CHAPTER 2 WORKING WITH THE TAX LAW

1. RulesoftaxlawdonotincludeRevenueRulingsandRevenueProcedures.

a. True

b. False

2. Ataxprofessionalneednotworryabouttherelativeweightofauthoritywithinthevarioustaxlawsources.

a. True

b. False

.

3. Inrecentyears,CongresshasbeenrelativelysuccessfulinsimplifyingtheInternalRevenue Code.

a. True

b. False

.

4. Ataxpayer shouldalwaysminimizehisorhertaxliability.

a. True

b. False

5. Thefirstcodification ofthetax lawoccurred in1954.

a. True

b. False

.

6. TheCode sectioncitation isincorrect: §212(1).

a. True

b. False

7. SubchapterDreferstothe“CorporateDistributionsandAdjustments”sectionoftheInternalRevenueCode.

a. True

b. False

8. Regulations aregenerallyissuedimmediately afterastatuteisenacted.

a. True

b. False

.

9. TemporaryRegulationsareonlypublishedintheInternal RevenueBulletin.

a. True

b. False

.

10.Revenue Rulingsissuedby theNationalOfficeof theIRScarrythe samelegalforceand effectasRegulations.

a. True

b. False

11.ARevenueRulingisajudicial sourceofFederaltaxlaw.

a. True

b. False

.

12.Thefollowingcitation canbeacorrectcitation:Rev.Rul.95-271,1995-64I.R.B.18.

a. True

b. False

13.RevenueProceduresdeal withthe internalmanagement practicesand proceduresof theIRS.

a. True

b. False

14.Post­1984 letterrulings maybe substantialauthority forpurposes ofthe accuracy­relatedpenalty in§6662.

a. True

b. False

15.Aletterrulingappliesonlytothetaxpayerwhoasksforandobtainsaletterruling.

a. True

b. False

16.The IRSisnotrequiredtomake aletterrulingpublic.

a. True

b. False

17.Determinationletters usuallyinvolve finalizedtransactions.

a. True

b. False

18.Technical AdviceMemorandadealwithcompleted transactions.

a. True

b. False

.

19.Technical AdviceMemorandamay notbecited asprecedents bytaxpayers.

a. True

b. False

20.AtaxpayermustpayanytaxdeficiencyassessedbytheIRSandsueforarefundtobringsuitintheU.S.CourtofFederalClaims.OnlyintheTaxCourtcanjurisdictionbeobtainedwithoutfirstpayingtheassessedtaxdeficiency.

a. True

b. False

21.In aU.S.DistrictCourt,ajurycandecidebothquestions offactandquestionsoflaw.

a. True

b. False

.

22.Three judgeswillnormally heareachU.S. TaxCourt case.

a. True

b. False

23.AtaxpayercanobtainajurytrialintheU.S.TaxCourt.

a. True

b. False

24.AtaxpayermustpayanytaxdeficiencyassessedbytheIRSandsueforarefundtobringsuitintheU.S.DistrictCourt.

a. True

b. False

25.Arizonais inthe jurisdictionof theEighth CircuitCourt ofAppeals.

a. True

b. False

26.Texasis inthe jurisdictionofthe SecondCircuit CourtofAppeals.

a. True

b. False

.

27.The Golsenrulehas beenoverturned bythe U.S.Supreme Court.

a. True

b. False

28.ThegrantingofaWritofCertiorariindicatesthatatleastfourmembersoftheSupremeCourtbelievethatanissueisofsufficientimportancetobeheardbythefullcourt.

a. True

b. False

29.The “petitioner”refers tothe partyagainst whomasuitisbrought.

a. True

b. False

30.Theterm“petitioner”isasynonymfor“defendant.”

a. True

b. False

31.The U.S.TaxCourt meetsmostoften inWashington, D.C.

a. True

b. False

32.Thereare11geographicU.S.CircuitCourtofAppeals.

a. True

b. False

33. Thefollowingcitationiscorrect:LarryG.Mitchell,131T.C.215(2008).

a. True

b. False

34.The IRSissues anacquiescence ornonacquiescence onlyfor regularTax Courtdecisions.

a. True

b. False

.

35.There isadirectconflictbetweenaCodesectionadoptedin2008andatreatywithFrance(signedin2012).TheCodesectioncontrols.

a. True

b. False

.

36. TheIndextoFederalTaxArticles(publishedbyWarren,Gorham,andLamont)isavailableinprintandelectronicformats.

a. True

b. False

37.AU.S.DistrictCourtisthelowesttrialcourt.

a. True

b. False

38.Theresearch processshould beginwithataxservice.

a. True

b. False

39.Electronic databasesaremostfrequentlysearchedbythe keywordapproach.

a. True

b. False

40.Thetest forwhether achildqualifiesfordependencystatusisfirstconductedunderthequalifiedchildrequirement.

a. True

b. False