Question 1

In § 212(1), the number (1) stands for the:

Accepted Answer

A)  Section number. 
B)  Subsection number. 
C)  Paragraph designation. 
D)  Subparagraph designation. 
E)  None of these. 
A)  Section number. 
B)  Subsection number. 
C)  Paragraph designation. 
D)  Subparagraph designation. 
E)  None of these.

Question 2

Normally, when the Senate version of a tax bill differs from that passed by the House, a Joint Conference
Committee drafts a compromise tax bill.

Accepted Answer

A) True 
 B)False

Question 3

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 4

Which publisher offers the United States Tax Reporter?

Accepted Answer

A)  Research Institute of America (Thomson Reuters) 
B)  Commerce Clearing House 
C)  LexisNexis 
D)  Tax Analysts 
E)  None of these 
A)  Research Institute of America (Thomson Reuters) 
B)  Commerce Clearing House 
C)  LexisNexis 
D)  Tax Analysts 
E)  None of these

Question 5

The following citation could be a correct citation: Rev. Rul. 95-271,1995-64 I.R.B. 18.

Accepted Answer

A) True 
 B)False

Question 6

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

Question 7

What administrative release deals with a proposed transaction rather than a completed transaction?

Accepted Answer

A)  Letter Ruling 
B)  Technical Advice Memorandum 
C)  Determination Letter 
D)  Field Service Advice 
E)  None of these 
A)  Letter Ruling 
B)  Technical Advice Memorandum 
C)  Determination Letter 
D)  Field Service Advice 
E)  None of these

Question 8

The Tax Cuts and Jobs Act of 2017 became part of the Internal Revenue Code of 1986.

Accepted Answer

A) True 
 B)False

Question 9

The IRS will not acquiesce to the following tax decisions:

Accepted Answer

A)  U.S. District Court. 
B)  U.S. Tax Court. 
C)  U.S. Court of Federal Claims. 
D)  Small Case Division of the U.S. Tax Court. 
E)  All of these. 
A)  U.S. District Court. 
B)  U.S. Tax Court. 
C)  U.S. Court of Federal Claims. 
D)  Small Case Division of the U.S. Tax Court. 
E)  All of these.

Question 10

The first codification of the tax law occurred in 1954.

Accepted Answer

A) True 
 B)False

Question 11

Which statement is not true with respect to a Regulation that interprets the tax law?

Accepted Answer

A)  Issued by the U.S. Congress. 
B)  Issued by the U.S. Treasury Department. 
C)  Designed to provide an interpretation of the tax law. 
D)  Carries more legal force than a Revenue Ruling. 
E)  All of these statements are true. 
A)  Issued by the U.S. Congress. 
B)  Issued by the U.S. Treasury Department. 
C)  Designed to provide an interpretation of the tax law. 
D)  Carries more legal force than a Revenue Ruling. 
E)  All of these statements are true.

Question 12

Which of the following sources has the highest tax validity?

Accepted Answer

A)  Revenue Ruling 
B)  Revenue Procedure 
C)  Regulations 
D)  Internal Revenue Code section 
E)  None of these 
A)  Revenue Ruling 
B)  Revenue Procedure 
C)  Regulations 
D)  Internal Revenue Code section 
E)  None of these

Question 13

A jury trial is available in the following trial court:

Accepted Answer

A)  U.S. Tax Court. 
B)  U.S. Court of Federal Claims. 
C)  U.S. District Court. 
D)  U.S. Circuit Court of Appeals. 
E)  None of these. 
A)  U.S. Tax Court. 
B)  U.S. Court of Federal Claims. 
C)  U.S. District Court. 
D)  U.S. Circuit Court of Appeals. 
E)  None of these.

Question 14

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 Claims 
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 Claims

Question 15

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 Claims 
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 Claims

Question 16

Subchapter C refers to the subchapter in the Internal Revenue Code that deals with partnerships and partners.

Accepted Answer

A) True 
 B)False

Question 17

How can Congressional Committee Reports be used by a tax researcher?

Accepted Answer

Congressional Committee Reports often ex

Question 18

Determination letters usually involve completed transactions.

Accepted Answer

A) True 
 B)False

Question 19

Which is not a primary source of tax law?

Accepted Answer

A)  Notice 89-99, 1989-2 C.B. 422. 
B)  Estate of Harry Holmes v. Comm., 326 U.S. 480 (1946). 
C)  Rev. Rul. 79-353, 1979-2 C.B. 325. 
D)  Prop. Reg. § 1.752-4T(f). 
E)  All of these are primary sources. 
A)  Notice 89-99, 1989-2 C.B. 422. 
B)  Estate of Harry Holmes v. Comm., 326 U.S. 480 (1946). 
C)  Rev. Rul. 79-353, 1979-2 C.B. 325. 
D)  Prop. Reg. § 1.752-4T(f). 
E)  All of these are primary sources.

Question 20

A Temporary Regulation under § 303 of the Code would be cited as follows: Temp. Reg. § 303.

Accepted Answer

A) True 
 B)False

Exam 2: Working With the Tax Law

In § 212(1), the number (1) stands for the:

Normally, when the Senate version of a tax bill differs from that passed by the House, a Joint Conference Committee drafts a compromise tax bill.

The primary purpose of effective tax planning is to reduce or defer the tax in the current tax year.

Which publisher offers the United States Tax Reporter?

The following citation could be a correct citation: Rev. Rul. 95-271,1995-64 I.R.B. 18.

Federal tax legislation generally originates in which of the following?

What administrative release deals with a proposed transaction rather than a completed transaction?

The Tax Cuts and Jobs Act of 2017 became part of the Internal Revenue Code of 1986.

The IRS will not acquiesce to the following tax decisions:

The first codification of the tax law occurred in 1954.

Which statement is not true with respect to a Regulation that interprets the tax law?

Which of the following sources has the highest tax validity?

A jury trial is available in the following trial court:

Which of the following court decisions carries more weight?

Which court decision would probably carry more weight?

Subchapter C refers to the subchapter in the Internal Revenue Code that deals with partnerships and partners.

How can Congressional Committee Reports be used by a tax researcher?

Determination letters usually involve completed transactions.

Which is not a primary source of tax law?

A Temporary Regulation under § 303 of the Code would be cited as follows: Temp. Reg. § 303.

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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