Question 1

A Technical Advice Memorandum is issued by:

Accepted Answer

A)   Treasury Department.
B)   National Office of the IRS.
C)   Office of Chief Council.
D)   Area Director.
E)   None of the above.F) B) and E)
G) All of the above

Question 2

A decision in which of the following courts carries the lowest tax authority?

Accepted Answer

A)   U.S. Court of Appeals for the Federal Circuit.
B)   U.S. Court of Appeals for the Second Circuit.
C)   U.S. District Court.
D)   U.S. Supreme Court.
E)   U.S. Court of Appeals Federal Circuit.F) C) and D)
G) A) and C)

Question 3

Revenue-neutral tax laws reduce deficits.

Accepted Answer

A) True 
 B)False

Question 4

Which provision could best be justified as a means of controlling the economy?

Accepted Answer

A)   Write-off of research and development expenditures.
B)   The § 179 immediate write-off of depreciable capital expenditures.
C)   Amortization of pollution control facilities.
D)   The rehabilitation tax credit.
E)   None of the above.F) All of the above
G) B) and D)

Question 5

Regulations are issued by the Treasury Department.

Accepted Answer

A) True 
 B)False

Question 6

The Federal tax law allows a taxpayer to claim a deduction for state and local income taxes.

Accepted Answer

A) True 
 B)False

Question 7

Which provision is not justified by social considerations?

Accepted Answer

A)   Refundable earned income credit.
B)   Adoption tax credit.
C)   Like-kind exchange treatment.
D)   Disallowance of illegal kickbacks.
E)   None of the above.F) B) and E)
G) B) and C)

Question 8

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)   Determination letter.
D)   Letter ruling.
E)   All of the above are primary sources.F) A) and D)
G) B) and C)

Question 9

The Internal Revenue Code is a compilation of Federal tax legislation that appears in Title 26 of the United States Code.

Accepted Answer

A) True 
 B)False

Question 10

The Golsen rule has been overturned.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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)   House Taxation Committee.
E)   None of the above.F) A) and B)
G) A) and C)

Question 13

A tax bill cannot originate in the Senate Finance Committee.

Accepted Answer

A) True 
 B)False

Question 14

Unlike determination letters, letter rulings are issued by the National Office of the IRS.

Accepted Answer

A) True 
 B)False

Question 15

Internal Revenue Code § 6 involves gross income and § 7 outlines itemized deductions.

Accepted Answer

A) True 
 B)False

Question 16

Alabama and South Carolina are community property states.

Accepted Answer

A) True 
 B)False

Question 17

When there is a direct conflict between a Code section and a treaty provision, the most recent item takes precedence.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is an administrative source of tax law?

Accepted Answer

A)   Rev. Rul. 2010-19.
B)   Joint Conference Committee Report.
C)   Section 12(a)  of the Internal Revenue Code.
D)   All of the above.
E)   None of the above.F) C) and E)
G) D) and E)

Question 19

In a U.S. District Court, a jury can decide both questions of fact and questions of law.

Accepted Answer

A) True 
 B)False

Question 20

Only one judge hears a trial in a U.S. District Court.

Accepted Answer

A) True 
 B)False

Exam 1: Understanding and Working With the Federal Tax Law

Alabama and South Carolina are community property states.

Correct AnswerverifiedShow Answer

A Technical Advice Memorandum is issued by:

Correct AnswerverifiedShow Answer

Revenue-neutral tax laws reduce deficits.

Correct AnswerverifiedShow Answer

Unlike determination letters, letter rulings are issued by the National Office of the IRS.

Correct AnswerverifiedShow Answer

A decision in which of the following courts carries the lowest tax authority?

Correct AnswerverifiedShow Answer

When there is a direct conflict between a Code section and a treaty provision, the most recent item takes precedence.

Correct AnswerverifiedShow Answer

The Federal tax law allows a taxpayer to claim a deduction for state and local income taxes.

Correct AnswerverifiedShow Answer

Which provision could best be justified as a means of controlling the economy?

Correct AnswerverifiedShow Answer

Which provision is not justified by social considerations?

Correct AnswerverifiedShow Answer

Regulations are issued by the Treasury Department.

Correct AnswerverifiedShow Answer

Federal tax legislation generally originates in what body?

Correct AnswerverifiedShow Answer

In a U.S. District Court, a jury can decide both questions of fact and questions of law.

Correct AnswerverifiedShow Answer

Internal Revenue Code § 6 involves gross income and § 7 outlines itemized deductions.

Correct AnswerverifiedShow Answer

A tax bill cannot originate in the Senate Finance Committee.

Correct AnswerverifiedShow Answer

Only one judge hears a trial in a U.S. District Court.

Correct AnswerverifiedShow Answer

Which of the following is an administrative source of tax law?

Correct AnswerverifiedShow Answer

The Golsen rule has been overturned.

Correct AnswerverifiedShow Answer

Which is a primary source of tax law?

Correct AnswerverifiedShow Answer

The Internal Revenue Code is a compilation of Federal tax legislation that appears in Title 26 of the United States Code.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified