Question 1

Which of the following is not a commercial tax service?

Accepted Answer

A)  RIA Federal Tax Coordinator 2d 
B)  CCH Federal Tax Services 
C)  Tax Management Portfolios 
D)  Cumulative Bulletin 
A)  RIA Federal Tax Coordinator 2d 
B)  CCH Federal Tax Services 
C)  Tax Management Portfolios 
D)  Cumulative Bulletin D

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 C

Question 3

Which of the following statements regarding secondary authorities is false?

Accepted Answer

A)  In paper format, commercial tax services are organized either topically or by Code section. 
B)  Commercial tax services provide legislative history of each Internal Revenue Code section. 
C)  Only topically-organized commercial tax services provide a detailed topical index. 
D)  The organization and content of the major topically-oriented services differs considerably. 
A)  In paper format, commercial tax services are organized either topically or by Code section. 
B)  Commercial tax services provide legislative history of each Internal Revenue Code section. 
C)  Only topically-organized commercial tax services provide a detailed topical index. 
D)  The organization and content of the major topically-oriented services differs considerably. C

Question 4

Revenue procedures are a type of secondary authority.

Accepted Answer

A) True 
 B)False

Question 5

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.

Accepted Answer

The answers to this problem de

Question 6

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 7

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 8

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

Accepted Answer

A) True 
 B)False

Question 9

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 10

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 11

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 12

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 accep

Question 13

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 14

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 15

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 16

Which of the following is not a primary authority?

Accepted Answer

A)  Section 465 of the Internal Revenue Code 
B)  Munro v. Comm., 267F.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., 267F.3d 1918 (CA-8, 2004) 
C)  CCH Master Tax Guide 
D)  All of the above are primary authorities.

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

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 19

Which of the following is not a secondary authority?

Accepted Answer

A)  Tax textbook 
B)  Commercial tax service 
C)  Tax professional journal 
D)  Revenue procedure 
A)  Tax textbook 
B)  Commercial tax service 
C)  Tax professional journal 
D)  Revenue procedure

Question 20

A single tax issue may result in multiple research questions.

Accepted Answer

A) True 
 B)False

Which of the following is not a commercial tax service?

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

Which of the following statements regarding secondary authorities is false?

Revenue procedures are a type of secondary authority.

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

Step five of the tax research process:

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

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

What is the first step in the tax research process?

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

When performing step two of the tax research process:

The U.S. Supreme Court:

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

Which of the following is not a primary authority?

The advantages of electronic tax research libraries do not include:

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

Which of the following is not a secondary authority?

A single tax issue may result in multiple research questions.

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

Which of the following is not a commercial tax service?

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

Which of the following statements regarding secondary authorities is false?

Revenue procedures are a type of secondary authority.

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

Step five of the tax research process:

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

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

What is the first step in the tax research process?

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

When performing step two of the tax research process:

The U.S. Supreme Court:

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

Which of the following is not a primary authority?

The advantages of electronic tax research libraries do not include:

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

Which of the following is not a secondary authority?

A single tax issue may result in multiple research questions.

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