Question 1

Which of the following is not one of the three sources of authority that comprise the federal tax law?

Accepted Answer

A)  Statutory authority 
B)  Secondary authority 
C)  Administrative authority 
D)  Judicial authority 
A)  Statutory authority 
B)  Secondary authority 
C)  Administrative authority 
D)  Judicial authority

Question 2

The topical index of a commercial tax service is considered primary authority.

Accepted Answer

A) True 
 B)False

Question 3

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 4

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 5

What is the first step in the tax research process?

Accepted Answer

A)  Discover all the facts relevant to the taxpayer's transaction. 
B)  Decide which tax library to use. 
C)  Decide whether to read primary or secondary authority. 
D)  Formulate a precise research question. 
A)  Discover all the facts relevant to the taxpayer's transaction. 
B)  Decide which tax library to use. 
C)  Decide whether to read primary or secondary authority. 
D)  Formulate a precise research question.

Question 6

Which of the following is not a secondary authority?

Accepted Answer

A)  Tax Court Memorandum decision 
B)  BNA Tax Management Portfolio 
C)  United States Tax Reporter 
D)  All of the above are secondary authorities 
A)  Tax Court Memorandum decision 
B)  BNA Tax Management Portfolio 
C)  United States Tax Reporter 
D)  All of the above are secondary authorities

Question 7

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 8

The final step in the tax research process is to document and communicate research conclusions.

Accepted Answer

A) True 
 B)False

Question 9

Based on the citation Rev. Rul. 89-157, 1989-1 C.B. 221:

Accepted Answer

A)  This revenue ruling was issued in 1989. 
B)  This revenue ruling is no longer valid. 
C)  The abbreviation C.B. stands for Comprehensive Bulletin. 
D)  This revenue ruling appears on page 157. 
A)  This revenue ruling was issued in 1989. 
B)  This revenue ruling is no longer valid. 
C)  The abbreviation C.B. stands for Comprehensive Bulletin. 
D)  This revenue ruling appears on page 157.

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

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 12

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 13

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 14

Revenue procedures are a type of secondary authority.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is primary authority on which to base research conclusions?

Accepted Answer

A)  This textbook 
B)  An editorial explanation in a commercial tax service 
C)  A Treasury regulation 
D)  A treatise written by a tax attorney and published in a legal journal 
A)  This textbook 
B)  An editorial explanation in a commercial tax service 
C)  A Treasury regulation 
D)  A treatise written by a tax attorney and published in a legal journal

Question 16

A taxpayer who loses a case in the U.S. Tax Court may appeal the case directly to the U.S. Supreme Court.

Accepted Answer

A) True 
 B)False

Question 17

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 18

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 19

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

Accepted Answer

A) True 
 B)False

Question 20

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 the above 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 the above are advantages of electronic tax research libraries.

Which of the following is not one of the three sources of authority that comprise the federal tax law?

The topical index of a commercial tax service is considered primary authority.

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

When performing step two of the tax research process:

What is the first step in the tax research process?

Which of the following is not a secondary authority?

Which of the following statements regarding administrative authorities is false?

The final step in the tax research process is to document and communicate research conclusions.

Based on the citation Rev. Rul. 89-157, 1989-1 C.B. 221:

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

The U.S. Supreme Court:

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

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:

Revenue procedures are a type of secondary authority.

Which of the following is primary authority on which to base research conclusions?

A taxpayer who loses a case in the U.S. Tax Court may appeal the case directly to the U.S. Supreme Court.

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

Which of the following statements regarding secondary authorities is true?

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

The advantages of electronic tax research libraries do not include:

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 is not one of the three sources of authority that comprise the federal tax law?

The topical index of a commercial tax service is considered primary authority.

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

When performing step two of the tax research process:

What is the first step in the tax research process?

Which of the following is not a secondary authority?

Which of the following statements regarding administrative authorities is false?

The final step in the tax research process is to document and communicate research conclusions.

Based on the citation Rev. Rul. 89-157, 1989-1 C.B. 221:

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

The U.S. Supreme Court:

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

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:

Revenue procedures are a type of secondary authority.

Which of the following is primary authority on which to base research conclusions?

A taxpayer who loses a case in the U.S. Tax Court may appeal the case directly to the U.S. Supreme Court.

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

Which of the following statements regarding secondary authorities is true?

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

The advantages of electronic tax research libraries do not include:

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