Question 1

Which of the following types of tax services are arranged by code section?

Accepted Answer

A) legal tax service. 
B) annotated tax service. 
C) professional tax service. 
D) topical tax service. 
E) None of these. 
A) legal tax service. 
B) annotated tax service. 
C) professional tax service. 
D) topical tax service. 
E) None of these.

Question 2

Which of the following is not considered a primary authority?

Accepted Answer

A) Tax Court case 
B) Regulation 
C) Revenue Ruling 
D) Tax service 
E) None of these. 
A) Tax Court case 
B) Regulation 
C) Revenue Ruling 
D) Tax service 
E) None of these.

Question 3

The "90-day" letter gives the taxpayer the opportunity to pay the proposed tax adjustment or file a petition in the U.S.District Court to hear the case.

Accepted Answer

A) True 
 B)False

Question 4

If Lindley requests an extension to file her tax return,the latest she could pay her tax due without penalty is:

Accepted Answer

A) April 15th. 
B) October 15th. 
C) August 15th. 
D) November 15th. 
E) None of these. 
A) April 15th. 
B) October 15th. 
C) August 15th. 
D) November 15th. 
E) None of these.

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Which of the following courts is the only court that provides for a jury trial?

Accepted Answer

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

Question 7

Closed facts are especially conducive to tax planning.

Accepted Answer

A) True 
 B)False

Question 8

Allen filed his 2013 tax return on May 15th,2014 and underreported his gross income by 30 percent.Assuming Allen's underreporting is not due to fraud,the statute of limitations for IRS assessment on Allen's 2013 tax return should end:

Accepted Answer

A) May 15th,2016. 
B) April 15th,2016. 
C) May 15th,2017. 
D) April 15th,2017. 
E) None of thesE.Because Allen underreported his gross income by 30 percent,the SOL ends six years from the later of (1) the date the tax return was filed or (2) the tax return's original due date. 
A) May 15th,2016. 
B) April 15th,2016. 
C) May 15th,2017. 
D) April 15th,2017. 
E) None of thesE.Because Allen underreported his gross income by 30 percent,the SOL ends six years from the later of (1) the date the tax return was filed or (2) the tax return's original due date.

Question 9

Under the Statement on Standards for Tax Services,a CPA may recommend a tax return position if the position is frivolous and the position is not disclosed on the tax return.

Accepted Answer

A) True 
 B)False

Question 10

If a taxpayer is due a refund,she does not have to file a tax return.

Accepted Answer

A) True 
 B)False

Question 11

According to Statement on Standards for Tax Services No.1,a tax practitioner can recommend a tax return position:

Accepted Answer

A) if the position is frivolous and disclosed on the tax return. 
B) if the position complies with the standards imposed by the applicable tax authority. 
C) only if the position meets the "more likely than not" standard. 
D) only if the position meets the "clear and convincing evidence" standard. 
E) None of these. 
A) if the position is frivolous and disclosed on the tax return. 
B) if the position complies with the standards imposed by the applicable tax authority. 
C) only if the position meets the "more likely than not" standard. 
D) only if the position meets the "clear and convincing evidence" standard. 
E) None of these.

Question 12

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 13

Office examinations are the most common type of IRS audit.

Accepted Answer

A) True 
 B)False

Question 14

Jaime recently found a "favorable" trial level court opinion directly on point for her tax question.Which trial level court would she prefer to have issued the opinion?

Accepted Answer

A) Tax Court 
B) District Court 
C) Circuit Court 
D) Divorce Court 
E) None of these 
A) Tax Court 
B) District Court 
C) Circuit Court 
D) Divorce Court 
E) None of these

Question 15

For which of the following tax violations is a civil penalty not imposed on taxpayers?

Accepted Answer

A) failure to file a tax return. 
B) failure to pay tax owed. 
C) fraud. 
D) failure to make estimated tax payments. 
E) None of these. 
A) failure to file a tax return. 
B) failure to pay tax owed. 
C) fraud. 
D) failure to make estimated tax payments. 
E) None of these.

Question 16

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 these. 
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 these.

Question 17

Generally,code sections are arranged (grouped together) :

Accepted Answer

A) chronologically 
B) by topic 
C) randomly 
D) by length 
E) None of these 
A) chronologically 
B) by topic 
C) randomly 
D) by length 
E) None of these

Question 18

Tyrone claimed a large amount of charitable contributions as a tax deduction relative to taxpayers with similar levels of income.If Tyrone's tax return is chosen for audit because of his large charitable contributions,which audit program likely identified Tyrone's tax return for audit?

Accepted Answer

A) DIF System. 
B) Deduction Detective. 
C) Document perfection. 
D) Information matching. 
E) None of these. 
A) DIF System. 
B) Deduction Detective. 
C) Document perfection. 
D) Information matching. 
E) None of these.

Which of the following types of tax services are arranged by code section?

Which of the following is not considered a primary authority?

The "90-day" letter gives the taxpayer the opportunity to pay the proposed tax adjustment or file a petition in the U.S.District Court to hear the case.

If Lindley requests an extension to file her tax return,the latest she could pay her tax due without penalty is:

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

Which of the following courts is the only court that provides for a jury trial?

Closed facts are especially conducive to tax planning.

Allen filed his 2013 tax return on May 15^th,2014 and underreported his gross income by 30 percent.Assuming Allen's underreporting is not due to fraud,the statute of limitations for IRS assessment on Allen's 2013 tax return should end:

Under the Statement on Standards for Tax Services,a CPA may recommend a tax return position if the position is frivolous and the position is not disclosed on the tax return.

If a taxpayer is due a refund,she does not have to file a tax return.

According to Statement on Standards for Tax Services No.1,a tax practitioner can recommend a tax return position:

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?

Office examinations are the most common type of IRS audit.

Jaime recently found a "favorable" trial level court opinion directly on point for her tax question.Which trial level court would she prefer to have issued the opinion?

For which of the following tax violations is a civil penalty not imposed on taxpayers?

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

Generally,code sections are arranged (grouped together) :

Tyrone claimed a large amount of charitable contributions as a tax deduction relative to taxpayers with similar levels of income.If Tyrone's tax return is chosen for audit because of his large charitable contributions,which audit program likely identified Tyrone's tax return 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

Which of the following types of tax services are arranged by code section?

Which of the following is not considered a primary authority?

The "90-day" letter gives the taxpayer the opportunity to pay the proposed tax adjustment or file a petition in the U.S.District Court to hear the case.

If Lindley requests an extension to file her tax return,the latest she could pay her tax due without penalty is:

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

Which of the following courts is the only court that provides for a jury trial?

Closed facts are especially conducive to tax planning.

Allen filed his 2013 tax return on May 15th,2014 and underreported his gross income by 30 percent.Assuming Allen's underreporting is not due to fraud,the statute of limitations for IRS assessment on Allen's 2013 tax return should end:

Under the Statement on Standards for Tax Services,a CPA may recommend a tax return position if the position is frivolous and the position is not disclosed on the tax return.

If a taxpayer is due a refund,she does not have to file a tax return.

According to Statement on Standards for Tax Services No.1,a tax practitioner can recommend a tax return position:

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?

Office examinations are the most common type of IRS audit.

Jaime recently found a "favorable" trial level court opinion directly on point for her tax question.Which trial level court would she prefer to have issued the opinion?

For which of the following tax violations is a civil penalty not imposed on taxpayers?

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

Generally,code sections are arranged (grouped together) :

Tyrone claimed a large amount of charitable contributions as a tax deduction relative to taxpayers with similar levels of income.If Tyrone's tax return is chosen for audit because of his large charitable contributions,which audit program likely identified Tyrone's tax return 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

Allen filed his 2013 tax return on May 15^th,2014 and underreported his gross income by 30 percent.Assuming Allen's underreporting is not due to fraud,the statute of limitations for IRS assessment on Allen's 2013 tax return should end: