Question 1

Interpret the following citation: 64-1 USTC ¶9618, aff'd in 344 F.2d 966.

Accepted Answer

A)  A U.S. Tax Court Small Cases Division decision that was affirmed on appeal. 
B)  A U.S. Tax Court decision that was affirmed on appeal. 
C)  A U.S. District Court decision that was affirmed on appeal. 
D)  A U.S. Circuit Court of Appeals decision that was affirmed on appeal. 
E)  None of the above. 
A)  A U.S. Tax Court Small Cases Division decision that was affirmed on appeal. 
B)  A U.S. Tax Court decision that was affirmed on appeal. 
C)  A U.S. District Court decision that was affirmed on appeal. 
D)  A U.S. Circuit Court of Appeals decision that was affirmed on appeal. 
E)  None of the above.

Question 2

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 3

Which of these is not a correct citation to the Internal Revenue Code?

Accepted Answer

A)  Section 211 
B)  Section 1222(1) 
C)  Section 2(a)(1)(
A)  
D)  Section 280B 
E)  All of these are correct cites. 
A)  Section 211 
B)  Section 1222(1) 
C)  Section 2(a)(1)(
A)  
D)  Section 280B 
E)  All of these are correct cites.

Question 4

The primary purpose of effective tax planning is to reduce or defer the tax in the current tax year.

Accepted Answer

A) True 
 B)False

Question 5

The Index to Federal Tax Articles (published by Thomson Reuters) is available electronically.

Accepted Answer

A) True 
 B)False

Question 6

Subchapter D refers to the "Corporate Distributions and Adjustments" section of the Internal Revenue Code.

Accepted Answer

A) True 
 B)False

Question 7

The IRS issues an acquiescence or nonacquiescence only for regular Tax Court decisions.

Accepted Answer

A) True 
 B)False

Question 8

What statement is not true with respect to Temporary Regulations?

Accepted Answer

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

Question 9

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 10

The Golsen rule has been overturned by the U.S. Supreme Court.

Accepted Answer

A) True 
 B)False

Question 11

In § 212(1), the number (1) stands for the:

Accepted Answer

A)  Section number. 
B)  Subsection number. 
C)  Paragraph designation. 
D)  Subparagraph designation. 
E)  None of these. 
A)  Section number. 
B)  Subsection number. 
C)  Paragraph designation. 
D)  Subparagraph designation. 
E)  None of these.

Question 12

The following citation is correct: Larry G. Mitchell, 131 T.C. 215 (2008).

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Which is a primary source of tax law?

Accepted Answer

A)  Serverino R. Nico, Jr., 67 T.C. 647 (1977). 
B)  Article by a Federal judge in Tax Notes. 
C)  An IRS publication. 
D)  Written determination letter. 
E)  All of the above are primary sources. 
A)  Serverino R. Nico, Jr., 67 T.C. 647 (1977). 
B)  Article by a Federal judge in Tax Notes. 
C)  An IRS publication. 
D)  Written determination letter. 
E)  All of the above are primary sources.

Question 15

Deferring income to a subsequent year is considered to be tax avoidance.

Accepted Answer

A) True 
 B)False

Question 16

Technical Advice Memoranda may not be cited as precedents by taxpayers.

Accepted Answer

A) True 
 B)False

Question 17

The IRS will not acquiesce to the following tax decisions:

Accepted Answer

A)  U.S. District Court. 
B)  U.S. Tax Court. 
C)  U.S. Court of Federal Claims. 
D)  Small Case Division of the U.S. Tax Court. 
E)  All of these. 
A)  U.S. District Court. 
B)  U.S. Tax Court. 
C)  U.S. Court of Federal Claims. 
D)  Small Case Division of the U.S. Tax Court. 
E)  All of these.

Question 18

A taxpayer can obtain a jury trial in the U.S. Tax Court.

Accepted Answer

A) True 
 B)False

Question 19

If a taxpayer decides not to pay a tax deficiency, he or she must go to which court?

Accepted Answer

A)  Appropriate U.S. Circuit Court of Appeals 
B)  U.S. District Court 
C)  U.S. Tax Court 
D)  U.S. Court of Federal Claims 
E)  None of these 
A)  Appropriate U.S. Circuit Court of Appeals 
B)  U.S. District Court 
C)  U.S. Tax Court 
D)  U.S. Court of Federal Claims 
E)  None of these

Question 20

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

Accepted Answer

A)  40 T.C. 1018. 
B)  159 F.2d 848 (CA-2, 1947). 
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)  159 F.2d 848 (CA-2, 1947). 
C)  354 F. Supp. 1003 (D.Ct. Ga. 1972). 
D)  914 F.2d 396 (CA-3, 1990). 
E)  None of the above.

Exam 2: Working with the Tax Law

Interpret the following citation: 64-1 USTC ¶9618, aff'd in 344 F.2d 966.

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

Which of these is not a correct citation to the Internal Revenue Code?

The primary purpose of effective tax planning is to reduce or defer the tax in the current tax year.

The Index to Federal Tax Articles (published by Thomson Reuters) is available electronically.

Subchapter D refers to the "Corporate Distributions and Adjustments" section of the Internal Revenue Code.

The IRS issues an acquiescence or nonacquiescence only for regular Tax Court decisions.

What statement is not true with respect to Temporary Regulations?

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

The Golsen rule has been overturned by the U.S. Supreme Court.

In § 212(1), the number (1) stands for the:

The following citation is correct: Larry G. Mitchell, 131 T.C. 215 (2008).

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

Which is a primary source of tax law?

Deferring income to a subsequent year is considered to be tax avoidance.

Technical Advice Memoranda may not be cited as precedents by taxpayers.

The IRS will not acquiesce to the following tax decisions:

A taxpayer can obtain a jury trial in the U.S. Tax Court.

If a taxpayer decides not to pay a tax deficiency, he or she must go to which court?

Which citation refers to a Second Circuit 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

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