Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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 3

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 4

The final step in the tax research process is to document and communicate research conclusions.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is not a typical strategy for using a commercial tax service?

Accepted Answer

A)  Using the topical index 
B)  Using the table of contents 
C)  In an electronic service, using a keyword search 
D)  All of the above are typical strategies for using a commercial tax service. 
A)  Using the topical index 
B)  Using the table of contents 
C)  In an electronic service, using a keyword search 
D)  All of the above are typical strategies for using a commercial tax service.

Question 6

Revenue rulings are an example of administrative authority.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

Based on the citation Rev. Rul. 89-157, 1989-1

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 9

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, 2002-1C.B. 958 
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, 2002-1C.B. 958

Question 10

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 11

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 12

In circumstances requiring an evaluative judgment, the tax researcher can provide can provide a definitive answer to the research question.

Accepted Answer

A) True 
 B)False

Question 13

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

There are many possible answers to this

Question 14

Which of the following statements regarding strategies to locate relevant authority is true?

Accepted Answer

A)  Novice researchers tend to examine fewer materials during the research process than experienced researchers. 
B)  In an electronic tax service, keyword searching allows the researcher to combine words and phrases to target the search. 
C)  Keyword searches should be defined as narrowly as possible to maximize efficiencies in the search process. 
D)  All of the above are true statements. 
A)  Novice researchers tend to examine fewer materials during the research process than experienced researchers. 
B)  In an electronic tax service, keyword searching allows the researcher to combine words and phrases to target the search. 
C)  Keyword searches should be defined as narrowly as possible to maximize efficiencies in the search process. 
D)  All of the above are true statements.

Question 15

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 16

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 17

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 18

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 19

Tax research typically occurs as part of the tax compliance process; it is rarely important in tax planning.

Accepted Answer

A) True 
 B)False

Question 20

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

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

Step five of the tax research process:

In locating relevant authorities:

The final step in the tax research process is to document and communicate research conclusions.

Which of the following is not a typical strategy for using a commercial tax service?

Revenue rulings are an example of administrative authority.

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

Based on the citation Rev. Rul. 89-157, 1989-1

Which of the following is not a citation to a 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.

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.

In circumstances requiring an evaluative judgment, the tax researcher can provide can provide a definitive answer to the research question.

Which of the following statements regarding strategies to locate relevant authority is true?

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

When performing step three of the tax research process:

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

Tax research typically occurs as part of the tax compliance process; it is rarely important in tax planning.

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

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

Step five of the tax research process:

In locating relevant authorities:

The final step in the tax research process is to document and communicate research conclusions.

Which of the following is not a typical strategy for using a commercial tax service?

Revenue rulings are an example of administrative authority.

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

Based on the citation Rev. Rul. 89-157, 1989-1

Which of the following is not a citation to a 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.

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.

In circumstances requiring an evaluative judgment, the tax researcher can provide can provide a definitive answer to the research question.

Which of the following statements regarding strategies to locate relevant authority is true?

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

When performing step three of the tax research process:

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

Tax research typically occurs as part of the tax compliance process; it is rarely important in tax planning.

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