1.Which of the following sources has the highest tax validity? a. Revenue Ruling. b. Revenue Procedure. c. Regulations. d. Technical Advice Memoranda. 2. Which of the following is an administrative source of tax law? a. Revenue Ruling 97-13. b. Joint Conference Committee Report. c. § 752(c) of the Internal Revenue Code. d. All of the above. e. None of the above. 3. Which statement is not true concerning private letter rulings? a. They are issued multi-digit file numbers. b. They deal with completed transactions. c. It is not possible to obtain rulings on certain problems. d. They apply only to the taxpayer who asks for and obtains the ruling. e. None of the above. 4. Which of the following courts has the highest tax validity? (Assume the taxpayer lives in the fifth circuit.) a. U.S. Tax Court. b. U.S. Court of Federal Claims. c. U.S. District Court. d. Court of Appeals for the Fifth Circuit. e. Small Claims Court. 5. The following court hears only tax cases: a. U.S. District Court. b. U.S. Court of Appeals. c. U.S. Tax Court. d. U.S Court of Federal Claims. e. Small Claims Court. 6. David files his tax return 45 days after the due date. Along with the return, David remits a check for $40,000 which is the balance of the tax owed. Disregarding the interest element, David's total failure to file and to pay penalties are: a. $400. b. $3,600. c. $4,000. d. $4,400. e. None of these. 7. A characteristic of the failure to pay penalty is: a. The penalty is 5% per month (up to a maximum of 25%). b. The penalty is 0.5% per month (up to a maximum of 25%). c. The penalty is 20% of the underpayment. d. The burden of proving the failure to pay is on the IRS. e. None of the above. 8. Kevin was assessed a negligence penalty for underreporting his individual income tax liability in a prior tax year. The IRS determined the tax on the under reported income is $5,000. What is the amount of penalty the IRS will assess? a) $5,000 b) $3,750 c) $1,000 d) $500 e) $0 9. Same facts as above except the IRS has determined that the underreported tax was due to fraud. a) $5,000 b) $3,750 c) $1,000 d) $500 e) $0 10. A value added tax (VAT): a. Is regressive in its effect. b Has not proved popular outside of the U.S. c. Is not a tax on consumption. d. Is used exclusively by less developed (third world) countries. e. None of these.