Question 1

Which one of the following is not a characteristic of a temporary regulation?

1. Has the force and effect of law after final regulations are issued.
2. Can be used as somewhat of an authority.
3. May remain effective for a maximum of 3 years.
4. Must be issued concurrently as proposed regulations.

Question 2

Which of the following explains tax law in plain language for taxpayers and their advisors?

1. Committee report.
2. IRS Publication.
3. Technical memo.
4. Dictum.

Question 3

Which of the following promulgates procedural regulations?

1. Secretary of the Treasury.
2. Chief Counsel.
3. Commissioner of the IRS.
4. Director of the Office of Professional Responsibility.

Question 4

Which of the following statements regarding the Commissioner of Internal Revenue's position on court decisions is false?

1. The commissioner cannot withdraw an acquiescence and substitute a non acquiescence.
2. The commissioner may decide to acquiesce to an adverse regular Tax Court decision.
3. The acquiescence program is not intended as a substitute for a ruling or regulation program.
4. The decisions of the courts, other than the Supreme Court, are binding on the commissioner only for the particular taxpayer and for the years litigated.

Question 5

Which of the following statements is false with respect to court decisions?

1. A memorandum decision issued by the Tax Court is thought to be of little value as a precedent because the issue has been decided many times.
2. Acquiescence by the Commissioner of Internal Revenue to regular Tax Court adverse decisions generally means that the IRS will follow the Tax Court decision in cases involving similar facts.
3. Dictum is the courts formal answer to the principal issue in litigation. It is legally binding and is enforceable by the authority of the courts.
4. Petition to the Supreme Court to hear a case is by writ of certiorari, which is initially requested by the appealing party and is issued by the Supreme Court to the lower appellate court, requesting the record of a case for review.

Question 6

Appeal from the U.S.ACourt of Federal Claims is to the

1. U.S.ATax Court.
2. U.S.ACircuit Court of Appeals.
3. U.S.ASupreme Court.
4. U.S.ACourt of Appeals for the Federal Circuit.

Question 7

Which of the following is a false statement regarding court cases, revenue rulings, and revenue procedures?

1. Announcements concerning the Internal Revenue Services acquiescence or non acquiescence in Tax Court decisions (other than memorandum decisions) that are adverse to the government's position are published in Internal Revenue Bulletins.
2. The Internal Revenue Service does not publish decisions by United States District Courts or the United States Court of Federal Claims. To find these decisions, one must look to publications issued by commercial printing houses.
3. The denial of a writ of certiorari by the U.S.ASupreme Court is the equivalent of a reversal or disagreement.
4. U.S.ASupreme Court decisions on federal tax matters are published in Internal Revenue Bulletins.

Question 8

Which of the following statements best describes the applicability of a constitutionally valid Internal Revenue Code section on the various courts?

1. Only the Supreme Court is not bound to follow the Code section. All other courts are bound to the Code section.
2. Only the Tax Court is bound to the Code section. All other courts may waver from the Code section.
3. All courts are bound by the Code section.
4. Only district, claims, and appellate courts are bound by the Code section. The Supreme and Tax Courts may waver from it.

Question 9

Which of the following should not be cited to sustain a position?

1. Tax Conventions.
2. Treasury Decisions.
3. Publications.
4. Executive Orders.

Question 10

To research whether the Internal Revenue Service has announced an opinion on a Tax Court decision, refer to which of the following references for the original announcement?

1. Circular 230.
2. Tax Court Reports.
3. Internal Revenue Bulletin.
4. Federal Register.

Question 11

All courts except the Tax Court are bound by legislative regulations. (True or False)

Question 12

Non acquiescence by the Commissioner of Internal Revenue to an adverse decision in a regular Tax Court case means the Internal Revenue Service will not accept the decision and will not follow it in cases involving similar facts. (True or False)

Question 13

If the Supreme Court determines that various lower courts are deciding a tax issue in an inconsistent manner, it may review a decision and resolve the contradiction. (True or False)

Question 14

Non acquiescence by the Commissioner of Internal Revenue to an adverse decision in a regular Tax Court case means the Internal Revenue Service does not accept the decision but will follow it in cases involving similar facts. (True or False)

Question 15

The purpose of revenue rulings is to promote a uniform application of the tax law to an entire set of facts. Therefore, IRS employees must follow the rulings, while taxpayers may contest in court adverse return examination decisions based on these findings. (True or False)

Question 16

The Internal Revenue Code is binding on all courts except when held to violate the Constitution. (True or False)

Question 17

The Commissioner of Internal Revenue may subsequently revise a non acquiescence but not an acquiescence. (True or False)

Question 18

A dictum is a court statement of opinion on a legal point that is not necessary for the decision of the case. (True or False)

Question 19

Revenue rulings, revenue procedures, and all U.S.SSupreme Court decisions on federal tax matters are published in the Internal Revenue Bulletin (IRB). (True or False)

Question 20

The courts are not bound by Treasury Regulations.

(True or False)