FEDERAL TAX RESEARCH CERTIFICATION
EVALUATION PRACTICE QUESTIONS AND
ANSWERS COMPLETE REVIEW SHEET
●● What did the 16th Amendment to the Constitution accomplish?
Answer: It eliminated the claim that the Federal income tax was
unconstitutional, allowing Congress to tax incomes without
apportionment among the states.
●● What events led to the passage of the 16th Amendment?
Answer: The first Federal income tax was passed in 1861, expired in
1872, and was ruled unconstitutional in 1894, prompting the amendment
proposal sent to states in 1909 and ratified in 1913.
●● What did the U.S. Supreme Court hold in Flint v. Stone Tracy Co. in
1911?
Answer: The Supreme Court held that the corporate income tax passed
in 1909 was constitutional as it was a special form of excise tax.
●● What are the penalties for filing frivolous tax returns?
Answer: A $5,000 fine for filing a frivolous tax return and a penalty up
to $25,000 for bringing a frivolous matter before the Tax Court.
,●● What powers of taxation are granted to Congress by the U.S.
Constitution?
Answer: Congress can impose import taxes but not export taxes, and
taxes must be uniform across states.
●● What is a tax treaty?
Answer: Agreements between countries to eliminate double taxation on
individuals and companies subject to multiple tax laws.
●● When there is a conflict between an IRC section and a tax treaty
provision, which prevails?
Answer: Generally, the provision adopted later in time prevails, with
exceptions for treaty provisions existing before the 1954 Code.
●● What is the ratification process for a tax treaty?
Answer: The president creates treaties with Senate advice and consent
according to Article II, § 2 of the U.S. Constitution.
●● Where can tax researchers find tax treaties?
Answer: In online and printed tax services, the IRS Website, the
Treasury Department, or the U.S. State Department.
●● What are the usual steps in the legislative process for federal tax
legislation?
, Answer: Tax legislation begins in the Ways and Means Committee, is
voted on by the House, then the Senate Finance Committee, and finally
approved by both houses and signed by the president.
●● What committee reports are typically prepared for a new tax law?
Answer: Reports from the Ways and Means Committee, the Finance
Committee, and the Joint Conference Committee.
●● When are committee reports useful to a tax researcher?
Answer: They clarify unclear tax laws or recent legislation and provide
insights into the meaning and intent of specific provisions.
●● What is a public law number?
Answer: It identifies every bill passed by Congress; in P.L. 117-328,
'117' indicates the 117th Congress and '328' indicates the 328th bill.
●● Where can tax researchers find pertinent committee reports?
Answer: In the IRS's weekly Internal Revenue Bulletin, the 1954 United
States Code Congressional and Administrative News, and various
commercial tax services.
●● What report may be useful to a tax researcher analyzing a new
provision of the tax law?
Answer: The floor debate report.
EVALUATION PRACTICE QUESTIONS AND
ANSWERS COMPLETE REVIEW SHEET
●● What did the 16th Amendment to the Constitution accomplish?
Answer: It eliminated the claim that the Federal income tax was
unconstitutional, allowing Congress to tax incomes without
apportionment among the states.
●● What events led to the passage of the 16th Amendment?
Answer: The first Federal income tax was passed in 1861, expired in
1872, and was ruled unconstitutional in 1894, prompting the amendment
proposal sent to states in 1909 and ratified in 1913.
●● What did the U.S. Supreme Court hold in Flint v. Stone Tracy Co. in
1911?
Answer: The Supreme Court held that the corporate income tax passed
in 1909 was constitutional as it was a special form of excise tax.
●● What are the penalties for filing frivolous tax returns?
Answer: A $5,000 fine for filing a frivolous tax return and a penalty up
to $25,000 for bringing a frivolous matter before the Tax Court.
,●● What powers of taxation are granted to Congress by the U.S.
Constitution?
Answer: Congress can impose import taxes but not export taxes, and
taxes must be uniform across states.
●● What is a tax treaty?
Answer: Agreements between countries to eliminate double taxation on
individuals and companies subject to multiple tax laws.
●● When there is a conflict between an IRC section and a tax treaty
provision, which prevails?
Answer: Generally, the provision adopted later in time prevails, with
exceptions for treaty provisions existing before the 1954 Code.
●● What is the ratification process for a tax treaty?
Answer: The president creates treaties with Senate advice and consent
according to Article II, § 2 of the U.S. Constitution.
●● Where can tax researchers find tax treaties?
Answer: In online and printed tax services, the IRS Website, the
Treasury Department, or the U.S. State Department.
●● What are the usual steps in the legislative process for federal tax
legislation?
, Answer: Tax legislation begins in the Ways and Means Committee, is
voted on by the House, then the Senate Finance Committee, and finally
approved by both houses and signed by the president.
●● What committee reports are typically prepared for a new tax law?
Answer: Reports from the Ways and Means Committee, the Finance
Committee, and the Joint Conference Committee.
●● When are committee reports useful to a tax researcher?
Answer: They clarify unclear tax laws or recent legislation and provide
insights into the meaning and intent of specific provisions.
●● What is a public law number?
Answer: It identifies every bill passed by Congress; in P.L. 117-328,
'117' indicates the 117th Congress and '328' indicates the 328th bill.
●● Where can tax researchers find pertinent committee reports?
Answer: In the IRS's weekly Internal Revenue Bulletin, the 1954 United
States Code Congressional and Administrative News, and various
commercial tax services.
●● What report may be useful to a tax researcher analyzing a new
provision of the tax law?
Answer: The floor debate report.
