Question 1

Identify which of the following statements is true.

Accepted Answer

A)   The U.S. Court of Federal Claims hears cases only in Washington, D.C.
B)   Each state has at least one U.S. District Court.
C)   Federal district court decisions and federal courts of appeals decisions are not printed by the U.S. Government Printing Office.
D)   All of the above are false.

Question 2

A jury trial is permitted in the

Accepted Answer

A)   U.S. District Court.
B)   U.S. Tax Court.
C)   U.S. Court of Federal Claims.
D)   U.S. Tax Court when the small case procedures are used.

Question 3

Describe the format of a client memo.

Accepted Answer

A client memo should include a statement...

Question 4

According to the AICPA's Statements on Standards for Tax Services, what duties does the tax practitioner owe the client?

Accepted Answer

The tax practitioner owes the client the...

Question 5

According to the Statements on Standards for Tax Services, if a CPA believes that a client's prior-year tax return contains false information, the CPA should report this to the

Accepted Answer

A)   IRS.
B)   SEC.
C)   AICPA.
D)   None of the above. The CPA does not report the false information to any external agencies, unless required by law.

Question 6

You have the following citation: Joel Munro, 92 T.C.71 (1989) .Which of the following statements is true?

Accepted Answer

A)   The taxpayer, Joel Munro, won the case because there is no reference to the IRS.
B)   The case appears on page 71 in Volume 92 of the official Tax Court of the United States Reports and the case was decided in 1989.
C)   This citation refers to a taxpayer conference between the IRS and the taxpayer.
D)   The case was tried in 1989 and was appealed in 1992.

Question 7

Explain the legislative reenactment doctrine.

Accepted Answer

Under the legislative reenactment doctri...

Question 8

Internet versions of topical tax services include

Accepted Answer

A)   Code and Regulations.
B)   Revenue rulings, letter rulings, and revenue procedures.
C)   Court cases involving tax issues.
D)   All of the above.

Question 9

George's case was handled under the "small tax case procedure." He does not agree with the findings of the Tax Court.He would like to appeal the decision.Which one of the following is true?

Accepted Answer

A)   There is no appeal.
B)   He can appeal the case, but only if the amount of tax involved is greater than $5,000.
C)   He would appeal first to the U.S. Court of Appeals for the Federal Circuit.
D)   He would appeal first to the U.S. Court of Federal Claims.

Question 10

Why should tax researchers take note of the date on which a Treasury Regulation was adopted?

Accepted Answer

Researchers should note the date on whic...

Question 11

Compare and contrast proposed, temporary, and final regulations.

Accepted Answer

Proposed regulations are not authoritati...

Question 12

Which of the following citations is the primary citation for a U.S.District Court case?

Accepted Answer

A)   43 AFTR 2d 79-1023
B)   79-1 USTC &9323
C)   55 F.2d 930
D)   40 F.Supp. 453

Question 13

Discuss the purposes and scope of temporary regulations.

Accepted Answer

Temporary regulations are issued by the ...

Question 14

You need to locate a recent tax case that was tried in a Federal district court.The decision is an "unreported" decision.This means the decision was

Accepted Answer

A)   not published in the Federal Supplement.
B)   not published in American Federal Tax Reports.
C)   not published in United States Tax Cases.
D)   settled out of court.

Question 15

Identify which of the following statements is true.

Accepted Answer

A)   Paragraph references are most commonly used when citing or referring to the tax statutes.
B)   Title 26 of the United States Code and the Internal Revenue Code of 1986 are synonymous.
C)   Before 1939, tax statutes were codified or compiled into one document.
D)   The Internal Revenue Code contains chapters, which are further subdivided into titles.

Question 16

A Technical Advice Memorandum is usually

Accepted Answer

A)   an internal IRS document describing alternative legislative proposals.
B)   part of a Tax Court decision.
C)   requested by the taxpayer before entering into a taxable transaction.
D)   issued by the national office in response to an audit request.

Question 17

A revenue ruling is issued by the Internal Revenue Service only in response to a verbal inquiry by a taxpayer.

Accepted Answer

A) True 
 B)False

Question 18

Which regulation deals with the gift tax?

Accepted Answer

A)   Reg. Sec. 1.165-5
B)   Reg. Sec. 20.2014-5
C)   Reg. Sec. 25.2518-5
D)   Reg. Sec. 301.7002-5

Question 19

Explain how committee reports can be used in tax research.What do they indicate?

Accepted Answer

Committee reports can help res...

Question 20

Identify which of the following statements is false.

Accepted Answer

A)   Regular and memorandum decisions of the Tax Court are published by the government in the Tax Court of the United States Reports.
B)   The citation Cristofani, 97 T.C. 74 (1991)  indicates that the decision is a regular decision of the Tax Court.
C)   The citation Estate of Newhouse, 94 T.C. 193 (1990) , nonacq. 1991-1 C.B. 1 indicates that the IRS did not formally disagree with this 1990 Tax Court decision until 1991.
D)   The Board of Tax Appeals preceded the Tax Court.

Exam 1: Tax Research

Describe the format of a client memo.

Correct AnswerverifiedA client memo should include a statement...View AnswerShow Answer

Explain the legislative reenactment doctrine.

Correct AnswerverifiedUnder the legislative reenactment doctri...View AnswerShow Answer

Explain how committee reports can be used in tax research.What do they indicate?

Correct AnswerverifiedCommittee reports can help res...View AnswerShow Answer

Which regulation deals with the gift tax?

Correct AnswerverifiedShow Answer

Internet versions of topical tax services include

Correct AnswerverifiedShow Answer

Which of the following citations is the primary citation for a U.S.District Court case?

Correct AnswerverifiedShow Answer

Discuss the purposes and scope of temporary regulations.

Correct AnswerverifiedTemporary regulations are issued by the ...View AnswerShow Answer

Identify which of the following statements is true.

Correct AnswerverifiedShow Answer

Compare and contrast proposed, temporary, and final regulations.

Correct AnswerverifiedProposed regulations are not authoritati...View AnswerShow Answer

Why should tax researchers take note of the date on which a Treasury Regulation was adopted?

Correct AnswerverifiedResearchers should note the date on whic...View AnswerShow Answer

A revenue ruling is issued by the Internal Revenue Service only in response to a verbal inquiry by a taxpayer.

Correct AnswerverifiedShow Answer

Identify which of the following statements is true.

Correct AnswerverifiedShow Answer

According to the AICPA's Statements on Standards for Tax Services, what duties does the tax practitioner owe the client?

Correct AnswerverifiedThe tax practitioner owes the client the...View AnswerShow Answer

George's case was handled under the "small tax case procedure." He does not agree with the findings of the Tax Court.He would like to appeal the decision.Which one of the following is true?

Correct AnswerverifiedShow Answer

You have the following citation: Joel Munro, 92 T.C.71 (1989) .Which of the following statements is true?

Correct AnswerverifiedShow Answer

A Technical Advice Memorandum is usually

Correct AnswerverifiedShow Answer

Identify which of the following statements is false.

Correct AnswerverifiedShow Answer

According to the Statements on Standards for Tax Services, if a CPA believes that a client's prior-year tax return contains false information, the CPA should report this to the

Correct AnswerverifiedShow Answer

You need to locate a recent tax case that was tried in a Federal district court.The decision is an "unreported" decision.This means the decision was

Correct AnswerverifiedShow Answer

A jury trial is permitted in the

Correct AnswerverifiedShow Answer

Correct Answer
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A client memo should include a statement...
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Correct Answer
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Under the legislative reenactment doctri...
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Committee reports can help res...
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Temporary regulations are issued by the ...
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Correct Answer
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Correct Answer
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Proposed regulations are not authoritati...
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Correct Answer
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Researchers should note the date on whic...
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Correct Answer
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Correct Answer
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Correct Answer
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The tax practitioner owes the client the...
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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