Advanced Federal Taxation
Exam Materials
Course Introduction
Advanced Federal Taxation delves into complex topics within the U.S. federal income tax system, with an emphasis on the taxation of corporations, partnerships, estates, and trusts. The course explores issues such as corporate formations, distributions, mergers and acquisitions, partnership allocations, and tax consequences of liquidation and reorganization. Students also examine advanced topics in individual taxation, compliance, and planning, developing a deeper understanding of tax research, regulations, and ethical responsibilities. Through case studies and problem-solving exercises, the course prepares students for practical application of tax law in professional accounting, finance, or legal environments.
Recommended Textbook
Federal Tax Research 11th Edition by Roby B. Sawyers
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14 Chapters
691 Verified Questions
691 Flashcards
Source URL: https://quizplus.com/study-set/1283 Page 2
Chapter 1: Introduction to Tax Practice and Ethics
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54 Verified Questions
54 Flashcards
Source URL: https://quizplus.com/quiz/25479
Sample Questions
Q1) A contingent fee is:
A)always allowed by Circular 230
B)a fee that is out of line with the value of the service provided
C)a fee based on a percentage of a taxpayer's refund on a tax return
D)all of these are correct
Answer: C
Q2) A member of the AICPA is not allowed to prepare tax returns that involve the use of the taxpayer's estimates.
A)True
B)False
Answer: False
Q3) Regarding open transactions, which of the following statements is INCORRECT?
A)The transaction is not yet completed.
B)The practitioner can suggest changes to achieve a better tax result.
C)A tax practitioner has some degree of control over the client's tax liability.
D)The practitioner can fix the problem by amending the client's tax return.
Answer: D
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3
Chapter 2: Tax Research Methodology
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49 Verified Questions
49 Flashcards
Source URL: https://quizplus.com/quiz/25480
Sample Questions
Q1) All primary source material has the same precedential value.
A)True
B)False
Answer: False
Q2) Tax research issues can be divided into two main categories. These are:
A)fact and law issues
B)primary and secondary issues
C)major and minor issues
D)internal and external issues
E)tax and nontax issues
Answer: A
Q3) Which of the following statements is CORRECT regarding online tax research?
A)The method of constructing queries is the same for all databases.
B)Most online tax services allow the use of connectors and wild cards.
C)If a query generates too little information, the researcher should add more unique keywords.
D)All of these are correct.
Answer: B
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Chapter 3: Constitutional and Legislative Sources
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49 Verified Questions
49 Flashcards
Source URL: https://quizplus.com/quiz/25481
Sample Questions
Q1) A "tax protester" is:
A)a person who files a "frivolous" return with the IRS
B)a person who brings a "frivolous" matter before the Tax Court
C)a person who may be subject to a penalty for frivolous Tax Court petitions
D)all of these are correct
E)none of these are correct
Answer: D
Q2) Trade or business deductions are contained in Code Section 62.
A)True
B)False
Answer: False
Q3) The overriding purpose of tax treaties is to:
A)create "tax havens"
B)minimize tax liability of multinational corporations
C)require business taxpayers to file returns in all countries in which they operate
D)eliminate the "double taxation" that a taxpayer would face if his or her income were subject to tax in both countries
Answer: D
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5
Chapter 4: Administrative Regulations and Rulings
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49 Verified Questions
49 Flashcards
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Sample Questions
Q1) Which of the following IRS pronouncement citations is INCORRECT?
A)Notice 07-10, 2007 C.B. 324
B)Publication 519
C)Rev. Proc. 2011-14, 2011 I.R.B. 532
D)Action on Decision 2010-002
E)all of these citations are correct
Q2) The IRS disclaims responsibility for damages that a taxpayer may suffer in erroneously relying on its taxpayer publications.
A)True
B)False
Q3) T.D. 9479 refers to a Treasury Determination letter.
A)True
B)False
Q4) Which of the following is CORRECT with respect to Private Letter Rulings?
A)They are issued by the IRS National Office in response to a specific taxpayer request.
B)They can be cited as precedent by other taxpayers.
C)They are published weekly by the IRS in the Internal Revenue Bulletin.
D)They are also known as Technical Advice Memoranda.
E)None of these are correct.
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Chapter 5: Judicial Interpretations
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49 Verified Questions
49 Flashcards
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Sample Questions
Q1) If the Supreme Court refuses to review a lower case, it doesn't mean that the Supreme Court is upholding the lower court decision.
A)True
B)False
Q2) Which statement is CORRECT regarding the United States Tax Court?
A)The Tax Court will hear any federal case.
B)The Tax Court is an appeals court.
C)The Tax Court must follow decisions of the District Court with jurisdiction over the taxpayer.
D)None of these are correct.
Q3) The Small Cases Division of the Tax Court can hear only cases involving a disputed deficiency, including penalties, of $15,000 or less.
A)True
B)False
Q4) An appeal from the Tax Court is to the:
A)U.S. Court of Appeals where the taxpayer is located
B)District Court where the taxpayer is located
C)U.S. Court of Federal Claims
D)Supreme Court
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Chapter 6: Tax Services Ria Checkpoint
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43 Verified Questions
43 Flashcards
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Sample Questions
Q1) Which service of Checkpoint is an annotated tax service?
A)Standard Federal Income Tax Reporter
B)USTR
C)Tax Research Consultant
D)Federal Tax Coordinator
Q2) Checkpoint's flagship editorial content tax service is entitled the:
A)Federal Tax Coordinator
B)Federal Tax Handbook
C)Standard Federal Income Tax Reporter
D)United States Tax Reporter
Q3) Checkpoint (formerly RIA Checkpoint) is a commercial tax and accounting research service offered by CCH.
A)True
B)False
Q4) An Index search can be more effective than a keyword search because the researcher has the benefit of the tax expertise of the indexer.
A)True
B)False
Q5) Describe the four common search methods used in Thomson Reuters Checkpoint.
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Chapter 7: Tax Services CCH Intelliconnect
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46 Verified Questions
46 Flashcards
Source URL: https://quizplus.com/quiz/25485
Sample Questions
Q1) Identify the different types of tax periodicals. Explain how tax periodicals are used in tax research and why they are valuable to a tax researcher.
Q2) The IntelliConnect search for which you must know the Code section, regulation, ruling, paragraph, or other source document is called the:
A)citator search
B)citation search
C)keyword search
D)index search
Q3) Practitioners may use the author of a treatise or article as a research associate thereby:
A)using them as primary sources
B)waiting for the right article to be found
C)learning how to research IntelliConnect
D)saving hours of research time
Q4) What roles does a citator play in tax research?
Q5) Headnote numbers are the same in all of the various case reporters.
A)True
B)False
Q6) Distinguish between the following terms: "cited case" and "citing case."
Page 9
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Chapter 8: Tax Services Specialty and Others
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47 Verified Questions
47 Flashcards
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Sample Questions
Q1) The publications containing a variety of articles and news briefs that are designed to keep readers up to date in specific or general areas of the tax law are called:
A)Law Publisher's best
B)Tax Periodicals
C)Law Review
D)Taxation Legal
Q2) The Westlaw search engine designed to tailor search results to the most relevant items based on the expertise of experienced law researchers is called the:
A)WestSearch search engine
B)Boolean Terms search engine
C)Wildcard search engine
D)Regulations search engine
Q3) What are some of BNA's publications? Describe each briefly.
Q4) One of the most important tax newsletters available to practitioners is the BNA Daily Tax Report (DTR). DTR is available online; through wireless devices, including iPhones; and in hard copy.
A)True
B)False
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Chapter 9: Multijurisdictional and Other Research
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60 Verified Questions
60 Flashcards
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Sample Questions
Q1) In today's expanding tax planning and compliance, tax practitioners need to service their clients by adding to federal tax planning:
A)tax analysis
B)investment planning
C)state and local tax planning
D)estate planning
Q2) The conceptual model where a country imposes taxes on tax residents based on its worldwide income, regardless of its source, is called a:
A)territorial model
B)international model
C)worldwide model
D)continental model
Q3) The OECD is an organization known for its:
A)belief in democratic governments and market economies
B)role in helping to obtain multilateral economic agreements for countries
C)publication of economic and social data and statistics
D)all of these are correct
Q4) "The Code provisions always take precedence over treaty provisions." Comment.
Q5) Why are taxpayers emphasizing multijurisdictional tax planning?
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Chapter 10: Financial Accounting Research
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42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/25488
Sample Questions
Q1) As part of its Checkpoint series, Thomson Reuters offers:
A)Audit and Accounting Disclosure Manual
B)GAAP Practice Manual
C)SEC compliance
D)all of these are correct
Q2) Even with the Codification, the "Financial Accounting Standards Board (FASB) is not the only standard-setting authority in the United Sates." Explain.
Q3) Exposure drafts issued for proposed updates of accounting standards in the Codification are indexed alphabetically.
A)True
B)False
Q4) Generally, nonincome taxes are recognized in the financial statements in the period in which they are incurred.
A)True
B)False
Q5) Explain the basic principles of accounting for deferred taxes.
Q6) What are the principal objectives of the International Accounting Standards Board (IASB)?
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Chapter 11: Communicating Research Results
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41 Verified Questions
41 Flashcards
Source URL: https://quizplus.com/quiz/25489
Sample Questions
Q1) The two major elements of a client file are:
A)invoices and full-text court opinions
B)internal firm memos and invoices
C)a client letter and a research memo
D)a written summary of telephone conversations and e-mails
Q2) A file memorandum should include citations to secondary sources of tax law, such as commercial tax services.
A)True
B)False
Q3) Which of the following is CORRECT with respect to a file memo?
A)It should include only the strengths of the client's position.
B)It should include a list of the tax issues that are in dispute and a matching conclusion for each identified issue.
C)It should be prepared only in closed-fact situations.
D)All of these are correct.
Q4) You are preparing for an audit with an IRS agent for an important client. Your research has uncovered several favorable rulings and court decisions. What are the key points that should guide you in evaluating sources of the law?
Q5) State the purposes for which a file memorandum is designed.
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Chapter 12: Tax Planning
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47 Verified Questions
47 Flashcards
Source URL: https://quizplus.com/quiz/25490
Sample Questions
Q1) The judicial doctrine "business purpose" can decrease the taxpayer's ability to employ effective planning techniques.
A)True
B)False
Q2) What is the age at which children who are not full-time students are no longer subject to the "kiddie" tax?
A)24
B)18
C)19
D)none of these are correct
Q3) Under a progressive tax rate system, the applicable tax rate:
A)is applied against the taxpayer's net holdings of tangible assets
B)decreases as the tax base grows larger
C)increases as the tax base grows larger
D)is independent of the tax base
Q4) With respect to tax planning activities, the decision maker must compare the after-tax benefits with the pretax costs.
A)True
B)False
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Chapter 13: Working With the IRS
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63 Verified Questions
63 Flashcards
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Sample Questions
Q1) A Form 911 is filed by the taxpayer as a request for which of the following?
A)National Research Program
B)Appeals Conference
C)Tax Court Hearing
D)Taxpayer Advocate Service Assistance
Q2) Why would a taxpayer choose to go to District Court or the Court of Federal Claims and not to U.S. Tax Court?
Q3) A taxpayer's appeal must be in written form if the total proposed additional tax and penalties exceed $2,500.
A)True
B)False
Q4) The Taxpayer Assistance Order (TAO) is issued by the:
A)Secretary of Treasury
B)Chief Counsel
C)National Taxpayer Advocate
D)Commissioner of IRS
Q5) The Chief Counsel is appointed by the President and reports to the Commissioner of the IRS.
A)True
B)False
Page 15
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Chapter 14: Tax Practice and Administration: Sanctions, Agreements,
and Disclosures
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52 Verified Questions
52 Flashcards
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Sample Questions
Q1) Noel, a calendar-year taxpayer, filed his 2016 income tax return on October 20, 2017, paying an amount due of $2,000. On April 1, 2017, he had obtained a six- month extension of time in which to file his return. However, he could not assert a reasonable cause for failing to file the return by October 15, 2017 (the extended due date), nor did he show any reasonable cause for failing to pay the tax that was due on April 15, 2017. Noel's failure to file was not fraudulent. The penalty for failure-to-pay tax is:
A)$35
B)$10
C)$70
D)$40
Q2) Tax return preparers are subject to criminal prosecution for willful misconduct. A)True B)False
Q3) An individual should make a claim for refund or credit in the Form 1040X. A)True B)False
Q4) What is the procedure for claiming a refund or credit for overpayment of tax?
Q5) Give an example of what it means for failure to make deposits of taxes. Describe the penalties involved.
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