Question 1

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. D

Question 2

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 C

Question 3

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 the above 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 the above are true statements. B

Question 4

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.
a. What is the tax glossary's definition of gross income?
b. How does the IRC define gross income?
c. Of the two definitions, which would a taxpayer without extensive tax knowledge find easier to understand? Why?
d. Which of the two definitions is relevant for a tax researcher? Why?

Accepted Answer

There are many possible answers to this

Question 5

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 the above 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 the above statements are true.

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

In locating relevant authorities:

Accepted Answer

A)  Only a novice researcher will use secondary authorities as a guide. 
B)  Experienced researchers always conduct their search in exactly the same way for every research project. 
C)  Tax researchers may consult more than one tax service. 
D)  Skilled researchers usually consult a broader range of library materials than novice researchers. 
A)  Only a novice researcher will use secondary authorities as a guide. 
B)  Experienced researchers always conduct their search in exactly the same way for every research project. 
C)  Tax researchers may consult more than one tax service. 
D)  Skilled researchers usually consult a broader range of library materials than novice researchers.

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is not a primary authority?

Accepted Answer

A)  Section 465 of the Internal Revenue Code 
B)  Munro v. Comm., 267 F.3d 1918 (CA-8, 2004) 
C)  CCH Master Tax Guide 
D)  All of the above are primary authorities. 
A)  Section 465 of the Internal Revenue Code 
B)  Munro v. Comm., 267 F.3d 1918 (CA-8, 2004) 
C)  CCH Master Tax Guide 
D)  All of the above are primary authorities.

Question 10

The first step in the tax research process is to locate relevant tax law authority.

Accepted Answer

A) True 
 B)False

Question 11

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 12

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 13

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

Accepted Answer

A) True 
 B)False

Question 14

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 15

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

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

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 18

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 19

Tax judicial decisions each have a single, unique citation.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is not administrative authority?

Accepted Answer

A)  The Internal Revenue Code 
B)  Treasury regulations 
C)  Revenue rulings 
D)  Revenue procedures 
A)  The Internal Revenue Code 
B)  Treasury regulations 
C)  Revenue rulings 
D)  Revenue procedures

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

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?

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

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

In locating relevant authorities:

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

Which of the following is not a primary authority?

The first step in the tax research process is to locate relevant tax law authority.

Which of the following is not a secondary authority?

When performing step one of the tax research process:

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

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

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

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

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

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

Tax judicial decisions each have a single, unique citation.

Which of the following is not administrative authority?

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

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

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

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?

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

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

In locating relevant authorities:

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

Which of the following is not a primary authority?

The first step in the tax research process is to locate relevant tax law authority.

Which of the following is not a secondary authority?

When performing step one of the tax research process:

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

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

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

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

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

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

Tax judicial decisions each have a single, unique citation.

Which of the following is not administrative authority?

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

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