Question 1

Which tax-related website probably gives the best policy-orientation results?

Accepted Answer

A)  taxalmanac.org.
B)  irs.gov.
C)  taxsites.com.
D)  taxanalysts.com.
E)  ustaxcourt.gov.F) B) and C)
G) A) and E) D

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

The term "petitioner" is a synonym for "defendant."

Accepted Answer

A) True 
 B)False

Question 4

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 5

Which of the following types of Regulations has the highest tax validity?

Accepted Answer

A)  Temporary
B)  Legislative
C)  Interpretive
D)  Procedural
E)  None of theseF) C) and D)
G) None of the above

Question 6

Post-1984 letter rulings may be substantial authority for purposes of the accuracy-related penalty in § 6662.

Accepted Answer

A) True 
 B)False

Question 7

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 case studies 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 E)
G) A) and B)

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Revenue Rulings issued by the National Office of the IRS carry the same legal force and effect as Regulations.

Accepted Answer

A) True 
 B)False

Question 10

Deferring income to a subsequent year is considered to be tax avoidance.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False  False

Question 12

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

Question 13

The Index to Federal Tax Articles (published by Warren, Gorham, and Lamont) is available in print and electronic formats.

Accepted Answer

A) True 
 B)False

Question 14

The first codification of the tax law occurred in 1954.

Accepted Answer

A) True 
 B)False

Question 15

A taxpayer must pay any tax deficiency assessed by the IRS and sue for a refund to bring suit in the U.S. Court of Federal Claims. Only in the Tax Court can jurisdiction be obtained without first paying the assessed tax deficiency.

Accepted Answer

A) True 
 B)False

Question 16

The Code section citation is incorrect: § 212(1).

Accepted Answer

A) True 
 B)False

Question 17

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 18

Which of the following indicates that a decision has precedential value for future cases?

Accepted Answer

A)  Stare decisis
B)  Golsen doctrine
C)  En banc
D)  Reenactment doctrine
E)  None of theseF) A) and D)
G) All of the above

Question 19

When searching on an online tax service, which approach is more frequently used?

Accepted Answer

A)  Code section approach
B)  Keyword approach
C)  Table of contents approach
D)  Index
E)  All are about the sameF) C) and E)
G) A) and D) B

Question 20

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) B) and E)
G) None of the above

Exam 2: Working With the Tax Law

Which tax-related website probably gives the best policy-orientation results?

Correct AnswerverifiedD

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

Correct AnswerverifiedShow Answer

The term "petitioner" is a synonym for "defendant."

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 types of Regulations has the highest tax validity?

Correct AnswerverifiedShow Answer

Post-1984 letter rulings may be substantial authority for purposes of the accuracy-related penalty in § 6662.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Revenue Rulings issued by the National Office of the IRS carry the same legal force and effect as Regulations.

Correct AnswerverifiedShow Answer

Deferring income to a subsequent year is considered to be tax avoidance.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedFalse

Which of the following court decisions carries more weight?

Correct AnswerverifiedShow Answer

The Index to Federal Tax Articles (published by Warren, Gorham, and Lamont) is available in print and electronic formats.

Correct AnswerverifiedShow Answer

The first codification of the tax law occurred in 1954.

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. Court of Federal Claims. Only in the Tax Court can jurisdiction be obtained without first paying the assessed tax deficiency.

Correct AnswerverifiedShow Answer

The Code section citation is incorrect: § 212(1).

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

Which of the following indicates that a decision has precedential value for future cases?

Correct AnswerverifiedShow Answer

When searching on an online tax service, which approach is more frequently used?

Correct AnswerverifiedB

Tax research involves which of the following procedures:

Correct AnswerverifiedShow Answer

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D

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False

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B

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