Multiple Choice

What administrative release deals with a proposed transaction rather than a completed

transaction?

a$.$ Technical Advice Memorandum

b$.$ Letter Ruling

c$.$ Field Service Advice

d$.$ Determination Letter

Multiple Choice

A taxpayer who decides not to pay a tax deficiency, must litigate in which court?

a$.$ U$.$S$.$ District Court

b$.$ Appropriate U$.$S$.$ Circuit Court of Appeals

c$.$ U$.$S$.$ Tax Court

d$.$ U$.$S$.$ Court of Federal Claims

Multiple Choice

Which of the following is the lowest authority in the Federal tax law system?

a$.$ Proposed Regulation.

b$.$ Revenue Procedure.

c$.$ Revenue Ruling.

d$.$ Interpretive Regulation.

Multiple Choice

Complete the following statement regarding the primary purpose of effective tax planning.

The primary purpose of effective tax planning

a$.$ is to defer deductions and accelerate income

b$.$ is to maximize the taxpayer's after$-$tax wealth

c$.$ is to achieve tax evasion

True or False

Circle "True" or "False" for each of the following regarding the task$-$based simulations that are

part of the CPA exam.

A typical simulation is designed to take $15-20$ minutes to complete. True False

Simulations are case studies that test a candidate's tax knowledge and skills using real$-$life,

work$-$related situations.

True False

The taxation database includes authoritative excerpts that are necessary to complete the tax

simulations.

True False

The purpose of the simulations is to test higher$-$level analysis and evaluation

skills.

True False