Question 1

Treaties may expire because of a specific congressional time limitation.

Accepted Answer

A) True 
 B)False

Question 2

Congress cannot override a Presidential veto of a tax bill.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following statements is CORRECT regarding the definition of terms in the Internal Revenue Code?

Accepted Answer

A)   All definitions are included in Section 7701.
B)   Definitions are always included within the Code section to which they apply.
C)   Definitions are written into the Code by the IRS rather than included in tax laws passed by Congress.
D)   Sometimes, a researcher may need to consult the regulations to find a complete definition of a term.

Question 4

Historically, the 1913 income tax was a tax on wealthy and high income taxpayers.

Accepted Answer

A) True 
 B)False

Question 5

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 6

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

Question 7

As of 2009, the percentage of U.S. households who did not pay any Federal income tax was roughly:

Accepted Answer

A)   74 percent
B)   30 percent
C)   47 percent
D)   All U.S. houses pay some Federal income tax.

Question 8

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
D)   The Internal Revenue Code is Title 26 of the United States Code.
E)  g. Section 25
A)

Question 9

What is a tax protestor and what types of sanctions are tax protestors subject to?

Accepted Answer

A tax protestor is someone who refuses t...

Question 10

The North American Free Trade Agreement NAFTA) is a non-tax international treaty which addresses some tax-related issues.

Accepted Answer

A) True 
 B)False

Question 11

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 the above

Question 12

Which of the following statements is CORRECT regarding tax treaties:

Accepted Answer

A)   They are authorized by the U.S. Constitution.
B)   They are usually initiated by the State Department, not the Treasury.
C)   The U.S. can have multiple types of tax treaties with one country.
D)   All of the above statements are correct.

Question 13

A "tax protestor" is:

Accepted Answer

A)   a person who files a 'frivolous' return with the IRS
B)   a person who brings a "frivolous" matter before the Tax Court
C)   can be subject to a penalty for frivolous Tax Court petitions
D)   all of the above
E)   only a and b

Question 14

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)   only b and c

Question 15

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 the above

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Regarding the taxing powers of the federal government, the U.S. Constitution requires that:

Accepted Answer

A)   taxes imposed by Congress must apply uniformly throughout the U.S.
B)   no direct taxes may be imposed on income
C)   all revenues from the federal income tax must be apportioned to the population of the states from which they were collected
D)   all of the above

Question 18

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 19

Circuit Courts are administrative sources of the Federal tax law.

Accepted Answer

A) True 
 B)False

Question 20

Most tax legislation begins in the House of Representatives.

Accepted Answer

A) True 
 B)False

Exam 3: Constitutional and Legislative Sources

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

Correct AnswerverifiedShow Answer

Regarding the taxing powers of the federal government, the U.S. Constitution requires that:

Correct AnswerverifiedShow Answer

Most tax legislation begins in the House of Representatives.

Correct AnswerverifiedShow Answer

The current Internal Revenue Code is the:

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

Which of the following statements is CORRECT regarding tax treaties:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following statements is CORRECT regarding the definition of terms in the Internal Revenue Code?

Correct AnswerverifiedShow Answer

Historically, the 1913 income tax was a tax on wealthy and high income taxpayers.

Correct AnswerverifiedShow Answer

Subtitle A of the Internal Revenue Code deals with:

Correct AnswerverifiedShow Answer

Treaties may expire because of a specific congressional time limitation.

Correct AnswerverifiedShow Answer

Code Section 61 relates to:

Correct AnswerverifiedShow Answer

As of 2009, the percentage of U.S. households who did not pay any Federal income tax was roughly:

Correct AnswerverifiedShow Answer

A "tax protestor" is:

Correct AnswerverifiedShow Answer

Circuit Courts are administrative sources of the Federal tax law.

Correct AnswerverifiedShow Answer

Congress cannot override a Presidential veto of a tax bill.

Correct AnswerverifiedShow Answer

The North American Free Trade Agreement NAFTA) is a non-tax international treaty which addresses some tax-related issues.

Correct AnswerverifiedShow Answer

What is a tax protestor and what types of sanctions are tax protestors subject to?

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

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

Correct AnswerverifiedShow Answer

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

Correct Answer
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A tax protestor is someone who refuses t...
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Correct Answer
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