Federal Taxation Exam Review
Course Introduction
Federal Taxation provides an in-depth exploration of the U.S. federal tax system, emphasizing the principles, regulations, and procedures that govern the taxation of individuals and businesses. The course covers topics such as gross income, allowable deductions, tax credits, tax filing requirements, and the ethical responsibilities of tax practitioners. Through the analysis of current tax laws, case studies, and practical exercises, students gain a comprehensive understanding of compliance, tax planning strategies, and the practical application of tax rules to real-world scenarios. This foundational knowledge prepares students for professional roles in accounting, finance, and related fields, and serves as a basis for advanced study in taxation.
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
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Sample Questions
Q1) Enrolled actuaries are allowed to practice before the IRS.
A)True
B)False
Answer: True
Q2) Circular 230 bans tax practitioners from giving written advice on a federal tax issue based on the likelihood of an audit.
A)True
B)False
Answer: True
Q3) The primary change made by the Sarbanes-Oxley Act which affects the practice of public accounting is:
A)Public accounting firms may no longer provide any actuarial services.
B)Accounting firms may no longer offer tax shelters.
C)Auditors may never do tax compliance work for their clients.
D)Public accounting firms may provide some nonaudit services to their audit clients if the services are approved in advance by an audit committee.
Answer: D
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Page 3
Chapter 2: Tax Research Methodology
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49 Verified Questions
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Sample Questions
Q1) Which of the following forms the basis for all tax provisions?
A)secondary authority
B)the administrative authority of the IRS
C)judicial interpretation of the law
D)the statutory authority of Congress
Answer: D
Q2) A tax researcher can rely on tax journals as substantial authority under Section 6662 of the Code.
A)True
B)False
Answer: False
Q3) The Tax Management Portfolios are published by:
A)CCH
B)RIA
C)Bloomberg BNA Tax and Accounting
D)LexisNexis
Answer: C
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Page 4
Chapter 3: Constitutional and Legislative Sources
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Sample Questions
Q1) What information is included in the history of a Code section?
Answer: The history of a Code section includes a list of Public Laws that have altered or amended the section. This listing generally includes a reference to the section as it existed prior to amendment as well as the effective date of the amendment to the law.
Q2) A "technical corrections act" is:
A)a set of changes made by IRS to fit new tax law provisions into the Code
B)an act passed by Congress to remove errors in implementing and interpreting the new provisions of a tax law
C)the act that provides the effective dates for a new tax law
D)none of these are correct
Answer: B
Q3) Whenever a major new tax law is passed, CCH and RIA both publish the related Committee Reports.
A)True
B)False
Answer: True
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Chapter 4: Administrative Regulations and Rulings
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Sample Questions
Q1) Which statement is INCORRECT regarding Proposed Regulations?
A)They do not have the same effect as law.
B)Proposed Regulations are useful for understanding the IRS's current position on an issue but generally should not be relied on by a taxpayer unless the IRS provides explicit advice on doing so.
C)Proposed Regulations carry the same authority as Final Regulations.
D)None of these are correct.
Q2) Technical Advice Memoranda are issued in response to a request by an IRS agent.
A)True
B)False
Q3) IRS General Counsel Memoranda:
A)convey the IRS decision to acquiesce/nonacquiesce in a court decision
B)summarize and explain published IRS Regulations
C)have been replaced with chief counsel advice after 2002
D)have only short-term value
Q4) The IRS's official publication for its pronouncements is the Internal Revenue Manual.
A)True
B)False
Q5) Define General and Legislative Regulations and explain the distinction.
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Chapter 5: Judicial Interpretations
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Sample Questions
Q1) Which reporter is the official, government reporter for U.S. Supreme Court tax cases?
A)S.Ct.
B)U.S.
C)AFTR2d
D)The government does not print Supreme Court cases.
Q2) In which of the following courts is a jury trial available?
A)U.S. District Courts
B)Tax Court
C)U.S. Court of Federal Claims
D)All of the above.
Q3) The two levels of appellate courts in the federal court system are the U.S. Courts of Appeals and the U.S. Supreme Court.
A)True
B)False
Q4) Tax Court Summary Opinions are published in a printed reporter by the Government Printing Office (GPO).
A)True
B)False
Q5) Briefly explain how the burden of proof concept is applied.
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Chapter 6: Tax Services Ria Checkpoint
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43 Verified Questions
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Sample Questions
Q1) Commercial tax services provide editorial explanations and expert analysis of primary tax law.
A)True
B)False
Q2) Boolean connectors are used:
A)when the researcher is unsure as to which keywords would be most effective in a search
B)to define the relationship between keywords
C)in intuitive searches
D)none of these are correct
Q3) 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
Q4) It is imperative that a citator be examined to determine how later legal sources have considered the document of interest.
A)True
B)False
Q5) Describe the four common search methods used in Thomson Reuters Checkpoint.
Page 8
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Chapter 7: Tax Services CCH Intelliconnect
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Sample Questions
Q1) 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
Q2) Publications which contain 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)tax periodicals
B)tax treatises
C)the Worldwide Tax Daily
D)The Tax Adviser
Q3) The precedential value of a case refers to:
A)whether it was appealed
B)the monetary value at stake in that case
C)the legal authority established by that case
D)all of these are correct
Q4) 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.
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Chapter 8: Tax Services Specialty and Others
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Sample Questions
Q1) All major tax services include a publication as part of their service aimed at keeping the subscriber abreast of important tax law developments. These publications are called Newsletters.
A)True
B)False
Q2) The choice to search just a selected portfolio or collection is made available under the:
A)Advanced Search box
B)Index box
C)Quick Search box
D)Portfolio & Collections box
Q3) The search that uses the West Key Numbering System, which organizes key issues found in court cases into hundreds of numbered topics, is called:
A)KeyCite
B)KeySearch
C)WestlawNext
D)Keyword Search
Q4) How can finding a BNA Portfolio on point with a practitioner's tax issue be like hiring someone to do the research?
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Chapter 9: Multijurisdictional and Other Research
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Sample Questions
Q1) The Tax Service that offers an extensive library of databases for state tax research reached through its State Materials tab is called:
A)LexisNexis Academic
B)Bloomberg BNA
C)Westlaw Campus
D)Checkpoint SALT
Q2) What is the International Bureau of Fiscal Documentation, and what is its mission?
Q3) 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
Q4) A "saving clause" in U.S. treaties prevents U.S. residents from using treaty provisions to avoid taxes on U.S. source income.
A)True
B)False
Q5) "The Code provisions always take precedence over treaty provisions." Comment.
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Chapter 10: Financial Accounting Research
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Sample Questions
Q1) Which statement is CORRECT regarding the SEC?
A)It has standards-setting authority over public companies.
B)It is authorized to oversee the functioning of U.S. capital markets.
C)It has issued a number of forms of guidance on accounting principles.
D)All of these are correct.
Q2) The FASB Codification "Join Sections" allows the related sections of a topic to be joined into a single document so that the guidance across all sections within a topic can be reviewed at the same time.
A)True
B)False
Q3) In the United States, GAAP comes under the purview of the:
A)FINRA
B)IRS
C)Securities and Exchange Commission (SEC)
D)none of these are correct
Q4) Prior to the 1970s, accounting standards were promulgated by groups formed under the umbrella of the American Institute of Certified Public Accountants (AICPA).
A)True
B)False
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Chapter 11: Communicating Research Results
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Sample Questions
Q1) In client files, a practitioner should include all of the following types of underlying legal authority EXCEPT:
A)underlined or highlighted portions of important legal documents
B)case, regulation, and ruling briefs that are pertinent to the file memo
C)a listing of legal citations and computer files that would show a researcher's analysis
D)all of this information should be included in a client file
Q2) Generally, the file memo should be accompanied in the file by briefs of one or more pertinent cases or administrative pronouncements.
A)True
B)False
Q3) All of the following are INCORRECT regarding the proper form for a client letter EXCEPT:
A)client letters should be brief
B)client letters should be lengthy and detailed in order to avoid malpractice problems
C)client letters should not exceed four pages
D)all of these statements are correct
Q4) State the purposes for which a file memorandum is designed.
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13
Chapter 12: Tax Planning
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Sample Questions
Q1) Most sales and property taxes in the United States employ a:
A)proportional rate structure
B)regressive rate structure
C)progressive rate structure
D)consumption rate structure
Q2) Taxpayers are rewarded more for finding ways to save taxes than for earning an equal amount in the marketplace.
A)True
B)False
Q3) The tax rate which is computed by simply dividing the total tax liability by the corresponding tax base is known as the:
A)capital gains tax rate
B)average tax rate
C)effective tax rate
D)marginal tax rate
Q4) Tax planning:
A)is a completely legal means for saving taxes
B)is the same as tax evasion
C)endeavors to understate the taxpayer's real wealth
D)all of these are correct
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Chapter 13: Working With the IRS
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Sample Questions
Q1) What are the major duties of the IRS Oversight Board?
Q2) The Taxpayer Assistance Order (TAO) is issued by the:
A)Secretary of Treasury
B)Chief Counsel
C)National Taxpayer Advocate
D)Commissioner of IRS
Q3) The Tax Exempt and Government Entities (TEGE) Division of the IRS comprises three business divisions: employee plans, exempt organizations, and governmental entities.
A)True
B)False
Q4) The National Taxpayer Advocate:
A)represents the IRS in Tax Court cases
B)administers a taxpayer-intervention system
C)assists the IRS in preparing proposed legislation, treaties, regulations, and executive orders
D)prepares IRS rulings and other written determinations
Q5) The IRS Oversight Board is made up of only IRS officials. A)True
B)False
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Chapter 14: Tax Practice and Administration: Sanctions, Agreements, and Disclosures
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Sample Questions
Q1) Tax return preparers are subject to criminal prosecution for willful misconduct.
A)True
B)False
Q2) A fraudulent failure-to-file tax return is subject to a 25 percent monthly penalty.
A)True
B)False
Q3) The penalty for failure to make payment of quarterly estimated income taxes is computed without any daily compounding and is not deductible.
A)True
B)False
Q4) List some of the possible defenses that a taxpayer may use against a charge of criminal tax offense.
Q5) A tax return preparer may disclose information obtained from the taxpayer without being subject to civil and criminal penalty if such disclosure is:
A)for other than the specific purpose of preparing a tax return
B)pursuant to fulfillment of his own financial goals
C)pursuant to any provisions of the code, or to a court order
D)required for the growth of his profession
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