Question 1

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 2

Distinguish between the jurisdiction of the U.S.Tax Court and a U.S.District Court.

Accepted Answer

The U.S.Tax Court hears only tax cases a...

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

Which of the following sources has the highest tax validity?

Accepted Answer

A)  Revenue Ruling
B)  Revenue Procedure
C)  Regulations
D)  Internal Revenue Code section
E)  None of theseF) C) and D)
G) B) and E)

Question 5

Rules of tax law do not include Revenue Rulings and Revenue Procedures.

Accepted Answer

A) True 
 B)False

Question 6

Post­1984 letter rulings may be substantial authority for purposes of the accuracy­related penalty in § 6662.

Accepted Answer

A) True 
 B)False

Question 7

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 D)
G) A) and D)

Question 8

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 C)
G) D) and E)

Question 9

The U.S.Tax Court meets most often in Washington,D.C.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is not an administrative source of tax law?

Accepted Answer

A)  Field Service Advice
B)  Revenue Procedure
C)  Technical Advice Memoranda
D)  General Counsel Memorandum
E)  All of these are administrative sources.F) A) and E)
G) C) and D)

Question 13

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

Question 14

Temporary Regulations are only published in the Internal Revenue Bulletin.

Accepted Answer

A) True 
 B)False

Question 15

A U.S.District Court is the lowest trial court.

Accepted Answer

A) True 
 B)False

Question 16

A taxpayer who loses in a U.S.District Court may appeal directly to the:

Accepted Answer

A)  U.S.Supreme Court.
B)  U.S.Tax Court.
C)  U.S.Court of Federal Claims.
D)  U.S.Circuit Court of Appeals.
E)  All of these.F) A) and C)
G) B) and C)

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

Tax planning usually involves a completed transaction.

Accepted Answer

A) True 
 B)False

Question 20

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

Exam 2: Working With the Tax Law

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

Correct AnswerverifiedShow Answer

The U.S.Tax Court meets most often in Washington,D.C.

Correct AnswerverifiedShow Answer

A taxpayer who loses in a U.S.District Court may appeal directly to the:

Correct AnswerverifiedShow Answer

Which of the following is not an administrative source of tax law?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Tax planning usually involves a completed transaction.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Temporary Regulations are only published in the Internal Revenue Bulletin.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Tax research involves which of the following procedures:

Correct AnswerverifiedShow Answer

Distinguish between the jurisdiction of the U.S.Tax Court and a U.S.District Court.

Correct AnswerverifiedThe U.S.Tax Court hears only tax cases a...View AnswerShow Answer

Which of the following sources has the highest tax validity?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A U.S.District Court is the lowest trial court.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Rules of tax law do not include Revenue Rulings and Revenue Procedures.

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

Post­1984 letter rulings may be substantial authority for purposes of the accuracy­related penalty in § 6662.

Correct AnswerverifiedShow Answer

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The U.S.Tax Court hears only tax cases a...
View Answer

Correct Answer
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Correct Answer
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Post1984 letter rulings may be substantial authority for purposes of the accuracyrelated penalty in § 6662.

Correct Answer
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