Question 1

Which, if any, of the following provisions of the tax law cannot be justified as promoting administrative feasibility simplifying the task of the IRS) ?

Accepted Answer

A)   Penalties are imposed for failure to file a return or pay a tax on time.
B)   Prepaid income is taxed in the year received, not in the year earned.
C)   Annual adjustments for indexation increases the amount of the standard deduction allowed.
D)   Personal casualty losses in Federally declared disaster areas must exceed 10% of AGI to be deductible.
E)   A deduction is allowed for charitable contributions.F) A) and E)
G) A) and B)

Question 2

When there is a direct conflict between an Internal Revenue Code section and a treaty provision, the most recent item takes precedence.

Accepted Answer

A) True 
 B)False

Question 3

"Legislative" regulations carry more weight than "interpretative" regulations.

Accepted Answer

A) True 
 B)False

Question 4

Regulations are arranged in a different sequence than the Internal Revenue Code.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Alabama and South Carolina are community property states.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

Temporary Regulations have the same authoritative value as Final Regulations for four years.

Accepted Answer

A) True 
 B)False

Question 9

A U.S. District Court must abide by the precedents set by the U.S. Court of Appeals of its jurisdiction.

Accepted Answer

A) True 
 B)False

Question 10

Social considerations can be used to justify:

Accepted Answer

A)   Allowing a federal income tax deduction for state and local sales tax.
B)   Allowing excess capital losses to be carried over to other years.
C)   Allowing accelerated amortization for the cost of installing pollution control facilities.
D)   Allowance of a credit for child care expenses.
E)   None of these.F) B) and E)
G) C) and D)

Question 11

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

Accepted Answer

A)   Rev. Rul. 2010-19.
B)   Joint Conference Committee Report.
C)   Section 12a)  of the Internal Revenue Code.
D)   All of these..
E)   None of these.F) D) and E)
G) A) and E)

Question 12

A change in the individual tax rate has an almost immediate impact on the economy.

Accepted Answer

A) True 
 B)False

Question 13

The Internal Revenue Code was codified for the first time in what year?

Accepted Answer

A)   1913.
B)   1923.
C)   1939.
D)   1954.
E)   1986.F) A) and C)
G) B) and E)

Question 14

Revenue-neutral tax laws reduce deficits.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

The position of the residents of communi...

Question 16

The U.S. Federal government has a provision in the Constitution that precludes deficit spending.

Accepted Answer

A) True 
 B)False

Question 17

Which court decision is generally more authoritative?

Accepted Answer

A)   A U.S. Tax Court decision.
B)   A U.S. Court of Federal Claims decision.
C)   A U.S. District Court decision.
D)   A U.S. Court of Appeals decision.
E)   A U.S. Tax Court Memorandum decision.F) None of the above
G) B) and E)

Question 18

A Memorandum decision of the U.S. Tax Court could be cited as:

Accepted Answer

A)   T.C. Memo. 1990-650.
B)   68-1 USTC ¶ 9200.
C)   37 AFTR 2d 456.
D)   All of these.
E)   None of these.F) D) and E)
G) B) and E)

Question 19

Determination letters usually involve proposed transactions.

Accepted Answer

A) True 
 B)False

Question 20

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

Exam 1: Understanding and Working With the Federal Tax Law

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

Correct AnswerverifiedShow Answer

Which, if any, of the following provisions of the tax law cannot be justified as promoting administrative feasibility simplifying the task of the IRS) ?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

"Legislative" regulations carry more weight than "interpretative" regulations.

Correct AnswerverifiedShow Answer

A change in the individual tax rate has an almost immediate impact on the economy.

Correct AnswerverifiedShow Answer

The U.S. Federal government has a provision in the Constitution that precludes deficit spending.

Correct AnswerverifiedShow Answer

A U.S. District Court must abide by the precedents set by the U.S. Court of Appeals of its jurisdiction.

Correct AnswerverifiedShow Answer

A Memorandum decision of the U.S. Tax Court could be cited as:

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 Internal Revenue Code was codified for the first time in what year?

Correct AnswerverifiedShow Answer

Alabama and South Carolina are community property states.

Correct AnswerverifiedShow Answer

Which court decision is generally more authoritative?

Correct AnswerverifiedShow Answer

Revenue-neutral tax laws reduce deficits.

Correct AnswerverifiedShow Answer

When there is a direct conflict between an Internal Revenue Code section and a treaty provision, the most recent item takes precedence.

Correct AnswerverifiedShow Answer

Determination letters usually involve proposed transactions.

Correct AnswerverifiedShow Answer

Regulations are arranged in a different sequence than the Internal Revenue Code.

Correct AnswerverifiedShow Answer

Temporary Regulations have the same authoritative value as Final Regulations for four years.

Correct AnswerverifiedShow Answer

Social considerations can be used to justify:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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The position of the residents of communi...
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