Question 1

Which item may not be cited as a precedent?

Accepted Answer

A) Regulations. 
B) Temporary Regulations. 
C) Technical Advice Memoranda. 
D) U.S.District Court decision. 
E) None of the above. 
A) Regulations. 
B) Temporary Regulations. 
C) Technical Advice Memoranda. 
D) U.S.District Court decision. 
E) None of the above. C

Question 2

A Temporary Regulation under § 173 of the Code would be cited as follows: Temp.Reg.§ 173.

Accepted Answer

A) True 
 B)False  False

Question 3

How do treaties fit within tax sources?

Accepted Answer

The U.S signs certain tax treaties (sometimes called tax conventions) with foreign countries to render mutual assistance in tax enforcement and to avoid double taxation.Tax legislation enacted in 1988 provided that neither a tax law nor a tax treaty takes general precedence.Thus, when there is a direct conflict with the Code and a treaty, the most recent item will take precedence.A taxpayer must disclose on the tax return any position where a treaty overrides a tax law.There is a $1,000 penalty per failure to disclose for individuals and a $10,000 per failure penalty for corporations.

Question 4

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 the above. 
A) Income taxes. 
B) Estate and gift taxes. 
C) Excise taxes. 
D) Employment taxes. 
E) All of the above.

Question 5

Which publisher offers the Standard Federal Tax Reporter?

Accepted Answer

A) Research Institute of America. 
B) Commerce Clearing House. 
C) Prentice-Hall. 
D) LexisNexis. 
E) None of the above. 
A) Research Institute of America. 
B) Commerce Clearing House. 
C) Prentice-Hall. 
D) LexisNexis. 
E) None of the above.

Question 6

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 case studies 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 the above are incorrect. 
A) The CPA exam now has only four parts. 
B) There are no longer case studies 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 the above are incorrect.

Question 7

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

Accepted Answer

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

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

The granting of a Writ of Certiorari indicates that at least four members of the Supreme Court believe that an issue is of sufficient importance to be heard by the full court.

Accepted Answer

A) True 
 B)False

Question 10

A taxpayer can obtain a jury trial in the U.S.Court of Federal Claims.

Accepted Answer

A) True 
 B)False

Question 11

Where can a researcher not find a U.S. Court of Appeals decision?

Accepted Answer

A)  Federal 3d (West). 
B)  F. Supp. 2d Series (West). 
C)  AFTR (RI
A) . 
D)  USTC (CCH). 
E)  None of the above. 
A)  Federal 3d (West). 
B)  F. Supp. 2d Series (West). 
C)  AFTR (RI
A) . 
D)  USTC (CCH). 
E)  None of the above.

Question 12

The "respondent" refers to the party against whom a suit is brought.

Accepted Answer

A) True 
 B)False

Question 13

Compare Revenue Rulings with Revenue Procedures.

Accepted Answer

Revenue Rulings are official pronounceme

Question 14

What is the role of the Joint Conference Committee in the legislative process?

Accepted Answer

When the Senate version of a bill differ

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

A General Counsel Memorandum is a primary source of tax law.

Accepted Answer

A) True 
 B)False

Question 17

What administrative release deals with a proposed transaction rather than a completed transaction?

Accepted Answer

A) Letter Ruling. 
B) Technical Advice Memorandum. 
C) Determination Letter. 
D) Field Service Advice. 
E) None of the above. 
A) Letter Ruling. 
B) Technical Advice Memorandum. 
C) Determination Letter. 
D) Field Service Advice. 
E) None of the above.

Question 18

The term "petitioner" is a synonym for "defendant."

Accepted Answer

A) True 
 B)False

Question 19

Which publisher offers the United States Tax Reporter?

Accepted Answer

A) Research Institute of America. 
B) Commerce Clearing House. 
C) LexisNexis. 
D) Tax Analysts. 
E) None of the above. 
A) Research Institute of America. 
B) Commerce Clearing House. 
C) LexisNexis. 
D) Tax Analysts. 
E) None of the above.

Question 20

A taxpayer must pay any tax deficiency assessed by the IRS and sue for a refund to bring suit in the U.S.Court of Federal Claims.

Accepted Answer

A) True 
 B)False

Exam 2: Working With the Tax Law

Which item may not be cited as a precedent?

A Temporary Regulation under § 173 of the Code would be cited as follows: Temp.Reg.§ 173.

How do treaties fit within tax sources?

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

Which publisher offers the Standard Federal Tax Reporter?

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

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

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

The granting of a Writ of Certiorari indicates that at least four members of the Supreme Court believe that an issue is of sufficient importance to be heard by the full court.

A taxpayer can obtain a jury trial in the U.S.Court of Federal Claims.

Where can a researcher not find a U.S. Court of Appeals decision?

The "respondent" refers to the party against whom a suit is brought.

Compare Revenue Rulings with Revenue Procedures.

What is the role of the Joint Conference Committee in the legislative process?

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

A General Counsel Memorandum is a primary source of tax law.

What administrative release deals with a proposed transaction rather than a completed transaction?

The term "petitioner" is a synonym for "defendant."

Which publisher offers the United States Tax Reporter?

A taxpayer must pay any tax deficiency assessed by the IRS and sue for a refund to bring suit in the U.S.Court of Federal Claims.

An Introduction to Taxation and Understanding the Federal Tax Law

Computing the Tax

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

Tax Credits and Payments

Property Transactions: Determination of Gain or Loss, Basis Considerations, and Nontaxable Exchanges-Part 1

Property Transactions: Determination of Gain or Loss, Basis Considerations, and Nontaxable Exchanges-Part 2

Property Transactions: Capital Gains and Losses, 1231, Recapture Provisions

Alternative Minimum Tax

Accounting Periods and Methods

Corporations: Introduction and Operating Rules

Corporations: Organization and Capital Structure

Corporations: Distributions Not in Complete Liquidation

Corporations: Distributions in Complete Liquidation and an Overview of Reorganizations

Partnerships

S: Corporations

Exempt Entities

Multistate Corporate Taxation

Taxation of International Transactions

Tax Practice and Ethics

Income Taxation of Trusts and Estates

Filters