Question 1

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

Accepted Answer

A)  Understand the client's transaction and ascertain the facts. 
B)  Locate relevant tax law authority. 
C)  Analyze relevant authority and answer the research questions. 
D)  All of the above are steps in the tax research process. 
A)  Understand the client's transaction and ascertain the facts. 
B)  Locate relevant tax law authority. 
C)  Analyze relevant authority and answer the research questions. 
D)  All of the above are steps in the tax research process.

Question 2

Experienced tax professionals generally can answer most tax questions without the need for tax research.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A)  U.S. District Court decision 
B)  Editorial in the Wall Street Journal 
C)  U.S. Court of Federal Claims decision 
D)  Revenue procedure 
A)  U.S. District Court decision 
B)  Editorial in the Wall Street Journal 
C)  U.S. Court of Federal Claims decision 
D)  Revenue procedure

Question 4

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 5

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 6

Private letter rulings are authoritative only for the specific taxpayer to whom they are issued and cannot be relied on as authority by any other taxpayer.

Accepted Answer

A) True 
 B)False

Question 7

A single tax issue may result in multiple research questions.

Accepted Answer

A) True 
 B)False

Question 8

Tax services are typically organized either topically or by Code section.

Accepted Answer

A) True 
 B)False

Question 9

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 10

Which of the following primary authorities is least likely to provide a detailed description of facts to which a researcher can compare his or her client's fact pattern?

Accepted Answer

A)  Internal Revenue Code section 
B)  Treasury regulation 
C)  Revenue ruling 
D)  Tax Court decision 
A)  Internal Revenue Code section 
B)  Treasury regulation 
C)  Revenue ruling 
D)  Tax Court decision

Question 11

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 12

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 13

Treasury regulations are considered statutory authority.

Accepted Answer

A) True 
 B)False

Question 14

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.

Question 15

Professional tax research conclusions should always be based on relevant secondary authority.

Accepted Answer

A) True 
 B)False

Question 16

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 17

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

Question 18

A keyword search in an electronic tax service:

Accepted Answer

A)  Allows the researcher to combine words and phrases to define the search. 
B)  Is identical to using the topical index in a paper service. 
C)  Is not an efficient way to conduct tax research. 
D)  Cannot be restricted to only a part or portion of the data base. 
A)  Allows the researcher to combine words and phrases to define the search. 
B)  Is identical to using the topical index in a paper service. 
C)  Is not an efficient way to conduct tax research. 
D)  Cannot be restricted to only a part or portion of the data base.

Question 19

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 20

Secondary authorities are typically used only by novice researchers in searching for answers to tax questions.

Accepted Answer

A) True 
 B)False

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

Experienced tax professionals generally can answer most tax questions without the need for tax research.

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

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

Private letter rulings are authoritative only for the specific taxpayer to whom they are issued and cannot be relied on as authority by any other taxpayer.

A single tax issue may result in multiple research questions.

Tax services are typically organized either topically or by Code section.

When performing step three of the tax research process:

Which of the following primary authorities is least likely to provide a detailed description of facts to which a researcher can compare his or her client's fact pattern?

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

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

Treasury regulations are considered statutory authority.

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

Professional tax research conclusions should always be based on relevant secondary authority.

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

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.

A keyword search in an electronic tax service:

Which of the following is not a commercial tax service?

Secondary authorities are typically used only by novice researchers in searching for answers to tax 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

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

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Exam 5: Tax Research

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

Experienced tax professionals generally can answer most tax questions without the need for tax research.

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

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

Private letter rulings are authoritative only for the specific taxpayer to whom they are issued and cannot be relied on as authority by any other taxpayer.

A single tax issue may result in multiple research questions.

Tax services are typically organized either topically or by Code section.

When performing step three of the tax research process:

Which of the following primary authorities is least likely to provide a detailed description of facts to which a researcher can compare his or her client's fact pattern?

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

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

Treasury regulations are considered statutory authority.

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

Professional tax research conclusions should always be based on relevant secondary authority.

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

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.

A keyword search in an electronic tax service:

Which of the following is not a commercial tax service?

Secondary authorities are typically used only by novice researchers in searching for answers to tax 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

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