Test Bank For Federal Tax Research 13th Edition
By Roby Sawyers, Steven Gill (All Chapters,
100% Original Verifi ed, A+ Grade)
Chapter 1: Introduction to Federal Tax Research (15 Questions)
1. Which of the following best defines the primary purpose of federal tax research?
a) To locate the lowest possible tax liability for a client.
b) To locate authoritative law that resolves a tax question and predicts an outcome.
c) To draft tax returns as quickly as possible.
d) To challenge all IRS determinations in court.
Answer: b
2. The first step in the tax research process is:
a) Locating secondary sources.
b) Identifying and refining the tax question.
c) Analyzing authority.
d) Communicating conclusions to the client.
Answer: b
3. Which of the following is a nonauthoritative source?
a) Internal Revenue Code.
b) Treasury Regulation.
c) Tax Court decision.
d) Tax Journal article.
Answer: d
4. A researcher uses a citator primarily to:
a) Find the text of a court opinion.
b) Determine if a legal authority is still "good law."
c) Calculate a client's effective tax rate.
d) Prepare financial statements.
Answer: b
5. Open facts occur when:
a) The transaction has already occurred.
b) The transaction is planned but not yet completed.
c) The IRS has already audited the return.
d) The facts are undisputed.
,Answer: b
6. Which of the following statements about primary authority is correct?
a) Primary authority includes tax articles and newsletters.
b) Primary authority is issued by government bodies.
c) Primary authority is always binding on all taxpayers.
d) Primary authority cannot be overruled.
Answer: b
7. The IRC is reissued as a new title every _____ years.
a) 2
b) 4
c) 6
d) 10
Answer: c (every 6 years, e.g., 1986, 1992, 1998, etc.)
8. Which of the following is an example of a closed fact situation?
a) A corporation planning a merger next year.
b) An individual considering a charitable contribution before year-end.
c) A taxpayer who sold stock last month and wants to know the gain.
d) A business deciding whether to buy or lease equipment.
Answer: c
9. The step in tax research where a researcher identifies the relevant Code sections and
regulations is called:
a) Identifying the question.
b) Locating relevant authority.
c) Evaluating authority.
d) Communicating results.
Answer: b
10. An effective tax researcher should prioritize:
a) Only primary authority.
b) Only secondary authority.
c) The highest quality authority that resolves the issue.
d) The easiest-to-find answer.
Answer: c
11. Which of the following is NOT a category of primary tax authority?
a) Statutory.
b) Administrative.
,c) Judicial.
d) Editorial.
Answer: d
12. Tax research is often iterative because:
a) The IRC changes every year.
b) Initial findings may lead to new questions.
c) Clients never provide complete information.
d) Courts always disagree.
Answer: b
13. Which entity issues Treasury Regulations?
a) Congress.
b) Internal Revenue Service (IRS).
c) Tax Court.
d) Department of the Treasury.
Answer: d
14. A revenue ruling is an example of:
a) Judicial authority.
b) Legislative authority.
c) Administrative authority.
d) Secondary authority.
Answer: c
15. The final step in the tax research process is:
a) Updating the research.
b) Writing a client memo or file memo.
c) Appealing to the IRS.
d) Calculating the tax.
Answer: b
, Chapter 2: Primary Sources of Federal Tax Law (20 Questions)
16. The highest statutory authority in federal tax law is:
a) Treasury Regulations.
b) The Internal Revenue Code.
c) Revenue Procedures.
d) Committee Reports.
Answer: b
17. Which of the following courts does NOT hear tax cases?
a) U.S. Tax Court.
b) U.S. Court of Federal Claims.
c) U.S. Bankruptcy Court.
d) U.S. District Court.
Answer: c
18. A proposed regulation generally becomes final:
a) Immediately upon publication.
b) After a public comment period.
c) Only if Congress approves.
d) After 10 years.
Answer: b
19. Temporary regulations are issued when:
a) The IRS needs immediate guidance.
b) Congress overrides the IRS.
c) A court vacates a final regulation.
d) There is no statutory authority.
Answer: a
20. A revenue procedure primarily provides:
a) Interpretation of tax law.
b) Procedural guidance for taxpayers.
c) Court rulings.
d) Legislative history.
Answer: b
21. The Golsen rule applies to:
a) The IRS Office of Appeals.
b) The U.S. Tax Court.
c) U.S. District Courts.
d) The Supreme Court.
By Roby Sawyers, Steven Gill (All Chapters,
100% Original Verifi ed, A+ Grade)
Chapter 1: Introduction to Federal Tax Research (15 Questions)
1. Which of the following best defines the primary purpose of federal tax research?
a) To locate the lowest possible tax liability for a client.
b) To locate authoritative law that resolves a tax question and predicts an outcome.
c) To draft tax returns as quickly as possible.
d) To challenge all IRS determinations in court.
Answer: b
2. The first step in the tax research process is:
a) Locating secondary sources.
b) Identifying and refining the tax question.
c) Analyzing authority.
d) Communicating conclusions to the client.
Answer: b
3. Which of the following is a nonauthoritative source?
a) Internal Revenue Code.
b) Treasury Regulation.
c) Tax Court decision.
d) Tax Journal article.
Answer: d
4. A researcher uses a citator primarily to:
a) Find the text of a court opinion.
b) Determine if a legal authority is still "good law."
c) Calculate a client's effective tax rate.
d) Prepare financial statements.
Answer: b
5. Open facts occur when:
a) The transaction has already occurred.
b) The transaction is planned but not yet completed.
c) The IRS has already audited the return.
d) The facts are undisputed.
,Answer: b
6. Which of the following statements about primary authority is correct?
a) Primary authority includes tax articles and newsletters.
b) Primary authority is issued by government bodies.
c) Primary authority is always binding on all taxpayers.
d) Primary authority cannot be overruled.
Answer: b
7. The IRC is reissued as a new title every _____ years.
a) 2
b) 4
c) 6
d) 10
Answer: c (every 6 years, e.g., 1986, 1992, 1998, etc.)
8. Which of the following is an example of a closed fact situation?
a) A corporation planning a merger next year.
b) An individual considering a charitable contribution before year-end.
c) A taxpayer who sold stock last month and wants to know the gain.
d) A business deciding whether to buy or lease equipment.
Answer: c
9. The step in tax research where a researcher identifies the relevant Code sections and
regulations is called:
a) Identifying the question.
b) Locating relevant authority.
c) Evaluating authority.
d) Communicating results.
Answer: b
10. An effective tax researcher should prioritize:
a) Only primary authority.
b) Only secondary authority.
c) The highest quality authority that resolves the issue.
d) The easiest-to-find answer.
Answer: c
11. Which of the following is NOT a category of primary tax authority?
a) Statutory.
b) Administrative.
,c) Judicial.
d) Editorial.
Answer: d
12. Tax research is often iterative because:
a) The IRC changes every year.
b) Initial findings may lead to new questions.
c) Clients never provide complete information.
d) Courts always disagree.
Answer: b
13. Which entity issues Treasury Regulations?
a) Congress.
b) Internal Revenue Service (IRS).
c) Tax Court.
d) Department of the Treasury.
Answer: d
14. A revenue ruling is an example of:
a) Judicial authority.
b) Legislative authority.
c) Administrative authority.
d) Secondary authority.
Answer: c
15. The final step in the tax research process is:
a) Updating the research.
b) Writing a client memo or file memo.
c) Appealing to the IRS.
d) Calculating the tax.
Answer: b
, Chapter 2: Primary Sources of Federal Tax Law (20 Questions)
16. The highest statutory authority in federal tax law is:
a) Treasury Regulations.
b) The Internal Revenue Code.
c) Revenue Procedures.
d) Committee Reports.
Answer: b
17. Which of the following courts does NOT hear tax cases?
a) U.S. Tax Court.
b) U.S. Court of Federal Claims.
c) U.S. Bankruptcy Court.
d) U.S. District Court.
Answer: c
18. A proposed regulation generally becomes final:
a) Immediately upon publication.
b) After a public comment period.
c) Only if Congress approves.
d) After 10 years.
Answer: b
19. Temporary regulations are issued when:
a) The IRS needs immediate guidance.
b) Congress overrides the IRS.
c) A court vacates a final regulation.
d) There is no statutory authority.
Answer: a
20. A revenue procedure primarily provides:
a) Interpretation of tax law.
b) Procedural guidance for taxpayers.
c) Court rulings.
d) Legislative history.
Answer: b
21. The Golsen rule applies to:
a) The IRS Office of Appeals.
b) The U.S. Tax Court.
c) U.S. District Courts.
d) The Supreme Court.
