Federal Tax Research 13e Roby Sawyers, Steven
Gill (Test Bank All Chapters, 100% Original Verifi
ed, A+ Grade)
Chapter 01 - Introduction to Tax Practice and Ethics
1. Tax compliance is the process of:
a. filing necessary tax returns
b. gathering the financial information necessary to report taxable income
c. representing a taxpayer at an IRS audit
d. all of these are correct.
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 1-1 Elements of Tax Practice: Tax Compliance
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: FETR.SAWY.25.1.1 - Describe the elements of modern tax practice
in the United States
DATE CREATED: 04/12/2026 10:00 AM
DATE MODIFIED: 04/12/2026 10:00 AM
2. Tax evasion is:
a. a fraudulent act involving illegal nonpayment of taxes
b. one of the objectives of tax planning
c. an act of deferring tax payments to future periods
d. the same as tax avoidance, as both of them result in nonpayment of taxes
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 2-1 Rules and Ethics in Tax Practice: Circular 230
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: FETR.SAWY.25.1.2 - Explain and apply the sources of legal and eth
ical standards that guide those who engage in tax practice
,DATE CREATED: 04/12/2026 10:00 AM
DATE MODIFIED: 04/12/2026 10:00 AM
3. Under Circular 230, a tax practitioner may be sanctioned for:
a. advising a client to take a position with a realistic possibility of success
b. failing to file a client's return on time due to practitioner negligence
c. charging a contingent fee for preparing an original tax return
d. both b and c
ANSWER: d
POINTS: 1
DIFFICULTY: Medium
REFERENCES: 2-1a Circular 230 – Duties and Restrictions
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: FETR.SAWY.25.1.2 - Explain and apply the sources of legal and eth
ical standards that guide those who engage in tax practice
DATE CREATED: 04/12/2026 10:00 AM
DATE MODIFIED: 04/12/2026 10:00 AM
4. Which of the following is NOT an element of tax practice?
a. Tax compliance
b. Tax planning
c. Tax evasion
d. Tax research
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 1-1 Elements of Tax Practice
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: FETR.SAWY.25.1.1 - Describe the elements of modern tax practice
in the United States
DATE CREATED: 04/12/2026 10:00 AM
DATE MODIFIED: 04/12/2026 10:00 AM
5. A tax practitioner who knowingly prepares a false return may be subject to:
a. civil penalties under IRC § 6694
, b. criminal prosecution under IRC § 7206
c. disbarment from practice before the IRS
d. all of these are correct.
ANSWER: d
POINTS: 1
DIFFICULTY: Medium
REFERENCES: 2-1b Penalties for Tax Practitioners
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: FETR.SAWY.25.1.2 - Explain and apply the sources of legal and eth
ical standards that guide those who engage in tax practice
DATE CREATED: 04/12/2026 10:00 AM
DATE MODIFIED: 04/12/2026 10:00 AM
6. The AICPA's Statements on Standards for Tax Services (SSTS) apply primarily to:
a. all tax practitioners, including enrolled agents and attorneys
b. CPAs who perform tax services
c. IRS employees
d. tax court judges
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 2-2 AICPA Statements on Standards for Tax Services
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: FETR.SAWY.25.1.2 - Explain and apply the sources of legal and eth
ical standards that guide those who engage in tax practice
DATE CREATED: 04/12/2026 10:00 AM
DATE MODIFIED: 04/12/2026 10:00 AM
7. Under SSTS No. 1, a CPA should not sign a tax return if the CPA determines that the return c
ontains a position that:
a. lacks a realistic possibility of being sustained on the merits
b. is not disclosed and does not have a realistic possibility of success
c. is frivolous
d. all of these are correct.
, ANSWER: d
POINTS: 1
DIFFICULTY: Hard
REFERENCES: 2-2a SSTS No. 1 – Realistic Possibility Standard
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: FETR.SAWY.25.1.2 - Explain and apply the sources of legal and eth
ical standards that guide those who engage in tax practice
DATE CREATED: 04/12/2026 10:00 AM
DATE MODIFIED: 04/12/2026 10:00 AM
8. Which of the following is a primary source of tax law?
a. A tax article in the Journal of Taxation
b. Internal Revenue Code
c. A private letter ruling issued to another taxpayer
d. A textbook summary of depreciation rules
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 1-3 Sources of Tax Authority
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: FETR.SAWY.25.1.3 - Distinguish between primary and secondary s
ources of tax law
DATE CREATED: 04/12/2026 10:00 AM
DATE MODIFIED: 04/12/2026 10:00 AM
9. The statute of limitations for the IRS to assess additional tax generally expires:
a. 1 year after the return is filed
b. 3 years after the return is filed
c. 6 years after the return is filed
d. Never, for any reason
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 1-4 Tax Compliance – Statute of Limitations
QUESTION TYPE: Multiple Choice
Gill (Test Bank All Chapters, 100% Original Verifi
ed, A+ Grade)
Chapter 01 - Introduction to Tax Practice and Ethics
1. Tax compliance is the process of:
a. filing necessary tax returns
b. gathering the financial information necessary to report taxable income
c. representing a taxpayer at an IRS audit
d. all of these are correct.
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 1-1 Elements of Tax Practice: Tax Compliance
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: FETR.SAWY.25.1.1 - Describe the elements of modern tax practice
in the United States
DATE CREATED: 04/12/2026 10:00 AM
DATE MODIFIED: 04/12/2026 10:00 AM
2. Tax evasion is:
a. a fraudulent act involving illegal nonpayment of taxes
b. one of the objectives of tax planning
c. an act of deferring tax payments to future periods
d. the same as tax avoidance, as both of them result in nonpayment of taxes
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 2-1 Rules and Ethics in Tax Practice: Circular 230
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: FETR.SAWY.25.1.2 - Explain and apply the sources of legal and eth
ical standards that guide those who engage in tax practice
,DATE CREATED: 04/12/2026 10:00 AM
DATE MODIFIED: 04/12/2026 10:00 AM
3. Under Circular 230, a tax practitioner may be sanctioned for:
a. advising a client to take a position with a realistic possibility of success
b. failing to file a client's return on time due to practitioner negligence
c. charging a contingent fee for preparing an original tax return
d. both b and c
ANSWER: d
POINTS: 1
DIFFICULTY: Medium
REFERENCES: 2-1a Circular 230 – Duties and Restrictions
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: FETR.SAWY.25.1.2 - Explain and apply the sources of legal and eth
ical standards that guide those who engage in tax practice
DATE CREATED: 04/12/2026 10:00 AM
DATE MODIFIED: 04/12/2026 10:00 AM
4. Which of the following is NOT an element of tax practice?
a. Tax compliance
b. Tax planning
c. Tax evasion
d. Tax research
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 1-1 Elements of Tax Practice
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: FETR.SAWY.25.1.1 - Describe the elements of modern tax practice
in the United States
DATE CREATED: 04/12/2026 10:00 AM
DATE MODIFIED: 04/12/2026 10:00 AM
5. A tax practitioner who knowingly prepares a false return may be subject to:
a. civil penalties under IRC § 6694
, b. criminal prosecution under IRC § 7206
c. disbarment from practice before the IRS
d. all of these are correct.
ANSWER: d
POINTS: 1
DIFFICULTY: Medium
REFERENCES: 2-1b Penalties for Tax Practitioners
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: FETR.SAWY.25.1.2 - Explain and apply the sources of legal and eth
ical standards that guide those who engage in tax practice
DATE CREATED: 04/12/2026 10:00 AM
DATE MODIFIED: 04/12/2026 10:00 AM
6. The AICPA's Statements on Standards for Tax Services (SSTS) apply primarily to:
a. all tax practitioners, including enrolled agents and attorneys
b. CPAs who perform tax services
c. IRS employees
d. tax court judges
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 2-2 AICPA Statements on Standards for Tax Services
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: FETR.SAWY.25.1.2 - Explain and apply the sources of legal and eth
ical standards that guide those who engage in tax practice
DATE CREATED: 04/12/2026 10:00 AM
DATE MODIFIED: 04/12/2026 10:00 AM
7. Under SSTS No. 1, a CPA should not sign a tax return if the CPA determines that the return c
ontains a position that:
a. lacks a realistic possibility of being sustained on the merits
b. is not disclosed and does not have a realistic possibility of success
c. is frivolous
d. all of these are correct.
, ANSWER: d
POINTS: 1
DIFFICULTY: Hard
REFERENCES: 2-2a SSTS No. 1 – Realistic Possibility Standard
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: FETR.SAWY.25.1.2 - Explain and apply the sources of legal and eth
ical standards that guide those who engage in tax practice
DATE CREATED: 04/12/2026 10:00 AM
DATE MODIFIED: 04/12/2026 10:00 AM
8. Which of the following is a primary source of tax law?
a. A tax article in the Journal of Taxation
b. Internal Revenue Code
c. A private letter ruling issued to another taxpayer
d. A textbook summary of depreciation rules
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 1-3 Sources of Tax Authority
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: FETR.SAWY.25.1.3 - Distinguish between primary and secondary s
ources of tax law
DATE CREATED: 04/12/2026 10:00 AM
DATE MODIFIED: 04/12/2026 10:00 AM
9. The statute of limitations for the IRS to assess additional tax generally expires:
a. 1 year after the return is filed
b. 3 years after the return is filed
c. 6 years after the return is filed
d. Never, for any reason
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 1-4 Tax Compliance – Statute of Limitations
QUESTION TYPE: Multiple Choice
