Question 1

Which of the following types of Regulations has the highest tax validity?

Accepted Answer

A)  Temporary 
B)  Legislative 
C)  Interpretive 
D)  Procedural 
E)  None of these 
A)  Temporary 
B)  Legislative 
C)  Interpretive 
D)  Procedural 
E)  None of these

Question 2

Which of the following statements about a nonacquiescence is correct?

Accepted Answer

A)  A nonacquiescence is issued in the Federal Registrar. 
B)  Nonacquiescences are published only for certain regular decisions of the U.S. Tax Court. 
C)  A nonacquiescence in published in the Internal Revenue Bulletin. 
D)  The IRS does not issue nonacquiescences to adverse decisions that are not appealed. 
E)  All of the above are correct. 
A)  A nonacquiescence is issued in the Federal Registrar. 
B)  Nonacquiescences are published only for certain regular decisions of the U.S. Tax Court. 
C)  A nonacquiescence in published in the Internal Revenue Bulletin. 
D)  The IRS does not issue nonacquiescences to adverse decisions that are not appealed. 
E)  All of the above are correct.

Question 3

Normally, when the Senate version of a tax bill differs from that passed by the House, a Joint Conference Committee drafts a compromise tax bill.

Accepted Answer

A) True 
 B)False

Question 4

Distinguish between the jurisdiction of the U.S. Tax Court and a U.S. District Court.

Accepted Answer

The U.S. Tax Court hears only tax cases

Question 5

The term "petitioner" is a synonym for "defendant."

Accepted Answer

A) True 
 B)False

Question 6

The Regulation section of the CPA exam is approximately 80% Taxation and 20% Law & Professional Responsibilities.

Accepted Answer

A) True 
 B)False

Question 7

Which statement is not true with respect to a Regulation that interprets the tax law?

Accepted Answer

A)  Issued by the U.S. Congress. 
B)  Issued by the U.S. Treasury Department. 
C)  Designed to provide an interpretation of the tax law. 
D)  Carries more legal force than a Revenue Ruling. 
E)  All of these statements are true. 
A)  Issued by the U.S. Congress. 
B)  Issued by the U.S. Treasury Department. 
C)  Designed to provide an interpretation of the tax law. 
D)  Carries more legal force than a Revenue Ruling. 
E)  All of these statements are true.

Question 8

A letter ruling applies only to the taxpayer who asks for and obtains a letter ruling.

Accepted Answer

A) True 
 B)False

Question 9

Tax planning usually involves a completed transaction.

Accepted Answer

A) True 
 B)False

Question 10

The U.S. Tax Court meets most often in Washington, D.C.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

A "Bluebook" is substantial authority for purposes of the accuracy related penalty.

Accepted Answer

A) True 
 B)False

Question 13

Determination letters usually involve completed transactions.

Accepted Answer

A) True 
 B)False

Question 14

Currently, the Internal Revenue Code of 1986 does not contain §§ 308, 309, and 310. This absence means these sections were repealed by Congress.

Accepted Answer

A) True 
 B)False

Question 15

If these citations appeared after a trial court decision, which one means that the decision was overruled?

Accepted Answer

A)  Aff'd 633 F.2d 512 (CA-7, 1980). 
B)  Rem'd 399 F.2d 800 (CA-5, 1968). 
C)  Aff'd 914 F.2d 396 (CA-3, 1990). 
D)  Rev'd 935 F.2d 203 (CA-5, 1991). 
E)  None of the above. 
A)  Aff'd 633 F.2d 512 (CA-7, 1980). 
B)  Rem'd 399 F.2d 800 (CA-5, 1968). 
C)  Aff'd 914 F.2d 396 (CA-3, 1990). 
D)  Rev'd 935 F.2d 203 (CA-5, 1991). 
E)  None of the above.

Question 16

Which publisher offers the United States Tax Reporter?

Accepted Answer

A)  Research Institute of America (Thomson Reuters) 
B)  Commerce Clearing House 
C)  LexisNexis 
D)  Tax Analysts 
E)  None of these 
A)  Research Institute of America (Thomson Reuters) 
B)  Commerce Clearing House 
C)  LexisNexis 
D)  Tax Analysts 
E)  None of these

Question 17

In a U.S. District Court, a jury can decide both questions of fact and questions of law.

Accepted Answer

A) True 
 B)False

Question 18

The IRS is not required to make a letter ruling public.

Accepted Answer

A) True 
 B)False

Question 19

A taxpayer who loses in a U.S. District Court may appeal directly to the:

Accepted Answer

A)  U.S. Supreme Court. 
B)  U.S. Tax Court. 
C)  U.S. Court of Federal Claims. 
D)  U.S. Circuit Court of Appeals. 
E)  All of these. 
A)  U.S. Supreme Court. 
B)  U.S. Tax Court. 
C)  U.S. Court of Federal Claims. 
D)  U.S. Circuit Court of Appeals. 
E)  All of these.

Question 20

Which is presently not a major tax service?

Accepted Answer

A)  Standard Federal Tax Reporter 
B)  Federal Taxes 
C)  United States Tax Reporter 
D)  Tax Management Portfolios 
E)  All of these are major tax services 
A)  Standard Federal Tax Reporter 
B)  Federal Taxes 
C)  United States Tax Reporter 
D)  Tax Management Portfolios 
E)  All of these are major tax services

Exam 2: Working with the Tax Law

Which of the following types of Regulations has the highest tax validity?

Which of the following statements about a nonacquiescence is correct?

Normally, when the Senate version of a tax bill differs from that passed by the House, a Joint Conference Committee drafts a compromise tax bill.

Distinguish between the jurisdiction of the U.S. Tax Court and a U.S. District Court.

The term "petitioner" is a synonym for "defendant."

The Regulation section of the CPA exam is approximately 80% Taxation and 20% Law & Professional Responsibilities.

Which statement is not true with respect to a Regulation that interprets the tax law?

A letter ruling applies only to the taxpayer who asks for and obtains a letter ruling.

Tax planning usually involves a completed transaction.

The U.S. Tax Court meets most often in Washington, D.C.

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

A "Bluebook" is substantial authority for purposes of the accuracy related penalty.

Determination letters usually involve completed transactions.

Currently, the Internal Revenue Code of 1986 does not contain §§ 308, 309, and 310. This absence means these sections were repealed by Congress.

If these citations appeared after a trial court decision, which one means that the decision was overruled?

Which publisher offers the United States Tax Reporter?

In a U.S. District Court, a jury can decide both questions of fact and questions of law.

The IRS is not required to make a letter ruling public.

A taxpayer who loses in a U.S. District Court may appeal directly to the:

Which is presently not a major tax service?

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

Filters