Question 1

Tax research issues can be divided intotwomain categories. These are:

Accepted Answer

A)  fact and law issues
B)  primary and secondary issues
C)  major and minor issues
D)  internal and external issues
E)  tax and nontax issues

Question 2

"Wildcards" such as an asterisk can be used tosearch for word variations in most tax services.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following forms the basis for all tax provisions?

Accepted Answer

A)  secondary authority
B)  the administrative authority of the IRS
C)  judicial interpretation of the law
D)  the statutory authority of Congress

Question 4

A tax researcher should ignore the personal preferences of a client and concentrate only on minimizing the client's tax liability.

Accepted Answer

A) True 
 B)False

Question 5

The U.S. Constitution is a statutory source of tax law.

Accepted Answer

A) True 
 B)False

Question 6

A tax researcher can rely on tax journals as substantial authority under Section 6662 of the Code.

Accepted Answer

A) True 
 B)False  False

Question 7

All of the following are goals of tax research EXCEPT:

Accepted Answer

A)  tobalance the need for efficiency against the need for thoroughness
B)  tobalance the client's tax goals with the client's nontax, personal considerations
C)  tofind a defensible solution toa client's problem
D)  tofind a perfect solution toa client's problem, nomatter how long it takes

Question 8

Google Scholar is an example of an online, free tax-related internet site.

Accepted Answer

A) True 
 B)False  True

Question 9

Once the initial facts have been gathered and the issues defined, the tax researcher must:

Accepted Answer

A)  develop conclusions and recommendations
B)  evaluate the authority
C)  contact the IRS
D)  locate the authority D

Question 10

The final step of the tax research process is to:

Accepted Answer

A)  develop conclusions and recommendations
B)  communicate recommendations
C)  document conclusions and recommendations
D)  litigate the tax-related dispute

Question 11

Commercial databases are ideal sources for having the most up-to-date information on tax laws and scenarios.

Accepted Answer

A) True 
 B)False

Question 12

The distinction between primary and secondary authority is important for which of the following reasons?

Accepted Answer

A)  tomeet the accuracy threshold of "substantial authority"
B)  toavoid penalties under Section 6662 of the Code
C)  tosearch properly with connectors and wildcards
D)  tomeet the accuracy threshold of "substantial authority" and toavoid penalties under Section 6662 of the Code

Question 13

Which of the following statements is CORRECT regarding online tax research?

Accepted Answer

A)  The method of constructing queries is the same for all databases.
B)  Most online tax services allow the use of connectors and wild cards.
C)  If a query generates toolittle information, the researcher should add more unique keywords.
D)  All of these are correct.

Question 14

All primary source material has the same precedential value.

Accepted Answer

A) True 
 B)False

Question 15

The first step in the tax research process is to:

Accepted Answer

A)  establish the facts
B)  identify the issues
C)  locate authority
D)  evaluate authority

Question 16

The IRS website can be used toperform which of the following tasks:

Accepted Answer

A)  obtain downloadable forms
B)  keyword search IRS tax publications
C)  file your tax return
D)  all of these are correct

Question 17

Once the research question has been stated, the researcher must next:

Accepted Answer

A)  gather the facts
B)  identify the keywords
C)  select a database and execute the search
D)  interpret and refine the search

Question 18

Which of the following is an administrative source of primary authority?

Accepted Answer

A)  U.S. Constitution
B)  collected rulings of the various courts on federal tax matters
C)  revenue rulings
D)  newsletters

Question 19

In a closed-fact problem, the main goal of tax research is to:

Accepted Answer

A)  determine several alternative courses of future action for the taxpayer
B)  find support for an action the taxpayer has already taken
C)  determine several alternative courses of future action for the taxpayer and find support for an action the taxpayer has already taken
D)  none of these are correct

Question 20

Which of the following statements describes the tax research process?

Accepted Answer

A)  It is strictly linear.
B)  It requires mechanical skills combined with critical thinking.
C)  It requires the ability touse complex mathematical techniques toidentify and locate tax authorities.
D)  All of these are correct.

Exam 2: Tax Research Methodology

Tax research issues can be divided intotwomain categories. These are:

Correct AnswerverifiedShow Answer

"Wildcards" such as an asterisk can be used tosearch for word variations in most tax services.

Correct AnswerverifiedShow Answer

Which of the following forms the basis for all tax provisions?

Correct AnswerverifiedShow Answer

A tax researcher should ignore the personal preferences of a client and concentrate only on minimizing the client's tax liability.

Correct AnswerverifiedShow Answer

The U.S. Constitution is a statutory source of tax law.

Correct AnswerverifiedShow Answer

A tax researcher can rely on tax journals as substantial authority under Section 6662 of the Code.

Correct AnswerverifiedFalse

All of the following are goals of tax research EXCEPT:

Correct AnswerverifiedShow Answer

Google Scholar is an example of an online, free tax-related internet site.

Correct AnswerverifiedTrue

Once the initial facts have been gathered and the issues defined, the tax researcher must:

Correct AnswerverifiedD

The final step of the tax research process is to:

Correct AnswerverifiedShow Answer

Commercial databases are ideal sources for having the most up-to-date information on tax laws and scenarios.

Correct AnswerverifiedShow Answer

The distinction between primary and secondary authority is important for which of the following reasons?

Correct AnswerverifiedShow Answer

Which of the following statements is CORRECT regarding online tax research?

Correct AnswerverifiedShow Answer

All primary source material has the same precedential value.

Correct AnswerverifiedShow Answer

The first step in the tax research process is to:

Correct AnswerverifiedShow Answer

The IRS website can be used toperform which of the following tasks:

Correct AnswerverifiedShow Answer

Once the research question has been stated, the researcher must next:

Correct AnswerverifiedShow Answer

Which of the following is an administrative source of primary authority?

Correct AnswerverifiedShow Answer

In a closed-fact problem, the main goal of tax research is to:

Correct AnswerverifiedShow Answer

Which of the following statements describes the tax research process?

Correct AnswerverifiedShow Answer

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D

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