Question 1

Closed facts are especially conducive to tax planning.

Accepted Answer

A) True 
 B)False

Question 2

Lindy, a tax intern, is beginning her first tax research case for her employer. Her manager has given her a basic understanding of the facts and has identified the basic research question. Lindy is now ready to begin searching for relevant tax authorities. Describe the different types of research tools available to help a tax researcher locate relevant authority and identify which type may be especially useful for Lindy.

Accepted Answer

Tax services aid the researcher in ident

Question 3

Hong, an introductory tax student, is beginning his first research project. He has a complete understanding of the relevant facts for his project and has identified the initial research questions. He is now ready to begin using a tax service to identify relevant authorities. What are some suggestions for him on how to use tax services to identify relevant authorities?

Accepted Answer

A novice may conduct a keyword search in

Question 4

Kodak is a beginning tax researcher. He knows that the 1st step of the research process is to get an understanding of the facts surrounding the transaction being researched. Describe the two basic types of facts, the sources of facts for a research project, and any advice that may help Kodak.

Accepted Answer

To answer a tax question, you must under

Question 5

Princess, who resides in the 2nd Circuit, recently found a circuit court case that is favorable to her income tax research question. Which of the following circuits would she prefer to have issued the opinion?

Accepted Answer

A)  2nd Circuit. 
B)  Federal Circuit. 
C)  1st Circuit. 
D)  2nd Circuit or the Federal Circuit. 
E)  None of the above. 
A)  2nd Circuit. 
B)  Federal Circuit. 
C)  1st Circuit. 
D)  2nd Circuit or the Federal Circuit. 
E)  None of the above.

Question 6

Kim has decided to litigate a tax issue with the IRS. Describe the trial level courts that Kim may use to litigate the case.

Accepted Answer

There are three trial level courts that

Question 7

A taxpayer can avoid a substantial understatement of tax penalty:

Accepted Answer

A)  if the position is frivolous and disclosed on the tax return. 
B)  if the position has a realistic possibility of being sustained by the IRS or courts. 
C)  if the position is not frivolous and disclosed on the tax return. 
D)  if the position has a reasonable basis and is disclosed on the tax return. 
E)  None of the above. 
A)  if the position is frivolous and disclosed on the tax return. 
B)  if the position has a realistic possibility of being sustained by the IRS or courts. 
C)  if the position is not frivolous and disclosed on the tax return. 
D)  if the position has a reasonable basis and is disclosed on the tax return. 
E)  None of the above.

Question 8

A tax practitioner can avoid IRS penalty relating to a tax return position:

Accepted Answer

A)  only if the position has a more likely than not chance of being sustained by the IRS or courts. 
B)  if the position has a realistic possibility of being sustained by the IRS or courts. 
C)  if there is not substantial authority to support the position. 
D)  if the position has a reasonable basis and is disclosed on the tax return. 
E)  None of the above. 
A)  only if the position has a more likely than not chance of being sustained by the IRS or courts. 
B)  if the position has a realistic possibility of being sustained by the IRS or courts. 
C)  if there is not substantial authority to support the position. 
D)  if the position has a reasonable basis and is disclosed on the tax return. 
E)  None of the above.

Question 9

Leslie made a mathematical mistake in computing her tax liability. Which audit program will likely catch Leslie's mistake?

Accepted Answer

A)  DIF System. 
B)  Mathematical correction. 
C)  Document perfection. 
D)  Information matching. 
E)  None of the above. 
A)  DIF System. 
B)  Mathematical correction. 
C)  Document perfection. 
D)  Information matching. 
E)  None of the above.

Question 10

Nolene suspects that one of her new clients may be intentionally underreporting his taxable income. What are the potential ramifications to her client of this behavior? What are the consequences to Nolene if she assists the client in underreporting income? Any advice for Nolene?

Accepted Answer

There are serious ramifications of commi

Question 11

Under the tax law, taxpayers may be subject to both civil and criminal penalties for underpaying their tax liability (e.g., due to fraud).

Accepted Answer

A) True 
 B)False

Question 12

Of the two basic types of tax services, beginning tax researchers often prefer topical tax services.

Accepted Answer

A) True 
 B)False

Closed facts are especially conducive to tax planning.

Kodak is a beginning tax researcher. He knows that the 1^st step of the research process is to get an understanding of the facts surrounding the transaction being researched. Describe the two basic types of facts, the sources of facts for a research project, and any advice that may help Kodak.

Princess, who resides in the 2^nd Circuit, recently found a circuit court case that is favorable to her income tax research question. Which of the following circuits would she prefer to have issued the opinion?

Kim has decided to litigate a tax issue with the IRS. Describe the trial level courts that Kim may use to litigate the case.

A taxpayer can avoid a substantial understatement of tax penalty:

A tax practitioner can avoid IRS penalty relating to a tax return position:

Leslie made a mathematical mistake in computing her tax liability. Which audit program will likely catch Leslie's mistake?

Nolene suspects that one of her new clients may be intentionally underreporting his taxable income. What are the potential ramifications to her client of this behavior? What are the consequences to Nolene if she assists the client in underreporting income? Any advice for Nolene?

Under the tax law, taxpayers may be subject to both civil and criminal penalties for underpaying their tax liability (e.g., due to fraud).

Of the two basic types of tax services, beginning tax researchers often prefer topical tax services.

An Introduction to Tax

Tax Planning Strategies and Related Limitations

Individual Income Tax Overview, Exemptions, and Filing Status

Gross Income and Exclusions

Individual for Agi Deductions

Individual From Agi Deductions

Individual Income Tax Computation and Tax Credits

Business Income, Deductions, and Accounting Methods

Property Acquisition and Cost Recovery

Property Dispositions

Entities Overview

Corporate Formations and Operations

Corporate Nonliquidating and Liquidating Distributions

Forming and Operating Partnerships

Dispositions of Partnership Interests and Partnership Distributions

S: Corporations

Filters

Exam 2: Tax Compliance , the Irs, and Tax Authorities

Closed facts are especially conducive to tax planning.

Kodak is a beginning tax researcher. He knows that the 1st step of the research process is to get an understanding of the facts surrounding the transaction being researched. Describe the two basic types of facts, the sources of facts for a research project, and any advice that may help Kodak.

Princess, who resides in the 2nd Circuit, recently found a circuit court case that is favorable to her income tax research question. Which of the following circuits would she prefer to have issued the opinion?

Kim has decided to litigate a tax issue with the IRS. Describe the trial level courts that Kim may use to litigate the case.

A taxpayer can avoid a substantial understatement of tax penalty:

A tax practitioner can avoid IRS penalty relating to a tax return position:

Leslie made a mathematical mistake in computing her tax liability. Which audit program will likely catch Leslie's mistake?

Nolene suspects that one of her new clients may be intentionally underreporting his taxable income. What are the potential ramifications to her client of this behavior? What are the consequences to Nolene if she assists the client in underreporting income? Any advice for Nolene?

Under the tax law, taxpayers may be subject to both civil and criminal penalties for underpaying their tax liability (e.g., due to fraud).

Of the two basic types of tax services, beginning tax researchers often prefer topical tax services.

An Introduction to Tax

Tax Planning Strategies and Related Limitations

Individual Income Tax Overview, Exemptions, and Filing Status

Gross Income and Exclusions

Individual for Agi Deductions

Individual From Agi Deductions

Individual Income Tax Computation and Tax Credits

Business Income, Deductions, and Accounting Methods

Property Acquisition and Cost Recovery

Property Dispositions

Entities Overview

Corporate Formations and Operations

Corporate Nonliquidating and Liquidating Distributions

Forming and Operating Partnerships

Dispositions of Partnership Interests and Partnership Distributions

S: Corporations

Filters

Kodak is a beginning tax researcher. He knows that the 1^st step of the research process is to get an understanding of the facts surrounding the transaction being researched. Describe the two basic types of facts, the sources of facts for a research project, and any advice that may help Kodak.

Princess, who resides in the 2^nd Circuit, recently found a circuit court case that is favorable to her income tax research question. Which of the following circuits would she prefer to have issued the opinion?