Question 1

The Internal Revenue Code of 1986 is the name of the current tax code.

Accepted Answer

A) True 
 B)False

Question 2

Carey was researching a tax issue and located what appears to be a favorable IRS regulation.He knows that regulations serve different purposes and are issued in different forms.Which purpose and which form of regulation would provide Carey the most confidence that he has found an authority that carries a lot of weight for the long term? How could Carey check the status of this regulation?

Accepted Answer

Regulations are the Treasury Department'

Question 3

Which of the following audits is the least common,broadest in scope,and typically most complex?

Accepted Answer

A) Correspondence. 
B) Targeted. 
C) Office. 
D) Field. 
E) None of these. 
A) Correspondence. 
B) Targeted. 
C) Office. 
D) Field. 
E) None of these.

Question 4

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 there is substantial authority to support the position. 
D) if the position has a reasonable basis and is not disclosed on the tax return. 
E) None of these. 
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 there is substantial authority to support the position. 
D) if the position has a reasonable basis and is not disclosed on the tax return. 
E) None of these.

Question 5

Roddy was researching an issue and found a favorable Tax Court decision that addresses his issue.He also determined that there was a nonacquiescence for the case.Who issued the nonacquiescence? What is it? What does it mean and how would it affect Roddy's reliance on the court case?

Accepted Answer

Except for Supreme Court cases,whenever

Question 6

If the IRS assesses additional tax upon audit,a taxpayer may be subject to interest and penalties on the underpayment.

Accepted Answer

A) True 
 B)False

Question 7

Because the U.S.District Court hears a broader set of cases,decisions by the U.S.District Court may be considered to have more authoritative weight than the U.S.Court of Federal Claims.

Accepted Answer

A) True 
 B)False

Question 8

In general,a CPA will satisfy his professional responsibilities under the Statement on Standards for Tax Services when recommending a tax return position if he complies with the standards imposed by the applicable tax authority.

Accepted Answer

A) True 
 B)False

Question 9

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

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 there is substantial authority to support the position. 
D) if the position has a reasonable basis and is not disclosed on the tax return. 
E) None of these. 
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 there is substantial authority to support the position. 
D) if the position has a reasonable basis and is not disclosed on the tax return. 
E) None of these.

Question 10

Revenue rulings and revenue procedures are examples of primary authorities.

Accepted Answer

A) True 
 B)False

Question 11

Chris and Chuck were recently debating whether the Internal Revenue Code is "logical." Chris offers that she has briefly reviewed the Code and could hardly understand its organizational structure,if there is one.Please describe the basic organization of the code and how understanding its organization may be especially beneficial to the tax researcher.

Accepted Answer

The Internal Revenue Code is segregated

Question 12

Kim has decided to go 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 13

Rebecca is at a loss.A new tax law was recently passed,and she needs to get a better understanding of why the tax law was passed and the intent of the law from an official authority.Describe what authorities may be especially helpful to Rebecca and why she can't find many authorities that discuss the new law.

Accepted Answer

The House Ways and Means Committee,Senat

Question 14

The three basic types of IRS examinations are computer exams,office exams,and business exams.

Accepted Answer

A) True 
 B)False

Question 15

Rowanda could not settle with the IRS at the appeals conference.If she wants to litigate the issue but does not have sufficient funds to pay the proposed tax deficiency,Rowanda should litigate in the:

Accepted Answer

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

Question 16

The Senate Ways and Means Committee is in charge of drafting tax bills in the U.S.Senate.

Accepted Answer

A) True 
 B)False

Question 17

Mary Ann is working on a pretty big research project.Her manager has alerted her to the possibility that some of her research questions are likely to be questions of fact,whereas others are likely to be questions of law.Explain the difference between the two types of questions and how this would influence her research.

Accepted Answer

Two basic types of issues that researche

Question 18

The regulation with the lowest authoritative weight is the:

Accepted Answer

A) procedural regulation 
B) interpretative regulation 
C) proposed regulation 
D) legislative regulation 
E) None of these 
A) procedural regulation 
B) interpretative regulation 
C) proposed regulation 
D) legislative regulation 
E) None of these

Question 19

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 these. 
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 these.

Question 20

Which of the following is not a common method that the IRS uses to select returns for audit?

Accepted Answer

A) DIF system. 
B) Tax Select system. 
C) Information matching. 
D) Document perfection. 
E) None of these. 
A) DIF system. 
B) Tax Select system. 
C) Information matching. 
D) Document perfection. 
E) None of these.

The Internal Revenue Code of 1986 is the name of the current tax code.

Which of the following audits is the least common,broadest in scope,and typically most complex?

A taxpayer can avoid a substantial understatement of tax penalty:

Roddy was researching an issue and found a favorable Tax Court decision that addresses his issue.He also determined that there was a nonacquiescence for the case.Who issued the nonacquiescence? What is it? What does it mean and how would it affect Roddy's reliance on the court case?

If the IRS assesses additional tax upon audit,a taxpayer may be subject to interest and penalties on the underpayment.

Because the U.S.District Court hears a broader set of cases,decisions by the U.S.District Court may be considered to have more authoritative weight than the U.S.Court of Federal Claims.

In general,a CPA will satisfy his professional responsibilities under the Statement on Standards for Tax Services when recommending a tax return position if he complies with the standards imposed by the applicable tax authority.

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

Revenue rulings and revenue procedures are examples of primary authorities.

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

The three basic types of IRS examinations are computer exams,office exams,and business exams.

Rowanda could not settle with the IRS at the appeals conference.If she wants to litigate the issue but does not have sufficient funds to pay the proposed tax deficiency,Rowanda should litigate in the:

The Senate Ways and Means Committee is in charge of drafting tax bills in the U.S.Senate.

The regulation with the lowest authoritative weight is the:

A taxpayer can avoid a substantial understatement of tax penalty:

Which of the following is not a common method that the IRS uses to select returns for audit?

An Introduction to Tax

Tax Planning Strategies and Related Limitations

Individual Tax Overview

Gross Income and Exclusions

Individual Deductions

Individual Income Tax Computation and Tax Credits

Business Income, Deductions, and Accounting Methods

Property Acquisition and Cost Recovery

Property Dispositions

Investments

Compensation

Retirement Savings and Deferred Compensation

Tax Consequences of Home Ownership

Filters

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

The Internal Revenue Code of 1986 is the name of the current tax code.

Which of the following audits is the least common,broadest in scope,and typically most complex?

A taxpayer can avoid a substantial understatement of tax penalty:

Roddy was researching an issue and found a favorable Tax Court decision that addresses his issue.He also determined that there was a nonacquiescence for the case.Who issued the nonacquiescence? What is it? What does it mean and how would it affect Roddy's reliance on the court case?

If the IRS assesses additional tax upon audit,a taxpayer may be subject to interest and penalties on the underpayment.

Because the U.S.District Court hears a broader set of cases,decisions by the U.S.District Court may be considered to have more authoritative weight than the U.S.Court of Federal Claims.

In general,a CPA will satisfy his professional responsibilities under the Statement on Standards for Tax Services when recommending a tax return position if he complies with the standards imposed by the applicable tax authority.

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

Revenue rulings and revenue procedures are examples of primary authorities.

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

The three basic types of IRS examinations are computer exams,office exams,and business exams.

Rowanda could not settle with the IRS at the appeals conference.If she wants to litigate the issue but does not have sufficient funds to pay the proposed tax deficiency,Rowanda should litigate in the:

The Senate Ways and Means Committee is in charge of drafting tax bills in the U.S.Senate.

The regulation with the lowest authoritative weight is the:

A taxpayer can avoid a substantial understatement of tax penalty:

Which of the following is not a common method that the IRS uses to select returns for audit?

An Introduction to Tax

Tax Planning Strategies and Related Limitations

Individual Tax Overview

Gross Income and Exclusions

Individual Deductions

Individual Income Tax Computation and Tax Credits

Business Income, Deductions, and Accounting Methods

Property Acquisition and Cost Recovery

Property Dispositions

Investments

Compensation

Retirement Savings and Deferred Compensation

Tax Consequences of Home Ownership

Filters