Question 1

A researcher can find tax information on home page sites of:

Accepted Answer

A)  Governmental bodies.
B)  Tax academics.
C)  Publishers.
D)  CPA firms.
E)  All of these.F) B) and C)
G) B) and E)

Question 2

Federal tax legislation generally originates in what body?

Accepted Answer

A)  Internal Revenue Service
B)  Senate Finance Committee
C)  House Ways and Means Committee
D)  Senate Floor
E)  None of theseF) A) and B)
G) C) and E)

Question 3

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 theseF) All of the above
G) A) and B)

Question 4

The Regulation section of the CPA exam is approximately 60% Taxation and 40% Law & Professional Responsibilities.

Accepted Answer

A) True 
 B)False

Question 5

If a taxpayer decides not to pay a tax deficiency, he or she must go to which court?

Accepted Answer

A)  Appropriate U.S. Circuit Court of Appeals
B)  U.S. District Court
C)  U.S. Tax Court
D)  U.S. Court of Federal Claims
E)  None of theseF) A) and E)
G) A) and D)

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

In § 212(1) , the number (1)  stands for the:

Accepted Answer

A)  Section number.
B)  Subsection number.
C)  Paragraph designation.
D)  Subparagraph designation.
E)  None of these.F) A) and C)
G) A) and B)

Question 8

Regulations are generally issued immediately after a statute is enacted.

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

The following citation is correct: Larry G. Mitchell, 131 T.C. 215 (2008).

Accepted Answer

A) True 
 B)False

Question 11

There are 11 geographic U.S. Circuit Court of Appeals.

Accepted Answer

A) True 
 B)False

Question 12

Technical Advice Memoranda may not be cited as precedents by taxpayers.

Accepted Answer

A) True 
 B)False

Question 13

In recent years, Congress has been relatively successful in simplifying the Internal Revenue Code.

Accepted Answer

A) True 
 B)False

Question 14

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 theseF) B) and E)
G) A) and B)

Question 15

Which Regulations have the force and effect of law?

Accepted Answer

A)  Procedural Regulations
B)  Finalized Regulations
C)  Legislative Regulations
D)  Interpretive Regulations
E)  All of theseF) D) and E)
G) C) and E)

Question 16

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

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

Which publisher offers the Standard Federal Tax Reporter?

Accepted Answer

A)  Research Institute of America
B)  Commerce Clearing House
C)  Thomson Reuters
D)  LexisNexis
E)  None of theseF) D) and E)
G) A) and E)

Question 19

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

Question 20

Which of these is not a correct citation to the Internal Revenue Code?

Accepted Answer

A)  Section 211
B)  Section 1222(1) 
C)  Section 2(a) (1) (
A)  
D)  Section 280B
E)  All of these are correct cites.F) None of the above
G) B) and E)

Exam 2: Working With the Tax Law

There are 11 geographic U.S. Circuit Court of Appeals.

Correct AnswerverifiedShow Answer

Federal tax legislation generally originates in what body?

Correct AnswerverifiedShow Answer

The following citation is correct: Larry G. Mitchell, 131 T.C. 215 (2008).

Correct AnswerverifiedShow Answer

Regulations are generally issued immediately after a statute is enacted.

Correct AnswerverifiedShow Answer

In recent years, Congress has been relatively successful in simplifying the Internal Revenue Code.

Correct AnswerverifiedShow Answer

Which publisher offers the Standard Federal Tax Reporter?

Correct AnswerverifiedShow Answer

Which of these is not a correct citation to the Internal Revenue Code?

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

Which of the following sources has the highest tax validity?

Correct AnswerverifiedShow Answer

In § 212(1) , the number (1) stands for the:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The Regulation section of the CPA exam is approximately 60% Taxation and 40% Law & Professional Responsibilities.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Technical Advice Memoranda may not be cited as precedents by taxpayers.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A researcher can find tax information on home page sites of:

Correct AnswerverifiedShow Answer

Which Regulations have the force and effect of law?

Correct AnswerverifiedShow Answer

If a taxpayer decides not to pay a tax deficiency, he or she must go to which court?

Correct AnswerverifiedShow Answer

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