Exam 5: Tax Research

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

Which of the following statements regarding secondary authorities is false?

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

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.

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 is not primary authority on which to base tax research conclusions?

Which of the following is not a primary authority?

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.

The Citator is a rarely used,unimportant source of information about the status of judicial and administrative tax decisions.

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:

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

In locating relevant authorities:

Novice tax researchers tend to exam less material in the course of a tax research project than experienced tax researchers.

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. a.How many documents did your search retrieve? b.How many documents are primary authorities and how many are secondary authorities? c.Provide citations to two primary authorities and two secondary authorities.

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

Which of the following is not a secondary authority?

When performing step two of the tax research process:

Tax research typically occurs as part of the tax compliance process; it is rarely important in tax planning.

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

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