Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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 3

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 4

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 5

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 6

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

Accepted Answer

A) True 
 B)False

Question 7

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 8

Revenue rulings are an example of administrative authority.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) U.S.District Court decision 
B) Editorial in the Wall Street Journal 
C) U.S.Court of Federal Claims decision 
D) Revenue procedure 
A) U.S.District Court decision 
B) Editorial in the Wall Street Journal 
C) U.S.Court of Federal Claims decision 
D) Revenue procedure

Question 12

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 13

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, 2002-0 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, 2002-0 C.B.959

Question 14

Novice tax researchers tend to exam less material in the course of a tax research project than experienced tax researchers.

Accepted Answer

A) True 
 B)False

Question 15

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 16

Revenue procedures are a type of secondary authority.

Accepted Answer

A) True 
 B)False

Question 17

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 18

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.

Question 19

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 20

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.

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

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

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:

What is the first step in the tax research process?

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

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

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

Revenue rulings are an example of administrative authority.

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

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

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

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

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

Novice tax researchers tend to exam less material in the course of a tax research project than experienced tax researchers.

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.

Revenue procedures are a type of secondary authority.

Which of the following is not a secondary authority?

A citator:

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

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

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

Exam 5: Tax Research

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

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

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:

What is the first step in the tax research process?

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

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

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

Revenue rulings are an example of administrative authority.

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

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

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

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

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

Novice tax researchers tend to exam less material in the course of a tax research project than experienced tax researchers.

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.

Revenue procedures are a type of secondary authority.

Which of the following is not a secondary authority?

A citator:

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

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

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