Question 1

If a trial court decision has been appealed and the appellate court reversed the trial court's decision, the trial court decision is considered authoritative.

Accepted Answer

A) True 
 B)False  False

Question 2

In circumstances requiring an evaluative judgment, the tax researcher can provide a definitive answer to the research question.

Accepted Answer

A) True 
 B)False  False

Question 3

Which of the following is not one of the six steps in the tax research process?

Accepted Answer

A)  Identify the tax issues, problems, or opportunities suggested by the facts and formulate specific research questions. 
B)  Consult a commercial tax service to identify potential legal authorities. 
C)  Analyze relevant authority and answer the research questions. 
D)  Document your research and communicate your conclusions. 
A)  Identify the tax issues, problems, or opportunities suggested by the facts and formulate specific research questions. 
B)  Consult a commercial tax service to identify potential legal authorities. 
C)  Analyze relevant authority and answer the research questions. 
D)  Document your research and communicate your conclusions. B

Question 4

Tax judicial decisions each have a single, unique citation.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

A revenue ruling cannot be relied on as authority by any taxpayer other than the taxpayer for whom the ruling was issued.

Accepted Answer

A) True 
 B)False

Question 7

A keyword search using an electronic database is part of which step in the research process?

Accepted Answer

A)  Understand the client's transaction and ascertain the facts 
B)  Identify the tax issues, problems, or opportunities suggested by the facts and formulate specific research questions 
C)  Locate relevant tax law authority 
D)  Analyze relevant authority and answer the research questions 
A)  Understand the client's transaction and ascertain the facts 
B)  Identify the tax issues, problems, or opportunities suggested by the facts and formulate specific research questions 
C)  Locate relevant tax law authority 
D)  Analyze relevant authority and answer the research questions

Question 8

Which of the following is not generally included in a tax research memorandum?

Accepted Answer

A)  A statement of the pertinent facts 
B)  An analysis of the relevant sources of authority 
C)  The details of any advice given to the client as part of the research engagement 
D)  A bill for fees charged to the client for the research engagement 
A)  A statement of the pertinent facts 
B)  An analysis of the relevant sources of authority 
C)  The details of any advice given to the client as part of the research engagement 
D)  A bill for fees charged to the client for the research engagement

Question 9

When analyzing relevant legal authority:

Accepted Answer

A)  The researcher is finished only when an unambiguous answer to the research question has been located. 
B)  Different sources of authority may provide conflicting answers. 
C)  Interpretation and judgment on the part of the researcher is rarely required. 
D)  The researcher should never give an unqualified answer to any research question. 
A)  The researcher is finished only when an unambiguous answer to the research question has been located. 
B)  Different sources of authority may provide conflicting answers. 
C)  Interpretation and judgment on the part of the researcher is rarely required. 
D)  The researcher should never give an unqualified answer to any research question.

Question 10

Which of the following statements regarding the tax research process is true?

Accepted Answer

A)  Before a researcher can analyze the tax consequences of a transaction, he or she must thoroughly understand the transaction. 
B)  Tax research is often conducted as part of both tax compliance and tax planning activities. 
C)  Tax research is a critical skill for the tax practitioner. 
D)  All of these statements are true. 
A)  Before a researcher can analyze the tax consequences of a transaction, he or she must thoroughly understand the transaction. 
B)  Tax research is often conducted as part of both tax compliance and tax planning activities. 
C)  Tax research is a critical skill for the tax practitioner. 
D)  All of these statements are true.

Question 11

Which of the following is not a proper citation to an Internal Revenue Code section?

Accepted Answer

A)  IRC 1001 
B)  Sec. 1001 
C)  Section 1001 
D)  §1001 
A)  IRC 1001 
B)  Sec. 1001 
C)  Section 1001 
D)  §1001

Question 12

Treasury regulations are considered statutory authority.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following statements regarding documentation of research conclusions is false?

Accepted Answer

A)  A research memorandum is a permanent record of the research process. 
B)  A researcher communicates his or her conclusions to the client in a letter containing information similar to that in the research memorandum. 
C)  Technical references are generally inappropriate in a client letter. 
D)  A research memorandum contains only research conclusions and not a detailed analysis of legal authorities supporting those conclusions. 
A)  A research memorandum is a permanent record of the research process. 
B)  A researcher communicates his or her conclusions to the client in a letter containing information similar to that in the research memorandum. 
C)  Technical references are generally inappropriate in a client letter. 
D)  A research memorandum contains only research conclusions and not a detailed analysis of legal authorities supporting those conclusions.

Question 14

Which of the following statements regarding secondary authorities is false?

Accepted Answer

A)  In paper format, commercial tax services are organized either topically or by Code section. 
B)  Commercial tax services provide legislative history of each Internal Revenue Code section. 
C)  Only topically-organized commercial tax services provide a detailed topical index. 
D)  The organization and content of the major topically-oriented services differs considerably. 
A)  In paper format, commercial tax services are organized either topically or by Code section. 
B)  Commercial tax services provide legislative history of each Internal Revenue Code section. 
C)  Only topically-organized commercial tax services provide a detailed topical index. 
D)  The organization and content of the major topically-oriented services differs considerably.

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

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 17

When analyzing tax authorities, the researcher must decide if the authority requires a factual judgment or an evaluative judgment. The difference between the two can be described as follows:

Accepted Answer

A)  In making an evaluative judgment, the researcher can provide a definitive answer to the research question. 
B)  In making a factual judgment, the authority may be subject to interpretation. 
C)  In making an evaluative judgment, the researcher must draw a subjective conclusion that results in a qualified answer. 
D)  There is little difference between a factual judgment and an evaluative judgment. 
A)  In making an evaluative judgment, the researcher can provide a definitive answer to the research question. 
B)  In making a factual judgment, the authority may be subject to interpretation. 
C)  In making an evaluative judgment, the researcher must draw a subjective conclusion that results in a qualified answer. 
D)  There is little difference between a factual judgment and an evaluative judgment.

Question 18

Which of the following is not a secondary authority?

Accepted Answer

A)  Tax textbook 
B)  Commercial tax service 
C)  Tax professional journal 
D)  Revenue procedure 
A)  Tax textbook 
B)  Commercial tax service 
C)  Tax professional journal 
D)  Revenue procedure

Question 19

Which of the following statements does not accurately describe the tax research process?

Accepted Answer

A)  A researcher may begin with any of the six steps in the process. 
B)  The process is not linear because the researcher may have to repeat one or more of the steps before concluding the research. 
C)  If a set of facts suggests multiple research questions, the researcher must decide on the order in which the questions should be answered. 
D)  The last step in the process requires preparation of a written summary that communicates the researcher's conclusions. 
A)  A researcher may begin with any of the six steps in the process. 
B)  The process is not linear because the researcher may have to repeat one or more of the steps before concluding the research. 
C)  If a set of facts suggests multiple research questions, the researcher must decide on the order in which the questions should be answered. 
D)  The last step in the process requires preparation of a written summary that communicates the researcher's conclusions.

Question 20

A single tax issue may result in multiple research questions.

Accepted Answer

A) True 
 B)False

If a trial court decision has been appealed and the appellate court reversed the trial court's decision, the trial court decision is considered authoritative.

In circumstances requiring an evaluative judgment, the tax researcher can provide a definitive answer to the research question.

Which of the following is not one of the six steps in the tax research process?

Tax judicial decisions each have a single, unique citation.

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

A revenue ruling cannot be relied on as authority by any taxpayer other than the taxpayer for whom the ruling was issued.

A keyword search using an electronic database is part of which step in the research process?

Which of the following is not generally included in a tax research memorandum?

When analyzing relevant legal authority:

Which of the following statements regarding the tax research process is true?

Which of the following is not a proper citation to an Internal Revenue Code section?

Treasury regulations are considered statutory authority.

Which of the following statements regarding documentation of research conclusions is false?

Which of the following statements regarding secondary authorities is false?

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

The U.S. Supreme Court:

When analyzing tax authorities, the researcher must decide if the authority requires a factual judgment or an evaluative judgment. The difference between the two can be described as follows:

Which of the following is not a secondary authority?

Which of the following statements does not accurately describe the tax research process?

A single tax issue may result in multiple research questions.

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

If a trial court decision has been appealed and the appellate court reversed the trial court's decision, the trial court decision is considered authoritative.

In circumstances requiring an evaluative judgment, the tax researcher can provide a definitive answer to the research question.

Which of the following is not one of the six steps in the tax research process?

Tax judicial decisions each have a single, unique citation.

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

A revenue ruling cannot be relied on as authority by any taxpayer other than the taxpayer for whom the ruling was issued.

A keyword search using an electronic database is part of which step in the research process?

Which of the following is not generally included in a tax research memorandum?

When analyzing relevant legal authority:

Which of the following statements regarding the tax research process is true?

Which of the following is not a proper citation to an Internal Revenue Code section?

Treasury regulations are considered statutory authority.

Which of the following statements regarding documentation of research conclusions is false?

Which of the following statements regarding secondary authorities is false?

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

The U.S. Supreme Court:

When analyzing tax authorities, the researcher must decide if the authority requires a factual judgment or an evaluative judgment. The difference between the two can be described as follows:

Which of the following is not a secondary authority?

Which of the following statements does not accurately describe the tax research process?

A single tax issue may result in multiple research questions.

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