Question 1

How do treaties fit within tax sources?

Accepted Answer

The U.S signs certain tax treaties (sometimes called tax conventions) with foreign countries to render mutual assistance in tax enforcement and to avoid double taxation.Tax legislation enacted in 1988 provided that neither a tax law nor a tax treaty takes general precedence.Thus, when there is a direct conflict with the Code and a treaty, the most recent item will take precedence.A taxpayer must disclose on the tax return any position where a treaty overrides a tax law.There is a $1,000 penalty per failure to disclose for individuals and a $10,000 per failure penalty for corporations.

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

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 case studies 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 the above are incorrect.F) A) and D)
G) D) and E)

Question 4

A taxpayer can obtain a jury trial in the U.S.Court of Federal Claims.

Accepted Answer

A) True 
 B)False

Question 5

Subtitle A of the Internal Revenue Code covers which of the following taxes?

Accepted Answer

A)  Income taxes.
B)  Estate and gift taxes.
C)  Excise taxes.
D)  Employment taxes.
E)  All of the above.F) All of the above
G) A) and B)

Question 6

The "respondent" refers to the party against whom a suit is brought.

Accepted Answer

A) True 
 B)False

Question 7

The term "petitioner" is a synonym for "defendant."

Accepted Answer

A) True 
 B)False

Question 8

The granting of a Writ of Certiorari indicates that at least four members of the Supreme Court believe that an issue is of sufficient importance to be heard by the full court.

Accepted Answer

A) True 
 B)False

Question 9

Which item may not be cited as a precedent?

Accepted Answer

A)  Regulations.
B)  Temporary Regulations.
C)  Technical Advice Memoranda.
D)  U.S.District Court decision.
E)  None of the above.F) C) and E)
G) D) and E) C

Question 10

When searching on an online tax service, which approach is more frequently used?

Accepted Answer

A)  Code section approach.
B)  Keyword approach.
C)  Table of contents approach.
D)  Index.
E)  All are about the same.F) A) and B)
G) A) and E)

Question 11

What is the role of the Joint Conference Committee in the legislative process?

Accepted Answer

When the Senate version of a bill differ...

Question 12

A General Counsel Memorandum is a primary source of tax law.

Accepted Answer

A) True 
 B)False

Question 13

Where can a researcher not find a U.S. Court of Appeals decision?

Accepted Answer

A)   Federal 3d (West) .
B)   F. Supp. 2d Series (West) .
C)   AFTR (RI
A)  .
D)   USTC (CCH) .
E)   None of the above.F) A) and D)
G) D) and E)

Question 14

Compare Revenue Rulings with Revenue Procedures.

Accepted Answer

Revenue Rulings are official pronounceme...

Question 15

A taxpayer must pay any tax deficiency assessed by the IRS and sue for a refund to bring suit in the U.S.Court of Federal Claims.

Accepted Answer

A) True 
 B)False

Question 16

A letter ruling applies only to the taxpayer who asks for and obtains a letter ruling.

Accepted Answer

A) True 
 B)False

Question 17

Which publisher offers the United States Tax Reporter?

Accepted Answer

A)  Research Institute of America.
B)  Commerce Clearing House.
C)  LexisNexis.
D)  Tax Analysts.
E)  None of the above.F) B) and C)
G) A) and E)

Question 18

What administrative release deals with a proposed transaction rather than a completed transaction?

Accepted Answer

A)  Letter Ruling.
B)  Technical Advice Memorandum.
C)  Determination Letter.
D)  Field Service Advice.
E)  None of the above.F) C) and D)
G) All of the above

Question 19

Which publisher offers the Standard Federal Tax Reporter?

Accepted Answer

A)  Research Institute of America.
B)  Commerce Clearing House.
C)  Prentice-Hall.
D)  LexisNexis.
E)  None of the above.F) A) and B)
G) C) and D)

Question 20

A Temporary Regulation under § 173 of the Code would be cited as follows: Temp.Reg.§ 173.

Accepted Answer

A) True 
 B)False  False

Exam 2: Working With the Tax Law

How do treaties fit within tax sources?

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

Correct Answer
verified

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

Correct Answer
verified

A taxpayer can obtain a jury trial in the U.S.Court of Federal Claims.

Correct Answer
verified

Subtitle A of the Internal Revenue Code covers which of the following taxes?

Correct Answer
verified

The "respondent" refers to the party against whom a suit is brought.

Correct Answer
verified

The term "petitioner" is a synonym for "defendant."

Correct Answer
verified

The granting of a Writ of Certiorari indicates that at least four members of the Supreme Court believe that an issue is of sufficient importance to be heard by the full court.

Correct Answer
verified

Which item may not be cited as a precedent?

Correct Answer
verified
C

When searching on an online tax service, which approach is more frequently used?

Correct Answer
verified

What is the role of the Joint Conference Committee in the legislative process?

Correct Answer
verified
When the Senate version of a bill differ...
View Answer

A General Counsel Memorandum is a primary source of tax law.

Correct Answer
verified

Where can a researcher not find a U.S. Court of Appeals decision?

Correct Answer
verified

Compare Revenue Rulings with Revenue Procedures.

Correct Answer
verified
Revenue Rulings are official pronounceme...
View Answer

A taxpayer must pay any tax deficiency assessed by the IRS and sue for a refund to bring suit in the U.S.Court of Federal Claims.

Correct Answer
verified

A letter ruling applies only to the taxpayer who asks for and obtains a letter ruling.

Correct Answer
verified

Which publisher offers the United States Tax Reporter?

Correct Answer
verified

What administrative release deals with a proposed transaction rather than a completed transaction?

Correct Answer
verified

Which publisher offers the Standard Federal Tax Reporter?

Correct Answer
verified

A Temporary Regulation under § 173 of the Code would be cited as follows: Temp.Reg.§ 173.

Correct Answer
verified
False

Exam 2: Working With the Tax Law

How do treaties fit within tax sources?

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A taxpayer can obtain a jury trial in the U.S.Court of Federal Claims.

Correct AnswerverifiedShow Answer

Subtitle A of the Internal Revenue Code covers which of the following taxes?

Correct AnswerverifiedShow Answer

The "respondent" refers to the party against whom a suit is brought.

Correct AnswerverifiedShow Answer

The term "petitioner" is a synonym for "defendant."

Correct AnswerverifiedShow Answer

The granting of a Writ of Certiorari indicates that at least four members of the Supreme Court believe that an issue is of sufficient importance to be heard by the full court.

Correct AnswerverifiedShow Answer

Which item may not be cited as a precedent?

Correct AnswerverifiedC

When searching on an online tax service, which approach is more frequently used?

Correct AnswerverifiedShow Answer

What is the role of the Joint Conference Committee in the legislative process?

Correct AnswerverifiedWhen the Senate version of a bill differ...View AnswerShow Answer

A General Counsel Memorandum is a primary source of tax law.

Correct AnswerverifiedShow Answer

Where can a researcher not find a U.S. Court of Appeals decision?

Correct AnswerverifiedShow Answer

Compare Revenue Rulings with Revenue Procedures.

Correct AnswerverifiedRevenue Rulings are official pronounceme...View AnswerShow Answer

A taxpayer must pay any tax deficiency assessed by the IRS and sue for a refund to bring suit in the U.S.Court of Federal Claims.

Correct AnswerverifiedShow Answer

A letter ruling applies only to the taxpayer who asks for and obtains a letter ruling.

Correct AnswerverifiedShow Answer

Which publisher offers the United States Tax Reporter?

Correct AnswerverifiedShow Answer

What administrative release deals with a proposed transaction rather than a completed transaction?

Correct AnswerverifiedShow Answer

Which publisher offers the Standard Federal Tax Reporter?

Correct AnswerverifiedShow Answer

A Temporary Regulation under § 173 of the Code would be cited as follows: Temp.Reg.§ 173.

Correct AnswerverifiedFalse

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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C

Correct Answer
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Correct Answer
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When the Senate version of a bill differ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Revenue Rulings are official pronounceme...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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False