Question 1

Which of the following refers to a trial court rather than an appellate court decision?

Accepted Answer

A) Forgeus v. Comm., 6 B.T.A. 291 (1927). 
B) Farris v. Comm., 222 F.2d 320 (CA-10, 1955). 
C) Danville Plywood Corp., 899 F.2d 3 (Fed Cir. 1990). 
D) Boehm v. Comm., 326 U.S. 287 (1945). 
E) None of the above. 
A) Forgeus v. Comm., 6 B.T.A. 291 (1927). 
B) Farris v. Comm., 222 F.2d 320 (CA-10, 1955). 
C) Danville Plywood Corp., 899 F.2d 3 (Fed Cir. 1990). 
D) Boehm v. Comm., 326 U.S. 287 (1945). 
E) None of the above.

Question 2

Revenue Procedures are published in the:

Accepted Answer

A) Congressional Record. 
B) Federal Revenue Bulletin. 
C) Internal Revenue Bulletin. 
D) I.R.S. Digest. 
E) None of the above. 
A) Congressional Record. 
B) Federal Revenue Bulletin. 
C) Internal Revenue Bulletin. 
D) I.R.S. Digest. 
E) None of the above.

Question 3

Determination letters usually involve proposed transactions.

Accepted Answer

A) True 
 B)False

Question 4

The domestic production activities deduction is structured to create jobs.

Accepted Answer

A) True 
 B)False

Question 5

Since interest and taxes are deductible by a homeowner, a person who rents an apartment may take an itemized deduction equal to 20% of rent payments.

Accepted Answer

A) True 
 B)False

Question 6

Douglas and Sue, related parties, are landlord and tenant as to certain business property. If the IRS questions the amount of rent Sue is paying to Douglas, this is an illustration of the:

Accepted Answer

A) Arm's length concept. 
B) Continuity of interest concept. 
C) Tax benefit rule. 
D) Substance over form concept. 
E) None of the above. 
A) Arm's length concept. 
B) Continuity of interest concept. 
C) Tax benefit rule. 
D) Substance over form concept. 
E) None of the above.

Question 7

Proposed Regulations are published in the Federal Register.

Accepted Answer

A) True 
 B)False

Question 8

A taxpayer must pay any tax deficiency assessed by the IRS and sue for a refund to bring suit in the U.S. District Court.

Accepted Answer

A) True 
 B)False

Question 9

Regulations are issued by the Treasury Department.

Accepted Answer

A) True 
 B)False

Question 10

Internal Revenue Code § 6 involves gross income and § 7 outlines itemized deductions.

Accepted Answer

A) True 
 B)False

Question 11

Alabama and South Carolina are community property states.

Accepted Answer

A) True 
 B)False

Question 12

Which provision could best be justified as a means of controlling the economy?

Accepted Answer

A) Write-off of research and development expenditures. 
B) The § 179 immediate write-off of depreciable capital expenditures. 
C) Amortization of pollution control facilities. 
D) The rehabilitation tax credit. 
E) None of the above. 
A) Write-off of research and development expenditures. 
B) The § 179 immediate write-off of depreciable capital expenditures. 
C) Amortization of pollution control facilities. 
D) The rehabilitation tax credit. 
E) None of the above.

Question 13

The encouragement of private-sector pension plans can be justified under the encouragement of certain industries.

Accepted Answer

A) True 
 B)False

Question 14

When there is a direct conflict between an Internal Revenue Code section and a treaty provision, the most recent item takes precedence.

Accepted Answer

A) True 
 B)False

Question 15

Which citation refers to a Second Circuit Court of Appeals decision?

Accepted Answer

A) 40 T.C. 1018. 
B) 159 F. 2d 848 (CA-2, 1947). 
C) 354 F. Supp. 1003 (D. Ct. Ga, 1972). 
D) 914 F. 2d 396 (CA-3, 1990). 
E) None of the above. 
A) 40 T.C. 1018. 
B) 159 F. 2d 848 (CA-2, 1947). 
C) 354 F. Supp. 1003 (D. Ct. Ga, 1972). 
D) 914 F. 2d 396 (CA-3, 1990). 
E) None of the above.

Question 16

Which state is located in the jurisdiction of the Fifth Circuit Court of Appeals?

Accepted Answer

A) Louisiana. 
B) California. 
C) New York. 
D) South Carolina. 
E) None of the above. 
A) Louisiana. 
B) California. 
C) New York. 
D) South Carolina. 
E) None of the above.

Question 17

Only one judge hears a trial in a U.S. District Court.

Accepted Answer

A) True 
 B)False

Question 18

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. Court of Appeals decision that was affirmed on appeal. 
E) None of the above. 
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. Court of Appeals decision that was affirmed on appeal. 
E) None of the above.

Question 19

Which is a primary source of tax law?

Accepted Answer

A) J.W. Yarbo v. Comm., 737 F. 2d 479 (CA-5, 1984). 
B) Article by a Federal judge in Harvard Law Review. 
C) IRS Determination letter. 
D) IRS Letter ruling. 
E) All of the above are primary sources. 
A) J.W. Yarbo v. Comm., 737 F. 2d 479 (CA-5, 1984). 
B) Article by a Federal judge in Harvard Law Review. 
C) IRS Determination letter. 
D) IRS Letter ruling. 
E) All of the above are primary sources.

Question 20

Proposed Regulations have the force and effect of law.

Accepted Answer

A) True 
 B)False

Which of the following refers to a trial court rather than an appellate court decision?

Revenue Procedures are published in the:

Determination letters usually involve proposed transactions.

The domestic production activities deduction is structured to create jobs.

Since interest and taxes are deductible by a homeowner, a person who rents an apartment may take an itemized deduction equal to 20% of rent payments.

Douglas and Sue, related parties, are landlord and tenant as to certain business property. If the IRS questions the amount of rent Sue is paying to Douglas, this is an illustration of the:

Proposed Regulations are published in the Federal Register.

A taxpayer must pay any tax deficiency assessed by the IRS and sue for a refund to bring suit in the U.S. District Court.

Regulations are issued by the Treasury Department.

Internal Revenue Code § 6 involves gross income and § 7 outlines itemized deductions.

Alabama and South Carolina are community property states.

Which provision could best be justified as a means of controlling the economy?

The encouragement of private-sector pension plans can be justified under the encouragement of certain industries.

When there is a direct conflict between an Internal Revenue Code section and a treaty provision, the most recent item takes precedence.

Which citation refers to a Second Circuit Court of Appeals decision?

Which state is located in the jurisdiction of the Fifth Circuit Court of Appeals?

Only one judge hears a trial in a U.S. District Court.

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

Which is a primary source of tax law?

Proposed Regulations have the force and effect of law.

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 refers to a trial court rather than an appellate court decision?

Revenue Procedures are published in the:

Determination letters usually involve proposed transactions.

The domestic production activities deduction is structured to create jobs.

Since interest and taxes are deductible by a homeowner, a person who rents an apartment may take an itemized deduction equal to 20% of rent payments.

Douglas and Sue, related parties, are landlord and tenant as to certain business property. If the IRS questions the amount of rent Sue is paying to Douglas, this is an illustration of the:

Proposed Regulations are published in the Federal Register.

A taxpayer must pay any tax deficiency assessed by the IRS and sue for a refund to bring suit in the U.S. District Court.

Regulations are issued by the Treasury Department.

Internal Revenue Code § 6 involves gross income and § 7 outlines itemized deductions.

Alabama and South Carolina are community property states.

Which provision could best be justified as a means of controlling the economy?

The encouragement of private-sector pension plans can be justified under the encouragement of certain industries.

When there is a direct conflict between an Internal Revenue Code section and a treaty provision, the most recent item takes precedence.

Which citation refers to a Second Circuit Court of Appeals decision?

Which state is located in the jurisdiction of the Fifth Circuit Court of Appeals?

Only one judge hears a trial in a U.S. District Court.

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

Which is a primary source of tax law?

Proposed Regulations have the force and effect of law.

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