Exam 1: Understanding and Working With the Federal Tax Law

Doug and Heather, related parties, are landlord and tenant as to certain business property. If the IRS questions the amount of rent Heather is paying to Doug, this is an illustration of the:

Federal tax legislation generally originates in what body?

Income from patents can qualify for capital gain treatment.

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

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

Which of these citations does not refer to an administrative release?

Revenue-neutral tax laws reduce deficits.

The deduction for charitable contributions can be explained by social considerations.

A district court must abide by the precedents set by the court of appeals of jurisdiction.

Which trial court hears only tax disputes?

Neither the 1939 nor the 1954 Code substantially changed all the tax law existing on the date of its enactment.

Temporary Regulations have the same authoritative value as Finalized Regulations.

The Golsen doctrine applies to which court?

Regulations are issued by the Treasury Department.

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

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

The CPA examination is now computer-based with increased emphasis on information technology.

Which of the following sources has the highest tax validity?

Which provision could best be justified as encouraging small business?

Explain simulations on the CPA examination.