Question 1

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 these 
A)  Temporary 
B)  Legislative 
C)  Interpretive 
D)  Procedural 
E)  None of these B

Question 2

What is a Technical Advice Memorandum?

Accepted Answer

The National Office of the IRS releases Technical Advice Memoranda (TAMs) weekly. TAMs resemble letter rulings in that they give the IRS's determination of an issue. However, they differ in several respects. Letter rulings deal with proposed transactions and are issued to taxpayers at their request. In contrast, TAMs deal with completed transactions. Furthermore, TAMs arise from questions raised by IRS personnel during audits and are issued by the National Office of the IRS to its field personnel. TAMs are often requested for questions relating to exempt organizations
and employee plans. TAMs are not officially published and may not be cited or used as precedent.

Question 3

The U.S. Tax Court meets most often in Washington, D.C.

Accepted Answer

A) True 
 B)False  False

Question 4

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 5

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

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Which of these is not a correct citation to the Internal Revenue Code?

Accepted Answer

A)  Section 211 
B)  Section 1222(1) 
C)  Section 2(a)(1)(
A)  
D)  Section 280B 
E)  All of these are correct cites. 
A)  Section 211 
B)  Section 1222(1) 
C)  Section 2(a)(1)(
A)  
D)  Section 280B 
E)  All of these are correct cites.

Question 8

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

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

The Regulation section of the CPA exam is approximately 80% Taxation and 20% Law & Professional
Responsibilities.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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

Question 14

Which of the following indicates that a decision has precedential value for future cases?

Accepted Answer

A)  Stare decisis 
B)  Golsen doctrine 
C)  En banc 
D)  Reenactment doctrine 
E)  None of these 
A)  Stare decisis 
B)  Golsen doctrine 
C)  En banc 
D)  Reenactment doctrine 
E)  None of these

Question 15

This Internal Revenue Code section citation is incorrect: § 212(1).

Accepted Answer

A) True 
 B)False

Question 16

Which Regulations have the force and effect of law?

Accepted Answer

A)  Procedural Regulations 
B)  Finalized Regulations 
C)  Legislative Regulations 
D)  Interpretive Regulations 
E)  All of these 
A)  Procedural Regulations 
B)  Finalized Regulations 
C)  Legislative Regulations 
D)  Interpretive Regulations 
E)  All of these

Question 17

Revenue Rulings are first published in the Internal Revenue Bulletin.

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. Circuit Court of Appeals decision that was affirmed on appeal. 
E)  None of these. 
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. Circuit Court of Appeals decision that was affirmed on appeal. 
E)  None of these.

Question 19

Which is presently not a major tax service?

Accepted Answer

A)  Standard Federal Tax Reporter 
B)  Federal Taxes 
C)  United States Tax Reporter 
D)  Tax Management Portfolios 
E)  All of these are major tax services 
A)  Standard Federal Tax Reporter 
B)  Federal Taxes 
C)  United States Tax Reporter 
D)  Tax Management Portfolios 
E)  All of these are major tax services

Question 20

Tax bills are handled by which committee in the U.S. House of Representatives?

Accepted Answer

A)  Taxation Committee 
B)  Ways and Means Committee 
C)  Finance Committee 
D)  Budget Committee 
E)  None of these 
A)  Taxation Committee 
B)  Ways and Means Committee 
C)  Finance Committee 
D)  Budget Committee 
E)  None of these

Exam 2: Working With the Tax Law

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

What is a Technical Advice Memorandum?

The U.S. Tax Court meets most often in Washington, D.C.

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

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

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

Which of these is not a correct citation to the Internal Revenue Code?

Which item may not be cited as a precedent?

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

The Regulation section of the CPA exam is approximately 80% Taxation and 20% Law & Professional Responsibilities.

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

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

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

Which of the following indicates that a decision has precedential value for future cases?

This Internal Revenue Code section citation is incorrect: § 212(1).

Which Regulations have the force and effect of law?

Revenue Rulings are first published in the Internal Revenue Bulletin.

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

Which is presently not a major tax service?

Tax bills are handled by which committee in the U.S. House of Representatives?

Understanding and Working With the Federal Tax Law

Computing the Tax

Gross Income: Concepts and Inclusions

Gross Income: Exclusions

Deductions and Losses: in General

Deductions and Losses: Certain Business Expenses and Losses

Depreciation, Cost Recovery, Amortization, and Depletion

Deductions: Employee and Self-Employed-Related Expenses

Deductions and Losses: Certain Itemized Deductions

Investor Losses

Tax Credits and Payments

Property Transactions: Determination of Gain or Loss, Basis Considerations, and Nontaxable Exchanges

Property Transactions: Capital Gains and Losses, Section 1231, and Recapture Provisions

Taxing Business Income

Accounting Periods and Methods

Corporations: Introduction and Operating Rules

Corporations: Organization and Capital Structure

Corporations: Distributions Not in Complete Liquidation

Corporations: Distributions in Complete Liquidation and an Overview of Reorganizations

Partnerships

S Corporations

Exempt Entities

Multistate Corporate Taxation

Taxation of International Transactions

Tax Practice and Ethics

The Federal Gift and Estate Taxes

Income Taxation of Trusts and Estates

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