Question 1

Determination letters usually involve completed transactions.

Accepted Answer

A) True 
 B)False

Question 2

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 3

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 D)
G) A) and B)

Question 4

Normally, when the Senate version of a tax bill differs from that passed by the House, a Joint Conference
Committee drafts a compromise tax bill.

Accepted Answer

A) True 
 B)False

Question 5

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 B)
G) None of the above

Question 6

The IRS will not acquiesce to the following tax decisions:

Accepted Answer

A)   U.S. District Court.
B)   U.S. Tax Court.
C)   U.S. Court of Federal Claims.
D)   Small Case Division of the U.S. Tax Court.
E)   All of these.F) C) and D)
G) B) and D)

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) B) and D)
G) C) and E)

Question 8

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) A) and B)
G) B) and C)

Question 9

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 10

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 B)
G) B) and C)

Question 11

Federal tax legislation generally originates in which of the following?

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) A) and C)

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

How can Congressional Committee Reports be used by a tax researcher?

Accepted Answer

Congressional Committee Reports often ex...

Question 14

Which court decision would probably carry more weight?

Accepted Answer

A)   Regular U.S. Tax Court decision
B)   Reviewed U.S. Tax Court decision
C)   U.S. District Court decision
D)   Tax Court Memorandum decision
E)   U.S. Court of Federal ClaimsF) B) and E)
G) A) and B)

Question 15

A jury trial is available in the following trial court:

Accepted Answer

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

Question 16

The Tax Cuts and Jobs Act of 2017 became part of the Internal Revenue Code of 1986.

Accepted Answer

A) True 
 B)False

Question 17

Which is not a primary source of tax law?

Accepted Answer

A)   Notice 89-99, 1989-2 C.B. 422.
B)   Estate of Harry Holmes v. Comm., 326 U.S. 480 (1946) .
C)   Rev. Rul. 79-353, 1979-2 C.B. 325.
D)   Prop. Reg. § 1.752-4T(f) .
E)   All of these are primary sources.F) B) and D)
G) C) and D)

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

The first codification of the tax law occurred in 1954.

Accepted Answer

A) True 
 B)False

Question 20

Which publisher offers the United States Tax Reporter?

Accepted Answer

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

Exam 2: Working With the Tax Law

Normally, when the Senate version of a tax bill differs from that passed by the House, a Joint Conference Committee drafts a compromise tax bill.

Correct AnswerverifiedShow Answer

Determination letters usually involve completed transactions.

Correct AnswerverifiedShow Answer

The first codification of the tax law occurred in 1954.

Correct AnswerverifiedShow Answer

The Tax Cuts and Jobs Act of 2017 became part of the Internal Revenue Code of 1986.

Correct AnswerverifiedShow Answer

Which court decision would probably carry more weight?

Correct AnswerverifiedShow Answer

Federal tax legislation generally originates in which of the following?

Correct AnswerverifiedShow Answer

How can Congressional Committee Reports be used by a tax researcher?

Correct AnswerverifiedCongressional Committee Reports often ex...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A jury trial is available in the following trial court:

Correct AnswerverifiedShow Answer

Which of the following court decisions carries more weight?

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

Correct AnswerverifiedShow Answer

Which of the following sources has the highest tax validity?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which is not a primary source of tax law?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The IRS will not acquiesce to the following tax decisions:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which publisher offers the United States Tax Reporter?

Correct AnswerverifiedShow Answer

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Congressional Committee Reports often ex...
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