Question 1

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 2

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 3

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 4

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

Accepted Answer

A) True 
 B)False

Question 5

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 6

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 7

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 8

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 9

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 10

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 11

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 12

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 13

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 14

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

Accepted Answer

A) True 
 B)False

Question 15

A single tax issue may result in multiple research questions.

Accepted Answer

A) True 
 B)False

Question 16

Tax judicial decisions each have a single, unique citation.

Accepted Answer

A) True 
 B)False

Question 17

Step 4 of the tax research process is to repeat steps 1 through 3 as many times as necessary.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is primary authority on which to base research conclusions?

Accepted Answer

A)  This textbook 
B)  An editorial explanation in a commercial tax service 
C)  A Treasury regulation 
D)  A treatise written by a tax attorney and published in a legal journal 
A)  This textbook 
B)  An editorial explanation in a commercial tax service 
C)  A Treasury regulation 
D)  A treatise written by a tax attorney and published in a legal journal

Question 19

Treasury regulations are considered statutory authority.

Accepted Answer

A) True 
 B)False

Question 20

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.

A keyword search in an electronic tax service:

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

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

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

Which of the following statements regarding secondary authorities is true?

Which of the following is not a secondary authority?

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

When performing step one of the tax research process:

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

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?

A citator:

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

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

A single tax issue may result in multiple research questions.

Tax judicial decisions each have a single, unique citation.

Step 4 of the tax research process is to repeat steps 1 through 3 as many times as necessary.

Which of the following is primary authority on which to base research conclusions?

Treasury regulations are considered statutory authority.

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:

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

A keyword search in an electronic tax service:

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

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

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

Which of the following statements regarding secondary authorities is true?

Which of the following is not a secondary authority?

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

When performing step one of the tax research process:

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

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?

A citator:

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

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

A single tax issue may result in multiple research questions.

Tax judicial decisions each have a single, unique citation.

Step 4 of the tax research process is to repeat steps 1 through 3 as many times as necessary.

Which of the following is primary authority on which to base research conclusions?

Treasury regulations are considered statutory authority.

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:

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