Question 1

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

Accepted Answer

A)   Code section approach.
B)   Keyword approach.
C)   Table of contents approach.
D)   Index.
E)   All are about the same.F) B) and E)
G) C) and D)

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

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 4

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.F) C) and D)
G) B) and D)

Question 5

The research process should begin with a tax service.

Accepted Answer

A) True 
 B)False

Question 6

Electronic databases are most frequently searched by the keyword approach.

Accepted Answer

A) True 
 B)False

Question 7

Tax research involves which of the following procedures:

Accepted Answer

A)   Identifying and refining the problem.
B)   Locating the appropriate tax law sources.
C)   Assessing the validity of the tax law sources.
D)   Follow-up.
E)   All of the above.F) A) and B)
G) D) and E)

Question 8

Distinguish between the jurisdiction of the U.S. Tax Court and a U.S. District Court.

Accepted Answer

The U.S. Tax Court hears only tax cases ...

Question 9

A U.S. District Court is the lowest trial court.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is not an administrative source of tax law?

Accepted Answer

A)   Field Service Advice.
B)   Revenue Procedure.
C)   Technical Advice Memoranda.
D)   General Counsel Memorandum.
E)   All of the above are administrative sources.F) B) and E)
G) A) and B)

Question 11

There are 11 geographic U.S. Circuit Court of Appeals.

Accepted Answer

A) True 
 B)False

Question 12

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 13

Which statement is incorrect with respect to taxation on the CPA exam?

Accepted Answer

A)   The CPA exam now has only four parts.
B)   There are no longer case studies on the exam.
C)   A candidate may not go back after exiting a testlet.
D)   Simulations include a four-function pop-up calculator.
E)   None of the above are incorrect.F) A) and B)
G) D) and E)

Question 14

The first codification of the tax law occurred in 1954.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A)   Give equal weight to the Code and the Regulations.
B)   Give more weight to the Code rather than to a Regulation.
C)   Give more weight to the Regulation rather than to the Code.
D)   Give less weight to the Code rather than to a Regulation.
E)   None of the above.F) B) and D)
G) A) and D)

Question 16

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 the above statements are true.F) B) and E)
G) A) and E)

Question 17

A jury trial is available in the following trial court:

Accepted Answer

A)   U.S. Tax Court.
B)   U.S. Court of Federal Claims.
C)   U.S. District Court.
D)   U.S. Circuit Court of Appeals.
E)   None of the above.F) A) and E)
G) B) and C)

Question 18

Revenue Procedures deal with the internal management practices and procedures of the IRS.

Accepted Answer

A) True 
 B)False

Question 19

How do treaties fit within tax sources?

Accepted Answer

The U.S signs certain tax treaties (some...

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 2: Working With the Tax Law

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The first codification of the tax law occurred in 1954.

Correct AnswerverifiedShow Answer

Electronic databases are most frequently searched by the keyword approach.

Correct AnswerverifiedShow Answer

A jury trial is available in the following trial court:

Correct AnswerverifiedShow Answer

There are 11 geographic U.S. Circuit Court of Appeals.

Correct AnswerverifiedShow Answer

Which of the following is not an administrative source of tax law?

Correct AnswerverifiedShow Answer

Tax research involves which of the following procedures:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Revenue Procedures deal with the internal management practices and procedures of the IRS.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A U.S. District Court is the lowest trial court.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

How do treaties fit within tax sources?

Correct AnswerverifiedThe U.S signs certain tax treaties (some...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Distinguish between the jurisdiction of the U.S. Tax Court and a U.S. District Court.

Correct AnswerverifiedThe U.S. Tax Court hears only tax cases ...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Which statement is incorrect with respect to taxation on the CPA exam?

Correct AnswerverifiedShow Answer

The research process should begin with a tax service.

Correct AnswerverifiedShow Answer

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The U.S signs certain tax treaties (some...
View Answer

Correct Answer
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Correct Answer
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The U.S. Tax Court hears only tax cases ...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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