Question 1

How does a treaty with a foreign country impact a section in the Internal Revenue Code?

Accepted Answer

The United States enters into tax treati

Question 2

Income from patents can qualify for capital gain treatment.

Accepted Answer

A) True 
 B)False

Question 3

Which provision could best be justified as encouraging small business?

Accepted Answer

A) S corporation election. 
B) Percentage depletion. 
C) Domestic production activities deduction. 
D) Interest deduction on home mortgage. 
E) None of the above. 
A) S corporation election. 
B) Percentage depletion. 
C) Domestic production activities deduction. 
D) Interest deduction on home mortgage. 
E) None of the above.

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Regarding technical advice memoranda,which statement is incorrect?

Accepted Answer

A) Issued by the National Office of IRS. 
B) Most often deal with a completed transaction. 
C) May be cited and used as precedent. 
D) Issued with multi-digit file numbers. 
E) None are incorrect. 
A) Issued by the National Office of IRS. 
B) Most often deal with a completed transaction. 
C) May be cited and used as precedent. 
D) Issued with multi-digit file numbers. 
E) None are incorrect.

Question 6

The Hope scholarship credit can be explained by economic considerations.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following statements relating to nonacquiescence is not true?

Accepted Answer

A) A nonacquiescence is published in the Cumulative Bulletin. 
B) This procedure may be followed for other than regular U.S.Tax Court decisions. 
C) The IRS can retroactively revoke an acquiescence. 
D) The IRS must acquiesce or nonacquiesce in every tax case. 
E) All of the above statements are true. 
A) A nonacquiescence is published in the Cumulative Bulletin. 
B) This procedure may be followed for other than regular U.S.Tax Court decisions. 
C) The IRS can retroactively revoke an acquiescence. 
D) The IRS must acquiesce or nonacquiesce in every tax case. 
E) All of the above statements are true.

Question 8

A technical advice memorandum is issued by:

Accepted Answer

A) Treasury Department. 
B) National Office of the IRS. 
C) Office of Chief Council. 
D) Area Director. 
E) None of the above. 
A) Treasury Department. 
B) National Office of the IRS. 
C) Office of Chief Council. 
D) Area Director. 
E) None of the above.

Question 9

There are three Courts of Federal Claims.

Accepted Answer

A) True 
 B)False

Question 10

Longer class lives for depreciable property and the required use of straight-line method of depreciation should dampen the tax incentive for purchasing capital assets.

Accepted Answer

A) True 
 B)False

Question 11

What company or group publishes Supreme Court cases?

Accepted Answer

A) U.S.Government Printing Office. 
B) Commerce Clearing House. 
C) Research Institute of America. 
D) Lawyer's Co-operative Publishing Company. 
E) All of the above. 
A) U.S.Government Printing Office. 
B) Commerce Clearing House. 
C) Research Institute of America. 
D) Lawyer's Co-operative Publishing Company. 
E) All of the above.

Question 12

Taxpayers may look at Committee Reports to determine the intent of Congress.

Accepted Answer

A) True 
 B)False

Question 13

Which citation is considered to be a legislative citation?

Accepted Answer

A) Ltr.Rul.199952058. 
B) Ann.94-5,1994-2 I.R.B.39. 
C) Reg.§ 1.1014-1(c)(1). 
D) § 336. 
E) None of the above. 
A) Ltr.Rul.199952058. 
B) Ann.94-5,1994-2 I.R.B.39. 
C) Reg.§ 1.1014-1(c)(1). 
D) § 336. 
E) None of the above.

Question 14

These sections are not in the Internal Revenue Code: §§ 212(1)and 1221(1).

Accepted Answer

A) True 
 B)False

Question 15

Which type of question is on the CPA examination?

Accepted Answer

A) Essay. 
B) True-false. 
C) Fill-in-the blank. 
D) Simulation. 
E) None of the above. 
A) Essay. 
B) True-false. 
C) Fill-in-the blank. 
D) Simulation. 
E) None of the above.

Question 16

The corporate tax rate of 34 percent applies only to taxable income in excess of $100,000.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) Rev.Proc.2009-3. 
B) Joint Conference Committee Report. 
C) Section 12(d)of the Internal Revenue Code. 
D) All of the above. 
E) None of the above. 
A) Rev.Proc.2009-3. 
B) Joint Conference Committee Report. 
C) Section 12(d)of the Internal Revenue Code. 
D) All of the above. 
E) None of the above.

Question 18

Letter rulings are available for public inspection.

Accepted Answer

A) True 
 B)False

Question 19

Generally,neither a tax law nor a tax treaty takes general precedence over the other.

Accepted Answer

A) True 
 B)False

Question 20

The annual gift tax exclusion in 2010 is $12,000.

Accepted Answer

A) True 
 B)False

How does a treaty with a foreign country impact a section in the Internal Revenue Code?

Income from patents can qualify for capital gain treatment.

Which provision could best be justified as encouraging small business?

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

Regarding technical advice memoranda,which statement is incorrect?

The Hope scholarship credit can be explained by economic considerations.

Which of the following statements relating to nonacquiescence is not true?

A technical advice memorandum is issued by:

There are three Courts of Federal Claims.

Longer class lives for depreciable property and the required use of straight-line method of depreciation should dampen the tax incentive for purchasing capital assets.

What company or group publishes Supreme Court cases?

Taxpayers may look at Committee Reports to determine the intent of Congress.

Which citation is considered to be a legislative citation?

These sections are not in the Internal Revenue Code: §§ 212(1)and 1221(1).

Which type of question is on the CPA examination?

The corporate tax rate of 34 percent applies only to taxable income in excess of $100,000.

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

Letter rulings are available for public inspection.

Generally,neither a tax law nor a tax treaty takes general precedence over the other.

The annual gift tax exclusion in 2010 is $12,000.

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

How does a treaty with a foreign country impact a section in the Internal Revenue Code?

Income from patents can qualify for capital gain treatment.

Which provision could best be justified as encouraging small business?

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

Regarding technical advice memoranda,which statement is incorrect?

The Hope scholarship credit can be explained by economic considerations.

Which of the following statements relating to nonacquiescence is not true?

A technical advice memorandum is issued by:

There are three Courts of Federal Claims.

Longer class lives for depreciable property and the required use of straight-line method of depreciation should dampen the tax incentive for purchasing capital assets.

What company or group publishes Supreme Court cases?

Taxpayers may look at Committee Reports to determine the intent of Congress.

Which citation is considered to be a legislative citation?

These sections are not in the Internal Revenue Code: §§ 212(1)and 1221(1).

Which type of question is on the CPA examination?

The corporate tax rate of 34 percent applies only to taxable income in excess of $100,000.

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

Letter rulings are available for public inspection.

Generally,neither a tax law nor a tax treaty takes general precedence over the other.

The annual gift tax exclusion in 2010 is $12,000.

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