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Which of the following sources of tax law are cross-referenced to related Internal Revenue Code sections through the use of a similar numbering system? Choose one answer. a. Treasury Regulations b. Determination Letters c. Revenue Rulings d. Tax Court cases Treasury Regulations are cross-referenced to related Code sections. For example, a Treasury Regulation in support of Code Section 453 would be cited as Reg. Sec. 1.453. In contrast, the other sources of tax law have their own unique numbering system.
Which of the following is an example of a primary source of law? Choose one answer. a. Periodicals. b. Citators. c. Commercial tax services. d. None of the above. These are all secondary sources of authority.
The IRS might issue an Acquiescence or a Nonacquiescence to a Regular Tax Court decision, but not to a Memorandum decision. Answer: True False
Practice before the IRS is available only for "enrolled agents." Answer: True False Correct Marks for this submission: 1.00/1.00.
If the IRS revokes or modifies a published ruling, open tax years can be retroactively affected for all taxpayers. Answer: True False
The Commissioner of Internal Revenue may appeal an adverse decision of the Tax Court. Answer: True False
Which of the following types of tax matters are typically handled by a Correspondence Examination? Choose one answer. a. Audits involving complex corporate reorganizations b. Tax shelter examinations c. TCMP audits d. Simple matters that can usually be resolved by mail Correspondence audits are conducted by mail and typically involve matching of various types of information returns with selected tax returns, looking for discrepancies in reported amounts.
A partnership is taxed as a separate entity. Answer: True False
Once taxable income has been calculated, the taxpayer’s regular tax liability is computed using the progressive income tax rates; however, different tax rates apply to corporate and individual taxpayers. Answer: True False
A thorough legislative history and background of a Section of the Internal Revenue Code is generally found in the CCH and RIA tax services. Answer: True False
An examination of Farley Field's 2011 income tax return resulted in an unagreed deficiency of $20,000, and he has requested that his case be heard by the Tax Court under the Small Tax Case procedures. If his case is handled using these procedures, he cannot appeal the decision. Answer: True False
Property taxes can be imposed on: Choose one answer. a. real estate. b. tangible property. c. all of the above. d. intangible property. e. both a and c. Property taxes can be imposed on real estate, tangible and intangible property.
Private letter rulings by the Internal Revenue Service are only made available by an official court order. Answer: True False
Leo Lambert, a calendar year taxpayer, filed his 2010 individual income tax return on March 15, 2011, and attached a check for the balance of tax due as shown on the return. On June 15, 2011, Leo discovered that he had failed to include, in his itemized deductions, $1,000 interest on his home mortgage. In order for Leo to recover the tax that he would have saved by utilizing the $1,000 deduction, he must file an amended return no later than: Choose one answer. a. March 15, 2014
2014 c. inheritance tax. 16 Marks: 1. June 15. 2014. December 31. d. c. 2013 The amended return would have to be filed within three years of the due date of the return. Request a conference in the IRS Appeals Office. he or she may: Choose one answer. or April 15. File a petition in the Tax Court within the 90-day period after receiving the statutory notice of deficiency. it is called: Choose one answer. or (c). The recipient pays the inheritance tax. d. b. April 15. he or she may do any of the three options listed in (a). a. 15 Marks: 1. pay the assessment. (b). c. Wait for the 90-day period to expire.00/1. a.00 If a taxpayer under review disagrees with the revenue agent. b. gift tax. estate tax. none of the above.00 When a transfer of wealth occurs upon a person's death and the tax owed is levied on the recipient. All of the above.00/1.b. 2014 d. If a taxpayer under review disagrees with the revenue agent. . and start a refund suit in the District Court or the Claims Court.
Answer: True False 18 Marks: 1.00 Stamps purchased to enable postal delivery services are an example of user fees. Most determination letters are issued in matters involving pension plans and exempt organizations.00/1. .00 All of the following statements regarding determination letters are true. President b. House Ways and Means Committee d. a. except: Choose one answer. Constitution c.00 The ultimate source of power to tax resides with the: Choose one answer.00/1. 19 Marks: 1.00/1. Senate Finance Committee Constitution.17 Marks: 1. b. a. Determination letters are issued by the National Office of the IRS.
temporary. c. proposed.00 Regulations can be in the form of: Choose one answer.00/1. tax avoidance. 20 Marks: 1. Tax planning is using existing laws to pay the least amount of tax. proposed. d. tax evasion.00/1.c. or final. 22 Marks: 1. A determination letter is issued in response to a written inquiry of the taxpayer which applies the principles and precedents announced by the National Office to a specific set of facts. tax elusion. d. c. b. (a) or (b). 21 Marks: 1.00 . Determination letters are issued by the District Director. b. a. a. A determination letter is generally issued in the same circumstances as a private ruling.00 The art of using existing tax laws to pay the least amount of tax legally possible is known as: Choose one answer.00/1. or final Regulations. d. court decisions. None of the above. public laws. Regulations can be in the form of temporary.
USTC 69-2.S. a. Fla.S. Tax Court or U. P9354 The court and date are sometimes omitted. USDC-FLA (1969).S.00/1. 69-2 USTC P9354 (DC Fla.S. 23 Marks: 1.00 . CCH d. Fla. District Court of Florida. Court of Appeals. Court of Federal Claims. Answer: True False 25 Marks: 1. P9354.00 Both the taxpayer and the government may appeal decisions of the U.00/1. USTC 69-2.00 The IRS must follow the precedents set by decisions of the U.. Tax Cases. 1969. District Court to the U. CCH U. P9354 b.. 1969) c.00/1.Determine the correct CCH citation for the following--U. Volume 2. P9354. 69-2 USTC.S. Choose one answer. Answer: True False 24 Marks: 1.S. Dist. U.S.
b. a. Committee Reports are most likely to help explain the intent of Congress when it enacts tax legislation.00 If the fraud penalty is assessed. a. Answer: True False 27 Marks: 1. Failure to pay penalty b. Internal Revenue Code. c. IRS Letter Rulings. Income Tax Regulations. Committee Reports. Negligence penalty . d.00/1.00/1. Failure to file penalty c. 26 Marks: 1. which one of the following may be assessed with respect to the same underpayment? Choose one answer.00 The Tax Code provides criminal penalties for tax professionals that include prison time.Which of the following is most likely to help explain the intent of Congress when it enacts tax legislation? Choose one answer.
00/1. Answer: True False 30 Marks: 1.00/1. 28 Marks: 1. Underpayments of estimated tax penalty If the fraud penalty is assessed. Senate Ways and Means and the House Finance Committees. c. The two Congressional Committees that have primary responsibility for the drafting of tax bills are the Senate Finance Committee and the House Ways and Means Committee.00 What are the two Congressional Committees that have primary responsibility for the drafting of tax bills? Choose one answer. b. the penalty for underpayment of estimated tax penalty may be assessed.00 The internal revenue laws were revised by the Tax Reform Act of 1986 and renamed the Internal Revenue Code of 1986. House Ways and Means and the Senate Finance Committees.00/1. (b). but not the penalties in (a). House Tax and the Senate Tax Committees. 29 Marks: 1.00 .d. d. a. House Revenue and the Senate Revenue Committees. or (c).
An omission of income which should be included on the return c. (b). Answer: True False 32 Marks: 1. a partner in an accounting firm. Answer: True False 33 .Which of the following is not a "mathematical error" as defined in Code Section 6213? Choose one answer.). or division shown on any return d. discovers that one of his clients omitted a substantial amount of gross income.00/1.00/1. Inconsistent entries on the return (a. a.00 A jury trial is allowed in the Tax Court.00 Arnold Ames. but an omission of income is not. 31 Marks: 1. An error in addition. 6213. and (d) are considered "mathematical errors" under Code Sec. An incorrect use of any IRS table if such incorrect use is apparent from other information on the return b. multiplication. subtraction. Arnold should immediately notify his partners and the IRS.
Marks: 1.00/1.00/1. 2014. 2013 b. . 2012. April 15.00 An unenrolled individual may represent his or her regular full-time employer before the Internal Revenue Service. The last day for filing for refund is 3 years after the due date of the return. 2014 c. What is the last day on which he can file a claim for refund? (Assume that none of the dates below fall on a weekend or holiday. March 30. 2014 April 15.00 Taxpayers may request a determination letter from the National Office of the IRS. On January 15. John discovered that he had understated his itemized deductions on his 2010 tax return. 2013 d. Answer: True False 34 Marks: 1.00/1. and attached a check for the tax due as shown on the return.00 John Jones filed his 2010 individual income tax return on March 30. April 15. March 30. 2011. a.) Choose one answer. Answer: True False 35 Marks: 1.
00 Which of the following helps solve taxpayer problems of dealing with the IRS? Choose one answer.36 Marks: 1.00/1.00/1.00 Section numbers run consecutively through the entire Code. National Taxpayer Advocate c. Answer: True False 38 Marks: 1. Answer: True False 37 Marks: 1.00/1. Chief Information Officer d. 39 .00 The United States Tax Court is a court of national jurisdiction. Chief Compliance Officer b. but with occasional breaks in their sequence. Chief Financial Officer The National Taxpayer Advocate is in charge of the Problem Resolution Program. a.
c.00 The taxpayer or the Government may appeal decisions of a District Court to the Court of Appeals. Supreme Court. The Sixteenth Amendment to the Constitution affects direct taxes. direct taxes.00/1. Constitution affects: Choose one answer. Answer: True False 41 Marks: 1. Answer: True False 42 Marks: 1.00/1. Neither (a) nor (b). a. indirect taxes. 40 Marks: 1.Marks: 1.00 .00/1. b.00 The Sixteenth Amendment to the U. both (a) and (b).S. d.00/1.S.00 Decisions of the Court of Federal Claims are appealed to the U.
90-day letter b. Revenue Agent's Report c. 43 Marks: 1. Waiver of Restrictions The IRS Form--Revenue Agent's Report is typically referred to as the "RAR. the Doctrine of Constructive Receipt is not a statutory provision of tax law. which procedural form does the IRS agent give to the taxpayer? Choose one answer." 44 Marks: 1.00 Upon completion of an audit. but judicial support gives strength to this concept.00/1. a. Judicial interpretation with strong precedential value d. For example.00 Which of the following statements is true? Choose one answer. Tax treaty with a foreign country "Tax Doctrine" refers to a judicial interpretation with strong precedential value. Statutory provision of the tax law c. Form 870. . 30-day letter d.00/1.The term "tax doctrine" refers to a: Choose one answer. Legal concept that is found in Treasury Regulations b. a.
whichever is later. Amended U.00 . The IRS issues "Determination Letters" and publishes summaries of these letters in the Internal Revenue Bulletin. Answer: True False 47 Marks: 1. they are rarely reprinted in the Cumulative Bulletin. Technical Information Releases and Announcements are published in the Internal Revenue Bulletin. The editorial opinion included in the leading looseleaf tax services is an excellent substitute for authoritative sources of law since it is more direct and easier to understand.S.00 Property taxes are a major source of revenue for the federal government.a.00 A claim for refund (Form 1040X.00/1. Answer: True False 46 Marks: 1. 45 Marks: 1.00/1. b.00/1. LEXIS/NEXIS is one of the leading computerized legal data bank services which affords the researcher-user access to the full texts of primary source materials. c. and are typically included in the Cumulative Bulletin. LEXIS/NEXIS accesses the full texts of primary source materials. Individual Income Tax Return) must be filed within three years from the date the return was due or filed. or within two years from the date the tax was paid. d.
00 The Mertens tax service is a tax service that is sometimes cited by the courts. Barry is required to submit a written protest with his request to the Appeals Office. Section 482(B)(4)(d)-i e.00/1. Section 21(A) II(1)(a)iii b. which does not correspond with traditional outline format described in various style manuals. Answer: True False 49 Marks: 1. 2(b)c This is the customary format.00 Barry Broom's tax return was examined by a tax auditor who determined additional tax due of $2.Which of the following arrangements of an Internal Revenue Code citation is customary? Choose one answer.400. Answer: True False . Barry does not agree with the proposed change and requests a conference with the Appeals Office.00/1. Section 243(a)(3)(C)(ii) c. 48 Marks: 1. a. Section 501(IV)(a)5(B)(iii) d. Section 81(A)(iv).
are meant to aid in taxpayer compliance with IRS rules and regulations. you must: Choose one answer. a. d. clarify language used in the Code.00/1. .00/1.00 All of the following statements relating to Treasury regulations are true except: Choose one answer. and explain how the President believes the tax laws should be interpreted. b. proposed regulations are issued to solicit public written comments. Answer: True False 52 Marks: 1. It is false to state that the rules contained in temporary regulations can never be used as authority by taxpayers but are meant to aid in taxpayer compliance with IRS rules and regulations. temporary regulations are issued to provide guidance for the public and IRS employees until final regulations are issued.00 Regulations often define terms.50 Marks: 1. The rules contained in temporary regulations can be used as authority. final regulations supersede temporary regulations. 51 Marks: 1.00 To be guilty of tax evasion. the rules contained in temporary regulations can never be used as authority by taxpayers but.00/1. instead. c.
53 Marks: 1. government collects slightly more than 50% of its revenue from the individual income tax. d. it must be disclosed.S. Decisions by a U. Refuse to disclose a tax liability based on a completed transaction.000 or less). a memorandum opinion (in theory not always in practice) applies well established principles of law to facts found by the court. Try to minimize your tax liability. If a taxpayer elects the Tax Court's "small tax procedures" (available for disputes involving $50. a. district court may be appealed to the Court of Appeals having jurisdiction over the district court. which is not open to appeal is issued by the Tax Court. Individual income tax b.S. Estate tax d. c. b.00 The major source of federal tax revenue is: Choose one answer.a. c. Try to maximize profits. Arrange your affairs so as to keep your taxes as low as possible.00/1.00 Which of the following statements is not true with respect to tax litigation? Choose one answer. b. a. a summary opinion. .00/1. 54 Marks: 1. Excise tax c. Of the three types of opinions issued by the Tax Court. Once a transaction is completed. Corporate income tax The U.
District courts hear only disputes involving federal tax law. 55 Marks: 1.00 The maximum amount of a deficiency that may be heard under the "Small Tax Cases" procedures of the U. Tax Court is: Choose one answer.000 The maximum deficiency that can be handled by the "Small Tax Cases" procedures of the U.000 d.S. $10.00 A claim for refund must be filed within three years from the date the return was filed or within three years from the date the tax was paid. $20. District courts hear many types of federal law cases. Answer: True False 57 Marks: 1.S.00 . Tax Court is $50.00/1. $25.00/1. whichever date is later. 56 Marks: 1. $50.000 c.00/1.000 e.000 b. not just those involving federal tax law. $5. a.d.000.
000. 2013. the time is June 15. 2013 Barbara's claim must be filed within three years from the time the original return was filed or two years from the time the tax was paid. April 15." The purpose of the compilations is: . 58 Marks: 1.Barbara Bigsby filed her 2009 Form 1040 on April 15. June 15. * This question has been adapted from the IRS Examinations. some states tax natural resources.00/1. but did not pay her tax liability of $3. Therefore. Barbara discovered additional deductions for 2009 that will result in a refund of $1. On June 15. whichever of these two periods has the later expiration. and some countries restrict and tax the amount of natural resources leaving their country.00/1. she paid the tax in full.000. Barbara must file an amended income tax return by: Choose one answer. 2010. Answer: True False 59 Marks: 1. To receive her refund. June 15. a. 2013 d. 2011. Also. April 15. 2014 c.00 Customs taxes are imposed on exports to protect our natural resources from leaving the country. In 2012. 2014 b. in Volumes 1 through 18.00 The major portion of the CCH Standard Federal Tax Reports. consists of the various "Compilations.
60 Marks: 1. b.00 .00 Upon examination of a tax return. and to direct the user to appropriate research articles in selected periodicals. Additionally. To offer tax planning ideas related to each income tax topic. Answer: True False 62 Marks: 1. To provide the reader with in-depth discussions of general concepts of law without reflecting details of the various Code sections or regulations. and editorial opinion. followed by Regulations. cross-referenced to each Code section. Answer: True False 61 Marks: 1.00/1. and to provide in-depth coverage of the legislative history of each Code section. d. the Compilations reflect the pertinent court cases.00 Revenue legislation begins in the Senate. a. Explanations. the IRS has the authority to impose additional taxes and penalties.00/1. Revenue Rulings.00/1.Choose one answer. Committee Reports. To reflect the text of each Code section. and Revenue Procedures as annotations to the Code Sections and Regulations. c. To outline related current developments.
00 Which of the following is not true with respect to citators? Choose one answer.00/1. a. d. b. Published only by the IRS. Answer: True False 63 Marks: 1.An individual who is a regular full-time employee of a partnership may represent the partnership before the Internal Revenue Service. 64 Marks: 1. c.00/1.00/1.00 Current tax law dates back only to post-1986 Internal Revenue Code developments. Helps determine whether a case or ruling has been modified or supplemented. Help establish that case law or rulings referenced are valid and authoritative. Helps determine whether other subsequent cases and ruling have mentioned the case in question. Answer: True False 65 Marks: 1.00 .
Courts are bound to follow Treasury Regulations when they are in conflict with the law. 68 Marks: 1.00 Tax avoidance can be the sole business purpose for a transaction. Regulations are published in the Federal Register.00/1. b.00/1. a. Answer: True False 66 Marks: 1. The legal citation for a Treasury Regulation refers to the associated Internal Revenue Code section. Treasury Regulations have the authority of law.The Internal Revenue Code and IRS revenue rulings are types of primary sources of tax authority. c. d. Courts are not bound to follow Treasury Regulations when they are in conflict with the law.00 .00/1. In dealing with the IRS. Answer: True False 67 Marks: 1.00 Which of the following statements regarding Treasury Regulations is false? Choose one answer.
a.00/1. d. b. a. None of the above. If a personal holding company fails to file with its return a schedule regarding its status as a personal holding company. In the case of a deficiency attributable to the application of a carryback (capital loss. b. or investment credit carryback).00 Prior to the Sixteenth Amendment direct taxes were illegal. c. net operating loss. cash-on-delivery principle. Answer: True False 70 Marks: 1. In all of the above cases.Which notion recognizes that mere appreciation in value does not necessarily mean that the owner has the resources to pay the tax associated with the appreciation: Choose one answer. wherewithal-to-pay concept. 69 Marks: 1.00/1. .00 There is no limitation on the period for assessment: Choose one answer. c. The appreciation in value of an asset does not mean the taxpayer has the wherewithal-to-pay tax on the appreciation. capital recovery doctrine.
Answer: True False 72 Marks: 1.d. 71 Marks: 1. If the taxpayer files a false return. e. a.00 Since regulations. There is no limitation on the period for assessment if the taxpayer files a false return.00 . The IRC is amended by Acts of Congress. by public laws. If the taxpayer omits from gross income an amount which is in excess of 25 percent of the amount of gross income stated on the return. 73 Marks: 1. revenue rulings. d. by the Joint Committee on Taxation. by the Senate.00/1.00/1. c. b. an IRS agent would more easily be persuaded by reference to District Court and Circuit Court decisions. and acquiesced Tax Court decisions all lack judicial authority.00/1.00 The sections of the Internal Revenue Code are amended Choose one answer. by the House of Representatives.
The American Institute of Certified Public Accountants (AICPA) has adopted Statements on Standards for Tax Service that are enforceable against all tax practitioners. c. 75 Marks: 1. the IRS issues which one of the following that interpret and apply the tax laws to a specific set of facts? Choose one answer.00 In addition to regulations.00 Revenue rulings are issued on the basis of Code sections and may be subsequently changed (modified) or revoked to reflect subsequent law or regulation changes and court decisions. a. Public Laws. Rulings and pronouncements. Executive summaries and outlines. Answer: True False 76 . b.00/1. Answer: True False 74 Marks: 1.00/1. the IRS issues rulings and pronouncements that interpret and apply the tax laws to a specific set of facts. Case law annotations. d. In addition to regulations.
00 The rate of tax that a taxpayer pays on the last dollar of income is known as: Choose one answer. making them a type of ad valorem tax. the marginal tax rate.Marks: 1. IRS employees must follow the rulings. b. Therefore. the average tax rate.00 Most state and local property taxes use a single tax rate.00/1. d.00 The purpose of revenue rulings is to promote uniform application of the tax law to an entire set of facts. while taxpayers may appeal adverse return examination decisions based on these rulings. none of the above. 78 Marks: 1. Answer: True False 77 Marks: 1. c. The marginal tax rate. the effective tax rate.00/1. a. Answer: True False 79 .00/1.
Tax Court cases b.00/1. as well as employment and other taxes. a.00 All relevant taxes. local and foreign income taxes.00/1.00 Which of the following is published in the Cumulative Bulletin? Choose one answer. Internal Revenue Code amendments d. and procedural. Treasury Regulations Revenue Rulings are published in the Cumulative Bulletin. interpretative.00/1.00 Regulations may be legislative. must be taken into consideration when computing the tax effects of any proposed transaction. Answer: True False . 80 Marks: 1. In addition. Revenue Rulings c. the Cumulative Bulletin also includes Revenue Procedures. including state. Answer: True False 81 Marks: 1. and are afforded different weight by the courts.Marks: 1.
82 Marks: 1.00/1.00 A system whereby income taxes are withheld systematically from current wages can be referred to as a “pay-as-you-go” system. Courts of Appeals and some decisions of other federal courts may be reviewed by the United States Supreme Court.00 The Sixteenth Amendment gave Congress the right to tax all income from whatever source derived.S.00/1.00 .00 Decisions of the U. The Supreme Court is obligated to hear all federal tax cases that it has been requested to review.00/1. Answer: True False 83 Marks: 1. Answer: True False 84 Marks: 1.00/1. Answer: True False 85 Marks: 1.
Current Revenue Rulings are reproduced in full text in Vol. to collect taxes for the federal government.00 Determine the correct explanation for the following CCH citation--72. P9725. CCH. 2. page 1. Are not arranged in Code section order d. U. U. a. California.00 Title 26 of the United States Code contains the statutes that authorize the Treasury Department. U.00/1. 1 through 18) are digests of associated judicial decisions and Revenue Rulings. Choose one answer. Second Court of Appeals. 86 Marks: 1. P9725. CCH. 1972. Do not include related Treasury Regulations Following each section of the Compilations (Vols. . b. Tax Court.S. Do not contain any CCH editorial opinion b. a.S.The "Compilations" which comprise the major portion of Volumes 1 through 18 of the CCH Standard Tax Service: Choose one answer. Answer: True False 87 Marks: 1. Tax Court. 19 of the CCH Tax Service.00/1.1 USTC P9725 (CA-2 1972). 2nd District of California. 1972. Vol. the Internal Revenue Service. Do not contain the full text of Revenue Rulings c. specifically.S.
00/1. S corporation d. U. CCH. P9725. Answer: True False 90 Marks: 1. 1972. Second Circuit. 89 Marks: 1.S. d. However. 1. a. U. 2nd Circuit of California.00 A notice of deficiency received by a taxpayer from the Internal Revenue Service means that a proposed tax liability has been automatically assessed and the taxpayer can no longer take his or her case to the Tax Court.S.00/1. U. Vol.c. the most popular form of business enterprise is the single proprietorship. 1972. Vol. Tax Cases. an acceptable variation could allow for the omission of 1972. P9725. Single proprietorship c. Corporate form b. Court of Appeals. 1. CCH.00/1.00 The most popular form of doing business in the United States is: Choose one answer. 88 Marks: 1. Partnership form By far.00 .S. Tax Cases.
92 Marks: 1. the taxpayer waives restrictions on the assessment and collection of any deficiency. Answer: True False 93 Marks: 1.00/1. except: Choose one answer. d. By signing Form 870-AD. Answer: True False 91 Marks: 1. b.00/1. a.00/1. c.00 The Tax Court hears cases only if the tax has been assessed or paid. Form 870-AD is merely the taxpayer's offer to waive restrictions and interest will run until 30 days after the IRS has accepted the offer. The taxpayer is not required to sign Form 870-AD if the taxpayer does not agree with the decision at the Appeals level.The Tax Court is less likely to be lenient in its enforcement of the rules of evidence than the District Court or the Court of Federal Claims.00 All of the following statements relating to Form 870-AD are true. Form 870-AD stops the running of interest when filed.00 . Form 870-AD does not stop the running of interest when filed.
00/1. The holding period for the lowest capital gain rate has been reduced from 18 to 12 months. Imposed a maximum capital gains rate of 28 percent.00/1. Answer: True False 95 Marks: 1.00 The Revenue Reconciliation Act of 1998 imposed the following: Choose one answer.The doctrine of separation of powers refers to the relationship between the Internal Revenue Service and the Treasury Department. never decreased them.00 Since 1913. b. changes in the tax laws have always increased individual tax rates. Raised from two to three the number of statutory rates. 96 Marks: 1. Answer: True False 94 Marks: 1.00/1. a. Lowered the holding period for long-term capital gains from 18 to 12 months. d. c. Reduced spending by $40 million.00 .
Answer: True False 99 Marks: 1. The House Ways and Means Committee d.00/1.S. 97 Marks: 1.00 . The 16th Amendment to the Constitution b. government to raise revenue through a federal income tax is derived from: Choose one answer. Macomber (a Supreme Court case) The 16th Amendment to the Constitution. Eisner v. a.The authority of the U.00 Tax Court decisions that involve issues not previously decided by the Court are released as Memorandum decisions.00 Another name for a flat tax is a progressive tax. The Internal Revenue Service c.00/1. Answer: True False 98 Marks: 1.00/1.
a.00 Committee reports of the House Ways and Means Committee. All of the above d.00/1.The U. 101 Marks: 1.00 The IRS levies penalties for which of the following: Choose one answer.00 . Answer: True False 102 Marks: 1.00/1. Fraud All items listed would have the IRS impose penalties. Bouncing checks b. Late filing c. federal tax system is a self-assessment tax collection system.00/1. the Senate Finance Committee.S. Answer: True False 100 Marks: 1. and the conference committees are published by the Government Printing Office and are also reprinted in the Internal Revenue Bulletin and Cumulative Bulletin.
without apportionment among the several states. Constitution gives Congress the power to lay and collect taxes on incomes from whatever source derived. Court of Federal Claims d. Answer: True False 103 Marks: 1. . 104 Marks: 1. b. "Small Tax Cases" procedures of the Tax Court A jury trial is available only in the District Court.00/1.S.00/1. File a protest and obtain a conference at the Appellate Division of the IRS.00 Which of the following options is not available to a taxpayer after receipt of a 30-day letter from the IRS? Choose one answer.The Sixteenth Amendment to the U. a. Sign the Form 879 and await assessment of the deficiency. Request a rehearing by a new IRS agent. d. and without regard to any census or enumeration. District Court c.00 Jury trial is available in the: Choose one answer. Either request or await a 90-day letter. Tax Court b. a. c.
Determination Letters d.00/1. 106 Marks: 1. such as the income tax.00 Which of the following are not published either by the government or by any of the private publishing services? Choose one answer. c. provide for the common defense.00/1.00/1. Tax Court Memorandum Decisions c. b.00 An exaction for revenue. all of the above. d. a. provide for the general welfare. a.00 . All the items listed are supported by general tax revenues. supports government functions like which of the following: Choose one answer. 105 Marks: 1.It is impossible to start the audit procedure over once the 30-day letter has been issued. Revenue Procedures Determination Letters are issued by the Regional Offices of the IRS and are not published. 107 Marks: 1. Private Letter Rulings b. pay national debts.
00 . he or she should file an appeal with the appropriate IRS Appeals Office. Answer: True False 109 Marks: 1.00 The Citator Service outlines the history of a court case. from inception.00/1. citators. through appeals and tells which later cases or rulings have cited it.00/1.00/1.00 Secondary sources of authority such as tax services.When an individual taxpayer wishes to file a claim for refund of federal income tax. Answer: True False 108 Marks: 1. and legal periodicals are references that explain and comment on primary sources of authority. Answer: True False 110 Marks: 1.
United States Court of Appeals for Brian's circuit d. United States Board of Tax Appeals b. Answer: True False 111 Marks: 1. Answer: True False 112 Marks: 1. * This question has been adapted from the IRS Examinations. Court of Appeals for the Federal Circuit. Brian must appeal to: Choose one answer.Doris Duncan received a statutory notice of deficiency at her residence in Ohio. If she wishes to appeal the deficiency to the Tax Court.00 Brian Bogart wishes to appeal the findings of the United States Court of Federal Claims concerning his tax liability. a. she may file a petition at any time within 120 days of the issuance of the notice. United States Court of Appeals for the Federal Circuit c.00/1. . United States District Court The Court of Federal Claims decision must be appealed to the U.00/1.S.00 Payment of tax is not necessary to litigate in the District Court.
" 114 Marks: 1.113 Marks: 1.00 A regressive tax structure is one in which the average tax rate increases as the tax base decreases. and enrolled agents specifically are permitted to represent clients or "practice before the IRS. Bookkeeping service d.00/1.00/1. Answer: True False 115 Marks: 1. CPA b. government come by way of corporate taxation. a.S. Answer: True False 116 . Attorney c. Enrolled agent Attorneys.00 Which of the following is not permitted to "practice before the IRS"? Choose one answer. CPAs.00 The majority of dollars collected by the U.00/1.
A proposed disallowance of a $3. (d) is the correct answer. they do not require a written protest to obtain appeals office consideration. a.00 . A proposed $2.00/1. The tax return examination was made by correspondence b. the group of taxpayers whose tax burden has increased the most is: Choose one answer. Since the amount in part (a) is only $2.00/1.00/1. a. Corporations d.000 refund claim An office examination and an examination conducted by correspondence are excluded as answers. * This question has been adapted from the IRS Examinations. The situation in which no written protest is required to obtain an appeals conference involves a field examination case in which the amount of the additional tax is $2.e. a written protest discussing the facts and legal arguments must accompany a written request for an Appeals Conference in which of the following cases? Choose one answer.00 In response to a preliminary (30-day) letter. 117 Marks: 1. Individuals b.Marks: 1.000. a protest is not required.. 118 Marks: 1. None of the above Individuals have increased by 396% their tax payments to the federal government.000 tax increase d. Trusts and estates c.00 Since 1980. Therefore. i.500 or less for a taxable period. The tax return examination was made in an IRS office by a tax auditor c.
Supp 2d. b." Answer: True False 120 Marks: 1.00 The current tax system can be classified as "pay-as-you-go.00/1.00/1. Court of Appeals? Choose one answer. F. F. Fed. both relating to the willful failure to comply with tax laws. Dec.S. Supp 2d indicates a District court case. Cl. 119 Marks: 1. Cl.Which one of the following could be found in the citation for a decision by a U. F.3d indicates a Court of Appeals case. c.3d. indicates a Court of Federal Claims case and F. Answer: True False 121 . d.00 Tax "evasion" and "avoidance" are almost identical concepts. a. Fed.
Answer: True False 122 Marks: 1.00 The value-added tax is an example of an indirect tax that is similar to sales taxes.00/1.00. the IRS has the authority to impose additional taxes and penalties.00/1.Marks: 1.00 Upon examination of a tax return.00/1.00/1.00 . 123 Marks: 1. Answer: True False Correct Marks for this submission: 1.00 Revenue legislation begins in the Senate.00/1. Answer: True False 124 Marks: 1.
00/1. 126 Marks: 1.S.00. Answer: True False 125 Marks: 1.00/1. Answer: True False Correct Marks for this submission: 1. Answer: True False 127 Marks: 1.00 .In a Court of Appeals dispute between the 5th and 8th Circuits. Tax Court operating within the 5th Circuit will usually refer the case to the U.00 Determination letters regarding the written qualifications of an individually designed retirement plan are issued by the Internal Revenue Service's National Office in Washington. and eventually in the Cumulative Bulletin.00 All Revenue Rulings are published in the Internal Revenue Bulletin. the U.00/1. Supreme Court.00/1.S.
Answer: True False 130 Marks: 1.00/1. so it is not necessary for them to keep track of their gross income.Tax avoidance should be at the top of every taxpayer’s list for tax planning. Answer: True False 129 Marks: 1.00/1.00 .00/1. the taxpayer must first make an appeal to the IRS before going to the courts.00 If the taxpayer disagrees with an examiner's findings.00 Flow-through entities do not pay tax on taxable income. Answer: True False 128 Marks: 1.
Treasury Regulations b.A corporation may be represented by one of its bona fide officers before the Internal Revenue Service. other than correspondence audits. In contrast. the other pronouncements listed in this question are issued by the Internal Revenue Service. a. The District Offices d.00 When dealing with the Tax Court. a. 132 Marks: 1. Thus. Technical Information Releases d. IRS pronouncements do not have the same legal authority as Treasury Regulations. which of the following pronouncements has the highest authority? Choose one answer. Answer: True False 131 Marks: 1.00 Which level of the IRS handles the majority of tax audits? Choose one answer.00/1.00/1. The National Office b. Revenue Procedures c. . The Chief Counsel The District Offices are regarded as the IRS field offices and handle all office and field audits. Revenue Rulings The Treasury Department is authorized by the Internal Revenue Code to publish interpretations of the law. The Regional Service Centers c. The IRS derives its authority from the Treasury Department.
Subsection.00 The Internal Revenue Code of 1986 is arranged as follows: Chapter.00 Which of the following litigation is not under the Tax Court's jurisdiction? Choose one answer. Answer: True False 134 Marks: 1. Revenue Rulings have the same authoritative weight as Treasury Regulations.133 Marks: 1. a. a.00 Which of the following statements regarding Revenue Rulings is correct? Choose one answer. Subpart. Subtitle. b. Part. Section.00/1. Income tax Employment tax litigation is not under the Tax Court's jurisdiction. Revenue Rulings present administrative interpretations of tax law. 135 Marks: 1. Employment tax d. Estate tax b.00/1. . Excess profits tax c. Subchapter.00/1.
d.00 Tax avoidance is discouraged as being anti-American. Answer: True False 137 Marks: 1.c.00/1.00 Which of the following is a primary source of tax authority: Choose one answer. .00 Information Releases (IRs) usually are not published in the Internal Revenue Bulletin. Revenue Rulings present administrative interpretations of tax law. revenue ruling. Answer: True False 138 Marks: 1.00/1. but are distributed via a practitioners' mailing list.00/1. b. temporary regulation. a. The legal citation for a Revenue Ruling refers to the associated Internal Revenue Code section. Revenue Rulings present judicial interpretations of tax law. 136 Marks: 1.
00 "Closed Fact" tax research relates to the various procedures involved in "before-the-facts planning" situations. d.00/1. Answer: True False . Answer: True False 141 Marks: 1.00/1. All of the items listed are primary sources of authority. Tax Court case.00 An equitable tax system is a fair tax system. Answer: True False 140 Marks: 1.00/1.c. 139 Marks: 1.00 A return preparer who fails to sign a tax return is subject to civil penalties as contained in the Internal Revenue Code. all of the above.
45 days Interest is paid if any overpayment is not refunded within 45 days after the due date of the return (or filing date. 144 Marks: 1. Answer: True False 143 Marks: 1. 10 days c. Answer: . if later): Choose one answer. Tax Court is an independent judicial body that has no connection with the Internal Revenue Service.00 The U. 60 days d.00 The CCH "Citator." outlines current amendments to the Code.S.142 Marks: 1. a.00/1. 30 days b.00/1.00/1.00 Interest is paid by the IRS on overpayment of tax if any overpayment of tax is not refunded within which of the following number of days after the due date of the return (or filing date. if later).
" the amount involved must be $25.00 .00/1.00/1. the preparer could be subject to a "per return" penalty of: Choose one answer. 147 Marks: 1.000 The preparer could be subject to a "per return" penalty of $5.000 or less for any one tax year.000 c. Answer: True False 146 Marks: 1. $5.True False 145 Marks: 1. a. $250 b.00 If any part of any understatement of liability as to a return or claim for refund is due to a willful attempt to understate the liability.000 d.S.00/1. Tax Court under the "small tax case procedures.00 In order for a case to be handled in the U.000 if any part of any understatement of liability as to a return or claim for refund is due to a willful attempt to understate the liability. $1. $10.
a. $100 b. Includes Tax Court cases . to a penalty of: Choose one answer. a. $50 c.00/1. $25 A preparer is subject to a penalty of $500 if the preparer endorses or otherwise negotiates a refund check issued to a taxpayer for a return or claim for refund prepared by the preparer. 149 Marks: 1. Contains cross-references to the Compilation volumes c. None of the above. 148 Marks: 1.00 Which of the following is not true regarding the CCH Citator: Choose one answer.00/1. with respect to each such check. income taxes.Any preparer who endorses or otherwise negotiates a refund check issued to a taxpayer for a return or claim for refund prepared by the preparer is subject. b.00 A main source of revenues for most local governments is: Choose one answer. c. $500 d. property taxes. Includes Private Letter Rulings b. payroll taxes. a. d. Property taxes are the main source of revenues for local governments.
00 An accountant discovers an error on a client's returns.00 Paul Parrot. The letter also states that Paul has a right to file a protest if he does not agree with the proposal. Supreme Court. who lives in Paris. 60 c. receives a letter from the IRS stating that the result of a recent examination is a tax deficiency of $15.00/1. 15 The taxpayer has 30 days to file a written protest.00/1. 151 Marks: 1. Courts of Appeals and the U. a. 150 Marks: 1. Generally.000.d. Outlines the history of most Revenue Rulings The CCH Citator includes all BTA and Tax Court cases.00/1. The examination was handled by a revenue agent at Paul's art studio.S. his only place of business. 30 b. The Finding Lists section of the CCH Citator includes Private Letter Rulings reported by CCH in full text and outlines the history of most Revenue Rulings. Answer: True False 152 Marks: 1. as well as all tax related cases in the District Courts. Court of Federal Claims.00 . how many days does Paul have to file a written request? Choose one answer. 90 d. Texas. The accountant must advise the client and the Internal Revenue Service of the error.
a. After the IRS issues an acquiescence or nonacquiescence to a decision issued by the Tax Court. If the IRS "acquiesces" it accepts the court's conclusion and follows it in disputes involving other taxpayers with similar situations. the case citation is followed by an (Acq. a. 153 Marks: 1. 154 Marks: 1." it does not accept the court's conclusion and does not intend to follow the decision in disputes involving other taxpayers with similar situations. No limitation c.What is the applicable length of time for the statute of limitations on assessment of taxes if the taxpayer willfully evades taxes? Choose one answer.00 ." it accepts the court's conclusion but does not intend to follow the decision in disputes involving other taxpayers with similar situations. If the IRS issues a "nonacquiescence. d. b. 6 years b. 18 months d.00/1. If the IRS issues a "nonacquiescence" it does not accept the court's conclusion and does not intend to follow the decision in disputes involving other taxpayers with similar situations. c.00 Which of the following statements is not true with respect to IRS/taxpayer litigation? Choose one answer. 3 years There is no limitation on the statute of limitations if the taxpayer willfully evades taxes.) or (Nonacq.). If the IRS issues a "nonacquiescence.00/1.
The Tax Court can choose to issue an opinion as a "Regular" opinion if it considers the case to be important or expressive of a new point not covered in its other published opinions. if Choose one answer. Both the taxpayer and the IRS petition for publication of the opinion as a "Regular" decision. c.00/1.00/1.Research products prepared by publishing companies can be relied on as primary tax authorities. 156 Marks: 1. b. Answer: True False 155 Marks: 1. The amount at issue exceeds $25.00 The Tax Court may issue an opinion as a "Regular.000 (for individuals. a." as opposed to a "Memorandum" opinion. d. The issue involves the Constitutional validity of any federal revenue-raising provision. trusts and estates) or $100.000 (for all other taxpayers).00 A practitioner who is an income tax return preparer and who files a power of attorney with the Internal Revenue Service may receive and endorse a taxpayer's refund check. The Tax Court considers the case to be expressive of a new point not previously covered by one of its published decisions. Answer: True False .
a.00/1." c. Tax planning for timber and forest investments d.00/1." 158 Marks: 1. a. The taxpayer may represent himself or herself.00 Which of the following may not occur during the Appeals conference? Choose one answer. New issues may be raised only if the grounds for such action are "substantial.00/1. 159 Marks: 1. d.157 Marks: 1. b. Macro-economic tax projections b. The Appeals Officer may request that the taxpayer submit additional information which could involve additional conferences. Representing a client before the IRS The tax practitioner is often called upon to represent a client before the Audit and Appellate divisions of the IRS. The Appeals Office may resolve controversies between the taxpayer and the IRS by considering the "hazards of litigation. Tax planning for nonprofit organizations c.00 The term "Practice before the IRS" refers to: Choose one answer. New issues may be raised by the Appeals Officer regardless of the reasons for raising them.00 .
S.00 The Internal Revenue Code of 1939 replaced the piecemeal annual revenue acts.00 All U.The U. Answer: True False .00/1.S. Supreme Court is not obligated to hear all tax cases that are appealed to it. Answer: True False 161 Marks: 1. Answer: True False 160 Marks: 1.00/1. taxes are based on an individual's income.
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