1. Which of the following is an administrative source Federal tax law that is primary authority?

a. U.S. Constitution.

b. collected rulings of the various courts on Federal tax matters.

c. revenue procedures.

d. technical advice memos.

2. Which, if any, of the following statements is accurate?

a. Every Code section has a treasury regulation.

b. Proposed regulations expire 3 years after they are issued if they do not become final regulations within that time.

c. Taypayers but not the IRS, are bound by final regulations.

d. None of the statements is accurate.

3. Which of the following treasury regulations would represent a temporary regulation?

a.Treas. Reg. Sec. 1018T.

b.Treas. Reg. Sec. 1018-1T.

c.Treas. Reg. Sec. 1.1018-1T.

d.none of the above.

4.Which statement, if any, is accurate regarding Treasury Regulations?

a.Temporary Regulations cannot become final until the expiration of at least 30 days after they are published in the Federal Register.

b.The IRS cannot make changes to Proposed Regulations before they become final.

c.The public must be given an opportunity to comment on Temporary Regulations before they become final.

d.None of the statements is correct.

5.Which of the following IRS pronouncements has the greatestweight of authority?

a.IRS Revenue Rulings.

b.IRS Taxpayer Publications.

c.IRS Announcements.

d.All of the above IRS pronouncements have equal weight of authority.

6.Treasury Decisions are published first, officially, in:

a.the Internal Revenue Bulletin.

b.technical advice memos.

c.the Federal Register.

d.Congressional Committee Reports.

7. The IRSs general authority to issue binding rules and regulations comes from which source?

a.The United States Constitution.

b.An Executive Order of the President.

c.Code Section7801.

d.Code Section 7805.

e.None of the above is correct.

8.Which of the following statements is not accurate regarding effective dates in the Internal Revenue Code?

a.Sections of a new tax law may have different effective dates.

b.New provisions of the Internal Revenue Code do not always go into effect immediately upon signing of the law by the President.

c.Some effective dates can precedepassage of the act.

d.All are accurate.

9.Which of the following Regulations deals with gift taxes?

a.Reg. 1.16221(a)(2).

b.Reg. 25.25034.

c.Reg. 1.66625T.

d.Reg. 31.3121(a)2.

e.None of the above.

10. In the citation Reg. 1.1622(a)(1), the number 162 stands for the:

a.type of Regulation.

b.related Code section.

c.Code of Federal Regulations.

d.Regulation paragraph.

11.Which of the following statements is accurate with regard to IRS Revenue Rulings?

a.Revenue Rulings may only cite Code Sections but not Treasury Regulations.

b.Revenue Rulings may be revoked only by the Courts, not by the IRS.

c.A Revenue Ruling may be revoked by a subsequent Revenue Ruling that expressly supersedes the earlier Revenue Ruling.

d. All of the above statements are correct.

12.Revenue Procedures deal with:

a.Specific taxpayer requests for the IRSs position on a procedural issue.

b.Applying the Code and Regulations to a specific factual situation.

c.Practice and procedure related to the IRS in the administration of the tax laws.

d.All of the above.

13.Which, if any, of the following is accurate 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.All of the above statements are correct.

e.None of above statements is correct.

14. Which statement is accurateregarding the United States Tax Court?

a.The Tax Court will hear any State tax or Federal tax case.

b.The Tax Court is only an appeals court.

c.The Tax Court must follow decisions of the District Court with jurisdiction over the taxpayer.

d.None of the above statements is correct.

e.All of the above statement are correct.

15.What is the wording of the first sentence of Treas. Reg. Section 1.1221-1(d)?

a.For the application of section 1231 to the sale.

b.Section 1221(4) excludes from the definition of

c.There is no (d) in Treas. Reg. Section 1.1221-1.

d.The term capital gain net income

16.Rev. Proc. 2015-1 contains a sample format for what purpose?

a.A revenue procedure request.

b. A revenue ruling request.

c. A claim for refund.

d. A letter ruling request.

17.What IRS publication deals with federal income tax obligations of executors, adminstrators, and survivors of a decedent?

a.Publication 212.

b.Publication 559.

c.There is no such publication.

d.Publication 1014.

18.Which Treasury Regulation addresses future interest gifts?

a. IRC Section 2503.

b. Treas. Reg. Sec. 20. 2503.

c. Treas. Reg. Section 25.2503.

d. None of the above.

19.Which Treasury Regulation addresses the issue of whether the opening a bank account as joint tenants with right of survivorship is a completed gift for gift tax purposes.

a.Treas. Reg. Sec.2511-1(a).

b.Treas. Reg. Sec. 25.2511-1(h)(4).

c.Treas. Reg. Section 20.2011.

d.None of the above.

20. Which of the following is an administrative source of primary authority?

a. U.S. Constitution.

b. collected rulings of the various courts on Federal tax matters.

c. revenue rulings.

d. Newsletters.

21. Which of the following is an administrative source of the Federal tax law issued by the Internal Revenue Service?

a.court rulings.

b. Internal Revenue Code.

c. tax treaties.

d. revenue rulings.

e. none of the above.

22.Which, if any, of the following statements is or are accurate?

I.All primary source material has the same precedential value.

II.Statutory sources of Federal tax law come out of the legislative branch of the U.S. government.

III.Circuit Court opinions are administrative sources of the Federal tax law.

a.Only I is true.

b.Only II is true.

c.Only III is true.

d.None is true.

23.A federal court may invalidate IRS Regulations if they are found to conflict with the Code.

a. True.

b. False.

24.The IRS, as an administrative agency, is responsible for:

a.formulating and interpreting the tax laws.

b.interpreting and enforcing the tax laws.

c.formulating and evaluating the tax laws.

d.planning and formulating the tax laws.

25. Which statement is or are accurate regarding Proposed Regulations?

a.They cannot become final until the expiration of at least 30 days after they are published in proposed form.

b.The IRS cannot make changes to Proposed Regulations before they become final.

c.The public must be given an opportunity to comment on Proposed Regulations before they become final.

d.Only (a) and (c) are correct.

26.Which of the following IRS pronouncements has the greatestweight of authority?

a.IRS Revenue Rulings.

b.IRS Taxpayer Publications.

c.IRS Announcements.

d.All of the above IRS pronouncements have equal weight of authority.

27. Treasury Decisions are published first, officially, in:

a. the Internal Revenue Bulletin.

b. first in the Internal Revenue Bulletin and then in the Federal Register.

c. the Federal Register.

d. Congressional Committee Reports.

28. The IRSs general authority to issue binding rules and regulations comes from which source?

a. The United States Constitution.

b. An Executive Order of the President.

c. A section of the Internal Revenue Code itself.

d. None of the above.

29. Which of the following Regulations deals with estate taxes?

a.Reg. 1.16221(a)(2).

b.Reg. 25.25034.

c.Reg. 1.66625T.

d.Reg. 31.3121(a)2.

e.None of the above.

30.Which of the following statements is not accurate with regard to IRS Revenue Rulings?

a. Revenue Rulings apply the Code and Regulations to a specific factual situation.

b. Revenue Rulings are published chiefly to give guidance to taxpayers.

c. A Revenue Ruling is an official pronouncement of the IRS National Office.

d. All of the above statements are correct.

31. InWalter H. Johnson, 34 TCM 1056, 34 stands for the:

a. year of decision.

b. page number.

c. volume number.

d. paragraph number.

32. Which statement is accurateregarding the United States Tax Court?

a. The Tax Court will hear any Federal case.

b. The Tax Court is only an appeals court.

c. The Tax Court must follow decisions of the District Court with jurisdiction over the taxpayer.

d. None of the above statements are correct.

33. Assume it is now December 2017. What court decidedABCv. Commissioner, 967 U.S. 567(2017) in November of this year?

a. District Court.

b. Tax Court.

c. Supreme Court.

d. Court of Appeals.

34.Bob owned a duplex used as rental property.The duplex had an adjusted basis to Bob of $86,000 and a fair market value of $300,000.Bob transferred the duplex to his brother, Carl, in exchange for a triplex that Carl owned.The triplex had an adjusted basis to Carl of $279,000 and a fair market value of $300,000.Two months after the exchange, Carl sold the duplex to his business associate to whom he was not related for $312,000.How much, if any, was Bobs recognized gain or loss with respect to these transactions?

a.No gain or loss is recognized.

b.$11,000 gain is recognized.

c.$214,000 gain is recognized.

d.The transfer by Bob to Carl is a gift.

e.$21,000.

35.What Code Section or Sections govern the result in question 34?

a.Code Sections 1015 and 2503.

b.Code Sections 61and 707.

c.Code Sections 318 and 1001.

d.None of the above, and the two governing sections are discussed in the short essay below.

36.Bob owned a duplex used as rental property.The duplex had an adjusted basis to Bob of $86,000 and a fair market value of $300,000.Bob transferred the duplex to his brother, Carl, in exchange for a triplex that Carl owned.The triplex had an adjusted basis to Carl of $279,000 and a fair market value of $300,000.Two months after the exchange, Carl sold the duplex to his business associate to whom he was not related for $312,000.How much, if any, gain or loss did Carl recognize with respect to the transaction with Bob?

a.No gain or loss was recognized.

b.$21,000 gain was recognized.

c.The transfer by Bob to Carl was a gift.

d.None of the above is correct.

37.Bob owned a duplex used as rental property.The duplex had an adjusted basis to Bob of $86,000 and a fair market value of $300,000.Bob transferred the duplex to his brother, Carl, in exchange for a triplex that Carl owned.The triplex had an adjusted basis to Carl of $279,000 and a fair market value of $300,000.Two months after the exchange, Carl sold the duplex to his business associate to whom he was not related for $312,000.How much, if any, gain or loss did Carl recognize with respect to the sale by Carl two months after the transaction with Bob?

a.No gain or loss was recognized.

b.$11,000 gain was recognized.

c.$12,000 gain was recognized.

d.None of the above.

38. Assume the same facts as in Question 37, except that Carl sold the duplex to the business associate more than two years after the exchange with Bob.Without taking into consideration any changes to the adjusted basis of the property subsequent to the exchange with Bob (such as for depreciation), how much, if any, gain or loss did Bob recognize with respect to the exchange with Carl?

a.No gain or loss was recognized.

b.$11,000 gain was recognized.

c.$214,000 gain was recognized.

d.The transfer by Bob to Carl is a gift.

e.$21,000.

39.Under the facts of Question 37, what is Bobs basis in the triplex?

a.$86,000.

b.$279,000.

c.$300,000.

d.$312,000.

40. Assume the same facts as Question 37, except that Carl sold the duplex to his business associate more than two years after the exchange with Bob.Without taking into consideration any changes to the adjusted basis of the property subsequent to the exchange with Bob (such as for depreciation), how much, if any, is Carls recognized gain with respect to these transactions?

a.No gain or loss on the exchange withBob, and $12,000 gain on the subsequent sale.

b.$11,000 gain on the exchange with Bob, and $12,000 gain on the subsequent sale.

c.$12,000 gain on the exchange with Bob, and $279,000 on the subsequent sale.

d.None of the above.