Question 1

Identify the number of the Court(s)  of Federal Claims.

Accepted Answer

A)   1.
B)   3.
C)   16.
D)   19.
E)   None of the above is correct.F) A) and B)
G) All of the above

Question 2

Revenue Rulings are published semiannually in the:

Accepted Answer

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

Question 3

What are the key components of tax planning?

Accepted Answer

The answer of What are the key components of tax...

Question 4

Letter rulings may not be substantial authority for purposes of the accuracy-related penalty in § 6662.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Which citation is considered to be a legislative citation?

Accepted Answer

A)   Ltr. Rul. 199952058.
B)   Ann. 94-5, 1994-2 I.R.B. 39.
C)   Reg. § 1.1014-1(c) (1) .
D)   § 351.
E)   None of the above.F) D) and E)
G) C) and D) D

Question 7

Saving leads to capital formation and thus makes funds available to finance home construction and industrial expansion.

Accepted Answer

A) True 
 B)False

Question 8

Some Regulations are arranged in different sequence than the Code.

Accepted Answer

A) True 
 B)False

Question 9

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

Question 10

The Hope scholarship credit can be explained by economic considerations.

Accepted Answer

A) True 
 B)False

Question 11

Revenue Procedures deal with the internal management practices and procedures of the IRS.

Accepted Answer

A) True 
 B)False

Question 12

Interpret the following citation: 64-1 USTC ¶ 9618, aff'd in 344 F. 2d 966.

Accepted Answer

A)   A U.S. Tax Court Small Cases Division decision that was affirmed on appeal.
B)   A U.S. Tax Court decision that was affirmed on appeal.
C)   A U.S. District Court decision that was affirmed on appeal.
D)   A U.S. Circuit Court of Appeals decision that was affirmed on appeal.
E)   None of the above.F) All of the above
G) A) and E)

Question 13

Which of the following is an administrative source of tax law?

Accepted Answer

A)   Rev. Proc. 2010-3.
B)   Joint Conference Committee Report.
C)   Section 12(a)  of the Internal Revenue Code.
D)   All of the above.
E)   None of the above.F) A) and C)
G) B) and C)

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) A) and D)
G) C) and D)

Question 15

Which citation refers to a U.S. Tax Court decision?

Accepted Answer

A)   Appollo Computer, Inc. v. U.S., 95-1 USTC ¶ 50,015 (Fed. Cl., 1994) .
B)   Westreco, Inc., T.C. Memo. 1992-561 (1992) .
C)   Bausch & Lomb, Inc. v. Comm., 933 F. 2d 1084 (CA-2, 1991) .
D)   Portland Manufacturing Co. v. Comm., 35 AFTR 2d 1439 (CA-9, 1975) .
E)   None of the above.F) B) and E)
G) D) and E) B

Question 16

Many states have balanced budgets because laws or constitutional amendments preclude deficit spending.

Accepted Answer

A) True 
 B)False

Question 17

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) D) and E)
G) B) and C)

Question 18

Longer class lives for depreciable property and the required use of straight-line method of depreciation should dampen the tax incentive for purchasing capital assets.

Accepted Answer

A) True 
 B)False

Question 19

Determine the incorrect citation:

Accepted Answer

A)   Ltr. Rul. 20012305.
B)   George W. Guill, 112 T.C.__, No. 22 (1999) .
C)   Ltr. Rul. 200108052.
D)   Rev. Rul, 98-32, I.R.B. No. 25, 4.
E)   None of the above.F) None of the above
G) C) and E)

Question 20

Which provision could best be justified as a means of controlling the economy?

Accepted Answer

A)   Write-off of research and development expenditures.
B)   Accelerated depreciation method for depreciable capital expenditures.
C)   Amortization of pollution control facilities.
D)   The rehabilitation tax credit.
E)   None of the above.F) A) and D)
G) B) and D) B

Exam 1: Understanding and Working With the Federal Tax Law

Identify the number of the Court(s) of Federal Claims.

Correct AnswerverifiedShow Answer

Revenue Rulings are published semiannually in the:

Correct AnswerverifiedShow Answer

What are the key components of tax planning?

Correct AnswerverifiedShow Answer

Letter rulings may not be substantial authority for purposes of the accuracy-related penalty in § 6662.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which citation is considered to be a legislative citation?

Correct AnswerverifiedD

Saving leads to capital formation and thus makes funds available to finance home construction and industrial expansion.

Correct AnswerverifiedShow Answer

Some Regulations are arranged in different sequence than the Code.

Correct AnswerverifiedShow Answer

Regulations may first be found in:

Correct AnswerverifiedShow Answer

The Hope scholarship credit can be explained by economic considerations.

Correct AnswerverifiedShow Answer

Revenue Procedures deal with the internal management practices and procedures of the IRS.

Correct AnswerverifiedShow Answer

Interpret the following citation: 64-1 USTC ¶ 9618, aff'd in 344 F. 2d 966.

Correct AnswerverifiedShow Answer

Which of the following is an administrative source of tax law?

Correct AnswerverifiedShow Answer

A technical advice memorandum is issued by:

Correct AnswerverifiedShow Answer

Which citation refers to a U.S. Tax Court decision?

Correct AnswerverifiedB

Many states have balanced budgets because laws or constitutional amendments preclude deficit spending.

Correct AnswerverifiedShow Answer

Regarding technical advice memoranda, which statement is incorrect?

Correct AnswerverifiedShow Answer

Longer class lives for depreciable property and the required use of straight-line method of depreciation should dampen the tax incentive for purchasing capital assets.

Correct AnswerverifiedShow Answer

Determine the incorrect citation:

Correct AnswerverifiedShow Answer

Which provision could best be justified as a means of controlling the economy?

Correct AnswerverifiedB

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D

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B

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B