Question 1

In a U.S. District Court, a jury can decide both questions of fact and questions of law.

Accepted Answer

A) True 
 B)False  False

Question 2

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

Accepted Answer

A) True 
 B)False  True

Question 3

Which provision could best be justified as a means of controlling the economy?

Accepted Answer

A)  Write-off of research and development expenditures. 
B)  The § 179 immediate write­off of depreciable capital expenditures. 
C)  Amortization of pollution control facilities. 
D)  The rehabilitation tax credit. 
E)  None of the above. 
A)  Write-off of research and development expenditures. 
B)  The § 179 immediate write­off of depreciable capital expenditures. 
C)  Amortization of pollution control facilities. 
D)  The rehabilitation tax credit. 
E)  None of the above. B

Question 4

"Legislative regulations" are stronger than "interpretative" regulations.

Accepted Answer

A) True 
 B)False

Question 5

Which is a primary source of tax law?

Accepted Answer

A)  Article by a Federal judge in Harvard Law Review. 
B)  J.W. Yarbo v. Comm., 737 F. 2d 479 (CA-5, 1984). 
C)  Determination letter. 
D)  Letter ruling. 
E)  All of the above are primary sources. 
A)  Article by a Federal judge in Harvard Law Review. 
B)  J.W. Yarbo v. Comm., 737 F. 2d 479 (CA-5, 1984). 
C)  Determination letter. 
D)  Letter ruling. 
E)  All of the above are primary sources.

Question 6

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

Accepted Answer

A)  Arm's length concept. 
B)  Continuity of interest concept. 
C)  Tax benefit rule. 
D)  Substance over form concept. 
E)  None of the above. 
A)  Arm's length concept. 
B)  Continuity of interest concept. 
C)  Tax benefit rule. 
D)  Substance over form concept. 
E)  None of the above.

Question 7

Appeals from the Court of Federal Claims go to the U.S. Supreme Court.

Accepted Answer

A) True 
 B)False

Question 8

Which trial court decision is generally less authoritative?

Accepted Answer

A)  U.S. District Court. 
B)  U.S. Tax Court. 
C)  U.S. Court of Federal Claims. 
D)  Small Cases Division of the Tax Court. 
E)  All of the above are the same. 
A)  U.S. District Court. 
B)  U.S. Tax Court. 
C)  U.S. Court of Federal Claims. 
D)  Small Cases Division of the Tax Court. 
E)  All of the above are the same.

Question 9

Which of the following refers to a trial court rather than an appellate court decision?

Accepted Answer

A)  Forgeus v. Comm., 6 B.T.A. 291 (1927). 
B)  Farris v. Comm., 222 F.2d 320 (CA-10, 1955). 
C)  Danville Plywood Corp., 899 F.2d 3 (Fed Cir. 1990). 
D)  Boehm v. Comm., 326 U.S. 287 (1945). 
E)  None of the above. 
A)  Forgeus v. Comm., 6 B.T.A. 291 (1927). 
B)  Farris v. Comm., 222 F.2d 320 (CA-10, 1955). 
C)  Danville Plywood Corp., 899 F.2d 3 (Fed Cir. 1990). 
D)  Boehm v. Comm., 326 U.S. 287 (1945). 
E)  None of the above.

Question 10

Which state is not a community property state?

Accepted Answer

A)  Arizona. 
B)  Texas. 
C)  New Mexico 
D)  Virginia 
E)  None of the above. 
A)  Arizona. 
B)  Texas. 
C)  New Mexico 
D)  Virginia 
E)  None of the above.

Question 11

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

Accepted Answer

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

Question 12

Which state is located in the jurisdiction of the Fifth Court of Appeals?

Accepted Answer

A)  Louisiana. 
B)  California. 
C)  New York. 
D)  South Carolina. 
E)  None of the above. 
A)  Louisiana. 
B)  California. 
C)  New York. 
D)  South Carolina. 
E)  None of the above.

Question 13

The encouragement of private-sector pension plans can be justified under the encouragement of certain industries.

Accepted Answer

A) True 
 B)False

Question 14

Determine the incorrect citation:

Accepted Answer

A)  TAM 20002704. 
B)  George W. Guill, 112 T.C. , No. 22 (1999). 
C)  John H. Wong, T.C. Summary Opinion 2009-152. 
D)  Rev. Rul. 98-32, 1998-25 I.R.B. 4. 
E)  None of the above. 
A)  TAM 20002704. 
B)  George W. Guill, 112 T.C. , No. 22 (1999). 
C)  John H. Wong, T.C. Summary Opinion 2009-152. 
D)  Rev. Rul. 98-32, 1998-25 I.R.B. 4. 
E)  None of the above.

Question 15

Which of these notations would appear after a U.S. Tax Court citation if the IRS disagrees with the decision?

Accepted Answer

A)  Rev'd 935 F.2d 203 (1991). 
B)  Nonacq. 1979-1 C.B. 1. 
C)  Cert. den. 361 U.S. 875 (1959). 
D)  Acq. 1990-1 C.B. 2. 
E)  None of the above. 
A)  Rev'd 935 F.2d 203 (1991). 
B)  Nonacq. 1979-1 C.B. 1. 
C)  Cert. den. 361 U.S. 875 (1959). 
D)  Acq. 1990-1 C.B. 2. 
E)  None of the above.

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Determination letters usually involve proposed transactions.

Accepted Answer

A) True 
 B)False

Question 18

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 19

The Golsen rule has been overturned.

Accepted Answer

A) True 
 B)False

Question 20

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

In a U.S. District Court, a jury can decide both questions of fact and questions of law.

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

Which provision could best be justified as a means of controlling the economy?

"Legislative regulations" are stronger than "interpretative" regulations.

Which is a primary source of tax law?

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

Appeals from the Court of Federal Claims go to the U.S. Supreme Court.

Which trial court decision is generally less authoritative?

Which of the following refers to a trial court rather than an appellate court decision?

Which state is not a community property state?

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

Which state is located in the jurisdiction of the Fifth Court of Appeals?

The encouragement of private-sector pension plans can be justified under the encouragement of certain industries.

Determine the incorrect citation:

Which of these notations would appear after a U.S. Tax Court citation if the IRS disagrees with the decision?

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

Determination letters usually involve proposed transactions.

Federal tax legislation generally originates in what body?

The Golsen rule has been overturned.

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

Corporations: Introduction and Operating Rules

Corporations: Special Situations

Corporations: Organization and Capital Structure

Corporations: Earnings 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

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

In a U.S. District Court, a jury can decide both questions of fact and questions of law.

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

Which provision could best be justified as a means of controlling the economy?

"Legislative regulations" are stronger than "interpretative" regulations.

Which is a primary source of tax law?

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

Appeals from the Court of Federal Claims go to the U.S. Supreme Court.

Which trial court decision is generally less authoritative?

Which of the following refers to a trial court rather than an appellate court decision?

Which state is not a community property state?

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

Which state is located in the jurisdiction of the Fifth Court of Appeals?

The encouragement of private-sector pension plans can be justified under the encouragement of certain industries.

Determine the incorrect citation:

Which of these notations would appear after a U.S. Tax Court citation if the IRS disagrees with the decision?

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

Determination letters usually involve proposed transactions.

Federal tax legislation generally originates in what body?

The Golsen rule has been overturned.

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

Corporations: Introduction and Operating Rules

Corporations: Special Situations

Corporations: Organization and Capital Structure

Corporations: Earnings 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

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