Question 1

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 2

Which items tell taxpayers the IRS's reaction to certain court decisions?

Accepted Answer

A)  Notices 
B)  Revenue Procedures 
C)  Revenue Rulings 
D)  Actions on Decisions 
E)  Legislative Regulations 
A)  Notices 
B)  Revenue Procedures 
C)  Revenue Rulings 
D)  Actions on Decisions 
E)  Legislative Regulations

Question 3

A U.S. District Court is considered the lowest trial court.

Accepted Answer

A) True 
 B)False

Question 4

Technical Advice Memoranda deal with completed transactions.

Accepted Answer

A) True 
 B)False

Question 5

Which publisher offers the Standard Federal Tax Reporter?

Accepted Answer

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

Question 6

Currently, the Internal Revenue Code of 1986 does not contain §§ 308, 309, and 310. This absence means these sections were repealed by Congress.

Accepted Answer

A) True 
 B)False

Question 7

If a taxpayer decides not to pay a tax deficiency, he or she must go to which court?

Accepted Answer

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

Question 8

If these citations appeared after a trial court decision, which one means that the decision was overruled?

Accepted Answer

A)  Aff'd 633 F.2d 512 (CA-7, 1980). 
B)  Rem'd 399 F.2d 800 (CA-5, 1968). 
C)  Aff'd 914 F.2d 396 (CA-3, 1990). 
D)  Rev'd 935 F.2d 203 (CA-5, 1991). 
E)  None of these. 
A)  Aff'd 633 F.2d 512 (CA-7, 1980). 
B)  Rem'd 399 F.2d 800 (CA-5, 1968). 
C)  Aff'd 914 F.2d 396 (CA-3, 1990). 
D)  Rev'd 935 F.2d 203 (CA-5, 1991). 
E)  None of these.

Question 9

Discuss the advantages and disadvantages of the Small Cases Division of the U.S. Tax Court.

Accepted Answer

There is no appeal from the Small Cases

Question 10

A treasure trove is taxable when sold or exchanged.

Accepted Answer

A) True 
 B)False

Question 11

The research process should always begin with a tax service.

Accepted Answer

A) True 
 B)False

Question 12

The following citation is correct: Larry G. Mitchell, 131 T.C. 215 (2008).

Accepted Answer

A) True 
 B)False

Question 13

A tax professional need not worry about the relative weight of authority within the various tax law sources.

Accepted Answer

A) True 
 B)False

Question 14

A taxpayer may not appeal a case from which court:

Accepted Answer

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

Question 15

Which statement is incorrect with respect to taxation on the CPA exam?

Accepted Answer

A)  The CPA exam now has only four parts. 
B)  There are no longer task-based simulations on the exam. 
C)  A candidate may not go back after exiting a testlet. 
D)  Simulations include a four-function pop-up calculator. 
E)  None of these are incorrect. 
A)  The CPA exam now has only four parts. 
B)  There are no longer task-based simulations on the exam. 
C)  A candidate may not go back after exiting a testlet. 
D)  Simulations include a four-function pop-up calculator. 
E)  None of these are incorrect.

Question 16

What are Treasury Department Regulations?

Accepted Answer

Regulations are issued by the U.S. Treas

Question 17

Distinguish between the jurisdiction of the U.S. Tax Court and a U.S. District Court.

Accepted Answer

The U.S. Tax Court hears only tax cases

Question 18

Which of the following is not an administrative source of tax law?

Accepted Answer

A)  Field Service Advice 
B)  Revenue Procedure 
C)  Technical Advice Memoranda 
D)  General Counsel Memorandum 
E)  All of these are administrative sources. 
A)  Field Service Advice 
B)  Revenue Procedure 
C)  Technical Advice Memoranda 
D)  General Counsel Memorandum 
E)  All of these are administrative sources.

Question 19

Revenue tax measures typically originate in the Senate Finance Committee of the U.S. Congress.

Accepted Answer

A) True 
 B)False

Question 20

Which is a primary source of tax law?

Accepted Answer

A)  Serverino R. Nico, Jr., 67 T.C. 647 (1977). 
B)  Article by a Federal judge in Tax Notes. 
C)  An IRS publication. 
D)  Written determination letter. 
E)  All of these are primary sources. 
A)  Serverino R. Nico, Jr., 67 T.C. 647 (1977). 
B)  Article by a Federal judge in Tax Notes. 
C)  An IRS publication. 
D)  Written determination letter. 
E)  All of these are primary sources.

Exam 2: Working With the Tax Law

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.

Which items tell taxpayers the IRS's reaction to certain court decisions?

A U.S. District Court is considered the lowest trial court.

Technical Advice Memoranda deal with completed transactions.

Which publisher offers the Standard Federal Tax Reporter?

Currently, the Internal Revenue Code of 1986 does not contain §§ 308, 309, and 310. This absence means these sections were repealed by Congress.

If a taxpayer decides not to pay a tax deficiency, he or she must go to which court?

If these citations appeared after a trial court decision, which one means that the decision was overruled?

Discuss the advantages and disadvantages of the Small Cases Division of the U.S. Tax Court.

A treasure trove is taxable when sold or exchanged.

The research process should always begin with a tax service.

The following citation is correct: Larry G. Mitchell, 131 T.C. 215 (2008).

A tax professional need not worry about the relative weight of authority within the various tax law sources.

A taxpayer may not appeal a case from which court:

Which statement is incorrect with respect to taxation on the CPA exam?

What are Treasury Department Regulations?

Distinguish between the jurisdiction of the U.S. Tax Court and a U.S. District Court.

Which of the following is not an administrative source of tax law?

Revenue tax measures typically originate in the Senate Finance Committee of the U.S. Congress.

Which is a primary source of tax law?

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

Filters