Question 1

Which of the following statements about an acquiescence is correct?

Accepted Answer

A) An acquiescence is issued in the Federal Register. 
B) Acquiescences are published only for certain regular decisions of the U.S. Tax Court. 
C) An acquiescence is published in the Internal Revenue Bulletin. 
D) The IRS does not issue acquiescences to adverse decisions that are not appealed. 
E) All of the above are correct. 
A) An acquiescence is issued in the Federal Register. 
B) Acquiescences are published only for certain regular decisions of the U.S. Tax Court. 
C) An acquiescence is published in the Internal Revenue Bulletin. 
D) The IRS does not issue acquiescences to adverse decisions that are not appealed. 
E) All of the above are correct. C

Question 2

What value is a tax citator to a tax researcher?

Accepted Answer

The use of manual citators or a computer citator search is invaluable to tax research. A citator provides the history of a case including the authority relied on (e.g., other judicial decisions) in reaching the result. Reviewing the references listed in the citator discloses whether the decision was appealed and, if so, with what result (e.g., affirmed, reversed, and remanded). It also reveals other cases with the same or similar issues and how they were decided. Thus, a citator reflects on the validity of a case and may lead to other relevant judicial material.

Question 3

One Internal Revenue Code section enables shareholders in a small business corporation to obtain an ordinary deduction for any loss recognized on a stock investment.

Accepted Answer

A) True 
 B)False  True

Question 4

"Legislative" regulations are stronger than "interpretative" regulations.

Accepted Answer

A) True 
 B)False

Question 5

The Federal tax law allows a taxpayer to claim a deduction for state and local income taxes.

Accepted Answer

A) True 
 B)False

Question 6

Temporary Regulations have the same authoritative value as Final Regulations for 4 years.

Accepted Answer

A) True 
 B)False

Question 7

The Golsen rule no longer applies to the U.S. Tax Court.

Accepted Answer

A) True 
 B)False

Question 8

Many states have balanced budgets because laws or constitutional amendments preclude deficit spending.

Accepted Answer

A) True 
 B)False

Question 9

Although a corporation is subject to a Federal income tax, a partnership is not.

Accepted Answer

A) True 
 B)False

Question 10

Revenue-neutral tax laws reduce deficits.

Accepted Answer

A) True 
 B)False

Question 11

Which provision is not justified by social considerations?

Accepted Answer

A) Refundable earned income credit. 
B) Adoption tax credit. 
C) Like-kind exchange treatment. 
D) Disallowance of illegal kickbacks. 
E) None of the above. 
A) Refundable earned income credit. 
B) Adoption tax credit. 
C) Like-kind exchange treatment. 
D) Disallowance of illegal kickbacks. 
E) None of the above.

Question 12

In a U.S. District Court, a jury can decide both questions of fact and questions of law.

Accepted Answer

A) True 
 B)False

Question 13

A tax bill cannot originate in the Senate Finance Committee.

Accepted Answer

A) True 
 B)False

Question 14

Which citation refers to a U.S. Court of Federal Claims decision?

Accepted Answer

A) Apollo Computer, Inc. v. U.S., 95-1 USTC ¶ 50,015 (Fed. Cl., 1994). 
B) Westreco, Inc., T.C. Memo. 1992-561 (1992). 
C) Bausch & Lomb, Inc. v. Comm., 933 F. 2d 1084 (CA-2, 1991). 
D) Portland Manufacturing Co. v. Comm., 35 AFTR 2d 1439 (CA-9, 1975). 
E) None of the above. 
A) Apollo Computer, Inc. v. U.S., 95-1 USTC ¶ 50,015 (Fed. Cl., 1994). 
B) Westreco, Inc., T.C. Memo. 1992-561 (1992). 
C) Bausch & Lomb, Inc. v. Comm., 933 F. 2d 1084 (CA-2, 1991). 
D) Portland Manufacturing Co. v. Comm., 35 AFTR 2d 1439 (CA-9, 1975). 
E) None of the above.

Question 15

Regarding Technical Advice Memoranda, which statement is incorrect?

Accepted Answer

A) Issued by the National Office of IRS. 
B) Most often deal with a completed transaction. 
C) May be cited and used as precedent. 
D) Issued with multi-digit file numbers. 
E) None are incorrect. 
A) Issued by the National Office of IRS. 
B) Most often deal with a completed transaction. 
C) May be cited and used as precedent. 
D) Issued with multi-digit file numbers. 
E) None are incorrect.

Question 16

Longer class lives for depreciable property and the required use of straight-line method of depreciation would likely dampen the tax incentive for purchasing capital assets.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is an administrative source of tax law?

Accepted Answer

A) Rev. Rul. 2010-19. 
B) Joint Conference Committee Report. 
C) Section 12(a) of the Internal Revenue Code. 
D) All of the above. 
E) None of the above. 
A) Rev. Rul. 2010-19. 
B) Joint Conference Committee Report. 
C) Section 12(a) of the Internal Revenue Code. 
D) All of the above. 
E) None of the above.

Question 18

A Memorandum decision of the U.S. Tax Court could be cited as:

Accepted Answer

A) T.C. Memo. 1990-650. 
B) 68-1 USTC ¶ 9200. 
C) 37 AFTR 2d 456. 
D) All of the above. 
E) None of the above. 
A) T.C. Memo. 1990-650. 
B) 68-1 USTC ¶ 9200. 
C) 37 AFTR 2d 456. 
D) All of the above. 
E) None of the above.

Question 19

The Internal Revenue Code is a compilation of Federal tax legislation that appears in Title 26 of the United States Code.

Accepted Answer

A) True 
 B)False

Question 20

Unlike determination letters, letter rulings are issued by the National Office of the IRS.

Accepted Answer

A) True 
 B)False

Which of the following statements about an acquiescence is correct?

What value is a tax citator to a tax researcher?

One Internal Revenue Code section enables shareholders in a small business corporation to obtain an ordinary deduction for any loss recognized on a stock investment.

"Legislative" regulations are stronger than "interpretative" regulations.

The Federal tax law allows a taxpayer to claim a deduction for state and local income taxes.

Temporary Regulations have the same authoritative value as Final Regulations for 4 years.

The Golsen rule no longer applies to the U.S. Tax Court.

Many states have balanced budgets because laws or constitutional amendments preclude deficit spending.

Although a corporation is subject to a Federal income tax, a partnership is not.

Revenue-neutral tax laws reduce deficits.

Which provision is not justified by social considerations?

In a U.S. District Court, a jury can decide both questions of fact and questions of law.

A tax bill cannot originate in the Senate Finance Committee.

Which citation refers to a U.S. Court of Federal Claims decision?

Regarding Technical Advice Memoranda, which statement is incorrect?

Longer class lives for depreciable property and the required use of straight-line method of depreciation would likely dampen the tax incentive for purchasing capital assets.

Which of the following is an administrative source of tax law?

A Memorandum decision of the U.S. Tax Court could be cited as:

The Internal Revenue Code is a compilation of Federal tax legislation that appears in Title 26 of the United States Code.

Unlike determination letters, letter rulings are issued by the National Office of the IRS.

Corporations Introduction and Operating Rules

Corporations Special Situations

Corporations Organization and Capital Structure

Corporations Earnings Profits and Dividend Distributions

Corporations Redemptions and Liquidations

Corporations Reorganizations

Consolidated Tax Returns

Taxation of International Transactions

Partnerships Formation Operation and Basis

Partnerships Distributions Transfer of Interests and Terminations

S Corporations

Comparative Forms of Doing Business

Taxes on the Financial Statements

Exempt Entities

Multi-State Corporate Taxations

Tax Practice and Ethics

The Federal Gift and Estate Taxes

Family Tax Planning

Income Taxation of Trusts and Estates

Filters

Exam 1: Understanding and Working With the Federal Tax Law

Which of the following statements about an acquiescence is correct?

What value is a tax citator to a tax researcher?

One Internal Revenue Code section enables shareholders in a small business corporation to obtain an ordinary deduction for any loss recognized on a stock investment.

"Legislative" regulations are stronger than "interpretative" regulations.

The Federal tax law allows a taxpayer to claim a deduction for state and local income taxes.

Temporary Regulations have the same authoritative value as Final Regulations for 4 years.

The Golsen rule no longer applies to the U.S. Tax Court.

Many states have balanced budgets because laws or constitutional amendments preclude deficit spending.

Although a corporation is subject to a Federal income tax, a partnership is not.

Revenue-neutral tax laws reduce deficits.

Which provision is not justified by social considerations?

In a U.S. District Court, a jury can decide both questions of fact and questions of law.

A tax bill cannot originate in the Senate Finance Committee.

Which citation refers to a U.S. Court of Federal Claims decision?

Regarding Technical Advice Memoranda, which statement is incorrect?

Longer class lives for depreciable property and the required use of straight-line method of depreciation would likely dampen the tax incentive for purchasing capital assets.

Which of the following is an administrative source of tax law?

A Memorandum decision of the U.S. Tax Court could be cited as:

The Internal Revenue Code is a compilation of Federal tax legislation that appears in Title 26 of the United States Code.

Unlike determination letters, letter rulings are issued by the National Office of the IRS.

Corporations Introduction and Operating Rules

Corporations Special Situations

Corporations Organization and Capital Structure

Corporations Earnings Profits and Dividend Distributions

Corporations Redemptions and Liquidations

Corporations Reorganizations

Consolidated Tax Returns

Taxation of International Transactions

Partnerships Formation Operation and Basis

Partnerships Distributions Transfer of Interests and Terminations

S Corporations

Comparative Forms of Doing Business

Taxes on the Financial Statements

Exempt Entities

Multi-State Corporate Taxations

Tax Practice and Ethics

The Federal Gift and Estate Taxes

Family Tax Planning

Income Taxation of Trusts and Estates

Filters