Question 1

A jury trial is available when a case is heard by a U.S. Court of Appeals.

Accepted Answer

A) True 
 B)False

Question 2

Which of these notations would appear after a U.S. Tax Court citation if the IRS disagrees with the decision?

Accepted Answer

A)   Rev'd 935 F.2d 203 1991) .
B)   Nonacq. 1979-1 C.B. 1.
C)   Cert. den. 361 U.S. 875 1959) .
D)   Acq. 1990-1 C.B. 2.
E)   None of these.F) C) and E)
G) B) and D)

Question 3

Revenue Rulings carry the same legal force and effect as Regulations.

Accepted Answer

A) True 
 B)False

Question 4

What value is a tax citator to a tax researcher?

Accepted Answer

The use of manual citators or a computer...

Question 5

The U.S. national debt is around $11 trillion.

Accepted Answer

A) True 
 B)False

Question 6

Revenue Procedures are published in the:

Accepted Answer

A)   Congressional Record.
B)   Federal Revenue Bulletin.
C)   Internal Revenue Bulletin.
D)   I.R.S. Digest.
E)   None of these.F) None of the above
G) A) and B)

Question 7

What is the value of Actions on Decisions to a tax researcher?

Accepted Answer

Actions on Decisions tell a taxpayer the...

Question 8

Regulations are issued by the Treasury Department.

Accepted Answer

A) True 
 B)False

Question 9

The encouragement of private-sector pension plans can be justified under the encouragement of certain industries.

Accepted Answer

A) True 
 B)False

Question 10

Which is a primary source of tax law?

Accepted Answer

A)   J.W. Yarbo v. Comm., 737 F. 2d 479 CA-5, 1984) .
B)   Article by a Federal judge in Harvard Law Review.
C)   IRS Determination letter.
D)   IRS Letter ruling.
E)   All of these are primary sources.F) B) and D)
G) A) and E)

Question 11

Allowing a net operating loss NOL)  carryforward can be justified:

Accepted Answer

A)   As mitigating the effect of the annual accounting period concept.
B)   By economic considerations.
C)   As promoting administrative feasibility.
D)   Based on the wherewithal to pay concept.
E)   By none of these.F) B) and E)
G) All of the above

Question 12

Which of the following sources has the highest tax authority?

Accepted Answer

A)   Treasury Regulation.
B)   Revenue Procedure.
C)   Internal Revenue Code.
D)   Temporary Regulation.
E)   All have the same weight.F) B) and D)
G) B) and E)

Question 13

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

Question 14

Although a corporation is subject to a Federal income tax, a partnership is not.

Accepted Answer

A) True 
 B)False

Question 15

These Internal Revenue Code citations are incorrect: § 2121) and § 12211).

Accepted Answer

A) True 
 B)False

Question 16

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

Question 17

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 these.F) B) and E)
G) C) and E)

Question 18

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 these.F) A) and E)
G) B) and E)

Question 19

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

Question 20

Which citation refers to a Fourth Circuit Court of Appeals decision?

Accepted Answer

A)   40 T.C. 1018.
B)   2 TCM 205 1951) .
C)   354 F.Supp. 1003 D. Ct. Ga, 1972) .
D)   914 F.2d 396 CA-3, 1990) .
E)   None of these.F) C) and E)
G) A) and B)

Exam 1: Understanding and Working With the Federal Tax Law

Regulations are issued by the Treasury Department.

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The U.S. national debt is around $11 trillion.

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Determine the incorrect citation:

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

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Which is a primary source of tax law?

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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.?

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These Internal Revenue Code citations are incorrect: § 2121) and § 12211).

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Revenue Rulings carry the same legal force and effect as Regulations.

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Which of these notations would appear after a U.S. Tax Court citation if the IRS disagrees with the decision?

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Revenue Procedures are published in the:

Correct AnswerverifiedShow Answer

Regarding Technical Advice Memoranda, which statement is incorrect?

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Although a corporation is subject to a Federal income tax, a partnership is not.

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A jury trial is available when a case is heard by a U.S. Court of Appeals.

Correct AnswerverifiedShow Answer

What is the value of Actions on Decisions to a tax researcher?

Correct AnswerverifiedActions on Decisions tell a taxpayer the...View AnswerShow Answer

Allowing a net operating loss NOL) carryforward can be justified:

Correct AnswerverifiedShow Answer

The encouragement of private-sector pension plans can be justified under the encouragement of certain industries.

Correct AnswerverifiedShow Answer

Which citation refers to a Fourth Circuit Court of Appeals decision?

Correct AnswerverifiedShow Answer

What value is a tax citator to a tax researcher?

Correct AnswerverifiedThe use of manual citators or a computer...View AnswerShow Answer

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

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Which of the following sources has the highest tax authority?

Correct AnswerverifiedShow Answer

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Actions on Decisions tell a taxpayer the...
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The use of manual citators or a computer...
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