Preview Questions Tax Lawyer | Role Specific Skill

Question 1: How should a Tax Lawyer address "tax deferral strategies" in the context of estate and gift taxation?

Which action should you take?

Choose only one option

Disregard tax deferral strategies if the client's estate value is below exemption thresholds

Focus only on reducing the taxable estate without considering potential gift tax consequences

Assume tax deferral strategies will automatically reduce the overall tax burden without consideration of future liabilities

Review tax-deferred growth opportunities, including trusts and life insurance, and assess the impact of the deferral on long-term tax obligations

Question 2: In defending a tax litigation case involving the IRS's disallowance of business deductions, what evidence should a Tax Lawyer focus on?

Which action should you take?

Choose only one option

Focusing solely on the amount of taxes owed and ignoring the legitimacy of deductions

Evidence of the business purpose behind each deduction, including documentation and supporting business records

Denying that the deductions were ever claimed

Ignoring supporting documents and only addressing the procedural issues in the case

Question 3: What is the significance of "Section 199A" in the context of corporate tax deductions?

Which action should you take?

Choose only one option

It applies to tax-exempt organizations and their operational expenses

It allows corporations to deduct foreign taxes paid

It grants deductions for real estate investments in the U.S.

It provides deductions for pass-through entities to offset qualified business income

Question 4: How should a Tax Lawyer approach "tax treatment of cross-border dividends" under U.S. tax law?

Which action should you take?

Choose only one option

Disregard tax treaties if the dividend amount is small

Focus solely on foreign taxes paid and disregard U.S. reporting and withholding requirements

Review applicable withholding tax rates under tax treaties, assess the impact of the foreign tax credit, and ensure compliance with U.S. tax reporting requirements

Assume that all dividends from foreign subsidiaries are exempt from U.S. taxes

Question 5: In tax litigation regarding international tax issues, what is the main consideration for a Tax Lawyer defending a client in a foreign tax audit?

Which action should you take?

Choose only one option

Ignoring international tax laws and focusing only on domestic tax issues

Assuming that foreign tax matters are the responsibility of the client's foreign legal counsel

Arguing that the foreign tax authorities have no jurisdiction over the client's income

Ensuring compliance with both domestic tax laws and the international tax agreements or treaties governing the foreign income

Question 6: What is the role of "transfer pricing" in international tax law, and how should a Tax Lawyer manage transfer pricing disputes?

Which action should you take?

Choose only one option

Focus solely on operational transfer pricing, ignoring tax compliance risks

Ensure compliance with the arm's length principle, prepare transfer pricing documentation, and resolve disputes through negotiation or litigation

Assume that transfer pricing rules are only applicable to large multinational corporations and are not relevant to smaller entities

Disregard transfer pricing rules in favor of minimizing tax payments in the home jurisdiction