HS 321 Chapter 2 MC

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SAngell3
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142514
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HS 321 Chapter 2 MC
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2012-03-19 14:26:23
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HS 321 Chapter 2 MC
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  1. Which of the following statements concerning a taxpayer who wishes to contest a statutory notice of deficiency assessed against him is correct?

    a) He may petition for a jury trial in the U.S. Court of Federal Claims without prepaying the deficiency.

    b) He may petition the U.S. Tax Court to hear his case without prepaying the deficiency but is not entitled to a jury trial.

    c) He may file a petition to have his case heard before a jury in the U.S. District Court without prepaying the deficiency.

    d) He may petition for a jury trial in the U.S. Tax Court without prepaying the deficiency.
    b) He may petition the U.S. Tax Court to hear his case without prepaying the deficiency but is not entitled to a jury trial.

    • The Tax Court is the only court that will hear a tax case without prior payment of the assessed deficiency.
    • (A) is incorrect because there are no jury trials in the Court of Federal Claims.
    • (C) is incorrect because prepayment of the assessed deficiency is required in the District Court.
    • (D) is incorrect because the Tax Court does not have jury trials.
  2. In which of the following courts may a taxpayer petition for redetermination of an assessed income tax deficiency and receive a jury trial?

    a) U.S. District Court
    b) Court of Appeals for the Federal Circuit c) U.S. Court of Federal Claims
    d) U.S. Tax Court
    a) U.S. District Court

    The U.S. District Court is the only court in which a taxpayer can have a jury trial in a civil tax case.
  3. Which of the following statements correctly describe(s) a function of the federal income tax system?

    I. It can be used to reduce inflationary trends.

    II. It can be used to encourage economic activity at the taxpayer level.

    A) I only
    B) Both I and II
    C) Neither I nor II
    D) II only
    B) Both I and II
    (this multiple choice question has been scrambled)
  4. A U.S. Supreme Court interpretation of tax law is the law of the land until which of the following happen(s)?

    I. Congress enacts a new statute, tantamount to overturning a Court decision.
    II. The Court overrides its own prior decision.

    A) I only
    B) II only
    C) Both I and II
    D) Neither I nor II
    C) Both I and II
    (this multiple choice question has been scrambled)
  5. Which of the following statements concerning sources of tax law is (are) correct?

    I. The IRS is bound to follow a decision of the Tax Court in subsequent cases involving the same issue.

    II. A two-thirds majority of both houses of Congress is needed to override the President's veto of a tax bill.

    A) Neither I nor II
    B) Both I and II
    C) I only
    D) II only
    D) II only

    I is incorrect because the IRS is not bound to follow Tax Court decisions.
    (this multiple choice question has been scrambled)
  6. All the following statements concerning IRS revenue rulings are correct EXCEPT:

    A) They are issued when the IRS wishes to resolve unclear points of law.
    B) They have the force and effect of law and must be followed by the courts.
    C) They are issued if a stated set of facts involving a problem common to many taxpayers is recognized.
    D) They are binding on IRS revenue agents in their handling of issues in current taxpayer cases.
    B) They have the force and effect of law and must be followed by the courts.

    The courts are not bound to follow revenue rulings, which represent only the position of the IRS on a given issue.
    (this multiple choice question has been scrambled)
  7. All the following statements concerning the private rulings issued by the IRS are correct EXCEPT

    A) They are binding upon the IRS only for the particular case in point.
    B) They are published and made available to the public.
    C) They are issued at the request of an individual taxpayer.
    D) They can be used as precedents by taxpayers in general.
    D) They can be used as precedents by taxpayers in general.

    Private rulings cannot be used as legal precedents.
    (this multiple choice question has been scrambled)

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