Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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 3

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 4

The results of the tax research process should be documented in either a research memo or in a letter to the client.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following statements regarding administrative authorities is false?

Accepted Answer

A)  Private letter rulings are considered authoritative only for the taxpayer to whom they were issued. 
B)  A technical advice memorandum is requested by a revenue agent or appeals officer during the examination or appeal of a taxpayer's return. 
C)  Revenue procedures are considered secondary authority. 
D)  Private letter rulings can only be obtained for a fee from the IRS. 
A)  Private letter rulings are considered authoritative only for the taxpayer to whom they were issued. 
B)  A technical advice memorandum is requested by a revenue agent or appeals officer during the examination or appeal of a taxpayer's return. 
C)  Revenue procedures are considered secondary authority. 
D)  Private letter rulings can only be obtained for a fee from the IRS.

Question 6

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 7

A revenue ruling cannot be relied on as authority by any taxpayer other than the taxpayer for whom the ruling was issued.

Accepted Answer

A) True 
 B)False

Question 8

Experienced tax professionals generally can answer most tax questions without the need for tax research.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

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 11

When performing step two of the tax research process:

Accepted Answer

A)  The identification of tax issues precedes the formulation of research questions. 
B)  Research questions should be as broadly stated as possible. 
C)  Each tax issue is always associated with a single research question. 
D)  The order in which research questions are addressed is irrelevant. 
A)  The identification of tax issues precedes the formulation of research questions. 
B)  Research questions should be as broadly stated as possible. 
C)  Each tax issue is always associated with a single research question. 
D)  The order in which research questions are addressed is irrelevant.

Question 12

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 13

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

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

The U.S. Supreme Court:

Accepted Answer

A)  Typically hears hundreds of tax cases each year. 
B)  May deny certiorari for a tax case because the court believes that the case involves a significant principle of law. 
C)  May grant certiorari for a tax case because two or more appellate courts have rendered conflicting opinions on the proper resolution of a tax issue. 
D)  Does not hear cases on tax issues. 
A)  Typically hears hundreds of tax cases each year. 
B)  May deny certiorari for a tax case because the court believes that the case involves a significant principle of law. 
C)  May grant certiorari for a tax case because two or more appellate courts have rendered conflicting opinions on the proper resolution of a tax issue. 
D)  Does not hear cases on tax issues.

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

The advantages of electronic tax research libraries do not include:

Accepted Answer

A)  The ease with which such libraries can be updated for new developments. 
B)  Portability. 
C)  Speed of access and search. 
D)  All of the above are advantages of electronic tax research libraries. 
A)  The ease with which such libraries can be updated for new developments. 
B)  Portability. 
C)  Speed of access and search. 
D)  All of the above are advantages of electronic tax research libraries.

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

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 20

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

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

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

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

The results of the tax research process should be documented in either a research memo or in a letter to the client.

Which of the following statements regarding administrative authorities is false?

Which of the following statements regarding secondary authorities is false?

A revenue ruling cannot be relied on as authority by any taxpayer other than the taxpayer for whom the ruling was issued.

Experienced tax professionals generally can answer most tax questions without the need for tax research.

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

What is the first step in the tax research process?

When performing step two of the tax research process:

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

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

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

The U.S. Supreme Court:

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

The advantages of electronic tax research libraries do not include:

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

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

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

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

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

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

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

The results of the tax research process should be documented in either a research memo or in a letter to the client.

Which of the following statements regarding administrative authorities is false?

Which of the following statements regarding secondary authorities is false?

A revenue ruling cannot be relied on as authority by any taxpayer other than the taxpayer for whom the ruling was issued.

Experienced tax professionals generally can answer most tax questions without the need for tax research.

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

What is the first step in the tax research process?

When performing step two of the tax research process:

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

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

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

The U.S. Supreme Court:

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

The advantages of electronic tax research libraries do not include:

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

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

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

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