Question 1

The Internal Revenue Code was first codified in what year?

Accepted Answer

A) 1913 
B) 1923 
C) 1939 
D) 1954 
E) 1986

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

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 4

Three judges will normally hear each U.S.Tax Court case.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Which court decision would probably carry more weight?

Accepted Answer

A) Regular U.S.Tax Court decision 
B) Reviewed U.S.Tax Court decision 
C) U.S.District Court decision 
D) Tax Court Memorandum decision 
E) U.S.Court of Federal Claims

Question 7

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 these are primary sources.

Question 8

A treasure trove is taxable when sold or exchanged.

Accepted Answer

A) True 
 B)False

Question 9

When searching on an electronic (online) tax service, which approach is more frequently used?

Accepted Answer

A) Internal Revenue Code section approach 
B) Keyword approach 
C) Table of contents approach 
D) Index 
E) All are about the same

Question 10

In recent years, Congress has been relatively successful in simplifying the Internal Revenue Code.

Accepted Answer

A) True 
 B)False

Question 11

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 12

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.

Question 13

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 these.

Question 14

Which items tell taxpayers the IRS's reaction to certain court decisions?

Accepted Answer

A) Notices 
B) Revenue Procedures 
C) Revenue Rulings 
D) Actions on Decisions 
E) Legislative Regulations

Question 15

In addressing the importance of a Regulation, an IRS agent must:

Accepted Answer

A) Give equal weight to the Internal Revenue Code and the Regulations. 
B) Give more weight to the Internal Revenue Code rather than to a Regulation. 
C) Give more weight to the Regulation rather than to the Internal Revenue Code. 
D) Give less weight to the Internal Revenue Code rather than to a Regulation. 
E) None of these.

Question 16

Which of the following court decisions carries more weight?

Accepted Answer

A) Federal District Court 
B) Second Circuit Court of Appeals 
C) U.S.Tax Court decision 
D) Small Cases Division of U.S.Tax Court 
E) U.S.Court of Federal Claims

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

A tax professional need not worry about the relative weight of authority within the various tax law sources.

Accepted Answer

A) True 
 B)False

Question 20

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

Exam 2: Working With the Tax Law

The Internal Revenue Code was first codified in what year?

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

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.

Three judges will normally hear each U.S.Tax Court case.

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

Which court decision would probably carry more weight?

Which is a primary source of tax law?

A treasure trove is taxable when sold or exchanged.

When searching on an electronic (online) tax service, which approach is more frequently used?

In recent years, Congress has been relatively successful in simplifying the Internal Revenue Code.

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

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

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

Which items tell taxpayers the IRS's reaction to certain court decisions?

In addressing the importance of a Regulation, an IRS agent must:

Which of the following court decisions carries more weight?

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

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

A tax professional need not worry about the relative weight of authority within the various tax law sources.

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