Question 1

Subchapter D refers to the "Corporate Distributions and Adjustments" section of the Internal Revenue Code.

Accepted Answer

A) True 
 B)False

Question 2

Which citation refers to a U.S. Tax Court 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 AFTR2d 1439 (CA-9, 1975). 
E)  None of these. 
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 AFTR2d 1439 (CA-9, 1975). 
E)  None of these.

Question 3

A taxpayer should always minimize his or her tax liability.

Accepted Answer

A) True 
 B)False

Question 4

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 5

Three judges will normally hear each U.S. Tax Court case.

Accepted Answer

A) True 
 B)False

Question 6

Texas is in the jurisdiction of the Second Circuit Court of Appeals.

Accepted Answer

A) True 
 B)False

Question 7

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. 
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.

Question 8

Deferring income to a subsequent year is considered to be tax avoidance.

Accepted Answer

A) True 
 B)False

Question 9

How do treaties fit within tax sources?

Accepted Answer

The U.S signs certain tax treaties (some

Question 10

There is a direct conflict between an Internal Revenue Code section adopted in 2010 and a treaty with France
(signed in 2016). The Internal Revenue Code section controls.

Accepted Answer

A) True 
 B)False

Question 11

Temporary Regulations are only published in the Internal Revenue Bulletin.

Accepted Answer

A) True 
 B)False

Question 12

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. 
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.

Question 13

The IRS is not required to make a letter ruling public.

Accepted Answer

A) True 
 B)False

Question 14

The term petitioner is a synonym for defendant.

Accepted Answer

A) True 
 B)False

Question 15

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

Question 16

Compare Revenue Rulings with Revenue Procedures.

Accepted Answer

Revenue Rulings are official pronounceme

Question 17

A taxpayer who loses in a U.S. District Court may appeal directly to the:

Accepted Answer

A)  U.S. Supreme Court. 
B)  U.S. Tax Court. 
C)  U.S. Court of Federal Claims. 
D)  U.S. Circuit Court of Appeals. 
E)  All of these. 
A)  U.S. Supreme Court. 
B)  U.S. Tax Court. 
C)  U.S. Court of Federal Claims. 
D)  U.S. Circuit Court of Appeals. 
E)  All of these.

Question 18

The Internal Revenue Code was first codified in what year?

Accepted Answer

A)  1913 
B)  1923 
C)  1939 
D)  1954 
E)  1986 
A)  1913 
B)  1923 
C)  1939 
D)  1954 
E)  1986

Question 19

Rules of tax law do not include Revenue Rulings and Revenue Procedures.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following statements about a nonacquiescence is correct?

Accepted Answer

A)  A nonacquiescence is issued in the Federal Registrar. 
B)  Nonacquiescences are published only for certain regular decisions of the U.S. Tax Court. 
C)  A nonacquiescence in published in the Internal Revenue Bulletin. 
D)  The IRS does not issue nonacquiescences to adverse decisions that are not appealed. 
E)  All of these are correct. 
A)  A nonacquiescence is issued in the Federal Registrar. 
B)  Nonacquiescences are published only for certain regular decisions of the U.S. Tax Court. 
C)  A nonacquiescence in published in the Internal Revenue Bulletin. 
D)  The IRS does not issue nonacquiescences to adverse decisions that are not appealed. 
E)  All of these are correct.

Exam 2: Working With the Tax Law

Subchapter D refers to the "Corporate Distributions and Adjustments" section of the Internal Revenue Code.

Which citation refers to a U.S. Tax Court decision?

A taxpayer should always minimize his or her tax liability.

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.

Three judges will normally hear each U.S. Tax Court case.

Texas is in the jurisdiction of the Second Circuit Court of Appeals.

What statement is not true with respect to Temporary Regulations?

Deferring income to a subsequent year is considered to be tax avoidance.

How do treaties fit within tax sources?

There is a direct conflict between an Internal Revenue Code section adopted in 2010 and a treaty with France (signed in 2016). The Internal Revenue Code section controls.

Temporary Regulations are only published in the Internal Revenue Bulletin.

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

The IRS is not required to make a letter ruling public.

The term petitioner is a synonym for defendant.

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

Compare Revenue Rulings with Revenue Procedures.

A taxpayer who loses in a U.S. District Court may appeal directly to the:

The Internal Revenue Code was first codified in what year?

Rules of tax law do not include Revenue Rulings and Revenue Procedures.

Which of the following statements about a nonacquiescence is correct?

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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