Question 1

Tax research involves which of the following procedures:

Accepted Answer

A) Identifying and refining the problem. 
B) Locating the appropriate tax law sources. 
C) Assessing the validity of the tax law sources. 
D) Follow-up. 
E) All of these. 
A) Identifying and refining the problem. 
B) Locating the appropriate tax law sources. 
C) Assessing the validity of the tax law sources. 
D) Follow-up. 
E) All of these.

Question 2

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 3

The Golsen rule has been overturned by the U.S. Supreme Court.

Accepted Answer

A) True 
 B)False

Question 4

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 5

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 6

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

Accepted Answer

A) True 
 B)False

Question 7

A taxpayer can obtain a jury trial in the U.S. Tax Court.

Accepted Answer

A) True 
 B)False

Question 8

A taxpayer should always minimize his or her tax liability.

Accepted Answer

A) True 
 B)False

Question 9

What statement is not true with respect to Temporary Regulations?

Accepted Answer

A) May not be cited as precedent. 
B) Issued with Proposed Regulations. 
C) Automatically expire within three years after the date of issuance. 
D) Found in the Federal Register. 
E) All of these statements are true. 
A) May not be cited as precedent. 
B) Issued with Proposed Regulations. 
C) Automatically expire within three years after the date of issuance. 
D) Found in the Federal Register. 
E) All of these statements are true.

Question 10

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 11

Subtitle A of the Internal Revenue Code covers which of the following taxes?

Accepted Answer

A) Income taxes 
B) Estate and gift taxes 
C) Excise taxes 
D) Employment taxes 
E) All of these 
A) Income taxes 
B) Estate and gift taxes 
C) Excise taxes 
D) Employment taxes 
E) All of these

Question 12

Electronic (online) databases are most frequently searched by the keyword approach.

Accepted Answer

A) True 
 B)False

Question 13

Post-1984 letter rulings may be substantial authority for purposes of the accuracy-related penalty in § 6662.

Accepted Answer

A) True 
 B)False

Question 14

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 15

When searching on an electronic (online) tax service, which approach is more frequently used?

Accepted Answer

A) Internal Revenue Code section approach 
B) Keyword approach 
C) Table of contents approach 
D) Index 
E) All are about the same 
A) Internal Revenue Code section approach 
B) Keyword approach 
C) Table of contents approach 
D) Index 
E) All are about the same

Question 16

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 17

Which of the following types of Regulations has the highest tax validity?

Accepted Answer

A) Temporary 
B) Legislative 
C) Interpretive 
D) Procedural 
E) None of these 
A) Temporary 
B) Legislative 
C) Interpretive 
D) Procedural 
E) None of these

Question 18

A letter ruling applies only to the taxpayer who asks for and obtains a letter ruling.

Accepted Answer

A) True 
 B)False

Question 19

The IRS issues an acquiescence or nonacquiescence only for regular Tax Court decisions.

Accepted Answer

A) True 
 B)False

Question 20

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.

Tax research involves which of the following procedures:

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

The Golsen rule has been overturned by the U.S. Supreme Court.

Which of the following court decisions carries more weight?

A taxpayer may not appeal a case from which court:

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

A taxpayer can obtain a jury trial in the U.S. Tax Court.

A taxpayer should always minimize his or her tax liability.

What statement is not true with respect to Temporary Regulations?

Federal tax legislation generally originates in which of the following?

Subtitle A of the Internal Revenue Code covers which of the following taxes?

Electronic (online) databases are most frequently searched by the keyword approach.

Post-1984 letter rulings may be substantial authority for purposes of the accuracy-related penalty in § 6662.

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

When searching on an electronic (online) tax service, which approach is more frequently used?

Which court decision would probably carry more weight?

Which of the following types of Regulations has the highest tax validity?

A letter ruling applies only to the taxpayer who asks for and obtains a letter ruling.

The IRS issues an acquiescence or nonacquiescence only for regular Tax Court decisions.

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

An Introduction to Taxation and Understanding Federal Tax Law

Tax Formula and Tax Determination; an Overview of Property Transactions

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

Alternative Minimum Tax

Tax Credits and Payment Procedures

Property Transactions: Determination of Gain or Loss and Basis Considerations

Property Transactions: Nontaxable Exchanges

Property Transactions: Capital Gains and Losses

Property Transactions: 1231 and Recapture Provisions

Accounting Periods and Methods

Deferred Compensation

Corporations and Partnerships

Filters

Exam 2: Working With the Tax Law

Tax research involves which of the following procedures:

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

The Golsen rule has been overturned by the U.S. Supreme Court.

Which of the following court decisions carries more weight?

A taxpayer may not appeal a case from which court:

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

A taxpayer can obtain a jury trial in the U.S. Tax Court.

A taxpayer should always minimize his or her tax liability.

What statement is not true with respect to Temporary Regulations?

Federal tax legislation generally originates in which of the following?

Subtitle A of the Internal Revenue Code covers which of the following taxes?

Electronic (online) databases are most frequently searched by the keyword approach.

Post-1984 letter rulings may be substantial authority for purposes of the accuracy-related penalty in § 6662.

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

When searching on an electronic (online) tax service, which approach is more frequently used?

Which court decision would probably carry more weight?

Which of the following types of Regulations has the highest tax validity?

A letter ruling applies only to the taxpayer who asks for and obtains a letter ruling.

The IRS issues an acquiescence or nonacquiescence only for regular Tax Court decisions.

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

An Introduction to Taxation and Understanding Federal Tax Law

Tax Formula and Tax Determination; an Overview of Property Transactions

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

Alternative Minimum Tax

Tax Credits and Payment Procedures

Property Transactions: Determination of Gain or Loss and Basis Considerations

Property Transactions: Nontaxable Exchanges

Property Transactions: Capital Gains and Losses

Property Transactions: 1231 and Recapture Provisions

Accounting Periods and Methods

Deferred Compensation

Corporations and Partnerships

Filters