Question

1) A tax professional must understand the relative weight of authority within the various tax law sources.

True or False

2) The Internal Revenue Code was codified for the first time in what year?

A. 1913.

B.1923.

C. 1939.

D. 1954.

E. 1986.

3) Rank the following in order of authority, according to the IRS article in your readings.

-Revenue Ruling

-Internal Revenue Code

-Private Letter Ruling

-Revenue Regulation

-Technical Memorandum

4) Treasury Regulations pick up where the Internal Revenue Code leaves off by providing official interpretation of the Internal Revenue Code by the US Department of Treasury.

True or False

5) Title 26 of the US Code contains the Internal Revenue Code. What is contained in Subtitle A?

A. Procedure & Administration

B. Estate & Gift Taxes

C. Income Tax

D. The Joint Committee On Taxation

6) Revenue Rulings carry the same legal force and effect as Regulations.

True or False

7) Which of the following sources has the highest tax validity?

A. Revenue Ruling.

B. Revenue Procedure.

C. Regulations.

D. Internal Revenue Code section.

E. None of the above.

8) Rules of tax law do not include Revenue Rulings and Revenue Procedures.

True or False

9) Both economic and social considerations can be used to justify:

A. Various tax credits, deductions, and exclusions that are designed to encourage taxpayers to obtain additional education.

B. Disallowance of any deduction for expenditures deemed to be contrary to public policy (e.g., fines, penalties, illegal kickbacks, bribes to government officials).

C. Favorable tax treatment for accident and health plans provided for employees and financed by employers.

D. Allowance of a deduction for state and local income taxes paid.

E. None of the above.

10) State Income Tax is always calcuated in the same manner as Federal Income tax.

True or False

Answer 1

Q1) Answer is True.

As the tax professional must do work within and under the law and he must comply with all rules and regulations.

Q2) Answer is 1954.

Q3) Answer is

Rank one is Internal revenue code

Rank two is Revenue regulation

Rank three is Revenue ruling

Rank four is Private letter ruling and

Rank five is Technical memorandum

Q4) Answer is True

Q5) Answer is Income tax

Q6) Answer is false

Q7) Answer is IRC section

Q8) Answer is False. Because they are a part of it.

Q9) Answer is Option a.

Various tax credits, deductions, and exclusions that are designed to encourage taxpayers to obtain additional education.

Q10) Answer is False.

The chief distinction is that state withholding is based on state-level taxable income, while federal withholding is based on federal taxable dollars. State withholding rules tend to vary among the states, while federal withholding rules are consistent everywhere throughout the United States.