Which of the following is NOT a factor that determines whether a taxpayer is

required to file a tax return?

Taxpayer's EMPLOYMENT.

Corporations are required to file a tax return only if their taxable income is greater
than
None of these. Corporations are always required to file a tax return.

This year April 15th falls on a Saturday. Individual tax returns will be due on
April 17th.

Which of the following is not a common method that the IRS uses to select returns
for audit
Tax Select system.

Which of the following audits is the MOST common and typically less
comprehensive?
Correspondence.

Which of the following audits is the LEAST common, broadest in scope, and typically
most complex?
Field.

Which of the following courts is the only court that provides for a jury trial?
U.S. DISTRICT Court.

Which of the following is NOT considered a PRIMARY authority?

Tax service

Which of the following is NOT considered a SECONDARY authority?

Private Letter Ruling
Which of the following has the HIGHEST authoritative weight?
1) Legislative regulation.
2) REVENUE ruling.

Generally, code sections are arranged (grouped together)

by topic.

Which of the following has the LOWEST authoritative weight?

Private letter ruling
PROPOSED regulation

Which judicial doctrine means that a court will rule consistently with its previous
rulings and the rulings of higher courts with appellate jurisdiction?
Stare decisis

Which of the following committees typically initiates for tax legislation?

House Ways and Means Committee

If the President vetoes tax legislation, Congress

CAN override the President's veto with a 2/3RD positive vote in the House and
Senate.

In a planning context,
OPEN facts are preferred to CLOSED facts.

Which of the following types of tax services are arranged by code section?
ANNOTATED tax service

According to Statement on Standards for Tax Services No. 1, a tax practitioner can
recommend a tax return position
if the position COMPLIES with the standards imposed by the applicable tax authority.
Circular 230 was issued by
IRS.

A taxpayer can avoid a substantial understatement of tax penalty

if there is SUBSTANTIAL AUTHORITY to support the position.

A taxpayer can avoid a substantial understatement of tax penalty

if the position has a REASONABLE basis and IS DISCLOSED on the tax return.

Which types of penalties are only imposed after normal due process including a
trial?
CRIMINAL penalties.

A tax practitioner can avoid IRS penalty relating to a tax return position
if there is SUBSTANTIAL AUTHORITY to support the position

A tax practitioner can avoid IRS penalty relating to a tax return position
if the position has a REASONABLE basis and IS DISCLOSED on the tax return.