Question 1

A "tax protester" is:

Accepted Answer

A)  a person whofiles a "frivolous" return with the IRS
B)  a person whobrings a "frivolous" matter before the Tax Court
C)  a person who may be subject toa penalty for frivolous Tax Court petitions
D)  all of these are correct
E)  none of these are correct

Question 2

A subtitle of the Internal Revenue Code:

Accepted Answer

A)  is indicated by a capital letter, such as "Subtitle A"
B)  relates toa well-defined area of the law
C)  is used as a short-hand reference todescribe types of corporations
D)  is indicated by a capital letter, such as "Subtitle A," and relates toa well-defined area of the law
E)  all of the above

Question 3

Which of the following sections of the Internal Revenue Code deal with partnerships?

Accepted Answer

A)  the 700s
B)  the 300s
C)  Section 162
D)  Section 501

Question 4

Taxpayers whofile frivolous returns are subject toa $25,000 fine.

Accepted Answer

A) True 
 B)False

Question 5

When a Code provision and a provision under a treaty conflict, the one adopted earlier in time generally rules.

Accepted Answer

A) True 
 B)False

Question 6

A "technical corrections act" is:

Accepted Answer

A)  a set of changes made by IRS tofit new tax law provisions intothe Code
B)  an act passed by Congress toremove errors in implementing and interpreting the new provisions of a tax law
C)  the act that provides the effective dates for a new tax law
D)  none of these are correct

Question 7

A report of Floor Debate is included in the Congressional Record and may include some detailed or technical information that is excluded from a Committee Report.

Accepted Answer

A) True 
 B)False

Question 8

If any differences exist between the House- and Senate-passed versions of a tax bill, the bill is referred to:

Accepted Answer

A)  the Finance Committee
B)  the President
C)  a Conference Committee
D)  the Supreme Court

Question 9

Subparagraphs are the major divisions of the Internal Revenue Code covering such broad topics as Income Taxes, and Estate and Gift Taxes.

Accepted Answer

A) True 
 B)False

Question 10

The "General Explanation" of tax legislation, called the "Blue Book," is prepared by the Joint Conference Committee.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following statements is INCORRECT regarding the structure of the Internal Revenue Code?

Accepted Answer

A)  Code section numbers start over in each chapter.
B)  Each Code section is used only once in the Internal Revenue Code.
C)  Code sections inserted between existing section numbers are indicated by adding a capital letter tothe Section number (e.g., Section 25
A)  
D)  The Internal Revenue Code is Title 26 of the United States Code.

Question 12

In Pollock v. Farmers' Loan and Trust Co., the Supreme Court held that the income tax was unconstitutional because it was a constitutionally prohibited "direct tax."

Accepted Answer

A) True 
 B)False

Question 13

Trade or business deductions are contained in Code Section 62.

Accepted Answer

A) True 
 B)False

Question 14

Historically, the 1913 income tax was a tax on wealthy and high-income taxpayers.

Accepted Answer

A) True 
 B)False

Question 15

Circuit Courts are administrative sources of the federal tax law.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following statements is CORRECT regarding the enactment intolaw of a tax bill?

Accepted Answer

A)  A tax bill must always be signed by the President tobecome law.
B)  A tax law must be approved by the Treasury Department.
C)  A tax law must either be signed intolaw by the President or Congress must override a presidential vetoof the proposed law.
D)  None of these are correct.

Question 17

Regarding the taxing powers of the federal government, the U.S. Constitution requires that:

Accepted Answer

A)  taxes imposed by Congress must apply uniformly throughout the United States
B)  nodirect taxes may be imposed on income
C)  all revenues from the federal income tax must be apportioned tothe population of the states from which they were collected
D)  all of these are correct

Question 18

Statutory sources of federal tax law come out of the legislative branch of the U.S. government.

Accepted Answer

A) True 
 B)False

Question 19

The United States - Mexico- Canada Agreement (USMCA)is a non-tax international treaty that addresses some tax-related issues.

Accepted Answer

A) True 
 B)False

Question 20

Whenever a major new tax law is passed, CCH and RIA both publish the related Committee Reports.

Accepted Answer

A) True 
 B)False

Exam 3: Constitutional and Legislative Sources

A "technical corrections act" is:

Correct AnswerverifiedShow Answer

Historically, the 1913 income tax was a tax on wealthy and high-income taxpayers.

Correct AnswerverifiedShow Answer

Statutory sources of federal tax law come out of the legislative branch of the U.S. government.

Correct AnswerverifiedShow Answer

Whenever a major new tax law is passed, CCH and RIA both publish the related Committee Reports.

Correct AnswerverifiedShow Answer

A report of Floor Debate is included in the Congressional Record and may include some detailed or technical information that is excluded from a Committee Report.

Correct AnswerverifiedShow Answer

Subparagraphs are the major divisions of the Internal Revenue Code covering such broad topics as Income Taxes, and Estate and Gift Taxes.

Correct AnswerverifiedShow Answer

In Pollock v. Farmers' Loan and Trust Co., the Supreme Court held that the income tax was unconstitutional because it was a constitutionally prohibited "direct tax."

Correct AnswerverifiedShow Answer

A subtitle of the Internal Revenue Code:

Correct AnswerverifiedShow Answer

Which of the following statements is CORRECT regarding the enactment intolaw of a tax bill?

Correct AnswerverifiedShow Answer

Which of the following statements is INCORRECT regarding the structure of the Internal Revenue Code?

Correct AnswerverifiedShow Answer

If any differences exist between the House- and Senate-passed versions of a tax bill, the bill is referred to:

Correct AnswerverifiedShow Answer

The "General Explanation" of tax legislation, called the "Blue Book," is prepared by the Joint Conference Committee.

Correct AnswerverifiedShow Answer

Which of the following sections of the Internal Revenue Code deal with partnerships?

Correct AnswerverifiedShow Answer

When a Code provision and a provision under a treaty conflict, the one adopted earlier in time generally rules.

Correct AnswerverifiedShow Answer

Circuit Courts are administrative sources of the federal tax law.

Correct AnswerverifiedShow Answer

Regarding the taxing powers of the federal government, the U.S. Constitution requires that:

Correct AnswerverifiedShow Answer

The United States - Mexico- Canada Agreement (USMCA)is a non-tax international treaty that addresses some tax-related issues.

Correct AnswerverifiedShow Answer

A "tax protester" is:

Correct AnswerverifiedShow Answer

Taxpayers whofile frivolous returns are subject toa $25,000 fine.

Correct AnswerverifiedShow Answer

Trade or business deductions are contained in Code Section 62.

Correct AnswerverifiedShow Answer

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