Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Regulations are arranged in a different sequence than the Internal Revenue Code.

Accepted Answer

A) True 
 B)False

Question 3

When there is a direct conflict between an Internal Revenue Code section and a treaty provision, the most recent item takes precedence.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is an administrative source of tax law?

Accepted Answer

A)  Rev. Rul. 2010-19. 
B)  Joint Conference Committee Report. 
C)  Section 12a) of the Internal Revenue Code. 
D)  All of these.. 
E)  None of these. 
A)  Rev. Rul. 2010-19. 
B)  Joint Conference Committee Report. 
C)  Section 12a) of the Internal Revenue Code. 
D)  All of these.. 
E)  None of these.

Question 5

Temporary Regulations have the same authoritative value as Final Regulations for four years.

Accepted Answer

A) True 
 B)False

Question 6

Determination letters usually involve proposed transactions.

Accepted Answer

A) True 
 B)False

Question 7

Many states have balanced budgets because laws or constitutional amendments preclude deficit spending.

Accepted Answer

A) True 
 B)False

Question 8

The Internal Revenue Code was codified for the first time 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 9

A change in the individual tax rate has an almost immediate impact on the economy.

Accepted Answer

A) True 
 B)False

Question 10

Social considerations can be used to justify:

Accepted Answer

A)  Allowing a federal income tax deduction for state and local sales tax. 
B)  Allowing excess capital losses to be carried over to other years. 
C)  Allowing accelerated amortization for the cost of installing pollution control facilities. 
D)  Allowance of a credit for child care expenses. 
E)  None of these. 
A)  Allowing a federal income tax deduction for state and local sales tax. 
B)  Allowing excess capital losses to be carried over to other years. 
C)  Allowing accelerated amortization for the cost of installing pollution control facilities. 
D)  Allowance of a credit for child care expenses. 
E)  None of these.

Question 11

Which, if any, of the following provisions of the tax law cannot be justified as promoting administrative feasibility simplifying the task of the IRS)?

Accepted Answer

A)  Penalties are imposed for failure to file a return or pay a tax on time. 
B)  Prepaid income is taxed in the year received, not in the year earned. 
C)  Annual adjustments for indexation increases the amount of the standard deduction allowed. 
D)  Personal casualty losses in Federally declared disaster areas must exceed 10% of AGI to be deductible. 
E)  A deduction is allowed for charitable contributions. 
A)  Penalties are imposed for failure to file a return or pay a tax on time. 
B)  Prepaid income is taxed in the year received, not in the year earned. 
C)  Annual adjustments for indexation increases the amount of the standard deduction allowed. 
D)  Personal casualty losses in Federally declared disaster areas must exceed 10% of AGI to be deductible. 
E)  A deduction is allowed for charitable contributions.

Question 12

Revenue-neutral tax laws reduce deficits.

Accepted Answer

A) True 
 B)False

Question 13

Alabama and South Carolina are community property states.

Accepted Answer

A) True 
 B)False

Question 14

A decision in which of the following courts carries the lowest tax authority?

Accepted Answer

A)  U.S. Court of Appeals for the Federal Circuit. 
B)  U.S. Court of Appeals for the Second Circuit. 
C)  U.S. District Court. 
D)  U.S. Supreme Court. 
E)  U.S. Court of Appeals Federal Circuit. 
A)  U.S. Court of Appeals for the Federal Circuit. 
B)  U.S. Court of Appeals for the Second Circuit. 
C)  U.S. District Court. 
D)  U.S. Supreme Court. 
E)  U.S. Court of Appeals Federal Circuit.

Question 15

The U.S. Federal government has a provision in the Constitution that precludes deficit spending.

Accepted Answer

A) True 
 B)False

Question 16

A Memorandum decision of the U.S. Tax Court could be cited as:

Accepted Answer

A)  T.C. Memo. 1990-650. 
B)  68-1 USTC ¶ 9200. 
C)  37 AFTR 2d 456. 
D)  All of these. 
E)  None of these. 
A)  T.C. Memo. 1990-650. 
B)  68-1 USTC ¶ 9200. 
C)  37 AFTR 2d 456. 
D)  All of these. 
E)  None of these.

Question 17

Which court decision is generally more authoritative?

Accepted Answer

A)  A U.S. Tax Court decision. 
B)  A U.S. Court of Federal Claims decision. 
C)  A U.S. District Court decision. 
D)  A U.S. Court of Appeals decision. 
E)  A U.S. Tax Court Memorandum decision. 
A)  A U.S. Tax Court decision. 
B)  A U.S. Court of Federal Claims decision. 
C)  A U.S. District Court decision. 
D)  A U.S. Court of Appeals decision. 
E)  A U.S. Tax Court Memorandum decision.

Question 18

A U.S. District Court must abide by the precedents set by the U.S. Court of Appeals of its jurisdiction.

Accepted Answer

A) True 
 B)False

Question 19

"Legislative" regulations carry more weight than "interpretative" regulations.

Accepted Answer

A) True 
 B)False

Question 20

What impact has the community property system had on our Federal tax laws?

Accepted Answer

The position of the residents of communi

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

Regulations are arranged in a different sequence than the Internal Revenue Code.

When there is a direct conflict between an Internal Revenue Code section and a treaty provision, the most recent item takes precedence.

Which of the following is an administrative source of tax law?

Temporary Regulations have the same authoritative value as Final Regulations for four years.

Determination letters usually involve proposed transactions.

Many states have balanced budgets because laws or constitutional amendments preclude deficit spending.

The Internal Revenue Code was codified for the first time in what year?

A change in the individual tax rate has an almost immediate impact on the economy.

Social considerations can be used to justify:

Which, if any, of the following provisions of the tax law cannot be justified as promoting administrative feasibility simplifying the task of the IRS)?

Revenue-neutral tax laws reduce deficits.

Alabama and South Carolina are community property states.

A decision in which of the following courts carries the lowest tax authority?

The U.S. Federal government has a provision in the Constitution that precludes deficit spending.

A Memorandum decision of the U.S. Tax Court could be cited as:

Which court decision is generally more authoritative?

A U.S. District Court must abide by the precedents set by the U.S. Court of Appeals of its jurisdiction.

"Legislative" regulations carry more weight than "interpretative" regulations.

What impact has the community property system had on our Federal tax laws?

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

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

Regulations are arranged in a different sequence than the Internal Revenue Code.

When there is a direct conflict between an Internal Revenue Code section and a treaty provision, the most recent item takes precedence.

Which of the following is an administrative source of tax law?

Temporary Regulations have the same authoritative value as Final Regulations for four years.

Determination letters usually involve proposed transactions.

Many states have balanced budgets because laws or constitutional amendments preclude deficit spending.

The Internal Revenue Code was codified for the first time in what year?

A change in the individual tax rate has an almost immediate impact on the economy.

Social considerations can be used to justify:

Which, if any, of the following provisions of the tax law cannot be justified as promoting administrative feasibility simplifying the task of the IRS)?

Revenue-neutral tax laws reduce deficits.

Alabama and South Carolina are community property states.

A decision in which of the following courts carries the lowest tax authority?

The U.S. Federal government has a provision in the Constitution that precludes deficit spending.

A Memorandum decision of the U.S. Tax Court could be cited as:

Which court decision is generally more authoritative?

A U.S. District Court must abide by the precedents set by the U.S. Court of Appeals of its jurisdiction.

"Legislative" regulations carry more weight than "interpretative" regulations.

What impact has the community property system had on our Federal tax laws?

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