Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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 3

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

Question 4

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, 2002-1 C.B. 959

Question 5

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 6

Tax judicial decisions each have a single, unique citation.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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.

Question 9

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.

Question 10

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.

Question 11

Which of the following is not a primary authority?

Accepted Answer

A)   Internal Revenue Code
B)   Treasury regulations
C)   Revenue Procedure
D)   Tax textbook

Question 12

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.

Question 13

The Internal Revenue Code is the primary source of statutory authority for federal income tax law.

Accepted Answer

A) True 
 B)False

Question 14

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 15

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

Question 16

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.

Question 17

Secondary authorities organize information about primary authorities in a manner that facilitates tax research.

Accepted Answer

A) True 
 B)False

Question 18

Treasury regulations are considered statutory authority.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

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.

Exam 5: Tax Research

A keyword search in an electronic tax service:

Correct Answer
verified

Tax judicial decisions each have a single, unique citation.

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified
There are many possible answers to this ...
View Answer

In locating relevant authorities:

Correct Answer
verified

Treasury regulations are considered statutory authority.

Correct Answer
verified

The Internal Revenue Code is the primary source of statutory authority for federal income tax law.

Correct Answer
verified

Secondary authorities organize information about primary authorities in a manner that facilitates tax research.

Correct Answer
verified

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

Correct Answer
verified

Which of the following is not a primary authority?

Correct Answer
verified

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

Correct Answer
verified

When performing step two of the tax research process:

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Step five of the tax research process:

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Exam 5: Tax Research

A keyword search in an electronic tax service:

Correct AnswerverifiedShow Answer

Tax judicial decisions each have a single, unique citation.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThere are many possible answers to this ...View AnswerShow Answer

In locating relevant authorities:

Correct AnswerverifiedShow Answer

Treasury regulations are considered statutory authority.

Correct AnswerverifiedShow Answer

The Internal Revenue Code is the primary source of statutory authority for federal income tax law.

Correct AnswerverifiedShow Answer

Secondary authorities organize information about primary authorities in a manner that facilitates tax research.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is not 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

When performing step two of the tax research process:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Step five of the tax research process:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
There are many possible answers to this ...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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