Question 1

Secondary authorities explain and interpret the tax law in language often easier to understand than that of primary authorities.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following statements regarding commercial tax services is false?

Accepted Answer

A) Commercial tax services explain and interpret the tax law. 
B) Commercial tax services organize information about primary authorities in a manner that facilitates tax research. 
C) Commercial tax services contain both primary authority and secondary authority. 
D) Consulting a commercial tax service is typically the final step rather than a preliminary step in the tax research process. 
A) Commercial tax services explain and interpret the tax law. 
B) Commercial tax services organize information about primary authorities in a manner that facilitates tax research. 
C) Commercial tax services contain both primary authority and secondary authority. 
D) Consulting a commercial tax service is typically the final step rather than a preliminary step in the tax research process.

Question 3

Private letter rulings and technical advice memoranda are primary authority for those taxpayers to whom they were issued.

Accepted Answer

A) True 
 B)False

Question 4

When performing step three of the tax research process:

Accepted Answer

A) A commercial tax service may provide an excellent starting point. 
B) The researcher must discover all the facts concerning the client's transaction. 
C) The researcher must communicate his or her conclusions to the client. 
D) The researcher should always consult primary authorities first before turning to secondary authorities for guidance. 
A) A commercial tax service may provide an excellent starting point. 
B) The researcher must discover all the facts concerning the client's transaction. 
C) The researcher must communicate his or her conclusions to the client. 
D) The researcher should always consult primary authorities first before turning to secondary authorities for guidance.

Question 5

When performing step two of the tax research process:

Accepted Answer

A) The identification of tax issues precedes the formulation of research questions. 
B) Research questions should be as broadly stated as possible. 
C) Each tax issue is always associated with a single research question. 
D) The order in which research questions are addressed is irrelevant. 
A) The identification of tax issues precedes the formulation of research questions. 
B) Research questions should be as broadly stated as possible. 
C) Each tax issue is always associated with a single research question. 
D) The order in which research questions are addressed is irrelevant.

Question 6

Which of the following is not a proper citation to a Treasury regulation?

Accepted Answer

A) Reg.Sec.1.61-1(a) 
B) Reg.1.61-1(a) 
C) Reg.§1.61-1(a) 
D) Treasury Regulation 61-1(a) 
A) Reg.Sec.1.61-1(a) 
B) Reg.1.61-1(a) 
C) Reg.§1.61-1(a) 
D) Treasury Regulation 61-1(a)

Question 7

Which of the following statements regarding secondary authorities is true?

Accepted Answer

A) Most secondary authorities are published by the federal government. 
B) Secondary authorities should never be cited as the authority for final research conclusions. 
C) Secondary authorities should always cite primary authority to support conclusions about the application of the tax law. 
D) None of the above statements is true 
A) Most secondary authorities are published by the federal government. 
B) Secondary authorities should never be cited as the authority for final research conclusions. 
C) Secondary authorities should always cite primary authority to support conclusions about the application of the tax law. 
D) None of the above statements is true

Question 8

Which of the following is not a primary authority on which to base research conclusions?

Accepted Answer

A) Journal of Taxation article written by a professor. 
B) Revenue ruling. 
C) U)S.Tax Court decision. 
D) U)S.Supreme Court decision. 
A) Journal of Taxation article written by a professor. 
B) Revenue ruling. 
C) U)S.Tax Court decision. 
D) U)S.Supreme Court decision.

Question 9

Secondary authorities organize information about primary authorities in a manner that facilitates tax research.

Accepted Answer

A) True 
 B)False

Question 10

Editorial explanations provided by electronic tax services are examples of secondary authority.

Accepted Answer

A) True 
 B)False

Question 11

Step five of the tax research process:

Accepted Answer

A) Is typically performed only by novice researchers. 
B) Is required only if the researcher has made a careless mistake in a previous step. 
C) Should only be taken once. 
D) Is necessary when the researcher determines that additional facts are needed to complete the analysis of the transaction. 
A) Is typically performed only by novice researchers. 
B) Is required only if the researcher has made a careless mistake in a previous step. 
C) Should only be taken once. 
D) Is necessary when the researcher determines that additional facts are needed to complete the analysis of the transaction.

Question 12

Editorial explanations found within a tax service are a type of primary authority.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is not a citation to a primary authority?

Accepted Answer

A) Sec.1245 
B) Lengsfield v.Comm.,50 AFTR 1683 (CA-5,1957) 
C) M-5800 Activities Not Engaged in for Profit - Hobby Losses 
D) Rev.Proc.2002-32,2002-1 C.B.959 
A) Sec.1245 
B) Lengsfield v.Comm.,50 AFTR 1683 (CA-5,1957) 
C) M-5800 Activities Not Engaged in for Profit - Hobby Losses 
D) Rev.Proc.2002-32,2002-1 C.B.959

Question 14

The results of the tax research process should be documented in a research memo,in a letter to the client,or both.

Accepted Answer

A) True 
 B)False

Question 15

In the citation Rev.Proc.2002-32,2002-1 C.B.959,the abbreviation C.B.refers to Congressional Bulletin.

Accepted Answer

A) True 
 B)False

Question 16

When the Supreme Court denies certiorari,the decision of the appellate court is final.

Accepted Answer

A) True 
 B)False

Question 17

When performing step one of the tax research process:

Accepted Answer

A) The researcher generally can assume that the client's initial summary of the transaction is factually accurate and complete. 
B) The researcher must take into account the level of the client's tax knowledge. 
C) The client's motivation in undertaking the transaction is generally irrelevant. 
D) The researcher should presume that the client has some knowledge of the tax law. 
A) The researcher generally can assume that the client's initial summary of the transaction is factually accurate and complete. 
B) The researcher must take into account the level of the client's tax knowledge. 
C) The client's motivation in undertaking the transaction is generally irrelevant. 
D) The researcher should presume that the client has some knowledge of the tax law.

Question 18

The Internal Revenue Code is the primary source of statutory authority for federal income tax law.

Accepted Answer

A) True 
 B)False

Question 19

The U.S.Supreme Court:

Accepted Answer

A) Typically hears hundreds of tax cases each year. 
B) May deny certiorari for a tax case because the court believes that the case involves a significant principle of law. 
C) May grant certiorari for a tax case because two or more appellate courts have rendered conflicting opinions on the proper resolution of a tax issue. 
D) Does not hear cases on tax issues. 
A) Typically hears hundreds of tax cases each year. 
B) May deny certiorari for a tax case because the court believes that the case involves a significant principle of law. 
C) May grant certiorari for a tax case because two or more appellate courts have rendered conflicting opinions on the proper resolution of a tax issue. 
D) Does not hear cases on tax issues.

Question 20

Tax research may occur as part of tax compliance or tax planning.

Accepted Answer

A) True 
 B)False

Secondary authorities explain and interpret the tax law in language often easier to understand than that of primary authorities.

Which of the following statements regarding commercial tax services is false?

Private letter rulings and technical advice memoranda are primary authority for those taxpayers to whom they were issued.

When performing step three of the tax research process:

When performing step two of the tax research process:

Which of the following is not a proper citation to a Treasury regulation?

Which of the following statements regarding secondary authorities is true?

Which of the following is not a primary authority on which to base research conclusions?

Secondary authorities organize information about primary authorities in a manner that facilitates tax research.

Editorial explanations provided by electronic tax services are examples of secondary authority.

Step five of the tax research process:

Editorial explanations found within a tax service are a type of primary authority.

Which of the following is not a citation to a primary authority?

The results of the tax research process should be documented in a research memo,in a letter to the client,or both.

In the citation Rev.Proc.2002-32,2002-1 C.B.959,the abbreviation C.B.refers to Congressional Bulletin.

When the Supreme Court denies certiorari,the decision of the appellate court is final.

When performing step one of the tax research process:

The Internal Revenue Code is the primary source of statutory authority for federal income tax law.

The U.S.Supreme Court:

Tax research may occur as part of tax compliance or tax planning.

Taxes and Taxing Jurisdictions

Policy Standards for a Good Tax

Taxes As Transaction Costs

Maxims of Income Tax Planning

Taxable Income From Business Operations

Property Acquisitions and Cost Recovery Deductions

Property Dispositions

Nontaxable Exchanges

Sole Proprietorships, partnerships, llcs, and S Corporations

The Corporate Taxpayer

The Choice of Business Entity

Jurisdictional Issues in Business Taxation

The Individual Tax Formula

Compensation and Retirement Planning

Investment and Personal Financial Planning

Tax Consequences of Personal Activities

The Tax Compliance Process

Filters

Exam 5: Tax Research

Secondary authorities explain and interpret the tax law in language often easier to understand than that of primary authorities.

Which of the following statements regarding commercial tax services is false?

Private letter rulings and technical advice memoranda are primary authority for those taxpayers to whom they were issued.

When performing step three of the tax research process:

When performing step two of the tax research process:

Which of the following is not a proper citation to a Treasury regulation?

Which of the following statements regarding secondary authorities is true?

Which of the following is not a primary authority on which to base research conclusions?

Secondary authorities organize information about primary authorities in a manner that facilitates tax research.

Editorial explanations provided by electronic tax services are examples of secondary authority.

Step five of the tax research process:

Editorial explanations found within a tax service are a type of primary authority.

Which of the following is not a citation to a primary authority?

The results of the tax research process should be documented in a research memo,in a letter to the client,or both.

In the citation Rev.Proc.2002-32,2002-1 C.B.959,the abbreviation C.B.refers to Congressional Bulletin.

When the Supreme Court denies certiorari,the decision of the appellate court is final.

When performing step one of the tax research process:

The Internal Revenue Code is the primary source of statutory authority for federal income tax law.

The U.S.Supreme Court:

Tax research may occur as part of tax compliance or tax planning.

Taxes and Taxing Jurisdictions

Policy Standards for a Good Tax

Taxes As Transaction Costs

Maxims of Income Tax Planning

Taxable Income From Business Operations

Property Acquisitions and Cost Recovery Deductions

Property Dispositions

Nontaxable Exchanges

Sole Proprietorships, partnerships, llcs, and S Corporations

The Corporate Taxpayer

The Choice of Business Entity

Jurisdictional Issues in Business Taxation

The Individual Tax Formula

Compensation and Retirement Planning

Investment and Personal Financial Planning

Tax Consequences of Personal Activities

The Tax Compliance Process

Filters