. 
D)  Follow-up. 
E)  All of these. 
A)  Identifying and refining the problem. 
B)  Locating the appropriate tax law sources. 
C)  Assessing the validity of the tax law sources. 
D)  Follow-up. 
E)  All of these.

Question 2

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 task-based simulations 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 these are incorrect. 
A)  The CPA exam now has only four parts. 
B)  There are no longer task-based simulations 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 these are incorrect.

Question 3

Which of the following is not an administrative source of tax law?

Accepted Answer

A)  Field Service Advice 
B)  Revenue Procedure 
C)  Technical Advice Memoranda 
D)  General Counsel Memorandum 
E)  All of these are administrative sources. 
A)  Field Service Advice 
B)  Revenue Procedure 
C)  Technical Advice Memoranda 
D)  General Counsel Memorandum 
E)  All of these are administrative sources.

Question 4

Before a tax bill can become law, it must be approved (signed) by the President of the United States.

Accepted Answer

A) True 
 B)False

Question 5

What are Treasury Department Regulations?

Accepted Answer

Regulations are issued by the U.S. Treas

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

The test for whether a child qualifies for dependency status is first conducted under the qualified child requirement.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following court decisions carries more weight?

Accepted Answer

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

Question 9

A tax professional need not worry about the relative weight of authority within the various tax law sources.

Accepted Answer

A) True 
 B)False

Question 10

The following citation could be a correct citation: Rev. Rul. 95-271,1995-64 I.R.B. 18.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

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

Question 12

The "petitioner" refers to the party against whom a suit is brought.

Accepted Answer

A) True 
 B)False

Question 13

The Internal Revenue Code was first codified in what year?

Accepted Answer

A)  1913 
B)  1923 
C)  1939 
D)  1954 
E)  1986 
A)  1913 
B)  1923 
C)  1939 
D)  1954 
E)  1986

Question 14

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.

Accepted Answer

A) True 
 B)False

Question 15

Texas is in the jurisdiction of the Second Circuit Court of Appeals.

Accepted Answer

A) True 
 B)False

Question 16

A taxpayer should always minimize his or her tax liability.

Accepted Answer

A) True 
 B)False

Question 17

Tax bills are handled by which committee in the U.S. House of Representatives?

Accepted Answer

A)  Taxation Committee 
B)  Ways and Means Committee 
C)  Finance Committee 
D)  Budget Committee 
E)  None of these 
A)  Taxation Committee 
B)  Ways and Means Committee 
C)  Finance Committee 
D)  Budget Committee 
E)  None of these

Question 18

Which items tell taxpayers the IRS's reaction to certain court decisions?

Accepted Answer

A)  Notices 
B)  Revenue Procedures 
C)  Revenue Rulings 
D)  Actions on Decisions 
E)  Legislative Regulations 
A)  Notices 
B)  Revenue Procedures 
C)  Revenue Rulings 
D)  Actions on Decisions 
E)  Legislative Regulations

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

A Temporary Regulation under § 303 of the Code would be cited as follows: Temp. Reg. § 303.

Accepted Answer

A) True 
 B)False

Exam 2: Working with the Tax Law

Tax research involves which of the following procedures:

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

Which of the following is not an administrative source of tax law?

Before a tax bill can become law, it must be approved (signed) by the President of the United States.

What are Treasury Department Regulations?

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

The test for whether a child qualifies for dependency status is first conducted under the qualified child requirement.

Which of the following court decisions carries more weight?

A tax professional need not worry about the relative weight of authority within the various tax law sources.

The following citation could be a correct citation: Rev. Rul. 95-271,1995-64 I.R.B. 18.

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

The "petitioner" refers to the party against whom a suit is brought.

The Internal Revenue Code was first codified in what year?

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.

Texas is in the jurisdiction of the Second Circuit Court of Appeals.

A taxpayer should always minimize his or her tax liability.

Tax bills are handled by which committee in the U.S. House of Representatives?

Which items tell taxpayers the IRS's reaction to certain court decisions?

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

A Temporary Regulation under § 303 of the Code would be cited as follows: Temp. Reg. § 303.

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

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

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

Taxing Business Income

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

The Federal Gift and Estate Taxes

Income Taxation of Trusts and Estates

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