ANSWER: False TemporaryRegulationsareonlypublishedintheInternalRevenueBulletin. True False ANSWER: RATIONALE:TheyarepublishedintheFederalRegisterandtheInternalRevenueBulletin. RevenueRulingsissuedbytheNationalOfficeoftheIRScarrythesamelegalforceandeffectasRegulations. True False ANSWER: False RATIONALE:TheydonotcontainthesamelegalforceasRegulations.Thatis,thelegalforceisless. ARevenueRulingisajudicialsourceofFederaltaxlaw. True False ANSWER: RATIONALE:ARevenueRulingisanadministrativesource. Thefollowingcitationcanbeacorrectcitation:Rev.Rul.95-271,I.R.B.No.54,18. True ANSWER: False correct. RevenueProceduresdealwiththeinternalmanagementpracticesandproceduresoftheIRS. True False ANSWER: True True False ANSWER: True Aletterrulingappliesonlytothetaxpayerwhoasksforandobtainsaletterruling. True False
ANSWER: True TheIRSisnotrequiredtomakealetterrulingpublic. True False ANSWER: False Determinationlettersusuallyinvolvefinalizedtransactions. True False ANSWER: True TechnicalAdviceMemorandadealwithcompletedtransactions. True False ANSWER: True RATIONALE:TAMsdealwithcompletedtransactions. True False ANSWER: True InaU.S.DistrictCourt,ajurycandecidebothquestionsoffactandquestionsoflaw. True False ANSWER: RATIONALE:Questionsoflawareresolvedbythepresidingjudge. ThreejudgeswillnormallyheareachU.S.TaxCourtcase. True False ANSWER: False AtaxpayercanobtainajurytrialintheU.S.TaxCourt. True ANSWER: False
RATIONALE:AjurytrialisavailableonlyinaU.S.DistrictCourt. AtaxpayermustpayanytaxdeficiencyassessedbytheIRSandsueforarefundtobringsuitintheU.S.DistrictCourt. True False ANSWER: True RATIONALE:The tax ArizonaisinthejurisdictionoftheEighthCircuitCourtofAppeals. True False ANSWER: False RATIONALE:ArizonaisinthejurisdictionoftheNinthCircuit. TexasisinthejurisdictionoftheSecondCircuitCourtofAppeals. True ANSWER: RATIONALE:TexasisinthejurisdictionoftheFifthCircuit. TheGolsenrulehasbeenoverturnedbytheU.S.SupremeCourt. True False ANSWER: RATIONALE:TheGolsenruleisfollowedbytheU.S.TaxCourt. True False ANSWER: True The“petitioner”referstothepartyagainstwhomasuitisbrought. True False ANSWER: RATIONALE:The“defendant”isthepartyagainstwhomasuitis brought.
Theterm“petitioner”isasynonymfor“defendant.” True False ANSWER: False RATIONALE:Theterm“petitioner”isasynonymfor“plaintiff.” TheU.S.TaxCourtmeetsmostofteninWashington,D.C. True False ANSWER: False RATIONALE:TaxCourtjudgestraveltovariouscities. Thereare11geographicU.S.CircuitCourtofAppeals. True ANSWER: True Thefollowingcitationiscorrect:LarryG.Mitchell,131T.C.215(2008). True ANSWER: True TheIRSissuesanacquiescenceornonacquiescenceonlyforregularTaxCourtdecisions. True False ANSWER: False RATIONALE:After1990,theIRSissuesitsacquiescenceprogramforotherciviltaxcases. True False ANSWER: RATIONALE:Themostrecentitemtakesprecedence. AU.S.DistrictCourtisthelowesttrialcourt. True ANSWER: True Theresearchprocessshouldbeginwithataxservice.
True ANSWER: False RATIONALE:Iftheresearchissimple,aresearchermaystartwiththeCodeorRegulations. TheInternalRevenueCodewasfirstcodifiedinwhatyear?a.1913. b.1923. c.1939. d.1954. e.1986. ANSWER: c TaxbillsarehandledbywhichcommitteeintheU.S.HouseofRepresentatives? TaxationCommittee. WaysandMeansCommittee. FinanceCommittee. BudgetCommittee. Noneoftheabove. ANSWER: b Federaltaxlegislationgenerallyoriginatesinwhatbody? InternalRevenueService. SenateFinanceCommittee. HouseWaysandMeansCommittee. SenateFloor. Noneoftheabove. ANSWER: c SubtitleAoftheInternalRevenueCodecoverswhichofthefollowingtaxes? Incometaxes. Estateandgifttaxes. Excisetaxes. Employmenttaxes. Alloftheabove. ANSWER: a In§212(1),thenumber(1)standsforthe: Sectionnumber. Subsectionnumber. Paragraphdesignation. Subparagraphdesignation. Noneoftheabove.
ANSWER: a Whichitemmaynotbecitedasaprecedent? Regulations. TemporaryRegulations. TechnicalAdviceMemoranda. U.S.DistrictCourtdecision. Noneoftheabove. ANSWER: c WhatstatementisnottruewithrespecttoTemporaryRegulations? Maynotbecitedasprecedent. IssuedasProposedRegulations. Automaticallyexpirewithinthreeyearsafterthedateofissuance. FoundintheFederalRegister. Alloftheabovestatementsaretrue. ANSWER: a Whatadministrativereleasedealswithaproposedtransactionratherthanacompletedtransaction? LetterRuling. TechnicalAdviceMemorandum. DeterminationLetter. FieldServiceAdvice. Noneoftheabove. ANSWER: a AtaxpayerwholosesinaU.S.DistrictCourtmayappealdirectlytothe: U.S.SupremeCourt. U.S.TaxCourt. U.S.CourtofFederalClaims. U.S.CircuitCourtofAppeals. Alloftheabove. ANSWER: d RATIONALE:AppealsfromaU.S.DistrictCourtgotothetaxpayer’shomecircuitoftheU.S.CircuitCourtofAppeals. Ifataxpayerdecidesnottopayataxdeficiency,heorshemustgotowhichcourt? AppropriateU.S.CircuitCourtofAppeals. U.S.DistrictCourt. U.S.TaxCourt. U.S.CourtofFederalClaims. Noneoftheabove. ANSWER: c
ResearchInstituteofAmerica. CommerceClearingHouse. LexisNexis. TaxAnalysts. Noneoftheabove. ANSWER: a Whensearchingonanonlinetaxservice,whichapproachismorefrequentlyused? Codesectionapproach. Keywordapproach. Tableofcontentsapproach. Allareaboutthesame. ANSWER: b Aresearchercanfindtaxinformationonhomepagesitesof: Governmentalbodies. Taxacademics. Publishers. CPAfirms. Alloftheabove. ANSWER: e Taxresearchinvolveswhichofthefollowingprocedures: Identifyingandrefiningtheproblem. Locatingtheappropriatetaxlawsources. Assessingthevalidityofthetaxlawsources. Follow-up. Alloftheabove. ANSWER: e Whichtax-relatedwebsiteprobablygivesthebestpolicy-orientationresults? taxalmanac.org. irs.gov. taxsites.com. taxanalysts.com. ustaxcourt.gov. ANSWER: d Whichcourtdecisionwouldprobablycarrymoreweight? RegularU.S.TaxCourtdecision.
ReviewedU.S.TaxCourtdecision. U.S.DistrictCourtdecision. MemorandumTaxCourtdecision. U.S.CourtofFederalClaims. ANSWER: b WhichRegulationshavetheforceandeffectoflaw? ProceduralRegulations. FinalizedRegulations. LegislativeRegulations. InterpretiveRegulations. Alloftheabove. ANSWER: c Whichcourtdecisioncarriesmoreweight? FederalDistrictCourt. SecondCircuitCourtofAppeals. MemorandumU.S.TaxCourtdecision. SmallCasesDivisionofU.S.TaxCourt. U.S.CourtofFederalClaims. ANSWER: b Whichcompanydoesnotpublishcitatorsfortaxpurposes? JohnWiley&Sons. CommerceClearingHouse. ResearchInstituteofAmerica. Westlaw. Shepard’s. ANSWER: a e.Alloftheaboveareprimarysources. ANSWER: e WhichstatementisincorrectwithrespecttotaxationontheCPAexam? TheCPAexamnowhasonlyfourparts. Therearenolongercasestudiesontheexam. Acandidatemaynotgobackafterexitingatestlet.
Simulationsincludeafour-functionpop-upcalculator. Noneoftheaboveareincorrect. ANSWER: b HowcanCongressionalcommitteereportsbeusedbyataxresearcher? ANSWER: WhatareTreasuryDepartmentRegulations? ANSWER: RegulationsareissuedbytheU.S.TreasuryDepartmentunderauthoritygrantedbyCongress. CompareRevenueRulingswithRevenueProcedures. ANSWER: WhatisaTechnicalAdviceMemorandum? ANSWER: DiscusstheadvantagesanddisadvantagesoftheSmallCasesDivisionoftheU.S.TaxCourt. ANSWER: