Question 1

Revenue procedures are a type of secondary authority.

Accepted Answer

A) True 
 B)False

Question 2

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.E) A) and C)
F) A) and B)

Question 3

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.E) None of the above
F) B) and D)

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

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 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 questionsE) All of the above
F) None of the above

Question 8

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.E) C) and D)
F) B) and C)

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, 2002-0 C.B.959E) A) and C)
F) B) and D)

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Revenue rulings are an example of administrative authority.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is not a secondary authority?

Accepted Answer

A)  Tax textbook
B)  Commercial tax service
C)  Tax professional journal
D)  Revenue procedureE) None of the above
F) A) and B)

Question 13

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 14

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 15

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.E) C) and D)
F) A) and B)

Question 16

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.E) B) and C)
F) A) and D)

Question 17

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 procedureE) All of the above
F) None of the above

Question 18

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.E) B) and C)
F) A) and B)

Question 19

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 20

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

Accepted Answer

A) True 
 B)False

Exam 5: Tax Research

What is the first step in the tax research process?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Revenue rulings are an example of administrative authority.

Correct AnswerverifiedShow Answer

A citator:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is not a secondary authority?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

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:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Revenue procedures are a type of secondary authority.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified