Question 1

The U.S.Tax Court follows a policy of always deciding cases based upon what it thinks the results should be.

Accepted Answer

A) True 
 B)False  False

Question 2

Explain simulations on the CPA examination.

Accepted Answer

Simulations are small case studies designed to test a candidate's tax knowledge and skills using real-life work-related situations. The simulations range from 30 to 50 minutes in length and complement the multiple-choice questions. Simulations include a four-function pop-up calculator,a blank spreadsheet with some elementary functionality,and authoritative literature appropriate to the subject matter. The taxation database includes authoritative excerpts (e.g.,Internal Revenue Code and Federal tax forms)that are necessary to complete the tax case study simulations.

Question 3

Regulations may first be found in:

Accepted Answer

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

Question 4

Since interest and taxes are deductible by a home owner,a person who rents an apartment may deduct as an itemized deduction 20% of rent payments.

Accepted Answer

A) True 
 B)False

Question 5

The domestic production activities deduction is structured so as to create jobs.

Accepted Answer

A) True 
 B)False

Question 6

Although a corporation is subject to a Federal income tax,a partnership is not.

Accepted Answer

A) True 
 B)False

Question 7

Subchapter C refers to the subchapter in the Internal Revenue Code that deals with Corporate Distributions and Adjustments.

Accepted Answer

A) True 
 B)False

Question 8

What would be considered a primary source of tax law?

Accepted Answer

A) Yale Law Review article. 
B) Revenue Procedure. 
C) Technical advice memoranda. 
D) General counsel memoranda. 
E) None of the above. 
A) Yale Law Review article. 
B) Revenue Procedure. 
C) Technical advice memoranda. 
D) General counsel memoranda. 
E) None of the above.

Question 9

Letter rulings are available for public inspection.

Accepted Answer

A) True 
 B)False

Question 10

The Supreme Court must hear all cases appealed from the U.S.Court of Appeals for the Federal Circuit.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following sources has the highest tax validity?

Accepted Answer

A) Treasury Regulation. 
B) Revenue Procedure. 
C) Internal Revenue Code. 
D) Proposed Regulation. 
E) All of the above have same weight. 
A) Treasury Regulation. 
B) Revenue Procedure. 
C) Internal Revenue Code. 
D) Proposed Regulation. 
E) All of the above have same weight.

Question 12

A § 179 election allows the immediate expensing of certain capital assets (up to $128,000 in 2008).

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Generally,neither a tax law nor a tax treaty takes general precedence over the other.

Accepted Answer

A) True 
 B)False

Question 15

Federal tax legislation generally originates in what body?

Accepted Answer

A) Internal Revenue Service. 
B) Senate Finance Committee. 
C) House Ways and Means Committee. 
D) House Taxation Committee. 
E) None of the above. 
A) Internal Revenue Service. 
B) Senate Finance Committee. 
C) House Ways and Means Committee. 
D) House Taxation Committee. 
E) None of the above.

Question 16

A taxpayer who lives in Louisiana and loses in the U.S.Tax Court can appeal to the Fifth Court of Appeals.

Accepted Answer

A) True 
 B)False

Question 17

Revenue Rulings are published weekly by the U.S.Government in the Internal Revenue Bulletin.

Accepted Answer

A) True 
 B)False

Question 18

How does a treaty with a foreign country impact a section in the Internal Revenue Code?

Accepted Answer

The United States enters into tax treati

Question 19

Which citation refers to a Third Court of Appeals decision?

Accepted Answer

A) 40 T.C. 1018. 
B) 2 TCM 205 (1951). 
C) 354 F.Supp. 1003 (D.Ct.Ga, 1972). 
D) 914 F.2d 396 (CA-3, 1990). 
E) None of the above. 
A) 40 T.C. 1018. 
B) 2 TCM 205 (1951). 
C) 354 F.Supp. 1003 (D.Ct.Ga, 1972). 
D) 914 F.2d 396 (CA-3, 1990). 
E) None of the above.

Question 20

Which provision could best be justified as encouraging small business?

Accepted Answer

A) Section 1244 stock. 
B) Percentage depletion. 
C) Domestic production activities deduction. 
D) Interest deduction on home mortgage. 
E) None of the above. 
A) Section 1244 stock. 
B) Percentage depletion. 
C) Domestic production activities deduction. 
D) Interest deduction on home mortgage. 
E) None of the above.

The U.S.Tax Court follows a policy of always deciding cases based upon what it thinks the results should be.

Explain simulations on the CPA examination.

Regulations may first be found in:

Since interest and taxes are deductible by a home owner,a person who rents an apartment may deduct as an itemized deduction 20% of rent payments.

The domestic production activities deduction is structured so as to create jobs.

Although a corporation is subject to a Federal income tax,a partnership is not.

Subchapter C refers to the subchapter in the Internal Revenue Code that deals with Corporate Distributions and Adjustments.

What would be considered a primary source of tax law?

Letter rulings are available for public inspection.

The Supreme Court must hear all cases appealed from the U.S.Court of Appeals for the Federal Circuit.

Which of the following sources has the highest tax validity?

A § 179 election allows the immediate expensing of certain capital assets (up to $128,000 in 2008).

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

Generally,neither a tax law nor a tax treaty takes general precedence over the other.

Federal tax legislation generally originates in what body?

A taxpayer who lives in Louisiana and loses in the U.S.Tax Court can appeal to the Fifth Court of Appeals.

Revenue Rulings are published weekly by the U.S.Government in the Internal Revenue Bulletin.

How does a treaty with a foreign country impact a section in the Internal Revenue Code?

Which citation refers to a Third Court of Appeals decision?

Which provision could best be justified as encouraging small business?

Corporations: Introduction and Operating Rules

Corporations: Special Situations

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, operation, and Basis

Partnerships: Distributions, transfer of Interests, and Terminations

S Corporations

Comparative Forms of Doing Business

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

The U.S.Tax Court follows a policy of always deciding cases based upon what it thinks the results should be.

Explain simulations on the CPA examination.

Regulations may first be found in:

Since interest and taxes are deductible by a home owner,a person who rents an apartment may deduct as an itemized deduction 20% of rent payments.

The domestic production activities deduction is structured so as to create jobs.

Although a corporation is subject to a Federal income tax,a partnership is not.

Subchapter C refers to the subchapter in the Internal Revenue Code that deals with Corporate Distributions and Adjustments.

What would be considered a primary source of tax law?

Letter rulings are available for public inspection.

The Supreme Court must hear all cases appealed from the U.S.Court of Appeals for the Federal Circuit.

Which of the following sources has the highest tax validity?

A § 179 election allows the immediate expensing of certain capital assets (up to $128,000 in 2008).

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

Generally,neither a tax law nor a tax treaty takes general precedence over the other.

Federal tax legislation generally originates in what body?

A taxpayer who lives in Louisiana and loses in the U.S.Tax Court can appeal to the Fifth Court of Appeals.

Revenue Rulings are published weekly by the U.S.Government in the Internal Revenue Bulletin.

How does a treaty with a foreign country impact a section in the Internal Revenue Code?

Which citation refers to a Third Court of Appeals decision?

Which provision could best be justified as encouraging small business?

Corporations: Introduction and Operating Rules

Corporations: Special Situations

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, operation, and Basis

Partnerships: Distributions, transfer of Interests, and Terminations

S Corporations

Comparative Forms of Doing Business

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