Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Post­1984 letter rulings may be substantial authority for purposes of the accuracy­related penalty in § 6662.

Accepted Answer

A) True 
 B)False

Question 3

Three judges will normally hear each U.S.Tax Court case.

Accepted Answer

A) True 
 B)False

Question 4

A U.S.District Court is the lowest trial court.

Accepted Answer

A) True 
 B)False

Question 5

A taxpayer who loses in a U.S.District Court may appeal directly to the:

Accepted Answer

A) U.S.Supreme Court. 
B) U.S.Tax Court. 
C) U.S.Court of Federal Claims. 
D) U.S.Circuit Court of Appeals. 
E) All of these. 
A) U.S.Supreme Court. 
B) U.S.Tax Court. 
C) U.S.Court of Federal Claims. 
D) U.S.Circuit Court of Appeals. 
E) All of these.

Question 6

The U.S.Tax Court meets most often in Washington,D.C.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following sources has the highest tax validity?

Accepted Answer

A) Revenue Ruling 
B) Revenue Procedure 
C) Regulations 
D) Internal Revenue Code section 
E) None of these 
A) Revenue Ruling 
B) Revenue Procedure 
C) Regulations 
D) Internal Revenue Code section 
E) None of these

Question 8

Tax planning usually involves a completed transaction.

Accepted Answer

A) True 
 B)False

Question 9

The Code section citation is incorrect: § 212(1).

Accepted Answer

A) True 
 B)False

Question 10

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 11

Which of the following is not an administrative source of tax law?

Accepted Answer

A) Field Service Advice 
B) Revenue Procedure 
C) Technical Advice Memoranda 
D) General Counsel Memorandum 
E) All of these are administrative sources. 
A) Field Service Advice 
B) Revenue Procedure 
C) Technical Advice Memoranda 
D) General Counsel Memorandum 
E) All of these are administrative sources.

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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 14

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 these 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 these are incorrect.

Question 15

Temporary Regulations are only published in the Internal Revenue Bulletin.

Accepted Answer

A) True 
 B)False

Question 16

Distinguish between the jurisdiction of the U.S.Tax Court and a U.S.District Court.

Accepted Answer

The U.S.Tax Court hears only tax cases a

Question 17

Deferring income to a subsequent year is considered to be tax avoidance.

Accepted Answer

A) True 
 B)False

Question 18

Rules of tax law do not include Revenue Rulings and Revenue Procedures.

Accepted Answer

A) True 
 B)False

Question 19

The following citation can be a correct citation: Rev.Rul.95-271,1995-64 I.R.B.18.

Accepted Answer

A) True 
 B)False

Question 20

Which statement is not true with respect to a Regulation that interprets the tax law?

Accepted Answer

A) Issued by the U.S.Congress. 
B) Issued by the U.S.Treasury Department. 
C) Designed to provide an interpretation of the tax law. 
D) Carries more legal force than a Revenue Ruling. 
E) All of these statements are true. 
A) Issued by the U.S.Congress. 
B) Issued by the U.S.Treasury Department. 
C) Designed to provide an interpretation of the tax law. 
D) Carries more legal force than a Revenue Ruling. 
E) All of these statements are true.

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

Post1984 letter rulings may be substantial authority for purposes of the accuracyrelated penalty in § 6662.

Three judges will normally hear each U.S.Tax Court case.

A U.S.District Court is the lowest trial court.

A taxpayer who loses in a U.S.District Court may appeal directly to the:

The U.S.Tax Court meets most often in Washington,D.C.

Which of the following sources has the highest tax validity?

Tax planning usually involves a completed transaction.

The Code section citation is incorrect: § 212(1).

Tax research involves which of the following procedures:

Which of the following is not an administrative source of tax law?

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

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

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

Temporary Regulations are only published in the Internal Revenue Bulletin.

Distinguish between the jurisdiction of the U.S.Tax Court and a U.S.District Court.

Deferring income to a subsequent year is considered to be tax avoidance.

Rules of tax law do not include Revenue Rulings and Revenue Procedures.

The following citation can be a correct citation: Rev.Rul.95-271,1995-64 I.R.B.18.

Which statement is not true with respect to a Regulation that interprets the tax law?

An Introduction to Taxation and Understanding the 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

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

Post­1984 letter rulings may be substantial authority for purposes of the accuracy­related penalty in § 6662.

Three judges will normally hear each U.S.Tax Court case.

A U.S.District Court is the lowest trial court.

A taxpayer who loses in a U.S.District Court may appeal directly to the:

The U.S.Tax Court meets most often in Washington,D.C.

Which of the following sources has the highest tax validity?

Tax planning usually involves a completed transaction.

The Code section citation is incorrect: § 212(1).

Tax research involves which of the following procedures:

Which of the following is not an administrative source of tax law?

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

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

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

Temporary Regulations are only published in the Internal Revenue Bulletin.

Distinguish between the jurisdiction of the U.S.Tax Court and a U.S.District Court.

Deferring income to a subsequent year is considered to be tax avoidance.

Rules of tax law do not include Revenue Rulings and Revenue Procedures.

The following citation can be a correct citation: Rev.Rul.95-271,1995-64 I.R.B.18.

Which statement is not true with respect to a Regulation that interprets the tax law?

An Introduction to Taxation and Understanding the 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

Post1984 letter rulings may be substantial authority for purposes of the accuracyrelated penalty in § 6662.