IRS Enrolled Agent Part 3 Unit 1 TEST
Exam Questions and Answers
Which of the following would have the highest authority in establishing precedent for tax
law?
A. Private letter ruling.
B. Treasury regulation.
C. IRS publication.
D. Technical advice memorandum. - Answer-B
In matters of tax law, the IRS must acquiesce in all decisions rendered by the:
A. U.S. Tax Court.
B. U.S. Supreme Court.
C. U.S. Court of Appeals.
D. Both A and B. - Answer-B
Of the following situations, which is most likely to warrant intervention by the Taxpayer
Advocate Service?
A. A taxpayer is experiencing financial difficulty. His home is in foreclosure and he is
worried he will be unable to pay his federal income tax liability by the due date.
B. A taxpayer has experienced multiple, lengthy delays in trying to contact the IRS by
telephone.
C. A taxpayer has waited for weeks for the IRS to discharge the lien on his property,
which must be removed immediately or else the sale of the property will fall through.
D. A taxpayer has received an IRS Notice of Federal Tax Lien that his bank account will
be subject to levy if he does not pay his federal tax liability. - Answer-C
Of the following choices, which does not meet the substantial authority test?
A. Proposed regulations.
B. Legal opinion printed in a law school journal.
C. Congressional intent as reflected in committee reports.
D. Information form an IRS press release. - Answer-B
Which of the following statements regarding revenue rulings is correct?
A. Revenue rulings cannot be used to avoid certain IRS penalties.
B. Revenue rulings can be used to avoid certain IRS penalties.
C. Revenue rulings are not official IRS guidance.
D. None of the above. - Answer-B
Exam Questions and Answers
Which of the following would have the highest authority in establishing precedent for tax
law?
A. Private letter ruling.
B. Treasury regulation.
C. IRS publication.
D. Technical advice memorandum. - Answer-B
In matters of tax law, the IRS must acquiesce in all decisions rendered by the:
A. U.S. Tax Court.
B. U.S. Supreme Court.
C. U.S. Court of Appeals.
D. Both A and B. - Answer-B
Of the following situations, which is most likely to warrant intervention by the Taxpayer
Advocate Service?
A. A taxpayer is experiencing financial difficulty. His home is in foreclosure and he is
worried he will be unable to pay his federal income tax liability by the due date.
B. A taxpayer has experienced multiple, lengthy delays in trying to contact the IRS by
telephone.
C. A taxpayer has waited for weeks for the IRS to discharge the lien on his property,
which must be removed immediately or else the sale of the property will fall through.
D. A taxpayer has received an IRS Notice of Federal Tax Lien that his bank account will
be subject to levy if he does not pay his federal tax liability. - Answer-C
Of the following choices, which does not meet the substantial authority test?
A. Proposed regulations.
B. Legal opinion printed in a law school journal.
C. Congressional intent as reflected in committee reports.
D. Information form an IRS press release. - Answer-B
Which of the following statements regarding revenue rulings is correct?
A. Revenue rulings cannot be used to avoid certain IRS penalties.
B. Revenue rulings can be used to avoid certain IRS penalties.
C. Revenue rulings are not official IRS guidance.
D. None of the above. - Answer-B
