Question 1

Revenue rulings are an example of administrative authority.

Accepted Answer

A) True 
 B)False  True

Question 2

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 B

Question 3

A citator:

Accepted Answer

A)  Is not an important tax research resource. 
B)  May be used to determine the status of tax judicial decisions, revenue rulings, and revenue procedures. 
C)  Is published by the federal government. 
D)  Provides an editorial explanation of tax judicial decisions. 
A)  Is not an important tax research resource. 
B)  May be used to determine the status of tax judicial decisions, revenue rulings, and revenue procedures. 
C)  Is published by the federal government. 
D)  Provides an editorial explanation of tax judicial decisions. B

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Effective tax research often omits the first two steps of the tax research process.

Accepted Answer

A) True 
 B)False

Question 6

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 7

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 8

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

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

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

Accepted Answer

A) True 
 B)False

Question 11

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 12

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 13

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 14

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 15

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 16

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

Accepted Answer

A) True 
 B)False

Question 17

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 18

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 19

Revenue procedures are a type of secondary authority.

Accepted Answer

A) True 
 B)False

Question 20

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

Revenue rulings are an example of administrative authority.

Which of the following statements regarding secondary authorities is true?

A citator:

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

Effective tax research often omits the first two steps of the tax research process.

Which of the following is not a primary authority?

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

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

When performing step three of the tax research process:

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?

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.

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.

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:

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

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

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

Revenue procedures are a type of secondary authority.

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

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

Revenue rulings are an example of administrative authority.

Which of the following statements regarding secondary authorities is true?

A citator:

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

Effective tax research often omits the first two steps of the tax research process.

Which of the following is not a primary authority?

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

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

When performing step three of the tax research process:

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?

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.

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.

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:

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

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

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

Revenue procedures are a type of secondary authority.

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

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