False. The correct arrangement is: Subtitle, Chapter, Subchapter, Part, Subpart, Section, Subsection. 10. False. 11. False. The Tax Court operating within the 5th Circuit will usually follow the precedent of the 5th Circuit Court 12. of Appeals. False. The current law of federal taxation is found in the 1986 Code, as amended by post-1986 tax acts. The 13. Code was first enacted in 1939 and a revised Code was enacted in 1954. The 1986 Code incorporates the 1954 Code. True. A citator does not look at any events preceding a case. 14. False. The “Citator” indicates which later cases or rulings have cited the relevant case. 15. True. 16. False. Closed fact research relates to “after-the-facts compliance” or ex post facto research. 17. False. Issues not previously decided by the Court are issued as Regular Tax Court decisions, whereas decisions that 18. rest on federal determinations or on previously decided legal issues are known as Memorandum decisions. False. The IRS might issue an Acquiescence or a Nonacquiescence to either type of decision. 19. False. Tax evasion relates to sham transactions, schemes, or willful failure to comply with tax laws. In contrast, 20. “tax avoidance” relates to the legal tax planning ideas that may be employed to minimize taxes. False. Endorsing a taxpayer’s refund check is not allowed and there is a preparer penalty for doing so. 21. True. 22. True. 23. False. The accountant should advise the client but not the Internal Revenue Service. 24. True. 25. False. The taxpayer can still go to the Tax Court. 26.
570CCH Federal Taxation—Comprehensive TopicsChapter 2©2012 CCH. All Rights Reserved.False. Determination letters are issued by the District Director. 27. True. 28. False. Decisions of the Court of Federal Claims are first appealed to the U.S. Court of Appeals for the Federal 29. Circuit and then may be appealed to the U.S. Supreme Court. True. 30. True. 31. True. 32. False. A taxpayer does not have to pay the tax before petitioning the Tax Court. 33. False. Doris Duncan may file a petition at any time within 90 days of the issuance of the statutory notice of 34. deficiency. True. 35. True. 36. False. The Tax Court is more likely to be lenient in its enforcement of the rules of evidence. 37. False. A jury is not allowed in the Tax Court, only in the District Court. 38. False. Payment of tax is necessary to litigate in the District Court or the Court of Federal Claims, but not in the 39. Tax Court. False. Taxpayers may request a determination letter from the District Director. 40. False. It is not the responsibility of an accountant to notify the IRS (see AICPA Statement No. 6). 41. False. The claim for refund must be filed within three years from the date the return was filed or within two years 42. from the date the tax was paid, whichever is later. False. See flowchart in Exhibit 9 in the book text. Taxpayer may go to Tax Court. 43. False. The dollar amount is less than $2,500, so Barry is not required to submit a written protest with his request 44.