Question 1

Subtitle A of the Internal Revenue Code covers which of the following taxes?

Accepted Answer

A)  Income taxes
B)  Estate and gift taxes
C)  Excise taxes
D)  Employment taxes
E)  All of theseF) A) and B)
G) C) and D)

Question 2

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 task-based simulations 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 these are incorrect.F) B) and D)
G) B) and C)

Question 3

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 sameF) A) and E)
G) A) and D)

Question 4

Electronic (online) databases are most frequently searched by the keyword approach.

Accepted Answer

A) True 
 B)False

Question 5

What statement is not true with respect to Temporary Regulations?

Accepted Answer

A)  May not be cited as precedent.
B)  Issued with Proposed Regulations.
C)  Automatically expire within three years after the date of issuance.
D)  Found in the Federal Register.
E)  All of these statements are true.F) B) and D)
G) B) and E)

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) B) and D)
G) C) and D)

Question 7

A letter ruling applies only to the taxpayer who asks for and obtains a letter ruling.

Accepted Answer

A) True 
 B)False

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

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 10

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 11

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) B) and E)
G) B) and D)

Question 12

A taxpayer should always minimize his or her tax liability.

Accepted Answer

A) True 
 B)False

Question 13

Federal tax legislation generally originates in which of the following?

Accepted Answer

A)  Internal Revenue Service
B)  Senate Finance Committee
C)  House Ways and Means Committee
D)  Senate Floor
E)  None of theseF) A) and B)
G) A) and C)

Question 14

The Golsen rule has been overturned by the U.S. Supreme Court.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

A taxpayer may not appeal a case from which court:

Accepted Answer

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

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

A Revenue Ruling is a judicial source of Federal tax law.

Accepted Answer

A) True 
 B)False

Question 19

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) B) and D)
G) D) and E)

Question 20

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 these.F) A) and C)
G) A) and E)

Exam 2: Working With the Tax Law

A taxpayer should always minimize his or her tax liability.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Electronic (online) databases are most frequently searched by the keyword approach.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Federal tax legislation generally originates in which of the following?

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

Tax research involves which of the following procedures:

Correct AnswerverifiedShow Answer

A Revenue Ruling is a judicial source of Federal tax law.

Correct AnswerverifiedShow Answer

The Golsen rule has been overturned by the U.S. Supreme Court.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Subtitle A of the Internal Revenue Code covers which of the following taxes?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What statement is not true with respect to Temporary Regulations?

Correct AnswerverifiedShow Answer

A taxpayer may not appeal a case from which court:

Correct AnswerverifiedShow Answer

Which of the following court decisions carries more weight?

Correct AnswerverifiedShow Answer

Which court decision would probably carry more weight?

Correct AnswerverifiedShow Answer

A letter ruling applies only to the taxpayer who asks for and obtains a letter ruling.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified