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

Question 2

Revenue Procedures deal with the internal management practices and procedures of the IRS.

Accepted Answer

A) True 
 B)False

Question 3

Which publisher offers the Standard Federal Tax Reporter?

Accepted Answer

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

Question 4

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

Question 5

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 task-based simulations 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 E)

Question 6

Subtitle A of the Internal Revenue Code covers which of the following taxes?

Accepted Answer

A)  Income taxes
B)  Estate and gift taxes
C)  Excise taxes
D)  Employment taxes
E)  All of theseF) None of the above
G) A) and E)

Question 7

Determination letters usually involve completed transactions.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

The Golsen rule has been overturned by the U.S.Supreme Court.

Accepted Answer

A) True 
 B)False

Question 10

A "Bluebook" is substantial authority for purposes of the accuracy related penalty.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

Discuss the advantages and disadvantages of the Small Cases Division of the U.S.Tax Court.

Accepted Answer

There is no appeal from the Small Cases ...

Question 13

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

Accepted Answer

Congressional Committee Reports often ex...

Question 14

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 B)
G) A) and D)

Question 15

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) A) and E)
G) B) and D)

Question 16

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 17

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

Accepted Answer

A) True 
 B)False

Question 18

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 the above.F) A) and B)
G) C) and D)

Question 19

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 20

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 D)
G) B) and C) B

Exam 2: Working With the Tax Law

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

Correct AnswerverifiedD

Revenue Procedures deal with the internal management practices and procedures of the IRS.

Correct AnswerverifiedShow Answer

Which publisher offers the Standard Federal Tax Reporter?

Correct AnswerverifiedB

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Subtitle A of the Internal Revenue Code covers which of the following taxes?

Correct AnswerverifiedShow Answer

Determination letters usually involve completed transactions.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The Golsen rule has been overturned by the U.S.Supreme Court.

Correct AnswerverifiedShow Answer

A "Bluebook" is substantial authority for purposes of the accuracy related penalty.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Discuss the advantages and disadvantages of the Small Cases Division of the U.S.Tax Court.

Correct AnswerverifiedThere is no appeal from the Small Cases ...View AnswerShow Answer

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

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

Which publisher offers the United States Tax Reporter?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The following citation could be a correct citation: Rev.Rul.95-271,1995-64 I.R.B.18.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following court decisions carries more weight?

Correct AnswerverifiedB

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There is no appeal from the Small Cases ...
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Congressional Committee Reports often ex...
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B