Chapter 1: Tax planning is an integral part of closed-fact situations. A) True B) False Chapter 1: Regulations issued prior to the latest tax legislation dealing with a specific Code section are still effective to the extent they do not conflict with the provisions in the new legislation. A) True B) False 3. Chapter 1: Jacob's business records were lost as a result of Hurricane Katrina. CPA Jordan prepares Jacob's return using estimates. What do the Statements on Standards for Tax Services state about the use of estimates? A) Estimates may not be used. B) Estimates may be used, but Jordan should disclose their use to the IRS. C) Estimates may be used without disclosing their use to the IRS. D) The Statements on Standards for Tax Services do not address the use of estimates. 4. Chapter 1: A client wants to take a tax return position with less than a 10% probability of being upheld in court. The CPA should A) take the client's desired position, but not sign the tax return. B) ask the client to sign a waiver of his right to sue the CPA in the event the IRS disallows the position. C) inform the client that the position does not have a realistic possibility of success. D) take the client's desired position and sign the return as usual. 5. Chapter 1: Which of the following best describes the weight of a revenue ruling? A) Regulations carry more weight than revenue rulings. B) Revenue rulings carry more weight than regulations. C) Revenue rulings carry more weight than federal court decisions. D) Revenue rulings should never be used as authority since they only apply to the taxpayer requesting the ruling. 6. Chapter 1: Which of the following steps, related to a tax bill, occurs first? A) signature or veto by the President of the United States B) consideration by the House Ways and Means Committee C) consideration by the Senate Finance Committee D) consideration by the entire Senate 7. Chapter 1: The term "tax law" includes A) legislation. B) treasury regulations. C) judicial decisions. (D) all of the above 1