Question 1

The domestic production activities deduction is structured so as to create jobs.

Accepted Answer

A) True 
 B)False

Question 2

A Revenue Ruling is a legislative source of Federal tax law.

Accepted Answer

A) True 
 B)False

Question 3

A jury trial is available in a Court of Appeals situation.

Accepted Answer

A) True 
 B)False

Question 4

Unlike determination letters, letter rulings are issued by the National Office of the IRS.

Accepted Answer

A) True 
 B)False

Question 5

Regulations may first be found in:

Accepted Answer

A)   Federal Register.
B)   Cumulative Bulletin.
C)   Internal Revenue Bulletin.
D)   I.R.S. Digest.
E)   All of the above.F) B) and E)
G) None of the above

Question 6

One Code section enables shareholders in a small business corporation to obtain an ordinary deduction for any loss recognized on a stock investment.

Accepted Answer

A) True 
 B)False

Question 7

When there is a direct conflict between a Code section and a treaty provision, the most recent item takes precedence.

Accepted Answer

A) True 
 B)False

Question 8

Revenue Rulings carry the same legal force and effect as Regulations.

Accepted Answer

A) True 
 B)False

Question 9

A Memorandum decision of the U.S. Tax Court could be cited as:

Accepted Answer

A)   37 AFTR 2d 456.
B)   T.C. Memo. 1990-650.
C)   68­1 USTC ¶ 9200.
D)   All of the above.
E)   None of the above.F) A) and E)
G) A) and B)

Question 10

Which court decision is generally more authoritative?

Accepted Answer

A)   A U.S. Tax Court decision.
B)   Court of Federal Claims decision.
C)   District Court decision.
D)   U.S. Court of Appeals decision.
E)   U.S. Tax Court Memorandum decision.F) A) and C)
G) D) and E)

Question 11

The Federal tax law allows a taxpayer to claim a deduction for state and local income taxes.

Accepted Answer

A) True 
 B)False

Question 12

What impact has the community property system had on our Federal tax laws?

Accepted Answer

The position of the residents of communi...

Question 13

Regarding technical advice memoranda, which statement is incorrect?

Accepted Answer

A)   Issued by the National Office of IRS.
B)   Most often deal with a completed transaction.
C)   May be cited and used as precedent.
D)   Issued with multi-digit file numbers.
E)   None are incorrect.F) B) and C)
G) A) and B)

Question 14

A Technical Advice Memorandum is issued by:

Accepted Answer

A)   Treasury Department.
B)   National Office of the IRS.
C)   Office of Chief Council.
D)   Area Director.
E)   None of the above.F) D) and E)
G) A) and E)

Question 15

Taxpayers may look at Committee Reports to determine the intent of Congress.

Accepted Answer

A) True 
 B)False

Question 16

Which citation refers to a Fourth Circuit Court of Appeals decision?

Accepted Answer

A)   40 T.C. 1018.
B)   2 TCM 205 (1951) .
C)   354 F.Supp. 1003 (D. Ct. Ga, 1972) .
D)   914 F.2d 396 (CA-3, 1990) .
E)   None of the above.F) C) and E)
G) C) and D)

Question 17

Which of the following sources has the highest tax validity?

Accepted Answer

A)   Treasury Regulation.
B)   Revenue Procedure.
C)   Internal Revenue Code.
D)   Temporary Regulation.
E)   All have the same weight.F) B) and C)
G) A) and E)

Question 18

Subchapter P refers to the subchapter in the Internal Revenue Code that deals with partners and partnerships.

Accepted Answer

A) True 
 B)False

Question 19

Although a corporation is subject to a Federal income tax, a partnership is not.

Accepted Answer

A) True 
 B)False

Question 20

Proposed Regulations are not published in the Federal Register.

Accepted Answer

A) True 
 B)False

Exam 1: Understanding and Working With the Federal Tax Law

When there is a direct conflict between a Code section and a treaty provision, the most recent item takes precedence.

Correct AnswerverifiedShow Answer

A Memorandum decision of the U.S. Tax Court could be cited as:

Correct AnswerverifiedShow Answer

Proposed Regulations are not published in the Federal Register.

Correct AnswerverifiedShow Answer

Unlike determination letters, letter rulings are issued by the National Office of the IRS.

Correct AnswerverifiedShow Answer

The domestic production activities deduction is structured so as to create jobs.

Correct AnswerverifiedShow Answer

Which court decision is generally more authoritative?

Correct AnswerverifiedShow Answer

Revenue Rulings carry the same legal force and effect as Regulations.

Correct AnswerverifiedShow Answer

Which citation refers to a Fourth Circuit Court of Appeals decision?

Correct AnswerverifiedShow Answer

The Federal tax law allows a taxpayer to claim a deduction for state and local income taxes.

Correct AnswerverifiedShow Answer

Although a corporation is subject to a Federal income tax, a partnership is not.

Correct AnswerverifiedShow Answer

A Revenue Ruling is a legislative source of Federal tax law.

Correct AnswerverifiedShow Answer

Regulations may first be found in:

Correct AnswerverifiedShow Answer

Subchapter P refers to the subchapter in the Internal Revenue Code that deals with partners and partnerships.

Correct AnswerverifiedShow Answer

A jury trial is available in a Court of Appeals situation.

Correct AnswerverifiedShow Answer

One Code section enables shareholders in a small business corporation to obtain an ordinary deduction for any loss recognized on a stock investment.

Correct AnswerverifiedShow Answer

What impact has the community property system had on our Federal tax laws?

Correct AnswerverifiedThe position of the residents of communi...View AnswerShow Answer

Which of the following sources has the highest tax validity?

Correct AnswerverifiedShow Answer

A Technical Advice Memorandum is issued by:

Correct AnswerverifiedShow Answer

Taxpayers may look at Committee Reports to determine the intent of Congress.

Correct AnswerverifiedShow Answer

Regarding technical advice memoranda, which statement is incorrect?

Correct AnswerverifiedShow Answer

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The position of the residents of communi...
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