Question 1

Taxpayers may read Committee Reports to determine the intent of Congress.

Accepted Answer

A) True 
 B)False  True

Question 2

Which trial court's jurisdiction depends on the geographical location of the taxpayer?

Accepted Answer

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

Question 3

A landlord leases property upon which the tenant makes improvements. The improvements are significant and are not made in lieu of rent. At the end of the lease, the value of the improvements is not income to the landlord. This rule is an example of:

Accepted Answer

A)  The wherewithal to pay concept. 
B)  The tax benefit rule. 
C)  The arm's length concept. 
D)  A clear reflection of income result. 
E)  None of these. 
A)  The wherewithal to pay concept. 
B)  The tax benefit rule. 
C)  The arm's length concept. 
D)  A clear reflection of income result. 
E)  None of these. A

Question 4

The Internal Revenue Code is a compilation of Federal tax legislation that appears in Title 26 of the United States Code.

Accepted Answer

A) True 
 B)False

Question 5

A Revenue Ruling is a legislative source of Federal tax law.

Accepted Answer

A) True 
 B)False

Question 6

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

Question 7

Internal Revenue Code Section 318, which deals with the definition of related parties with respect to stock redemptions, includes brothers and sisters in the related-party definition.

Accepted Answer

A) True 
 B)False

Question 8

Proposed Regulations are published in the Federal Register.

Accepted Answer

A) True 
 B)False

Question 9

Treasury Decisions are issued by the Treasury Department to promulgate new Regulations.

Accepted Answer

A) True 
 B)False

Question 10

The taxation part of the CPA exam REG) is now one-third essay.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

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

Question 13

Which citation is considered to be a statutory legislative) citation?

Accepted Answer

A)  Ltr. Rul. 199952058. 
B)  Ann. 94-5, 1994-2 I.R.B. 39. 
C)  Reg. § 1.1014-1c)1). 
D)  § 351. 
E)  None of these. 
A)  Ltr. Rul. 199952058. 
B)  Ann. 94-5, 1994-2 I.R.B. 39. 
C)  Reg. § 1.1014-1c)1). 
D)  § 351. 
E)  None of these.

Question 14

When there is a direct conflict between a tax treaty and the Internal Revenue Code, the Internal Revenue Code takes precedence.

Accepted Answer

A) True 
 B)False

Question 15

Regulations are first published in:

Accepted Answer

A)  Federal Register. 
B)  Cumulative Bulletin. 
C)  Internal Revenue Bulletin. 
D)  I.R.S. Digest. 
E)  All of these. 
A)  Federal Register. 
B)  Cumulative Bulletin. 
C)  Internal Revenue Bulletin. 
D)  I.R.S. Digest. 
E)  All of these.

Question 16

Indexation of various income tax components was eliminated by the Tax Cuts and Jobs Act of 2017.

Accepted Answer

A) True 
 B)False

Question 17

One Internal Revenue Code section enables shareholders in a small business corporation to obtain an ordinary deduction for any loss recognized on a stock investment.

Accepted Answer

A) True 
 B)False

Question 18

Explain the Golsen doctrine.

Accepted Answer

Because the Tax Court is a national cour

Question 19

Proposed Regulations have the force and effect of law.

Accepted Answer

A) True 
 B)False

Question 20

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 is available. 
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 is available.

Taxpayers may read Committee Reports to determine the intent of Congress.

Which trial court's jurisdiction depends on the geographical location of the taxpayer?

A landlord leases property upon which the tenant makes improvements. The improvements are significant and are not made in lieu of rent. At the end of the lease, the value of the improvements is not income to the landlord. This rule is an example of:

The Internal Revenue Code is a compilation of Federal tax legislation that appears in Title 26 of the United States Code.

A Revenue Ruling is a legislative source of Federal tax law.

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

Internal Revenue Code Section 318, which deals with the definition of related parties with respect to stock redemptions, includes brothers and sisters in the related-party definition.

Proposed Regulations are published in the Federal Register.

Treasury Decisions are issued by the Treasury Department to promulgate new Regulations.

The taxation part of the CPA exam REG) is now one-third essay.

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

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

Which citation is considered to be a statutory legislative) citation?

When there is a direct conflict between a tax treaty and the Internal Revenue Code, the Internal Revenue Code takes precedence.

Regulations are first published in:

Indexation of various income tax components was eliminated by the Tax Cuts and Jobs Act of 2017.

One Internal Revenue Code section enables shareholders in a small business corporation to obtain an ordinary deduction for any loss recognized on a stock investment.

Explain the Golsen doctrine.

Proposed Regulations have the force and effect of law.

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

The Deduction for Qualified Business Income for Pass-Through Entities

Corporations: Introduction and Operating Rules

Corporations: Organization and Capital Structure

Corporations: Earnings and Profits and Dividend Distributions

Corporations: Redemptions and Liquidations

Corporations: Reorganizations

Consolidated Tax Returns

Taxation of International Transactions

Partnerships: Formation, Operations, and Basis

Partnerships: Distributions, Transfer of Interests, and Terminations

S Corporations

Comparative Forms of Doing Business

Taxes on the Financial Statements

Exempt Entities

Multistate Corporate Taxation

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

Taxpayers may read Committee Reports to determine the intent of Congress.

Which trial court's jurisdiction depends on the geographical location of the taxpayer?

A landlord leases property upon which the tenant makes improvements. The improvements are significant and are not made in lieu of rent. At the end of the lease, the value of the improvements is not income to the landlord. This rule is an example of:

The Internal Revenue Code is a compilation of Federal tax legislation that appears in Title 26 of the United States Code.

A Revenue Ruling is a legislative source of Federal tax law.

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

Internal Revenue Code Section 318, which deals with the definition of related parties with respect to stock redemptions, includes brothers and sisters in the related-party definition.

Proposed Regulations are published in the Federal Register.

Treasury Decisions are issued by the Treasury Department to promulgate new Regulations.

The taxation part of the CPA exam REG) is now one-third essay.

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

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

Which citation is considered to be a statutory legislative) citation?

When there is a direct conflict between a tax treaty and the Internal Revenue Code, the Internal Revenue Code takes precedence.

Regulations are first published in:

Indexation of various income tax components was eliminated by the Tax Cuts and Jobs Act of 2017.

One Internal Revenue Code section enables shareholders in a small business corporation to obtain an ordinary deduction for any loss recognized on a stock investment.

Explain the Golsen doctrine.

Proposed Regulations have the force and effect of law.

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

The Deduction for Qualified Business Income for Pass-Through Entities

Corporations: Introduction and Operating Rules

Corporations: Organization and Capital Structure

Corporations: Earnings and Profits and Dividend Distributions

Corporations: Redemptions and Liquidations

Corporations: Reorganizations

Consolidated Tax Returns

Taxation of International Transactions

Partnerships: Formation, Operations, and Basis

Partnerships: Distributions, Transfer of Interests, and Terminations

S Corporations

Comparative Forms of Doing Business

Taxes on the Financial Statements

Exempt Entities

Multistate Corporate Taxation

Tax Practice and Ethics

The Federal Gift and Estate Taxes

Family Tax Planning

Income Taxation of Trusts and Estates

Filters