Question 1

Which of the following statements is CORRECT regarding the enactment into law of a tax bill?

Accepted Answer

A)  A tax bill must always be signed by the President to become law.
B)  A tax law must be approved by the Treasury Department.
C)  A tax law must either be signed into law by the President or Congress must override a presidential veto of the proposed law.
D)  None of these are correct.

Question 2

The 16th Amendment to the U.S. Constitution authorized the imposition of a Federal income tax.

Accepted Answer

A) True 
 B)False

Question 3

The first federal income tax law was passed as a result of the:

Accepted Answer

A)  Civil War
B)  Mexican-American War
C)  Spanish-American War
D)  none of these are correct A

Question 4

The term "not less than 50" represents only those numbers which are more than 50.

Accepted Answer

A) True 
 B)False

Question 5

The current Internal Revenue Code is the:

Accepted Answer

A)  Internal Revenue Code of 2011
B)  Internal Revenue Code of 1986
C)  Internal Revenue Code of 1954
D)  none of these are correct

Question 6

Which of the following statements is INCORRECT regarding the structure of the Internal Revenue Code?

Accepted Answer

A)  Code section numbers start over in each chapter.
B)  Each Code section is used only once in the Internal Revenue Code.
C)  Code sections inserted between existing section numbers are indicated by adding a capital letter to the Section number (e.g., Section 25
A)  
D)  The Internal Revenue Code is Title 26 of the United States Code.

Question 7

Subtitle A of the Internal Revenue Code deals with:

Accepted Answer

A)  estate and gift taxes
B)  employment taxes
C)  income taxes
D)  excise taxes C

Question 8

What information is included in the history of a Code section?

Accepted Answer

The history of a Code section includes a...

Question 9

The overriding purpose of tax treaties is to:

Accepted Answer

A)  create "tax havens"
B)  minimize tax liability of multinational corporations
C)  require business taxpayers to file returns in all countries in which they operate
D)  eliminate the "double taxation" that a taxpayer would face if his or her income were subject to tax in both countries

Question 10

Trade or business deductions are contained in Code Section 62.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is an administrative source of the federal tax law issued by the IRS?

Accepted Answer

A)  court rulings
B)  Internal Revenue Code
C)  tax treaties
D)  revenue rulings
E)  none of these are correct

Question 12

In Pollock v. Farmers' Loan and Trust Co., the Supreme Court held that the income tax was unconstitutional because it was a constitutionally prohibited "direct tax."

Accepted Answer

A) True 
 B)False

Question 13

Taxpayers who file frivolous returns are subject to a $25,000 fine.

Accepted Answer

A) True 
 B)False

Question 14

Circuit Courts are administrative sources of the federal tax law.

Accepted Answer

A) True 
 B)False

Question 15

A subtitle of the Internal Revenue Code:

Accepted Answer

A)  is indicated by a capital letter, such as "Subtitle A"
B)  relates to a well-defined area of the law
C)  is used as a short-hand reference to describe types of corporations
D)  is indicated by a capital letter, such as "Subtitle A," and relates to a well-defined area of the law
E)  all of the above

Question 16

What is a tax protester and what types of sanctions are tax protesters subject to?

Accepted Answer

A tax protester is someone who refuses t...

Question 17

Which of the following statements is INCORRECT regarding effective dates in the Internal Revenue Code?

Accepted Answer

A)  All sections of a new tax law go into effect at the same time.
B)  New Code provisions may not go into effect immediately upon adoption by Congress.
C)  Some effective dates can precede passage of the act.
D)  All of these are correct.

Question 18

Statutory sources of federal tax law come out of the legislative branch of the U.S. government.

Accepted Answer

A) True 
 B)False  True

Question 19

Code Section 61 relates to:

Accepted Answer

A)  deductions for adjusted gross income
B)  the definition of gross income
C)  corporate tax rates
D)  the deduction for state taxes

Question 20

Treaties may expire because of a specific Congressional time limitation.

Accepted Answer

A) True 
 B)False

Exam 3: Constitutional and Legislative Sources

Which of the following statements is CORRECT regarding the enactment into law of a tax bill?

Correct AnswerverifiedShow Answer

The 16th Amendment to the U.S. Constitution authorized the imposition of a Federal income tax.

Correct AnswerverifiedShow Answer

The first federal income tax law was passed as a result of the:

Correct AnswerverifiedA

The term "not less than 50" represents only those numbers which are more than 50.

Correct AnswerverifiedShow Answer

The current Internal Revenue Code is the:

Correct AnswerverifiedShow Answer

Which of the following statements is INCORRECT regarding the structure of the Internal Revenue Code?

Correct AnswerverifiedShow Answer

Subtitle A of the Internal Revenue Code deals with:

Correct AnswerverifiedC

What information is included in the history of a Code section?

Correct AnswerverifiedThe history of a Code section includes a...View AnswerShow Answer

The overriding purpose of tax treaties is to:

Correct AnswerverifiedShow Answer

Trade or business deductions are contained in Code Section 62.

Correct AnswerverifiedShow Answer

Which of the following is an administrative source of the federal tax law issued by the IRS?

Correct AnswerverifiedShow Answer

In Pollock v. Farmers' Loan and Trust Co., the Supreme Court held that the income tax was unconstitutional because it was a constitutionally prohibited "direct tax."

Correct AnswerverifiedShow Answer

Taxpayers who file frivolous returns are subject to a $25,000 fine.

Correct AnswerverifiedShow Answer

Circuit Courts are administrative sources of the federal tax law.

Correct AnswerverifiedShow Answer

A subtitle of the Internal Revenue Code:

Correct AnswerverifiedShow Answer

What is a tax protester and what types of sanctions are tax protesters subject to?

Correct AnswerverifiedA tax protester is someone who refuses t...View AnswerShow Answer

Which of the following statements is INCORRECT regarding effective dates in the Internal Revenue Code?

Correct AnswerverifiedShow Answer

Statutory sources of federal tax law come out of the legislative branch of the U.S. government.

Correct AnswerverifiedTrue

Code Section 61 relates to:

Correct AnswerverifiedShow Answer

Treaties may expire because of a specific Congressional time limitation.

Correct AnswerverifiedShow Answer

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A

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C

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The history of a Code section includes a...
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A tax protester is someone who refuses t...
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True

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