,DOWNLOAD THE Test Bank for CCH Federal Taxation Comprehensive Topics 2021 1s
t t t t t t t t t t t
t Edition Smith t t
1 Testbank
Chaptert2
TaxtResearch,tPractice,tandtProcedure
TRUE-FALSEtQUESTIONS—CHAPTERt2
1. CommitteetreportstoftthetHousetWaystandtMeanstCommittee,tthetSenatetFinancetCommitte
e,tandtthetconferencetcommitteestaretpublishedtbytthetGovernmenttPrintingtOfficetandtareta
lsotreprintedtintthetInternaltRevenuetBulletintandtCumulativetBulletin.
2. Titlet26toftthetUnitedtStatestCodetcontainstthetstatutestthattauthorizetthetTreasurytDepartme
nt,tspecifically,tthetInternaltRevenuetService,ttotcollectttaxestfortthetfederaltgovernment.
3. SectiontnumberstruntconsecutivelytthroughtthetentiretCode,tbuttwithtoccasionaltbreakstintth
eirtsequence.
4. AlltRevenuetRulingstaretpublishedtintthetInternaltRevenuetBulletin.
5. IftthetIRStrevokestortmodifiestatpublishedtruling,topenttaxtyearstcantbetretroactivelytaffecte
dtfortallttaxpayers.
6. Sincetregulations,trevenuetrulings,tandtacquiescedtTaxtCourttdecisionstalltlacktjudicialtauth
ority,tantIRStagenttwouldtmoreteasilytbetpersuadedtbytreferencettotDistricttCourttandtCircuit
tCourttdecisions.
7. InformationtReleasest(IRs)tusuallytaretnottpublishedtintthetInternaltRevenuetBulletin,tbuttar
etdistributedtviatatpractitioners'tmailingtlist.
8. PrivatetlettertrulingstbytthetInternaltRevenuetServicetaretonlytmadetavailabletbytantofficialtc
ourttorder.
9. AtthoroughtlegislativethistorytandtbackgroundtoftatSectiontoftthetInternaltRevenuetCodetistg
enerallytfoundtintthetWolterstKluwertandtThomsontReutersttaxtservices.
10. ThetInternaltRevenuetCodetoft1986tistarrangedtastfollows:tChapter,tSubtitle,tSubchapter,tPa
rt,tSection,tSubpart,tSubsection.
11. ThetIRStmusttfollowtthetprecedentstsettbytdecisionstoftthetU.S.tCourttoftFederaltClaims.
12. IntatCourttoftAppealstdisputetbetweentthet5thtandt8thtCircuits,tthetU.S.tTaxtCourttoperatingt
withintthet5thtCircuittwilltusuallytrefertthetcasettotthetU.S.tSupremetCourt.
13. Currentttaxtlawtdatestbacktonlyttotpost-1986tInternaltRevenuetCodetdevelopments.
14. ThetCitatortServicetoutlinestthethistorytoftatcourttcase,tfromtinception,tthroughtappealstandtt
ellstwhichtlatertcasestortrulingsthavetcitedtit.
©t2020tCCHtIncorporatedtandtitstaffiliates.tAlltrightstreserved. Chaptert2
mynursytest.store
,DOWNLOAD THE Test Bank for CCH Federal Taxation Comprehensive Topics 2021 1s
t t t t t t t t t t t
t Edition Smith t t
2 CCHtFederaltTaxation—ComprehensivetTopics
15. ThetWolterstKluwert"Citator,"toutlinestcurrenttamendmentsttotthetCode.
16. ThetMertensttaxtservicetistattaxtservicetthattistsometimestcitedtbytthetcourts.
17. "ClosedtFact"ttaxtresearchtrelatesttotthetvarioustprocedurestinvolvedtint"before-the-
tfactstplanning"tsituations.
18. TaxtCourttdecisionstthattinvolvetissuestnottpreviouslytdecidedtbytthetCourttaretreleasedtast
Memorandumtdecisions.
19. ThetIRStmighttissuetantAcquiescencetortatNonacquiescencettotatRegulartTaxtCourttdecision
,tbuttnotttotatMemorandumtdecision.
20. Taxt"evasion"tandt"avoidance"taretalmosttidenticaltconcepts,tbothtrelatingttotthetwillfultfail
urettotcomplytwithttaxtlaws.
21. Atpractitionertwhotistantincomettaxtreturntpreparertandtwhotfilestatpowertoftattorneytwithtth
etInternaltRevenuetServicetmaytreceivetandtendorsetattaxpayer'strefundtcheck.
22. AtcorporationtmaytbetrepresentedtbytonetoftitstbonatfidetofficerstbeforetthetInternaltRevenu
etService.
23. Antindividualtwhotistatregulartfull-
timetemployeetoftatpartnershiptmaytrepresenttthetpartnershiptbeforetthetInternaltRevenuetSe
rvice.
24. Antaccountanttdiscoverstanterrortontatclient'streturns.tThetaccountanttmusttadvisetthetclientt
andtthetInternaltRevenuetServicetofttheterror.
25. Atclaimtfortrefundt(Formt1040X,tAmendedtU.S.tIndividualtIncometTaxtReturn)tmusttbetfile
dtwithintthreetyearstfromtthetdatetthetreturntwastduetortfiled,tortwithinttwotyearstfromtthetdat
etthettaxtwastpaid,twhichevertistlater.
26. AtnoticetoftdeficiencytreceivedtbytattaxpayertfromtthetInternaltRevenuetServicetmeanstthatta
tproposedttaxtliabilitythastbeentautomaticallyt assessedtandtthettaxpayertcantnotlongerttakethi
storthertcasettotthetTaxtCourt.
27. Determinationtletterstregardingtthetwrittentqualificationstoftantindividuallytdesignedtretire
menttplantaretissuedtbytthetInternaltRevenuetService'stNationaltOfficetintWashington.
28. ThettaxpayertortthetGovernmenttmaytappealtdecisionstoftatDistricttCourtttotthetCourtt oftAp
peals.
29. DecisionstoftthetCourttoftFederaltClaimstaretappealedttotthetU.S.tSupremetCourt.
30. ThetU.S.tTaxtCourttistantindependenttjudicialtbodytthatthastnotconnectiontwithtthetInternalt
RevenuetService.
©t2020tCCHtIncorporatedtandtitstaffiliates.tAlltrightstreserved. Chaptert2
mynursytest.store
, DOWNLOAD THE Test Bank for CCH Federal Taxation Comprehensive Topics 2021 1s
t t t t t t t t t t t
t Edition Smith t t
3 Testbank
31. Antunenrolledtindividualtmaytrepresentthistorthertregulartfull-
timetemployertbeforetthetInternaltRevenuetService.
32. AntexaminationtoftFarleytField'st2020tincomettaxtreturntresultedtintantunagreedtdeficiencyt
oft$20,000,tandthethastrequestedtthatthistcasetbetheardtbytthetTaxtCourttundertthetSmalltTaxt
Casetprocedures.tIfthistcasetisthandledtusingtthesetprocedures,thetcannottappealtthetdecision
.
33. ThetTaxtCourtthearstcasestonlytiftthettaxthastbeentassessedtortpaid.
34. DoristDuncantreceivedtatstatutorytnoticetoftdeficiencytatthertresidencetintOhio.tIftshetwishest
totappealtthetdeficiencyttotthetTaxtCourt,tshetmaytfiletatpetitiontattanyttimetwithint120tdaysto
ftthetissuancetoftthetnotice.
35. ThetU.S.tSupremetCourttistnottobligatedttotheartallttaxtcasestthattaretappealedttotit.
36. ThetCommissionertoftInternaltRevenuetmaytappealtantadversetdecisiontoftthetTaxtCourt.
37. ThetTaxtCourttistlesstlikelyttotbetlenienttintitstenforcementtoftthetrulestoftevidencetthantthetDi
stricttCourttortthetCourttoftFederaltClaims.
38. AtjuryttrialtistallowedtintthetTaxtCourt.
39. PaymenttofttaxtistnottnecessaryttotlitigatetintthetDistricttCourt.
40. TaxpayerstmaytrequesttatdeterminationtlettertfromtthetNationaltOfficetoftthetIRS.
41. ArnoldtAmes,tatpartnertintantaccountingtfirm,tdiscoverstthattonetofthistclientstomittedtatsubst
antialtamounttoftgrosstincome.tArnoldtshouldtimmediatelytnotifythistpartnerstandtthetIRS.
42. Atclaimtfortrefundtmusttbetfiledtwithintthreetyearstfromtthetdatetthetreturntwastfiledtortwithin
tthreet yearstfromtthetdatetthettaxtwastpaid,twhichevertdatetistlater.
43. Iftthettaxpayertdisagreestwithtantexaminer'stfindings,tthettaxpayertmusttfirsttmaketantappealt
totthetIRStbeforetgoingttotthetcourts.
44. BarrytBroom'sttaxtreturntwastexaminedtbytattaxtauditortwhotdeterminedtadditionalttaxtdueto
ft$2,400.tBarrytdoestnottagreetwithtthetproposedtchangetandtrequeststatconferencetwithtthetA
ppealstOffice.tBarrytistrequiredttotsubmittatwrittentprotesttwiththistrequestttotthetAppealstOf
fice.
45. Secondarytsourcestoftauthoritytsuchtasttaxtservices,tcitators,tandtlegaltperiodicalstaretrefere
ncestthattexplaintandtcommenttontprimarytsourcestoftauthority.
46. Regulationstoftentdefinetterms,tclarifytlanguagetusedtintthetCode,tandtexplainthowtthetPresi
denttbelievestthettaxtlawstshouldtbetinterpreted.
©t2020tCCHtIncorporatedtandtitstaffiliates.tAlltrightstreserved. Chaptert2
mynursytest.store
t t t t t t t t t t t
t Edition Smith t t
1 Testbank
Chaptert2
TaxtResearch,tPractice,tandtProcedure
TRUE-FALSEtQUESTIONS—CHAPTERt2
1. CommitteetreportstoftthetHousetWaystandtMeanstCommittee,tthetSenatetFinancetCommitte
e,tandtthetconferencetcommitteestaretpublishedtbytthetGovernmenttPrintingtOfficetandtareta
lsotreprintedtintthetInternaltRevenuetBulletintandtCumulativetBulletin.
2. Titlet26toftthetUnitedtStatestCodetcontainstthetstatutestthattauthorizetthetTreasurytDepartme
nt,tspecifically,tthetInternaltRevenuetService,ttotcollectttaxestfortthetfederaltgovernment.
3. SectiontnumberstruntconsecutivelytthroughtthetentiretCode,tbuttwithtoccasionaltbreakstintth
eirtsequence.
4. AlltRevenuetRulingstaretpublishedtintthetInternaltRevenuetBulletin.
5. IftthetIRStrevokestortmodifiestatpublishedtruling,topenttaxtyearstcantbetretroactivelytaffecte
dtfortallttaxpayers.
6. Sincetregulations,trevenuetrulings,tandtacquiescedtTaxtCourttdecisionstalltlacktjudicialtauth
ority,tantIRStagenttwouldtmoreteasilytbetpersuadedtbytreferencettotDistricttCourttandtCircuit
tCourttdecisions.
7. InformationtReleasest(IRs)tusuallytaretnottpublishedtintthetInternaltRevenuetBulletin,tbuttar
etdistributedtviatatpractitioners'tmailingtlist.
8. PrivatetlettertrulingstbytthetInternaltRevenuetServicetaretonlytmadetavailabletbytantofficialtc
ourttorder.
9. AtthoroughtlegislativethistorytandtbackgroundtoftatSectiontoftthetInternaltRevenuetCodetistg
enerallytfoundtintthetWolterstKluwertandtThomsontReutersttaxtservices.
10. ThetInternaltRevenuetCodetoft1986tistarrangedtastfollows:tChapter,tSubtitle,tSubchapter,tPa
rt,tSection,tSubpart,tSubsection.
11. ThetIRStmusttfollowtthetprecedentstsettbytdecisionstoftthetU.S.tCourttoftFederaltClaims.
12. IntatCourttoftAppealstdisputetbetweentthet5thtandt8thtCircuits,tthetU.S.tTaxtCourttoperatingt
withintthet5thtCircuittwilltusuallytrefertthetcasettotthetU.S.tSupremetCourt.
13. Currentttaxtlawtdatestbacktonlyttotpost-1986tInternaltRevenuetCodetdevelopments.
14. ThetCitatortServicetoutlinestthethistorytoftatcourttcase,tfromtinception,tthroughtappealstandtt
ellstwhichtlatertcasestortrulingsthavetcitedtit.
©t2020tCCHtIncorporatedtandtitstaffiliates.tAlltrightstreserved. Chaptert2
mynursytest.store
,DOWNLOAD THE Test Bank for CCH Federal Taxation Comprehensive Topics 2021 1s
t t t t t t t t t t t
t Edition Smith t t
2 CCHtFederaltTaxation—ComprehensivetTopics
15. ThetWolterstKluwert"Citator,"toutlinestcurrenttamendmentsttotthetCode.
16. ThetMertensttaxtservicetistattaxtservicetthattistsometimestcitedtbytthetcourts.
17. "ClosedtFact"ttaxtresearchtrelatesttotthetvarioustprocedurestinvolvedtint"before-the-
tfactstplanning"tsituations.
18. TaxtCourttdecisionstthattinvolvetissuestnottpreviouslytdecidedtbytthetCourttaretreleasedtast
Memorandumtdecisions.
19. ThetIRStmighttissuetantAcquiescencetortatNonacquiescencettotatRegulartTaxtCourttdecision
,tbuttnotttotatMemorandumtdecision.
20. Taxt"evasion"tandt"avoidance"taretalmosttidenticaltconcepts,tbothtrelatingttotthetwillfultfail
urettotcomplytwithttaxtlaws.
21. Atpractitionertwhotistantincomettaxtreturntpreparertandtwhotfilestatpowertoftattorneytwithtth
etInternaltRevenuetServicetmaytreceivetandtendorsetattaxpayer'strefundtcheck.
22. AtcorporationtmaytbetrepresentedtbytonetoftitstbonatfidetofficerstbeforetthetInternaltRevenu
etService.
23. Antindividualtwhotistatregulartfull-
timetemployeetoftatpartnershiptmaytrepresenttthetpartnershiptbeforetthetInternaltRevenuetSe
rvice.
24. Antaccountanttdiscoverstanterrortontatclient'streturns.tThetaccountanttmusttadvisetthetclientt
andtthetInternaltRevenuetServicetofttheterror.
25. Atclaimtfortrefundt(Formt1040X,tAmendedtU.S.tIndividualtIncometTaxtReturn)tmusttbetfile
dtwithintthreetyearstfromtthetdatetthetreturntwastduetortfiled,tortwithinttwotyearstfromtthetdat
etthettaxtwastpaid,twhichevertistlater.
26. AtnoticetoftdeficiencytreceivedtbytattaxpayertfromtthetInternaltRevenuetServicetmeanstthatta
tproposedttaxtliabilitythastbeentautomaticallyt assessedtandtthettaxpayertcantnotlongerttakethi
storthertcasettotthetTaxtCourt.
27. Determinationtletterstregardingtthetwrittentqualificationstoftantindividuallytdesignedtretire
menttplantaretissuedtbytthetInternaltRevenuetService'stNationaltOfficetintWashington.
28. ThettaxpayertortthetGovernmenttmaytappealtdecisionstoftatDistricttCourtttotthetCourtt oftAp
peals.
29. DecisionstoftthetCourttoftFederaltClaimstaretappealedttotthetU.S.tSupremetCourt.
30. ThetU.S.tTaxtCourttistantindependenttjudicialtbodytthatthastnotconnectiontwithtthetInternalt
RevenuetService.
©t2020tCCHtIncorporatedtandtitstaffiliates.tAlltrightstreserved. Chaptert2
mynursytest.store
, DOWNLOAD THE Test Bank for CCH Federal Taxation Comprehensive Topics 2021 1s
t t t t t t t t t t t
t Edition Smith t t
3 Testbank
31. Antunenrolledtindividualtmaytrepresentthistorthertregulartfull-
timetemployertbeforetthetInternaltRevenuetService.
32. AntexaminationtoftFarleytField'st2020tincomettaxtreturntresultedtintantunagreedtdeficiencyt
oft$20,000,tandthethastrequestedtthatthistcasetbetheardtbytthetTaxtCourttundertthetSmalltTaxt
Casetprocedures.tIfthistcasetisthandledtusingtthesetprocedures,thetcannottappealtthetdecision
.
33. ThetTaxtCourtthearstcasestonlytiftthettaxthastbeentassessedtortpaid.
34. DoristDuncantreceivedtatstatutorytnoticetoftdeficiencytatthertresidencetintOhio.tIftshetwishest
totappealtthetdeficiencyttotthetTaxtCourt,tshetmaytfiletatpetitiontattanyttimetwithint120tdaysto
ftthetissuancetoftthetnotice.
35. ThetU.S.tSupremetCourttistnottobligatedttotheartallttaxtcasestthattaretappealedttotit.
36. ThetCommissionertoftInternaltRevenuetmaytappealtantadversetdecisiontoftthetTaxtCourt.
37. ThetTaxtCourttistlesstlikelyttotbetlenienttintitstenforcementtoftthetrulestoftevidencetthantthetDi
stricttCourttortthetCourttoftFederaltClaims.
38. AtjuryttrialtistallowedtintthetTaxtCourt.
39. PaymenttofttaxtistnottnecessaryttotlitigatetintthetDistricttCourt.
40. TaxpayerstmaytrequesttatdeterminationtlettertfromtthetNationaltOfficetoftthetIRS.
41. ArnoldtAmes,tatpartnertintantaccountingtfirm,tdiscoverstthattonetofthistclientstomittedtatsubst
antialtamounttoftgrosstincome.tArnoldtshouldtimmediatelytnotifythistpartnerstandtthetIRS.
42. Atclaimtfortrefundtmusttbetfiledtwithintthreetyearstfromtthetdatetthetreturntwastfiledtortwithin
tthreet yearstfromtthetdatetthettaxtwastpaid,twhichevertdatetistlater.
43. Iftthettaxpayertdisagreestwithtantexaminer'stfindings,tthettaxpayertmusttfirsttmaketantappealt
totthetIRStbeforetgoingttotthetcourts.
44. BarrytBroom'sttaxtreturntwastexaminedtbytattaxtauditortwhotdeterminedtadditionalttaxtdueto
ft$2,400.tBarrytdoestnottagreetwithtthetproposedtchangetandtrequeststatconferencetwithtthetA
ppealstOffice.tBarrytistrequiredttotsubmittatwrittentprotesttwiththistrequestttotthetAppealstOf
fice.
45. Secondarytsourcestoftauthoritytsuchtasttaxtservices,tcitators,tandtlegaltperiodicalstaretrefere
ncestthattexplaintandtcommenttontprimarytsourcestoftauthority.
46. Regulationstoftentdefinetterms,tclarifytlanguagetusedtintthetCode,tandtexplainthowtthetPresi
denttbelievestthettaxtlawstshouldtbetinterpreted.
©t2020tCCHtIncorporatedtandtitstaffiliates.tAlltrightstreserved. Chaptert2
mynursytest.store
