Question 1

Which of the following statements about a nonacquiescence is correct?

Accepted Answer

A)   A nonacquiescence is issued in the Federal Registrar.
B)   Nonacquiescences are published only for certain regular decisions of the U.S. Tax Court.
C)   A nonacquiescence in published in the Internal Revenue Bulletin.
D)   The IRS does not issue nonacquiescences to adverse decisions that are not appealed.
E)   All of the above are correct.F) A) and E)
G) C) and D)

Question 2

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

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

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 ...

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

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 E)
G) B) and D)

Question 7

Currently, the Internal Revenue Code of 1986 does not contain §§ 308, 309, and 310. This absence means these sections were repealed by Congress.

Accepted Answer

A) True 
 B)False

Question 8

Which is presently not a major tax service?

Accepted Answer

A)   Standard Federal Tax Reporter
B)   Federal Taxes
C)   United States Tax Reporter
D)   Tax Management Portfolios
E)   All of these are major tax servicesF) A) and B)
G) None of the above

Question 9

Determination letters usually involve completed transactions.

Accepted Answer

A) True 
 B)False

Question 10

Normally, when the Senate version of a tax bill differs from that passed by the House, a Joint Conference Committee drafts a compromise tax bill.

Accepted Answer

A) True 
 B)False

Question 11

A letter ruling applies only to the taxpayer who asks for and obtains a letter ruling.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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 B)
G) C) and E)

Question 14

The IRS is not required to make a letter ruling public.

Accepted Answer

A) True 
 B)False

Question 15

Tax planning usually involves a completed transaction.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

If these citations appeared after a trial court decision, which one means that the decision was overruled?

Accepted Answer

A)   Aff'd 633 F.2d 512 (CA-7, 1980) .
B)   Rem'd 399 F.2d 800 (CA-5, 1968) .
C)   Aff'd 914 F.2d 396 (CA-3, 1990) .
D)   Rev'd 935 F.2d 203 (CA-5, 1991) .
E)   None of the above.F) C) and D)
G) B) and C)

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

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) A) and E)
G) B) and C)

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 2: Working with the Tax Law

Which is presently not a major tax service?

Correct AnswerverifiedShow Answer

If these citations appeared after a trial court decision, which one means that the decision was overruled?

Correct AnswerverifiedShow Answer

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

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 ...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Normally, when the Senate version of a tax bill differs from that passed by the House, a Joint Conference Committee drafts a compromise tax bill.

Correct AnswerverifiedShow Answer

A letter ruling applies only to the taxpayer who asks for and obtains a letter ruling.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following statements about a nonacquiescence is correct?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Determination letters usually involve completed transactions.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The IRS is not required to make a letter ruling public.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Currently, the Internal Revenue Code of 1986 does not contain §§ 308, 309, and 310. This absence means these sections were repealed by Congress.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which publisher offers the United States Tax Reporter?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Tax planning usually involves a completed transaction.

Correct AnswerverifiedShow Answer

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

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