Federal income tax provisions are formulated by numerous factors in addition to the need to collect taxes.

Question 1 options:

a) True

b) False

Tax credits have the same value to all taxpayers.

Question 2 options:

a) True

b) False

Cash-basis taxpayers report income for tax purposes only when they receive cash for a sale.

Question 3 options:

a) True

b) False

Constructive receipt refers to situations where accrual-basis taxpayers are deemed to have received income.

Question 4 options:

a) True

b) False

Interest from municipal securities constitutes a permanent difference between financial income and taxable income.

Question 5 options:

a) True

b) False

Differences in depreciation rates used for tax and financial statement purposes will result in temporary differences.

Question 6 options:

a) True

b) False

When a taxpayer pays more tax than she expenses for financial accounting purposes, she will either book a deferred tax asset, or reduce a deferred tax liability by the amount of the difference.

Question 7 options:

a) True

b) False

Federal income tax expense per books constitutes a temporary difference between tax and financial accounting.

Question 8 options:

a) True

b) False

Accrual-basis taxpayers may not deduct bad-debt expense based on estimates on their tax returns.

Question 9 options:

a) True

b) False

The Internal Revenue Code is a regulation.

Question 10 options:

a) True

b) False

The Internal Revenue Service creates the tax laws.

Question 11 options:

a) True

b) False

In Code section 68(b)(2)(C)(ii), the (ii) is a clause.

Question 12 options:

a) True

b) False

Terms used in the Internal Revenue Code should be accorded their technical meaning over their ordinary meaning.

Question 13 options:

a) True

b) False

Legislative regulations are accorded greater deference by courts than are interpretive regulations.

Question 14 options:

a) True

b) False

Taxpayers appeal adverse decisions by the U.S. Tax Court to the U.S. Supreme Court.

Question 15 options:

a) True

b) False

Taxpayers must pay an IRS assessment first, before they are eligible to go into federal district court.

Question 16 options:

a) True

b) False

Taxpayers may not rely on private letter rulings as IRS precedent unless the ruling is specifically addressed to the taxpayer.

Question 17 options:

a) True

b) False

Marginal tax rates have never been above 90 percent.

Question 18 options:

a) True

b) False

Audit reports are issued within 90 days of the completion of the audit.

Question 19 options:

a) True

b) False