Question 1

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 2

Which of the following statements regarding the tax research process is true?

Accepted Answer

A)  Before a researcher can analyze the tax consequences of a transaction, he or she must thoroughly understand the transaction. 
B)  Tax research is often conducted as part of both tax compliance and tax planning activities. 
C)  Tax research is a critical skill for the tax practitioner. 
D)  All of the above statements are true. 
A)  Before a researcher can analyze the tax consequences of a transaction, he or she must thoroughly understand the transaction. 
B)  Tax research is often conducted as part of both tax compliance and tax planning activities. 
C)  Tax research is a critical skill for the tax practitioner. 
D)  All of the above statements are true.

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

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

The MSN Money Tax Glossary can be found

Question 6

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 7

Locate the revenue procedure that includes the inflation-adjusted individual tax rate schedules for 2012. This revenue procedure usually is released in the fourth quarter of the previous year. Provide a complete citation for your source.

Accepted Answer

Rev. Proc.

Question 8

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 9

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 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

Which of the following is not primary authority on which to base research conclusions?

Accepted Answer

A)  Journal of Taxation article written by a professor. 
B)  Revenue ruling. 
C)  U.S. Tax Court decision. 
D)  U.S. Supreme Court decision. 
A)  Journal of Taxation article written by a professor. 
B)  Revenue ruling. 
C)  U.S. Tax Court decision. 
D)  U.S. Supreme Court decision.

Question 12

The use of secondary authorities might be appropriate as 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)  Document your research and communicate your conclusions 
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)  Document your research and communicate your conclusions

Question 13

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

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

The topical index of a commercial tax service is considered primary authority.

Accepted Answer

A) True 
 B)False

Question 16

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 17

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

Accepted Answer

A)  Identify the tax issues, problems, or opportunities suggested by the facts and formulate specific research questions. 
B)  Consult a commercial tax service to identify potential legal authorities. 
C)  Analyze relevant authority and answer the research questions. 
D)  Document your research and communicate your conclusions. 
A)  Identify the tax issues, problems, or opportunities suggested by the facts and formulate specific research questions. 
B)  Consult a commercial tax service to identify potential legal authorities. 
C)  Analyze relevant authority and answer the research questions. 
D)  Document your research and communicate your conclusions.

Question 18

When performing step one of the tax research process:

Accepted Answer

A)  The researcher generally can assume that the client's initial summary of the transaction is factually accurate and complete. 
B)  The researcher must take into account the level of the client's tax knowledge. 
C)  The client's motivation in undertaking the transaction is generally irrelevant. 
D)  The researcher should presume that the client has some knowledge of the tax law. 
A)  The researcher generally can assume that the client's initial summary of the transaction is factually accurate and complete. 
B)  The researcher must take into account the level of the client's tax knowledge. 
C)  The client's motivation in undertaking the transaction is generally irrelevant. 
D)  The researcher should presume that the client has some knowledge of the tax law.

Question 19

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 20

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.

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

Which of the following statements regarding the tax research process is true?

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

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

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.

Locate the revenue procedure that includes the inflation-adjusted individual tax rate schedules for 2012. This revenue procedure usually is released in the fourth quarter of the previous year. Provide a complete citation for your source.

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

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

When analyzing relevant legal authority:

Which of the following is not primary authority on which to base research conclusions?

The use of secondary authorities might be appropriate as part of which step in the research process?

Which of the following statements regarding secondary authorities is true?

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

The topical index of a commercial tax service is considered primary authority.

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

When performing step one of the tax research process:

A keyword search in an electronic tax service:

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

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 one of the six steps in the tax research process?

Which of the following statements regarding the tax research process is true?

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

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

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.

Locate the revenue procedure that includes the inflation-adjusted individual tax rate schedules for 2012. This revenue procedure usually is released in the fourth quarter of the previous year. Provide a complete citation for your source.

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

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

When analyzing relevant legal authority:

Which of the following is not primary authority on which to base research conclusions?

The use of secondary authorities might be appropriate as part of which step in the research process?

Which of the following statements regarding secondary authorities is true?

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

The topical index of a commercial tax service is considered primary authority.

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

When performing step one of the tax research process:

A keyword search in an electronic tax service:

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

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