Question 1

The Internal Revenue Code was first codified in what year?

Accepted Answer

A)  1913
B)  1923
C)  1939
D)  1954
E)  1986F) A) and E)
G) B) and C)

Question 2

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

Accepted Answer

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

Question 3

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 E)
G) C) and D)

Question 4

Which is a primary source of tax law?

Accepted Answer

A)  Serverino R.Nico, Jr., 67 T.C.647 (1977) .
B)  Article by a Federal judge in Tax Notes.
C)  An IRS publication.
D)  Written determination letter.
E)  All of these are primary sources.F) A) and D)
G) C) and D)

Question 5

Interpret the following citation: 64-1 USTC ¶9618, aff'd in 344 F.2d 966.

Accepted Answer

A)  A U.S.Tax Court Small Cases Division decision that was affirmed on appeal.
B)  A U.S.Tax Court decision that was affirmed on appeal.
C)  A U.S.District Court decision that was affirmed on appeal.
D)  A U.S.Circuit Court of Appeals decision that was affirmed on appeal.
E)  None of these.F) A) and E)
G) B) and C)

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

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 8

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) C) and E)
G) A) and D)

Question 9

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

Question 10

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 11

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

Accepted Answer

A) True 
 B)False

Question 12

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 13

The Regulation section of the CPA exam is approximately 80% Taxation and 20% Law & Professional Responsibilities.

Accepted Answer

A) True 
 B)False

Question 14

In addressing the importance of a Regulation, an IRS agent must:

Accepted Answer

A)  Give equal weight to the Internal Revenue Code and the Regulations.
B)  Give more weight to the Internal Revenue Code rather than to a Regulation.
C)  Give more weight to the Regulation rather than to the Internal Revenue Code.
D)  Give less weight to the Internal Revenue Code rather than to a Regulation.
E)  None of these.F) A) and B)
G) C) and D)

Question 15

A treasure trove is taxable when sold or exchanged.

Accepted Answer

A) True 
 B)False

Question 16

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) All of the above
G) B) and D)

Question 17

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

Question 18

The IRS issues an acquiescence or nonacquiescence only for regular Tax Court decisions.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 2: Working With the Tax Law

The Internal Revenue Code was first codified in what year?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A treasure trove is taxable when sold or exchanged.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

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

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

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

The Regulation section of the CPA exam is approximately 80% Taxation and 20% Law & Professional Responsibilities.

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Which court decision would probably carry more weight?

Correct AnswerverifiedShow Answer

The IRS issues an acquiescence or nonacquiescence only for regular Tax Court decisions.

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Which of the following court decisions carries more weight?

Correct AnswerverifiedShow Answer

Interpret the following citation: 64-1 USTC ¶9618, aff'd in 344 F.2d 966.

Correct AnswerverifiedShow Answer

In addressing the importance of a Regulation, an IRS agent must:

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

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which is a primary source of tax law?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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