Question 1

Which of the following court decisions carries more weight?

Accepted Answer

A)   Federal District Court
B)   Second Circuit Court of Appeals
C)   U.S. Tax Court decision
D)   Small Cases Division of U.S. Tax Court
E)   U.S. Court of Federal ClaimsF) A) and C)
G) None of the above

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Tax bills are handled by which committee in the U.S. House of Representatives?

Accepted Answer

A)   Taxation Committee
B)   Ways and Means Committee
C)   Finance Committee
D)   Budget Committee
E)   None of theseF) A) and B)
G) A) and D)

Question 4

A Temporary Regulation under § 303 of the Code would be cited as follows: Temp. Reg. § 303.

Accepted Answer

A) True 
 B)False

Question 5

A taxpayer should always minimize his or her tax liability.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

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.F) C) and E)
G) A) and D)

Question 8

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.F) C) and E)
G) A) and E)

Question 9

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.F) C) and E)
G) C) and D)

Question 10

The test for whether a child qualifies for dependency status is first conducted under the qualified child requirement.

Accepted Answer

A) True 
 B)False

Question 11

A tax professional need not worry about the relative weight of authority within the various tax law sources.

Accepted Answer

A) True 
 B)False

Question 12

What are Treasury Department Regulations?

Accepted Answer

Regulations are issued by the U.S. Treas...

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

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 15

Which items tell taxpayers the IRS's reaction to certain court decisions?

Accepted Answer

A)   Notices
B)   Revenue Procedures
C)   Revenue Rulings
D)   Actions on Decisions
E)   Legislative RegulationsF) C) and D)
G) A) and E)

Question 16

The Internal Revenue Code was first codified in what year?

Accepted Answer

A)   1913
B)   1923
C)   1939
D)   1954
E)   1986F) C) and E)
G) None of the above

Question 17

Before a tax bill can become law, it must be approved (signed) by the President of the United States.

Accepted Answer

A) True 
 B)False

Question 18

Texas is in the jurisdiction of the Second Circuit Court of Appeals.

Accepted Answer

A) True 
 B)False

Question 19

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 task-based simulations 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.F) B) and D)
G) C) and D)

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 2: Working with the Tax Law

Which items tell taxpayers the IRS's reaction to certain court decisions?

Correct AnswerverifiedShow Answer

A Temporary Regulation under § 303 of the Code would be cited as follows: Temp. Reg. § 303.

Correct AnswerverifiedShow Answer

Texas is in the jurisdiction of the Second Circuit Court of Appeals.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What are Treasury Department Regulations?

Correct AnswerverifiedRegulations are issued by the U.S. Treas...View AnswerShow Answer

A taxpayer should always minimize his or her tax liability.

Correct AnswerverifiedShow Answer

The test for whether a child qualifies for dependency status is first conducted under the qualified child requirement.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Tax research involves which of the following procedures:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A tax professional need not worry about the relative weight of authority within the various tax law sources.

Correct AnswerverifiedShow Answer

Before a tax bill can become law, it must be approved (signed) by the President of the United States.

Correct AnswerverifiedShow Answer

Tax bills are handled by which committee in the U.S. House of Representatives?

Correct AnswerverifiedShow Answer

Which of the following court decisions carries more weight?

Correct AnswerverifiedShow Answer

The Internal Revenue Code was first codified in what year?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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Regulations are issued by the U.S. Treas...
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