Question 1

A taxpayer should always minimize his or her tax liability.

Accepted Answer

A) True 
 B)False

Question 2

The research process should always begin with a tax service.

Accepted Answer

A) True 
 B)False

Question 3

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 4

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 ClaimsF) C) and D)
G) B) and E)

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Which of the following types of Regulations has the highest tax validity?

Accepted Answer

A)  Temporary
B)  Legislative
C)  Interpretive
D)  Procedural
E)  None of theseF) A) and E)
G) B) and D)

Question 7

A researcher can find tax information on home page sites of:

Accepted Answer

A)  Governmental bodies.
B)  Tax academics.
C)  Publishers.
D)  CPA firms.
E)  All of these.F) B) and E)
G) A) and B)

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

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.F) B) and E)
G) D) and E)

Question 11

Which item may not be cited as a precedent?

Accepted Answer

A)  Regulations
B)  Temporary Regulations
C)  Technical Advice Memoranda
D)  U.S.District Court decision
E)  None of theseF) A) and B)
G) C) and E)

Question 12

There is a direct conflict between an Internal Revenue Code section adopted in 2008 and a treaty with France (signed in 2012).The Internal Revenue Code section controls.

Accepted Answer

A) True 
 B)False

Question 13

The first codification of the tax law occurred in 1954.

Accepted Answer

A) True 
 B)False

Question 14

Which publisher offers the United States Tax Reporter?

Accepted Answer

A)  Research Institute of America (Thomson Reuters) 
B)  Commerce Clearing House
C)  LexisNexis
D)  Tax Analysts
E)  None of theseF) C) and E)
G) A) and C)

Question 15

Technical Advice Memoranda deal with completed transactions.

Accepted Answer

A) True 
 B)False

Question 16

Compare Revenue Rulings with Revenue Procedures.

Accepted Answer

Revenue Rulings are official pronounceme...

Question 17

Discuss the advantages and disadvantages of the Small Cases Division of the U.S.Tax Court.

Accepted Answer

There is no appeal from the Small Cases ...

Question 18

The granting of a Writ of Certiorari indicates that at least four members of the Supreme Court believe that an issue is of sufficient importance to be heard by the full court.

Accepted Answer

A) True 
 B)False

Question 19

What are Treasury Department Regulations?

Accepted Answer

Regulations are issued by the U.S.Treasu...

Question 20

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 ClaimsF) A) and B)
G) None of the above

Exam 2: Working With the Tax Law

A researcher can find tax information on home page sites of:

Correct AnswerverifiedShow Answer

There is a direct conflict between an Internal Revenue Code section adopted in 2008 and a treaty with France (signed in 2012).The Internal Revenue Code section controls.

Correct AnswerverifiedShow Answer

The granting of a Writ of Certiorari indicates that at least four members of the Supreme Court believe that an issue is of sufficient importance to be heard by the full court.

Correct AnswerverifiedShow Answer

The research process should always begin with a tax service.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which court decision would probably carry more weight?

Correct AnswerverifiedShow Answer

Which of the following court decisions carries more weight?

Correct AnswerverifiedShow Answer

The first codification of the tax law occurred in 1954.

Correct AnswerverifiedShow Answer

Which item may not be cited as a precedent?

Correct AnswerverifiedShow Answer

What are Treasury Department Regulations?

Correct AnswerverifiedRegulations are issued by the U.S.Treasu...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Technical Advice Memoranda deal with completed transactions.

Correct AnswerverifiedShow Answer

Discuss the advantages and disadvantages of the Small Cases Division of the U.S.Tax Court.

Correct AnswerverifiedThere is no appeal from the Small Cases ...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Which publisher offers the United States Tax Reporter?

Correct AnswerverifiedShow Answer

Compare Revenue Rulings with Revenue Procedures.

Correct AnswerverifiedRevenue Rulings are official pronounceme...View AnswerShow Answer

A taxpayer should always minimize his or her tax liability.

Correct AnswerverifiedShow Answer

Which of the following types of Regulations has the highest tax validity?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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Regulations are issued by the U.S.Treasu...
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There is no appeal from the Small Cases ...
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Revenue Rulings are official pronounceme...
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