Tax Chapter 2
Showing posts with label Tax Chapter 2. Show all posts
Showing posts with label Tax Chapter 2. Show all posts

Which of the following has the lowest authoritative weight?

Which of the following has the lowest authoritative weight?


A. Legislative regulation.

B. Private letter ruling.

C. Revenue ruling.

D. Interpretative regulation.

E. Revenue procedure.


Answer: B. Private letter ruling.

Which of the following has the highest authoritative weight?

Which of the following has the highest authoritative weight?


A. Legislative regulation.

B. Private letter ruling.

C. Revenue ruling.

D. Action on decision.

E. Revenue procedure.


Answer: A. Legislative regulation.

Rowanda could not settle with the IRS at the appeals conference. If she wants to litigate the issue but does not have sufficient funds to pay the proposed tax deficiency, Rowanda should litigate in the:

Rowanda could not settle with the IRS at the appeals conference. If she wants to litigate the issue but does not have sufficient funds to pay the proposed tax deficiency, Rowanda should litigate in the:


A. U.S. District Court.

B. U.S. Circuit Court of Appeals.

C. U.S. Court of Federal Claims.

D. U.S. Tax Court.

E. None of these.


Answer: D. U.S. Tax Court.

Lavonda discovered that the U.S. Circuit Court of Appeals for the Federal Circuit has recently issued a favorable opinion with respect to an issue that she is going to litigate with the IRS. Lavonda should choose which of the following trial courts to hear her case:

Lavonda discovered that the U.S. Circuit Court of Appeals for the Federal Circuit has recently issued a favorable opinion with respect to an issue that she is going to litigate with the IRS. Lavonda should choose which of the following trial courts to hear her case:


A. Tax Court only.

B. U.S. Court of Federal Claims only.

C. U.S. District Court only.

D. Tax Court or the U.S. District Court.

E. Tax Court or the U.S. Court of Federal Claims.


Answer: B. U.S. Court of Federal Claims only.

Lavonda discovered that the 5th Circuit (where Lavonda resides) has recently issued a favorable opinion with respect to an issue that she is going to litigate with the IRS. Lavonda should choose which of the following trial courts to hear her case:

Lavonda discovered that the 5th Circuit (where Lavonda resides) has recently issued a favorable opinion with respect to an issue that she is going to litigate with the IRS. Lavonda should choose which of the following trial courts to hear her case:


A. Tax Court only.

B. U.S. Court of Federal Claims only.

C. U.S. District Court only.

D. Tax Court or the U.S. District Court.

E. Tax Court or the U.S. Court of Federal Claims.


Answer: D. Tax Court or the U.S. District Court.

Tyrone claimed a large amount of charitable contributions as a tax deduction relative to taxpayers with similar levels of income. If Tyrone's tax return is chosen for audit because of his large charitable contributions, which audit program likely identified Tyrone's tax return for audit?

Tyrone claimed a large amount of charitable contributions as a tax deduction relative to taxpayers with similar levels of income. If Tyrone's tax return is chosen for audit because of his large charitable contributions, which audit program likely identified Tyrone's tax return for audit?


A. DIF System.

B. Deduction Detective.

C. Document perfection.

D. Information matching.

E. None of these.


Answer: A. DIF System.

Martin has never filed a 2014 tax return despite earning approximately $20,000 providing landscaping work in the community. When does the statute of limitations expire for Martin's 2014 tax return?

Martin has never filed a 2014 tax return despite earning approximately $20,000 providing landscaping work in the community. When does the statute of limitations expire for Martin's 2014 tax return?


A. 2017.

B. 2018.

C. 2021.

D. 2022.

E. None of these.


Answer: E. None of these.

Allen filed his 2014 tax return on May 15th, 2015 and underreported his gross income by 30 percent. Assuming Allen's underreporting is not due to fraud, the statute of limitations for IRS assessment on Allen's 2014 tax return should end:

Allen filed his 2014 tax return on May 15th, 2015 and underreported his gross income by 30 percent. Assuming Allen's underreporting is not due to fraud, the statute of limitations for IRS assessment on Allen's 2014 tax return should end:


A. May 15th, 2017.

B. April 15th, 2017.

C. May 15th, 2018.

D. April 15th, 2018.

E. None of these.


Answer: E. None of these.

Dan received a letter from the IRS that gave him the choice of (1) requesting a conference with an Appeals Officer or (2) agreeing to a proposed tax adjustment. Dan received the:

Dan received a letter from the IRS that gave him the choice of (1) requesting a conference with an Appeals Officer or (2) agreeing to a proposed tax adjustment. Dan received the:


A. 30-day letter.

B. 90-day letter.

C. Appeals letter.

D. Tax adjustment letter.

E. None of these.


Answer: A. 30-day letter.

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