Question 1

Treasury regulations are considered statutory authority.

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

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

Accepted Answer

A) True 
 B)False

Question 4

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 5

Step five of the tax research process:

Accepted Answer

A)  Is typically performed only by novice researchers. 
B)  Is required only if the researcher has made a careless mistake in a previous step. 
C)  Should only be taken once. 
D)  Is necessary when the researcher determines that additional facts are needed to complete the analysis of the transaction. 
A)  Is typically performed only by novice researchers. 
B)  Is required only if the researcher has made a careless mistake in a previous step. 
C)  Should only be taken once. 
D)  Is necessary when the researcher determines that additional facts are needed to complete the analysis of the transaction.

Question 6

The Internal Revenue Code is the primary source of statutory authority for federal income tax law.

Accepted Answer

A) True 
 B)False

Question 7

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 8

In locating relevant authorities:

Accepted Answer

A)  Only a novice researcher will use secondary authorities as a guide. 
B)  Experienced researchers always conduct their search in exactly the same way for every research project. 
C)  Tax researchers may consult more than one tax service. 
D)  Skilled researchers usually consult a broader range of library materials than novice researchers. 
A)  Only a novice researcher will use secondary authorities as a guide. 
B)  Experienced researchers always conduct their search in exactly the same way for every research project. 
C)  Tax researchers may consult more than one tax service. 
D)  Skilled researchers usually consult a broader range of library materials than novice researchers.

Question 9

A keyword search using an electronic database is part of which step in the research process?

Accepted Answer

A)  Understand the client's transaction and ascertain the facts 
B)  Identify the tax issues, problems, or opportunities suggested by the facts and formulate specific research questions 
C)  Locate relevant tax law authority 
D)  Analyze relevant authority and answer the research questions 
A)  Understand the client's transaction and ascertain the facts 
B)  Identify the tax issues, problems, or opportunities suggested by the facts and formulate specific research questions 
C)  Locate relevant tax law authority 
D)  Analyze relevant authority and answer the research questions

Question 10

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 11

The first step in the tax research process is to locate relevant tax law authority.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A)  A statement of the pertinent facts 
B)  An analysis of the relevant sources of authority 
C)  The details of any advice given to the client as part of the research engagement 
D)  A bill for fees charged to the client for the research engagement 
A)  A statement of the pertinent facts 
B)  An analysis of the relevant sources of authority 
C)  The details of any advice given to the client as part of the research engagement 
D)  A bill for fees charged to the client for the research engagement

Question 14

Which of the following is not a primary authority?

Accepted Answer

A)  Internal Revenue Code 
B)  Treasury regulations 
C)  Revenue Procedure 
D)  Tax textbook 
A)  Internal Revenue Code 
B)  Treasury regulations 
C)  Revenue Procedure 
D)  Tax textbook

Question 15

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 16

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

Accepted Answer

A) True 
 B)False

Question 17

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 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

A research memorandum is typically less detailed than a client letter in terms of discussing supporting legal authorities.

Accepted Answer

A) True 
 B)False

Question 20

Tax judicial decisions each have a single, unique citation.

Accepted Answer

A) True 
 B)False

Treasury regulations are considered statutory authority.

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

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

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

Step five of the tax research process:

The Internal Revenue Code is the primary source of statutory authority for federal income tax law.

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

In locating relevant authorities:

A keyword search using an electronic database is part of which step in the research process?

When performing step two of the tax research process:

The first step in the tax research process is to locate relevant tax law authority.

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

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

Which of the following is not a primary authority?

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

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

A keyword search in an electronic tax service:

A research memorandum is typically less detailed than a client letter in terms of discussing supporting legal authorities.

Tax judicial decisions each have a single, unique citation.

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

Treasury regulations are considered statutory authority.

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

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

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

Step five of the tax research process:

The Internal Revenue Code is the primary source of statutory authority for federal income tax law.

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

In locating relevant authorities:

A keyword search using an electronic database is part of which step in the research process?

When performing step two of the tax research process:

The first step in the tax research process is to locate relevant tax law authority.

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

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

Which of the following is not a primary authority?

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

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

A keyword search in an electronic tax service:

A research memorandum is typically less detailed than a client letter in terms of discussing supporting legal authorities.

Tax judicial decisions each have a single, unique citation.

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