Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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 3

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 4

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

Question 5

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.

Question 6

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 7

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

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Treasury regulations are considered statutory authority.

Accepted Answer

A) True 
 B)False

Question 10

When analyzing relevant legal authority:

Accepted Answer

A) The researcher is finished only when an unambiguous answer to the research question has been located. 
B) Different sources of authority may provide conflicting answers. 
C) Interpretation and judgment on the part of the researcher is rarely required. 
D) The researcher should never give an unqualified answer to any research question. 
A) The researcher is finished only when an unambiguous answer to the research question has been located. 
B) Different sources of authority may provide conflicting answers. 
C) Interpretation and judgment on the part of the researcher is rarely required. 
D) The researcher should never give an unqualified answer to any research question.

Question 11

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 12

Which of the following is not a typical strategy for using a commercial tax service?

Accepted Answer

A) Using the topical index 
B) Using the table of contents 
C) In an electronic service,using a keyword search 
D) All of the above are typical strategies for using a commercial tax service. 
A) Using the topical index 
B) Using the table of contents 
C) In an electronic service,using a keyword search 
D) All of the above are typical strategies for using a commercial tax service.

Question 13

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 14

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 15

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 16

Tax judicial decisions each have a single,unique citation.

Accepted Answer

A) True 
 B)False

Question 17

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.

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

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 20

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.

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

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

What is the first step in the tax research process?

Which of the following is not administrative authority?

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

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

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

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

Treasury regulations are considered statutory authority.

When analyzing relevant legal authority:

Which of the following is not a typical strategy for using a commercial tax service?

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

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

Which of the following is not a commercial tax service?

Tax judicial decisions each have a single,unique citation.

The advantages of electronic tax research libraries do not include:

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

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

Which of the following statements regarding administrative authorities is false?

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

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

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

What is the first step in the tax research process?

Which of the following is not administrative authority?

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

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

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

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

Treasury regulations are considered statutory authority.

When analyzing relevant legal authority:

Which of the following is not a typical strategy for using a commercial tax service?

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

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

Which of the following is not a commercial tax service?

Tax judicial decisions each have a single,unique citation.

The advantages of electronic tax research libraries do not include:

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

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

Which of the following statements regarding administrative authorities is false?

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