Question 1

These Internal Revenue Code citations are incorrect: § 212(1) and § 1221(1).

Accepted Answer

A) True 
 B)False

Question 2

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) A) and C)

Question 3

A decision in which of the following courts carries the lowest tax authority?

Accepted Answer

A)  U.S. Court of Appeals for the Federal Circuit.
B)  U.S. Court of Appeals for the Second Circuit.
C)  U.S. District Court.
D)  U.S. Supreme Court.
E)  U.S. Court of Appeals Federal Circuit.F) A) and B)
G) A) and C)

Question 4

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 D)
G) A) and E)

Question 5

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

Accepted Answer

The position of the residents of communi...

Question 6

Which trial court's jurisdiction depends on the geographical location of the taxpayer?

Accepted Answer

A)  U.S. Tax Court.
B)  U.S. District Court.
C)  U.S. Court of Federal Claims.
D)  Small Cases Division of the Tax Court.
E)  None of the above.F) A) and E)
G) A) and B)

Question 7

How does a treaty with a foreign country impact a section in the Internal Revenue Code?

Accepted Answer

The United States enters into tax treati...

Question 8

Appeals from the U.S. Court of Federal Claims go to the U.S. Supreme Court.

Accepted Answer

A) True 
 B)False

Question 9

Explain the Golsen doctrine.

Accepted Answer

Because the Tax Court is a national cour...

Question 10

Which state is not a community property state?

Accepted Answer

A)  Arizona.
B)  Texas.
C)  New Mexico
D)  Virginia
E)  None of the above.F) B) and C)
G) B) and D)

Question 11

Which statement is not true about this citation: Bonkowski v. Comm., 29 TCM 1645 (1970) , aff'd 458 F.2d 709 (CA-7, 1972) , cert. den.?

Accepted Answer

A)  The Supreme Court decided not to agree or disagree with the Seventh Court of Appeals.
B)  The Seventh Court of Appeals disagreed with the Tax Court.
C)  The Tax Court decision starts on page 1645.
D)  The Seventh Court of Appeals decision appears in Vol. 458.
E)  All of the above.F) A) and B)
G) C) and D)

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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) A) and E)
G) None of the above

Question 14

The United States Federal government has a provision in the Constitution which precludes deficit spending.

Accepted Answer

A) True 
 B)False

Question 15

A jury trial is available when a case is heard by a U.S. Court of Appeals.

Accepted Answer

A) True 
 B)False

Question 16

Federal tax legislation generally originates in what body?

Accepted Answer

A)  House Budget Committee.
B)  Senate Finance Committee.
C)  House Ways and Means Committee.
D)  House Taxation Committee.
E)  None of the above.F) B) and C)
G) A) and E)

Question 17

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

Accepted Answer

A)  Aff'd 633 F. 2d 512 (CA-7, 1980) .
B)  Rem'd 399 F. 2d 800 (CA-5, 1968) .
C)  Rev'd 914 F. 2d 396 (CA-3, 1990) .
D)  Rev'd 935 F. 2d 203 (CA-5, 1991) .
E)  None of the above.F) B) and C)
G) None of the above

Question 18

Determine the incorrect citation:

Accepted Answer

A)  TAM 20002704.
B)  George W. Guill, 112 T.C.__, No. 22 (1999) .
C)  John H. Wong, T.C. Summary Opinion 2009-152.
D)  Rev. Rul. 98-32, 1998-25 I.R.B. 4.
E)  None of the above.F) None of the above
G) B) and C)

Question 19

Treasury Decisions are issued by the Treasury Department to promulgate new Regulations.

Accepted Answer

A) True 
 B)False

Question 20

Which provision could best be justified as encouraging small business?

Accepted Answer

A)  Ordinary loss allowed on § 1244 stock.
B)  Percentage depletion.
C)  Domestic production activities deduction.
D)  Interest deduction on home mortgage.
E)  None of the above.F) A) and E)
G) B) and C)

Exam 1: Understanding and Working With the Federal Tax Law

Which statement is not true about this citation: Bonkowski v. Comm., 29 TCM 1645 (1970) , aff'd 458 F.2d 709 (CA-7, 1972) , cert. den.?

Correct AnswerverifiedShow Answer

A jury trial is available when a case is heard by a U.S. Court of Appeals.

Correct AnswerverifiedShow Answer

Which of the following sources has the highest tax validity?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Treasury Decisions are issued by the Treasury Department to promulgate new Regulations.

Correct AnswerverifiedShow Answer

A decision in which of the following courts carries the lowest tax authority?

Correct AnswerverifiedShow Answer

These Internal Revenue Code citations are incorrect: § 212(1) and § 1221(1).

Correct AnswerverifiedShow Answer

Which citation is considered to be a legislative citation?

Correct AnswerverifiedShow Answer

How does a treaty with a foreign country impact a section in the Internal Revenue Code?

Correct AnswerverifiedThe United States enters into tax treati...View AnswerShow Answer

Appeals from the U.S. Court of Federal Claims go to the U.S. Supreme Court.

Correct AnswerverifiedShow Answer

Explain the Golsen doctrine.

Correct AnswerverifiedBecause the Tax Court is a national cour...View AnswerShow Answer

Which trial court's jurisdiction depends on the geographical location of the taxpayer?

Correct AnswerverifiedShow Answer

Determine the incorrect citation:

Correct AnswerverifiedShow Answer

Regulations may first be found in:

Correct AnswerverifiedShow Answer

Federal tax legislation generally originates in what body?

Correct AnswerverifiedShow Answer

Which state is not a community property state?

Correct AnswerverifiedShow Answer

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

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

The United States Federal government has a provision in the Constitution which precludes deficit spending.

Correct AnswerverifiedShow Answer

Which provision could best be justified as encouraging small business?

Correct AnswerverifiedShow Answer

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The United States enters into tax treati...
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Because the Tax Court is a national cour...
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The position of the residents of communi...
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