Question 1

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 C

Question 2

Secondary authorities are typically used only by novice researchers in searching for answers to tax questions.

Accepted Answer

A) True 
 B)False  False

Question 3

Editorial explanations found within a tax service are a type of primary authority.

Accepted Answer

A) True 
 B)False  False

Question 4

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 5

Locate the revenue procedure that includes the inflation-adjusted individual tax rate schedules for 2013. 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 6

In the citation Rev. Proc. 2002-32, 2002-1 C.B. 959, the abbreviation C.B. refers to Congressional Bulletin.

Accepted Answer

A) True 
 B)False

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

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

Question 9

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 10

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 11

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 12

Which of the following primary authorities is least likely to provide a detailed description of facts to which a researcher can compare his or her client's fact pattern?

Accepted Answer

A) Internal Revenue Code section 
B) Treasury regulation 
C) Revenue ruling 
D) Tax Court decision 
A) Internal Revenue Code section 
B) Treasury regulation 
C) Revenue ruling 
D) Tax Court decision

Question 13

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 14

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 15

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

Accepted Answer

A) True 
 B)False

Question 16

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.

Question 17

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 18

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

Question 19

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 20

Secondary authorities should always be cited when documenting tax research conclusions.

Accepted Answer

A) True 
 B)False

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

Secondary authorities are typically used only by novice researchers in searching for answers to tax questions.

Editorial explanations found within a tax service are a type of 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.

Locate the revenue procedure that includes the inflation-adjusted individual tax rate schedules for 2013. This revenue procedure usually is released in the fourth quarter of the previous year. Provide a complete citation for your source.

In the citation Rev. Proc. 2002-32, 2002-1 C.B. 959, the abbreviation C.B. refers to Congressional Bulletin.

Step five of the tax research process:

Which of the following is not a commercial tax service?

Which of the following is not administrative authority?

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

When performing step three of the tax research process:

Which of the following primary authorities is least likely to provide a detailed description of facts to which a researcher can compare his or her client's fact pattern?

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

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

Which of the following statements regarding secondary authorities is false?

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

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

In locating relevant authorities:

Secondary authorities should always be cited when documenting tax research conclusions.

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 a Present Value of $1 B Present Value of Annuity of $1 C 2013 Income Tax Rates

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Exam 5: Tax Research

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

Secondary authorities are typically used only by novice researchers in searching for answers to tax questions.

Editorial explanations found within a tax service are a type of 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.

Locate the revenue procedure that includes the inflation-adjusted individual tax rate schedules for 2013. This revenue procedure usually is released in the fourth quarter of the previous year. Provide a complete citation for your source.

In the citation Rev. Proc. 2002-32, 2002-1 C.B. 959, the abbreviation C.B. refers to Congressional Bulletin.

Step five of the tax research process:

Which of the following is not a commercial tax service?

Which of the following is not administrative authority?

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

When performing step three of the tax research process:

Which of the following primary authorities is least likely to provide a detailed description of facts to which a researcher can compare his or her client's fact pattern?

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

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

Which of the following statements regarding secondary authorities is false?

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

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

In locating relevant authorities:

Secondary authorities should always be cited when documenting tax research conclusions.

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 a Present Value of $1 B Present Value of Annuity of $1 C 2013 Income Tax Rates

Filters