Question 1

Which of the following refers to a trial court rather than an appellate court decision?

Accepted Answer

A)   Forgeus v. Comm., 6 B.T.A. 291 (1927) .
B)   Farris v. Comm., 222 F.2d 320 (CA-10, 1955) .
C)   Danville Plywood Corp., 899 F.2d 3 (Fed Cir. 1990) .
D)   Boehm v. Comm., 326 U.S. 287 (1945) .
E)   None of the above.F) A) and C)
G) A) and B)

Question 2

A jury trial is available in a U.S. Court of Appeals situation.

Accepted Answer

A) True 
 B)False

Question 3

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) B) and D)
G) C) and D)

Question 4

The domestic production activities deduction is structured to create jobs.

Accepted Answer

A) True 
 B)False

Question 5

Regarding Technical Advice Memoranda, which statement is incorrect?

Accepted Answer

A)   Issued by the National Office of IRS.
B)   Most often deal with a completed transaction.
C)   May be cited and used as precedent.
D)   Issued with multi-digit file numbers.
E)   None are incorrect.F) B) and D)
G) C) and D)

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Longer class lives for depreciable property and the required use of straight-line method of depreciation would likely dampen the tax incentive for purchasing capital assets.

Accepted Answer

A) True 
 B)False

Question 8

"Legislative regulations" are stronger than "interpretative" regulations.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

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) None of the above
G) All of the above D

Question 11

Which citation refers to a U.S. Court of Federal Claims decision?

Accepted Answer

A)   Apollo Computer, Inc. v. U.S., 95-1 USTC ¶ 50,015 (Fed. Cl., 1994) .
B)   Westreco, Inc., T.C. Memo. 1992-561 (1992) .
C)   Bausch & Lomb, Inc. v. Comm., 933 F. 2d 1084 (CA-2, 1991) .
D)   Portland Manufacturing Co. v. Comm., 35 AFTR 2d 1439 (CA-9, 1975) .
E)   None of the above.F) C) and E)
G) A) and D) A

Question 12

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 C)
G) D) and E)

Question 13

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) B) and D)
G) B) and C)

Question 14

Determination letters usually involve proposed transactions.

Accepted Answer

A) True 
 B)False

Question 15

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 16

One Code section enables shareholders in a small business corporation to obtain an ordinary deduction for any loss recognized on a stock investment.

Accepted Answer

A) True 
 B)False

Question 17

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 the above.
E)   None of the above.F) A) and E)
G) A) and C)

Question 18

Proposed Regulations have the force and effect of law.

Accepted Answer

A) True 
 B)False

Question 19

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) C) and E)
G) A) and C) D

Question 20

In Forty-Four Cigar Co., 2 B.T.A. 1156, the 1156 stands for:

Accepted Answer

A)   The volume number.
B)   The year of the decision.
C)   The paragraph number.
D)   The page number.
E)   None of the above.F) A) and B)
G) A) and E)

Exam 1: Understanding and Working With the Federal Tax Law

Which of the following refers to a trial court rather than an appellate court decision?

Correct AnswerverifiedShow Answer

A jury trial is available in a U.S. Court of Appeals situation.

Correct AnswerverifiedShow Answer

Determine the incorrect citation:

Correct AnswerverifiedShow Answer

The domestic production activities deduction is structured to create jobs.

Correct AnswerverifiedShow Answer

Regarding Technical Advice Memoranda, which statement is incorrect?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Longer class lives for depreciable property and the required use of straight-line method of depreciation would likely dampen the tax incentive for purchasing capital assets.

Correct AnswerverifiedShow Answer

"Legislative regulations" are stronger than "interpretative" regulations.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which citation is considered to be a legislative citation?

Correct AnswerverifiedD

Which citation refers to a U.S. Court of Federal Claims decision?

Correct AnswerverifiedA

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

Correct AnswerverifiedShow Answer

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

Determination letters usually involve proposed transactions.

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

One Code section enables shareholders in a small business corporation to obtain an ordinary deduction for any loss recognized on a stock investment.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Proposed Regulations have the force and effect of law.

Correct AnswerverifiedShow Answer

Which state is not a community property state?

Correct AnswerverifiedD

In Forty-Four Cigar Co., 2 B.T.A. 1156, the 1156 stands for:

Correct AnswerverifiedShow Answer

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D

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A

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D

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