Question 1

The tax return filing requirements for individual taxpayers only depend on the taxpayer's filing status.

Accepted Answer

A) True 
 B)False

Question 2

Josephine is considering taking a 6 month rotation in Paris for her job.Which type of authority may be especially helpful in determining the tax consequences of Josephine's job in Paris?

Accepted Answer

A)  Determination letter.
B)  Private letter ruling.
C)  Tax treaty.
D)  Regulation.
E)  Revenue procedure.F) C) and D)
G) A) and E)

Question 3

Which of the following has the highest authoritative weight?

Accepted Answer

A)  Legislative regulation.
B)  Private letter ruling.
C)  Revenue ruling.
D)  Action on decision.
E)  Revenue procedure.F) B) and C)
G) A) and E) A

Question 4

Which of the following has the lowest authoritative weight?

Accepted Answer

A)  Legislative regulation.
B)  Private letter ruling.
C)  Revenue ruling.
D)  Interpretative regulation.
E)  Revenue procedure.F) C) and D)
G) D) and E)

Question 5

Temporary Regulations have more authoritative weight than revenue rulings.

Accepted Answer

A) True 
 B)False

Question 6

Greg earned $20,500 this year and had $1,500 of federal income taxes withheld from his salary.Assuming that Greg will have a total tax liability of $1,000 (and thus will receive a $500)  refund,he:

Accepted Answer

A)  is required to file a tax return.
B)  is not required to file a tax return but should file a return anyway.
C)  is required to file a tax return but should not file because he owes no tax.
D)  is not required to file a tax return and should not file a return.
E)  None of these.F) A) and B)
G) A) and C)

Question 7

Princess,who resides in the 2nd Circuit,recently found a circuit court case that is favorable to her research question.Which of the following circuits would she prefer to have issued the opinion?

Accepted Answer

A)  2nd Circuit
B)  Federal Circuit
C)  1st Circuit
D)  2nd Circuit or the Federal Circuit
E)  None of theseF) D) and E)
G) C) and E)

Question 8

Corporations are required to file a tax return annually regardless of their taxable income.

Accepted Answer

A) True 
 B)False

Question 9

An acquiescence indicates that the IRS lost a court case and that it has decided to follow the court's ruling in the future.

Accepted Answer

A) True 
 B)False

Question 10

Under the tax law,taxpayers may be subject to both civil and criminal penalties for underpaying their tax liability (e.g. ,due to fraud) .

Accepted Answer

A) True 
 B)False

Question 11

For fraudulent tax returns,the statute of limitations for IRS assessment is ten years.

Accepted Answer

A) True 
 B)False

Question 12

If Paula requests an extension to file her tax return,the latest she could file her return without penalty is:

Accepted Answer

A)  September 15th.
B)  October 15th.
C)  August 15th.
D)  November 15th.
E)  None of these.F) B) and D)
G) A) and E) B

Question 13

The statute of limitations for IRS assessment generally ends four years after the date a tax return is filed.

Accepted Answer

A) True 
 B)False

Question 14

If a taxpayer loses a case at the Circuit Court level,he is granted an automatic appeal hearing with the Supreme Court.

Accepted Answer

A) True 
 B)False

Question 15

Bill filed his 2013 tax return on March 15th,2014.The statute of limitations for IRS assessment on Bill's 2013 tax return should end:

Accepted Answer

A)  March 15th,2016.
B)  April 15th,2016.
C)  March 15th,2017.
D)  April 15th,2017.
E)  None of thesE.The SOL ends three years from the later of (1)  the date the tax return was filed or (2)  the tax return's original due date.F) B) and C)
G) A) and E)

Question 16

Joel claimed a high amount of charitable contributions as a deduction on his tax return relative to taxpayers with similar income levels.The information matching program is the IRS program most likely to identify Joel's tax return for audit.

Accepted Answer

A) True 
 B)False

Question 17

If a taxpayer is unable to file a tax return by its original due date,the taxpayer can request an automatic 9-month extension to file the return.

Accepted Answer

A) True 
 B)False

Question 18

Lavonda discovered that the 5th Circuit (where Lavonda resides)  has recently issued a favorable opinion with respect to an issue that she is going to litigate with the IRS.Lavonda should choose which of the following trial courts to hear her case:

Accepted Answer

A)  Tax Court only.
B)  U.S.Court of Federal Claims only.
C)  U.S.District Court only.
D)  Tax Court or the U.S.District Court.
E)  Tax Court or the U.S.Court of Federal Claims.F) C) and D)
G) B) and E)

Question 19

Secondary authorities are official sources of the tax law with a lesser "weight" than primary authorities.

Accepted Answer

A) True 
 B)False  False

Question 20

A taxpayer can avoid an underpayment penalty if there is substantial authority that supports her tax return position.

Accepted Answer

A) True 
 B)False

Exam 2: Tax Compliance, the Irs, and Tax Authorities

The tax return filing requirements for individual taxpayers only depend on the taxpayer's filing status.

Correct AnswerverifiedShow Answer

Josephine is considering taking a 6 month rotation in Paris for her job.Which type of authority may be especially helpful in determining the tax consequences of Josephine's job in Paris?

Correct AnswerverifiedShow Answer

Which of the following has the highest authoritative weight?

Correct AnswerverifiedA

Which of the following has the lowest authoritative weight?

Correct AnswerverifiedShow Answer

Temporary Regulations have more authoritative weight than revenue rulings.

Correct AnswerverifiedShow Answer

Greg earned $20,500 this year and had $1,500 of federal income taxes withheld from his salary.Assuming that Greg will have a total tax liability of $1,000 (and thus will receive a $500) refund,he:

Correct AnswerverifiedShow Answer

Princess,who resides in the 2nd Circuit,recently found a circuit court case that is favorable to her research question.Which of the following circuits would she prefer to have issued the opinion?

Correct AnswerverifiedShow Answer

Corporations are required to file a tax return annually regardless of their taxable income.

Correct AnswerverifiedShow Answer

An acquiescence indicates that the IRS lost a court case and that it has decided to follow the court's ruling in the future.

Correct AnswerverifiedShow Answer

Under the tax law,taxpayers may be subject to both civil and criminal penalties for underpaying their tax liability (e.g. ,due to fraud) .

Correct AnswerverifiedShow Answer

For fraudulent tax returns,the statute of limitations for IRS assessment is ten years.

Correct AnswerverifiedShow Answer

If Paula requests an extension to file her tax return,the latest she could file her return without penalty is:

Correct AnswerverifiedB

The statute of limitations for IRS assessment generally ends four years after the date a tax return is filed.

Correct AnswerverifiedShow Answer

If a taxpayer loses a case at the Circuit Court level,he is granted an automatic appeal hearing with the Supreme Court.

Correct AnswerverifiedShow Answer

Bill filed his 2013 tax return on March 15th,2014.The statute of limitations for IRS assessment on Bill's 2013 tax return should end:

Correct AnswerverifiedShow Answer

Joel claimed a high amount of charitable contributions as a deduction on his tax return relative to taxpayers with similar income levels.The information matching program is the IRS program most likely to identify Joel's tax return for audit.

Correct AnswerverifiedShow Answer

If a taxpayer is unable to file a tax return by its original due date,the taxpayer can request an automatic 9-month extension to file the return.

Correct AnswerverifiedShow Answer

Lavonda discovered that the 5th Circuit (where Lavonda resides) has recently issued a favorable opinion with respect to an issue that she is going to litigate with the IRS.Lavonda should choose which of the following trial courts to hear her case:

Correct AnswerverifiedShow Answer

Secondary authorities are official sources of the tax law with a lesser "weight" than primary authorities.

Correct AnswerverifiedFalse

A taxpayer can avoid an underpayment penalty if there is substantial authority that supports her tax return position.

Correct AnswerverifiedShow Answer

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A

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Princess,who resides in the 2^nd Circuit,recently found a circuit court case that is favorable to her research question.Which of the following circuits would she prefer to have issued the opinion?

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B

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Bill filed his 2013 tax return on March 15^th,2014.The statute of limitations for IRS assessment on Bill's 2013 tax return should end:

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Lavonda discovered that the 5^th Circuit (where Lavonda resides) has recently issued a favorable opinion with respect to an issue that she is going to litigate with the IRS.Lavonda should choose which of the following trial courts to hear her case:

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False

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