Question 1

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 2

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

Question 3

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 4

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

Accepted Answer

A) True 
 B)False

Question 5

In the citation Rev. Proc. 2002-32, 2002-1 C.B. 959, the abbreviation C.B. refers to Congressional Bulletin.

Accepted Answer

A) True 
 B)False

Question 6

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 these choices are typical strategies for using a commercial tax service

Question 7

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.

Question 8

Which of the following is not a primary authority?

Accepted Answer

A)   Section 465 of the Internal Revenue Code
B)   Munro v. Comm., 267 F.3d 1918 (CA-8, 2004) 
C)   CCH Master Tax Guide
D)   All of these choices are primary authorities

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

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.

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Based on the citation Rev. Rul. 89-157, 1989-1 C.B. 221:

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.

Question 15

A taxpayer who loses a case in the U.S. Tax Court may appeal the case directly to the U.S. Supreme Court.

Accepted Answer

A) True 
 B)False

Question 16

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 these statements are true.

Question 17

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 18

Revenue rulings are an example of administrative authority.

Accepted Answer

A) True 
 B)False

Question 19

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 20

Which of the following is not a primary authority?

Accepted Answer

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

Exam 5: Tax Research

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

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

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When performing step one of the tax research process:

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

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Which of the following is not a primary authority?

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

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A keyword search in an electronic tax service:

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A taxpayer who loses a case in the U.S. Tax Court may appeal the case directly to the U.S. Supreme Court.

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When performing step three of the tax research process:

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

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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.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In the citation Rev. Proc. 2002-32, 2002-1 C.B. 959, the abbreviation C.B. refers to Congressional Bulletin.

Correct AnswerverifiedShow Answer

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

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Revenue rulings are an example of administrative authority.

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Which of the following is not a primary authority?

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Which of the following statements regarding secondary authorities is true?

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

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Based on the citation Rev. Rul. 89-157, 1989-1 C.B. 221:

Correct AnswerverifiedShow Answer

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