Question

10. The following statement best characterizes the U.S. District Courts:

The judges are not specialists and therefore do not rely heavily on the administrative pronouncements of the Service for guidance in interpreting the tax law.

They are courts of general jurisdiction and can hear any type of case; therefore, the judges are not specialists in any particular area of the law.

The taxpayer is not entitled to a trial by jury, because juries are more easily swayed by emotion in factual disputes.

None of the above.

11. Which of the following is true about determining the issues to be answered for the client?

The practitioner may identify issues of interest which come to light after she reads about a change in the tax law.

Both A and B.

Client issues may arise before a transaction is completed.

Client issues may arise after a transaction is completed.

All of the above.

12. Ingrid is deciding whether to rent an office for her business or to buy an office building.

This is an open-ended compliance research transaction.

This is a closed planning research transaction.

This is a closed compliance research transaction.

This is an open-ended planning research transaction.

Answer 1

10. The following statement best characterizes the U.S. District Courts:

They are courts of general jurisdiction and can hear any type of case; therefore, the judges are not specialists in any particular area of the law.

The U.S. District Courts are the general trial courts of the court system. They handle both civil and criminal cases.

11. Which of the following is true about determining the issues to be answered for the client?

All of the above.

12. Ingrid is deciding whether to rent an office for her business or to buy an office building.

This is an open-ended planning research transaction.

Planning research means before the open transaction takes place, research is performed. This is done before the client takes action. Here, Ingrid is still deciding on what to do and has not taken any action yet, hence it is an open-ended planning research transaction.