Question 1

A Citator may be used to determine the status of tax judicial decisions, revenue rulings, and revenue procedures.

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

Which of the following is not a commercial tax service?

Accepted Answer

A)  RIA Federal Tax Coordinator 2d 
B)  CCH Federal Tax Services 
C)  BNA Tax Management Portfolios 
D)  Cumulative Bulletin 
A)  RIA Federal Tax Coordinator 2d 
B)  CCH Federal Tax Services 
C)  BNA Tax Management Portfolios 
D)  Cumulative Bulletin

Question 4

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 5

Revenue procedures are a type of secondary authority.

Accepted Answer

A) True 
 B)False

Question 6

Find a tax glossary on any freely accessible Web site and provide the URL. Also find and provide a citation for the IRC section that defines the term gross income.What is the tax glossary's definition of gross income?How does the IRC define gross income?Of the two definitions, which would a taxpayer without extensive tax knowledge find easier to understand? Why?Which of the two definitions is relevant for a tax researcher? Why?

Accepted Answer

There are many possible answers to this

Question 7

Step 4 of the tax research process is to repeat steps 1 through 3 as many times as necessary.

Accepted Answer

A) True 
 B)False

Question 8

Alex inherited an antique diamond bracelet from her grandmother. She is thinking of selling the bracelet to raise cash for her college tuition and wonders about the tax consequences of such a sale. If you were to research this question using a keyword search in an electronic library, what keywords would you use? Propose three distinct keyword searches.

Accepted Answer

There are many acceptable answ

Question 9

The advantages of electronic tax research libraries do not include:

Accepted Answer

A)  The ease with which such libraries can be updated for new developments. 
B)  Portability. 
C)  Speed of access and search. 
D)  All of these choices are advantages of electronic tax research libraries. 
A)  The ease with which such libraries can be updated for new developments. 
B)  Portability. 
C)  Speed of access and search. 
D)  All of these choices are advantages of electronic tax research libraries.

Question 10

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 11

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 12

Secondary authorities should always be cited when documenting tax research conclusions.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following statements regarding administrative authorities is false?

Accepted Answer

A)  Private letter rulings are considered authoritative only for the taxpayer to whom they were issued. 
B)  A technical advice memorandum is requested by a revenue agent or appeals officer during the examination or appeal of a taxpayer's return. 
C)  Revenue procedures are considered secondary authority. 
D)  Private letter rulings can only be obtained for a fee from the IRS. 
A)  Private letter rulings are considered authoritative only for the taxpayer to whom they were issued. 
B)  A technical advice memorandum is requested by a revenue agent or appeals officer during the examination or appeal of a taxpayer's return. 
C)  Revenue procedures are considered secondary authority. 
D)  Private letter rulings can only be obtained for a fee from the IRS.

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

The use of secondary authorities might be appropriate as 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)  Document your research and communicate your conclusions 
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)  Document your research and communicate your conclusions

Question 16

Which of the following statements regarding strategies to locate relevant authority is true?

Accepted Answer

A)  Novice researchers tend to examine fewer materials during the research process than experienced researchers. 
B)  In an electronic tax service, keyword searching allows the researcher to combine words and phrases to target the search. 
C)  Keyword searches should be defined as narrowly as possible to maximize efficiencies in the search process. 
D)  All of these choices are true statements. 
A)  Novice researchers tend to examine fewer materials during the research process than experienced researchers. 
B)  In an electronic tax service, keyword searching allows the researcher to combine words and phrases to target the search. 
C)  Keyword searches should be defined as narrowly as possible to maximize efficiencies in the search process. 
D)  All of these choices are true statements.

Question 17

Technical advice memoranda are considered primary authority for any taxpayer in a similar tax situation.

Accepted Answer

A) True 
 B)False

Question 18

Using an electronic research database such as Checkpoint, CCH Tax Research NetWork, or Lexis-Nexis, perform a keyword search that includes the phrase business expense and the keyword charity. Include both primary sources and editorial materials in your search.How many documents did your search retrieve?How many documents are primary authorities and how many are secondary authorities?Provide citations to two primary authorities and two secondary authorities.

Accepted Answer

The answers to this problem de

Question 19

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)

A Citator may be used to determine the status of tax judicial decisions, revenue rulings, and revenue procedures.

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

Which of the following is not a commercial tax service?

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

Revenue procedures are a type of secondary authority.

Step 4 of the tax research process is to repeat steps 1 through 3 as many times as necessary.

The advantages of electronic tax research libraries do not include:

When performing step two of the tax research process:

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

Secondary authorities should always be cited when documenting tax research conclusions.

Which of the following statements regarding administrative authorities is false?

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

The use of secondary authorities might be appropriate as part of which step in the research process?

Which of the following statements regarding strategies to locate relevant authority is true?

Technical advice memoranda are considered primary authority for any taxpayer in a similar tax situation.

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

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

A Citator may be used to determine the status of tax judicial decisions, revenue rulings, and revenue procedures.

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

Which of the following is not a commercial tax service?

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

Revenue procedures are a type of secondary authority.

Step 4 of the tax research process is to repeat steps 1 through 3 as many times as necessary.

The advantages of electronic tax research libraries do not include:

When performing step two of the tax research process:

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

Secondary authorities should always be cited when documenting tax research conclusions.

Which of the following statements regarding administrative authorities is false?

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

The use of secondary authorities might be appropriate as part of which step in the research process?

Which of the following statements regarding strategies to locate relevant authority is true?

Technical advice memoranda are considered primary authority for any taxpayer in a similar tax situation.

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

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