Question 1

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)   § 351.
E)   None of the above. D

Question 2

Which citation refers to a U.S. Court of Federal Claims decision?

Accepted Answer

A)   Apollo Computer, Inc. v. U.S., 95-1 USTC ¶ 50,015 (Fed. Cl., 1994) .
B)   Westreco, Inc., T.C. Memo. 1992-561 (1992) .
C)   Bausch & Lomb, Inc. v. Comm., 933 F. 2d 1084 (CA-2, 1991) .
D)   Portland Manufacturing Co. v. Comm., 35 AFTR 2d 1439 (CA-9, 1975) .
E)   None of the above. A

Question 3

Which state is not a community property state?

Accepted Answer

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

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Subchapter P refers to the subchapter in the Internal Revenue Code that deals with partners and partnerships.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A)   U.S. Tax Court.
B)   U.S. District Court.
C)   U.S. Court of Federal Claims.
D)   Small Cases Division of the Tax Court.
E)   None of the above.

Question 8

Which statement is not true about this citation: Bonkowski v. Comm., 29 TCM 1645 (1970), aff'd 458 F.2d 709 (CA-7, 1972), cert. den.?

Accepted Answer

A)   The Supreme Court decided not to agree or disagree with the Seventh Court of Appeals.
B)   The Seventh Court of Appeals disagreed with the Tax Court.
C)   The Tax Court decision starts on page 1645.
D)   The Seventh Court of Appeals decision appears in Vol. 458.
E)   All of the above.

Question 9

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.

Question 10

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.

Question 11

Regulations are arranged in a different sequence than the Internal Revenue Code.

Accepted Answer

A) True 
 B)False

Question 12

A U.S. District Court must abide by the precedents set by the U.S. Court of Appeals of its jurisdiction.

Accepted Answer

A) True 
 B)False

Question 13

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.

Question 14

Proposed Regulations have the force and effect of law.

Accepted Answer

A) True 
 B)False

Question 15

A Memorandum decision of the U.S. Tax Court could be cited as:

Accepted Answer

A)   T.C. Memo. 1990-650.
B)   68-1 USTC ¶ 9200.
C)   37 AFTR 2d 456.
D)   All of the above.
E)   None of the above.

Question 16

The domestic production activities deduction is structured to create jobs.

Accepted Answer

A) True 
 B)False

Question 17

Determination letters usually involve proposed transactions.

Accepted Answer

A) True 
 B)False

Question 18

One Code section enables shareholders in a small business corporation to obtain an ordinary deduction for any loss recognized on a stock investment.

Accepted Answer

A) True 
 B)False

Question 19

A jury trial is available in a U.S. Court of Appeals situation.

Accepted Answer

A) True 
 B)False

Question 20

In Forty-Four Cigar Co., 2 B.T.A. 1156, the 1156 stands for:

Accepted Answer

A)   The volume number.
B)   The year of the decision.
C)   The paragraph number.
D)   The page number.
E)   None of the above.

Exam 1: Understanding and Working With the Federal Tax Law

Which citation is considered to be a legislative citation?

Which citation refers to a U.S. Court of Federal Claims decision?

Which state is not a community property state?

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

Subchapter P refers to the subchapter in the Internal Revenue Code that deals with partners and partnerships.

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

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

Which statement is not true about this citation: Bonkowski v. Comm., 29 TCM 1645 (1970) , aff'd 458 F.2d 709 (CA-7, 1972) , cert. den.?

Determine the incorrect citation:

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

Regulations are arranged in a different sequence than the Internal Revenue Code.

A U.S. District Court must abide by the precedents set by the U.S. Court of Appeals of its jurisdiction.

Regarding Technical Advice Memoranda, which statement is incorrect?

Proposed Regulations have the force and effect of law.

A Memorandum decision of the U.S. Tax Court could be cited as:

The domestic production activities deduction is structured to create jobs.

Determination letters usually involve proposed transactions.

One Code section enables shareholders in a small business corporation to obtain an ordinary deduction for any loss recognized on a stock investment.

A jury trial is available in a U.S. Court of Appeals situation.

In Forty-Four Cigar Co., 2 B.T.A. 1156, the 1156 stands for: