Question 1

A treasure trove is taxable when sold or exchanged.

Accepted Answer

A) True 
 B)False

Question 2

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 task-based simulations 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) A) and E)
G) A) and B)

Question 3

A tax professional need not worry about the relative weight of authority within the various tax law sources.

Accepted Answer

A) True 
 B)False

Question 4

Revenue tax measures typically originate in the Senate Finance Committee of the U.S. Congress.

Accepted Answer

A) True 
 B)False

Question 5

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

Question 6

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 This absence means these sections were repealed by Congress.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 7

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

Question 8

Which is a primary source of tax law?

Accepted Answer

A)   Serverino R. Nico, Jr., 67 T.C. 647 (1977) .
B)   Article by a Federal judge in Tax Notes.
C)   An IRS publication.
D)   Written determination letter.
E)   All of these are primary sources.F) B) and D)
G) C) and E)

Question 9

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 these.F) D) and E)
G) B) and E)

Question 10

A taxpayer may not appeal a case from which court:

Accepted Answer

A)   U.S. District Court.
B)   U.S. Circuit Court of Appeals.
C)   U.S. Court of Federal Claims.
D)   Small Case Division of the U.S. Tax Court.
E)   None of these.F) A) and B)
G) B) and D)

Question 11

Which publisher offers the Standard Federal Tax Reporter?

Accepted Answer

A)   Research Institute of America
B)   Commerce Clearing House
C)   Thomson Reuters
D)   LexisNexis
E)   None of theseF) A) and C)
G) None of the above

Question 12

If a taxpayer decides not to pay a tax deficiency, he or she must go to which court?

Accepted Answer

A)   Appropriate U.S. Circuit Court of Appeals
B)   U.S. District Court
C)   U.S. Tax Court
D)   U.S. Court of Federal Claims
E)   None of theseF) All of the above
G) A) and B)

Question 13

What are Treasury Department Regulations?

Accepted Answer

Regulations are issued by the U.S. Treas...

Question 14

Discuss the advantages and disadvantages of the Small Cases Division of the U.S. Tax Court.

Accepted Answer

There is no appeal from the Small Cases ...

Question 15

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 16

The research process should always begin with a tax service.

Accepted Answer

A) True 
 B)False

Question 17

The following citation is correct: Larry G. Mitchell, 131 T.C. 215 (2008).

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

Technical Advice Memoranda deal with completed transactions.

Accepted Answer

A) True 
 B)False

Question 20

Which items tell taxpayers the IRS's reaction to certain court decisions?

Accepted Answer

A)   Notices
B)   Revenue Procedures
C)   Revenue Rulings
D)   Actions on Decisions
E)   Legislative RegulationsF) A) and B)
G) A) and C)

Exam 2: Working With the Tax Law

A tax professional need not worry about the relative weight of authority within the various tax law sources.

Correct AnswerverifiedShow Answer

Which is a primary source of tax law?

Correct AnswerverifiedShow Answer

Technical Advice Memoranda deal with completed transactions.

Correct AnswerverifiedShow Answer

The following citation is correct: Larry G. Mitchell, 131 T.C. 215 (2008).

Correct AnswerverifiedShow Answer

Discuss the advantages and disadvantages of the Small Cases Division of the U.S. Tax Court.

Correct AnswerverifiedThere is no appeal from the Small Cases ...View AnswerShow Answer

Which publisher offers the Standard Federal Tax Reporter?

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

Revenue tax measures typically originate in the Senate Finance Committee of the U.S. Congress.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A taxpayer may not appeal a case from which court:

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

Which items tell taxpayers the IRS's reaction to certain court decisions?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A treasure trove is taxable when sold or exchanged.

Correct AnswerverifiedShow Answer

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

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

If a taxpayer decides not to pay a tax deficiency, he or she must go to which court?

Correct AnswerverifiedShow Answer

What are Treasury Department Regulations?

Correct AnswerverifiedRegulations are issued by the U.S. Treas...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

The research process should always begin with a tax service.

Correct AnswerverifiedShow Answer

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There is no appeal from the Small Cases ...
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The U.S. Tax Court hears only tax cases ...
View Answer

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Regulations are issued by the U.S. Treas...
View Answer

Correct Answer
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Correct Answer
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