Question 1

Which of the choices below is the publisher in this citation: Johnson v.Oregon, 86-1, USTC ¶322 (D.Ct.Cal., 1986) .

Accepted Answer

A)  Commerce Clearing House
B)  Prentice Hall
C)  West Publishing Co.
D)  Research Institute of America
E)  Senate Finance CommitteeF) D) and E)
G) B) and D)

Question 2

Which of the following is not a characteristic of U.S.District Courts?

Accepted Answer

A)  A District Court is not a national court.
B)  A taxpayer need not pay any alleged deficiency in order to bring an action against the IRS.
C)  The District Court hears many kinds of cases, including but not limited to tax cases.
D)  The District Court judges are appointed for life.
E)  The taxpayer may obtain a jury trial; the jury decides matters of fact but not matters of law.F) A) and E)
G) A) and B)

Question 3

Which one of the following is not true of the Supreme Court's appellate jurisdiction?

Accepted Answer

A)  Most of the time the Supreme Court indicates that it will accept a case by granting a Writ of Certiorari.
B)  The Supreme Court reviews many tax cases during the year because of their national importance.
C)  The Supreme Court often accepts cases when two or more Courts of Appeals are in conflict over an issue.
D)  The Supreme Court does not conduct another trial but reviews the record of the trial court to determine if that court correctly applied the law to the facts.
E)  The Supreme Court may accept a case where a Court of Appeals has settled an important question of Federal law and the Supreme Court feels such a question should have another review.F) D) and E)
G) B) and C)

Question 4

Which of the following could be a reason for a taxpayer not taking his tax case to a federal court of appeals?

Accepted Answer

A)  Too expensive
B)  Failure to exhaust all the administrative remedies
C)  No appealable decision from a trial court
D)  All of the aboveE) All of the above
F) A) and D)

Question 5

Which of the following statements is not a characteristic of the Internal Revenue Code?

Accepted Answer

A)  The basis of Congressional authority for the Federal income tax is the Sixteenth Amendment to the U.S.Constitution.
B)  Changes made in the tax law after 1986 are incorporated into the 1986 Code as amended.
C)  Any change in the Internal Revenue Code generally starts in the House of Representatives.
D)  When a tax advisor is citing a particular item within the Internal Revenue Code, citation of the section number alone is usually sufficient.
E)  The reasons why Congress made a particular change or addition to the Internal Revenue Code are given within the Code itself.F) B) and E)
G) A) and E)

Question 6

Which one of the following types of Regulations cannot be cited as authoritative?

Accepted Answer

A)  Proposed regulations
B)  Temporary regulations
C)  Procedural regulations
D)  Interpretative regulations
E)  Legislative regulationsF) All of the above
G) C) and D)

Question 7

A major difference between primary authorities and secondary authorities is that secondary sources are merely unofficial interpretations of tax law and have no legal authority.

Accepted Answer

A) True 
 B)False

Question 8

When posed with a particularly complex tax question, a researcher with little previous experience with the issue would be best served at the outset by consulting

Accepted Answer

A)  The Internal Revenue Code
B)  The Treasury Regulations
C)  The applicable legislative history
D)  A "tax service" (e.g., CCH, RI
A)  E) B) and D)
F) A) and C)

Question 9

Temporary regulations are generally issued

Accepted Answer

A)  Shortly after enactment of a major change in the tax law so that a taxpayer has guidance until final regulations are formulated.
B)  To clarify existing regulations that are incomplete.
C)  To deal with taxpayers living temporarily overseas who may be subject to tax treaties between the United States and foreign countries.
D)  To define tax treatment for a general set of facts on which the Code is silent; they have the full force and effect of law until the Code addresses the issue.
E)  To interpret the Code, but they do not have the same binding effect as final regulations.F) None of the above
G) A) and D)

Question 10

The House Ways and Means Committee holds hearings on proposed revenue bills initiated by the Senate.

Accepted Answer

A) True 
 B)False

Question 11

The three trial courts where tax matters may be litigated-the U.S.District Court, the U.S.Court of Federal Claims, and the U.S.Tax Court-are all courts of original jurisdiction.

Accepted Answer

A) True 
 B)False

Question 12

Unlike interpretative regulations, legislative regulations are not controlling on a court.Thus, the courts will not hesitate to substitute their own judgment for that of the Treasury Department.

Accepted Answer

A) True 
 B)False

Question 13

Both revenue rulings and revenue procedures are first published in the Internal Revenue Bulletin and then eventually published in the Cumulative Bulletin.

Accepted Answer

A) True 
 B)False

Question 14

An appeal of an adverse decision by the Tax Court may be taken as a matter of right to the appropriate U.S.Court of Appeals.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following administrative interpretations would be generally accorded the force and effect of law?

Accepted Answer

A)  Technical advice memoranda
B)  Interpretative regulations
C)  Letter rulings
D)  Procedural regulations
E)  Legislative regulationsF) C) and D)
G) All of the above

Question 16

Although temporary regulations have the same binding effect as final regulations, proposed regulations have no force or effect.

Accepted Answer

A) True 
 B)False

Question 17

The Internal Revenue Service may exercise discretion in determining whether to issue a letter ruling to a particular taxpayer.

Accepted Answer

A) True 
 B)False

Question 18

Although the Small Tax Division of the U.S.Tax Court allows a taxpayer to obtain a decision with little formality or expense, a disadvantage is that

Accepted Answer

A)  The taxpayer loses the right to appeal the decision.
B)  The case can be remanded to Tax Court.
C)  Special judges outside their area of expertise may be ruling.
D)  Priority on the trial calendars is not received.
E)  Cases eligible to be tried by the Court are limited to tax at issue of $50,000 or less.F) All of the above
G) B) and E)

Question 19

The difference between regulations and revenue rulings is that

Accepted Answer

A)  Revenue rulings are not limited to a given set of facts and regulations are limited.
B)  Revenue rulings are the direct law-making powers of Congress and regulations are not.
C)  Rulings require approval by the Secretary of the Treasury; regulations do not.
D)  Revenue rulings do not have the authority of regulations; regulations are a direct extension of the law-making powers of Congress.
E)  Only regulations are official pronouncements of the National Office of the IRS.F) B) and C)
G) A) and E)

Question 20

Which one of the following authorities is not correctly paired with a source where that authority might be found?

Accepted Answer

A)  Revenue procedures may be found in the Cumulative Bulletin.
B)  Legislative regulations may be found in the Code of Federal Regulations.
C)  Revenue rulings may be found in the Internal Revenue Bulletin.
D)  Revenue procedures may be found in the Internal Revenue Bulletin.
E)  Letter rulings may be found in the Code of Federal Regulations.F) D) and E)
G) A) and D)

Exam 17: Sources and Applications of Federal Tax Law

The House Ways and Means Committee holds hearings on proposed revenue bills initiated by the Senate.

Correct AnswerverifiedShow Answer

Both revenue rulings and revenue procedures are first published in the Internal Revenue Bulletin and then eventually published in the Cumulative Bulletin.

Correct AnswerverifiedShow Answer

Which of the following administrative interpretations would be generally accorded the force and effect of law?

Correct AnswerverifiedShow Answer

Which one of the following types of Regulations cannot be cited as authoritative?

Correct AnswerverifiedShow Answer

Which of the following statements is not a characteristic of the Internal Revenue Code?

Correct AnswerverifiedShow Answer

When posed with a particularly complex tax question, a researcher with little previous experience with the issue would be best served at the outset by consulting

Correct AnswerverifiedShow Answer

The three trial courts where tax matters may be litigated-the U.S.District Court, the U.S.Court of Federal Claims, and the U.S.Tax Court-are all courts of original jurisdiction.

Correct AnswerverifiedShow Answer

Temporary regulations are generally issued

Correct AnswerverifiedShow Answer

The Internal Revenue Service may exercise discretion in determining whether to issue a letter ruling to a particular taxpayer.

Correct AnswerverifiedShow Answer

Which of the choices below is the publisher in this citation: Johnson v.Oregon, 86-1, USTC ¶322 (D.Ct.Cal., 1986) .

Correct AnswerverifiedShow Answer

The difference between regulations and revenue rulings is that

Correct AnswerverifiedShow Answer

Which of the following is not a characteristic of U.S.District Courts?

Correct AnswerverifiedShow Answer

Which one of the following is not true of the Supreme Court's appellate jurisdiction?

Correct AnswerverifiedShow Answer

Although the Small Tax Division of the U.S.Tax Court allows a taxpayer to obtain a decision with little formality or expense, a disadvantage is that

Correct AnswerverifiedShow Answer

Which one of the following authorities is not correctly paired with a source where that authority might be found?

Correct AnswerverifiedShow Answer

An appeal of an adverse decision by the Tax Court may be taken as a matter of right to the appropriate U.S.Court of Appeals.

Correct AnswerverifiedShow Answer

Unlike interpretative regulations, legislative regulations are not controlling on a court.Thus, the courts will not hesitate to substitute their own judgment for that of the Treasury Department.

Correct AnswerverifiedShow Answer

A major difference between primary authorities and secondary authorities is that secondary sources are merely unofficial interpretations of tax law and have no legal authority.

Correct AnswerverifiedShow Answer

Although temporary regulations have the same binding effect as final regulations, proposed regulations have no force or effect.

Correct AnswerverifiedShow Answer

Which of the following could be a reason for a taxpayer not taking his tax case to a federal court of appeals?

Correct AnswerverifiedShow Answer

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