1s
Copyrights©s2023sPearsonsEducation,sInc.s
Pearson'ssFederalsTaxations2023:sCorporations,s36es(Andersonsetsal.)s
ChaptersC1:ssTaxsResearchss
s
LO1:ssOverviewsofsTaxsResearchs
s
1)sTaxsplanningsissnotsansintegralspartsofsopen-factssituations.s
Answer:ssFALSEs
Explanation:ssItsissintegral.s
PagesRef.:ssC:1-2s
Objective:ss1s
s
2)sWhensastaxpayerscontactssastaxsadvisorsrequestingsadvicesasstosthesmostsadvantageousswa
ystosdisposes
ofsasstock,sthestaxsadvisorsissfacedswiths
A)sasrestricted-factssituation.s
B)sasclosed-factssituation.s
C)sansopen-factssituation.s
D)sasrecognized-factssituation.s
Answer:ssCs
Explanation:ssAdvicesbeforestransactionsissopensfactssituation.s
PagesRef.:ssC:1-2s
Objective:ss1s
s
3)sInvestigationsofsastaxsproblemsthatsinvolvessasclosed-factssituationsmeanssthats
A)sthesclient'sstransactionsshavesalreadysoccurredsandsthestaxsquestionssmustsnowsbesresolve
d.s
B)sthesclient'sstaxsreturnshassyetstosbesfiled.s
C)sfutureseventssmaysbesplannedsandscontrolled.s
D)sresearchsissprimarilysconcernedswithsapplyingstheslawstosthesfactssasstheysexist.s
Answer:ssAs
Explanation:ssAftersthesfactsrequestsissasclosedsfactssituation.s
PagesRef.:ssC:1-2s
Objective:ss1s
s
4)sExplainsthesdifferencesbetweensasclosed-factsandsopen-factssituation.s
Answer:ssInsasclosed-
factssituation,sthestransactionshassoccurredsandsthesfactssaresnotssubjectstoschange.s
Insansopen-
factssituation,sthestransactionsissinsthesformativesorsprojectedsstage,sandsthestaxpayersissablest
os
structuresthesfactsssosthatsthestaxsconsequencessofsthestransactionscansbesmoresfavorable.s
PagesRef.:ssC:1-2s
Objective:ss1s
s
s
s
,ACCESSsTestsBanksforsPearson'ssFederalsTaxations2023sComprehensives36th
ssssssssssssssssssssssssssssEditionsRupert
mynursytest.store
2s
Copyrights©s2023sPearsonsEducation,sInc.s
5)sInsallssituations,staxsconsiderationssaresofsprimarysimportance.sDosyousagreesorsdisagree?s
Supportsyours
answer.s
Answer:ssItsissimportantstosconsidersnontaxsobjectivessasswellsasstaxsobjectives.sForsinstance,si
fsaswealthys
clientswantsstosminimizeshersestatestaxesswhilespassingsthesgreatestsvaluespossiblestoshersdes
cendants,s
youswouldsnotssuggeststhatsshesleavesthesmajoritysofshersestatestoscharitysandsonlysasfewshun
dreds
thousandsdollarsstoshersdescendants.sAlthoughsthisswouldsreduceshersestatestaxsliabilitystosze
ro,sitswoulds
besinconsistentswithshersobjectivesofsallowingshersdescendantsstosreceivesassmuchsafter-
taxswealthsass
possible.s
PagesRef.:ssC:1-3s
Objective:ss1s
s
LO2:ssStepssinsthesTaxsResearchsProcesss
s
1)sIdentifyswhichsofsthesfollowingsstatementssisstrue.s
A)sTaxsplanningsissansintegralspartsofsbothsclosed-factssituationssandsopen-factssituations.s
B)sThesfirstsstepsinsconductingstaxsresearchsisstosclearlysunderstandsthesissuessinvolved.s
C)sThesStatementssonsStandardssforsTaxsServicessrecommendsthatsonlyswrittenstaxsadvicesbes
providedstos
thesclientsinsallssituations.s
D)sAllsofsthesabovesaresfalse.s
Answer:ssCs
Explanation:ssThesStatementssonsStandardssforsTaxsServicessrecommendsthatsonlyswrittensta
xsadvicesbes
providedstosthesclientsinsallssituations.s
PagesRef.:ssC:1-3sthroughsC:1-5s
Objective:ss2s
s
2)sDescribesthesformatsofsasclientsmemo.s
Answer:ssAsclientsmemosshouldsincludesasstatementsofsthesfacts,saslistsofsissues,sasdiscussionsof
srelevants
authority,sanalysis,sandsrecommendationssofsappropriatesactionsstosthesclientsbasedsonsthesre
searchs
results.s
PagesRef.:ssSeesAdditionalsCommentspagesC:1-4s
,Objective:ss2s
s
3)sOutlinesandsdiscusssthestaxsresearchsprocess.s
Answer:s
1)sThesfactssmustsbesdetermined.sHowever,ssomesfactssmaysnotshavesoccurredsinsansopen-
factssituation.s
Wheresfactsshavesnotsyetsoccurred,sitsissusefulstosreviewstaxsresearchsmaterialstosdeterminesw
hichsfactss
wouldsproducesthesmostsfavorablesoutcome.s
2)sThesissuessmustsbesdetermined.sThesissuessmaysnotsalwayssbesclearsandsmaysbesdifferentst
hansthes
clientsbelieves.sThus,sonlysasthoroughsunderstandingsofsthesfactsspermitssansadequatesformul
ationsofsthes
issues.s
3)sDetermineswhichsauthoritiessaresapplicable.s
4)sEvaluatesthesauthorities.sChoosesthesonesstosfollowswhenstheresaresconflictingsauthorities.s
5)sCommunicatesthesresultstosthesclient.sThescommunicationswithsthesclientsshouldsnotsresults
insas
misunderstanding.sWhilesdiscussionsswithsthesclientsmaysbessuitable,sitsissrecommendedsbyst
hesAICPA'ss
StatementssonsStandardssforsTaxsServicessthatsthescommunicationsbeswrittenswheresissuessa
resimportant,s
unusualsorscomplicated.sManysfirmssrequiresthatsconclusionssbescommunicatedsinswriting.s
PagesRef.:ssC:1-5s
Objective:ss2s
ACCESSsTestsBanksforsPearson'ssFederalsTaxations2023sComprehensives36th
ssssssssssssssssssssssssssssEditionsRupert
mynursytest.store
3s
Copyrights©s2023sPearsonsEducation,sInc.s
s
4)sClientsapproachessyousregardingsthestaxsimplicationssofsansacquisitionsofsascompetitor'ssb
usiness.s
Describesthessixsbasicsstepssofstaxsresearchsprocessstosassiststhesclient.s
Answer:ssInsbothsopen-sandsclosed-
factssituations,sthestaxsresearchsprocesssinvolvesssixsbasicssteps:s
1.sDeterminesthesfacts.s
2.sIdentifysthesissuess(questions).s
3.sLocatesthesapplicablesauthorities.s
4.sEvaluatesthesauthoritiessandschoosesthosestosfollowswheresthesauthoritiessconflict.s
5.sAnalyzesthesfactssinstermssofsthesapplicablesauthorities.s
6.sCommunicatesconclusionssandsrecommendationsstosthesclient.s
PagesRef.:ssC:1-3s
Objective:ss2s
s
, 5)sWhensshouldsoralsclientscommunicationssbesfollowedsupsinswriting?s
Answer:ssWrittenscommunicationssaresrecommendedsinsimportant,sunusual,ssubstantials
dollarsvalue,sorscomplicatedstransactions.s
PagesRef.:ssC:1-5s
Objective:ss2s
s
LO3:ssImportancesofsthesFactsstosthesTaxsConsequencess
s
1)sThestaxsconsultantscansgivesansopinionsonsastaxsfactspatternswithoutsallsthesfacts.s
Answer:ssFALSEs
Explanation:ssTaxspractitionersshouldsnotsprovidesansopinionswithoutsallsrelevantsfacts.s
PagesRef.:ssC:1-6s
Objective:ss3s
s
2)sTaxscompliancesissthesbiggestscomponentsofsastaxspractice.s
Answer:ssFALSEs
Explanation:ssTaxsconsultingsissthesbiggestscomponentsofstaxspractice.s
PagesRef.:ssC:1-6s
Objective:ss3s
s
LO4:ssThesSourcessofsTaxsLaws
s
1)sThesInternalsRevenuesCodesofs1986scontainssthescurrentsversionsofsthestaxslaw.s
Answer:ssTRUEs
Explanation:ssTheslastsupdateswass1986.s
PagesRef.:ssC:1-8s
Objective:ss4s
s
2)sRegulationssissuedspriorstostheslateststaxslegislationsdealingswithsasspecificsCodessectionsar
esstills
effectivestosthesextentstheysdosnotsconflictswithsthesprovisionssinsthesnewslegislation.s
Answer:ssTRUEs
Explanation:ssPersIRCsthissremainssaccurate.s
PagesRef.:ssC:1-9s
Objective:ss4s
s
ACCESSsTestsBanksforsPearson'ssFederalsTaxations2023sComprehensives36th
ssssssssssssssssssssssssssssEditionsRupert
mynursytest.store
4s
Copyrights©s2023sPearsonsEducation,sInc.s
3)sFinalsregulationsshavesalmoststhessameslegislativesweightsassthesIRC.s
Answer:ssTRUEs
Explanation:ssThesCourtsshavesfollowedsthissconcept.s
PagesRef.:ssC:1-10s
Objective:ss4s
s
4)sAsrevenuesrulingsississuedsbysthesInternalsRevenuesServicesonlysinsresponsestosasverbalsinq
Copyrights©s2023sPearsonsEducation,sInc.s
Pearson'ssFederalsTaxations2023:sCorporations,s36es(Andersonsetsal.)s
ChaptersC1:ssTaxsResearchss
s
LO1:ssOverviewsofsTaxsResearchs
s
1)sTaxsplanningsissnotsansintegralspartsofsopen-factssituations.s
Answer:ssFALSEs
Explanation:ssItsissintegral.s
PagesRef.:ssC:1-2s
Objective:ss1s
s
2)sWhensastaxpayerscontactssastaxsadvisorsrequestingsadvicesasstosthesmostsadvantageousswa
ystosdisposes
ofsasstock,sthestaxsadvisorsissfacedswiths
A)sasrestricted-factssituation.s
B)sasclosed-factssituation.s
C)sansopen-factssituation.s
D)sasrecognized-factssituation.s
Answer:ssCs
Explanation:ssAdvicesbeforestransactionsissopensfactssituation.s
PagesRef.:ssC:1-2s
Objective:ss1s
s
3)sInvestigationsofsastaxsproblemsthatsinvolvessasclosed-factssituationsmeanssthats
A)sthesclient'sstransactionsshavesalreadysoccurredsandsthestaxsquestionssmustsnowsbesresolve
d.s
B)sthesclient'sstaxsreturnshassyetstosbesfiled.s
C)sfutureseventssmaysbesplannedsandscontrolled.s
D)sresearchsissprimarilysconcernedswithsapplyingstheslawstosthesfactssasstheysexist.s
Answer:ssAs
Explanation:ssAftersthesfactsrequestsissasclosedsfactssituation.s
PagesRef.:ssC:1-2s
Objective:ss1s
s
4)sExplainsthesdifferencesbetweensasclosed-factsandsopen-factssituation.s
Answer:ssInsasclosed-
factssituation,sthestransactionshassoccurredsandsthesfactssaresnotssubjectstoschange.s
Insansopen-
factssituation,sthestransactionsissinsthesformativesorsprojectedsstage,sandsthestaxpayersissablest
os
structuresthesfactsssosthatsthestaxsconsequencessofsthestransactionscansbesmoresfavorable.s
PagesRef.:ssC:1-2s
Objective:ss1s
s
s
s
,ACCESSsTestsBanksforsPearson'ssFederalsTaxations2023sComprehensives36th
ssssssssssssssssssssssssssssEditionsRupert
mynursytest.store
2s
Copyrights©s2023sPearsonsEducation,sInc.s
5)sInsallssituations,staxsconsiderationssaresofsprimarysimportance.sDosyousagreesorsdisagree?s
Supportsyours
answer.s
Answer:ssItsissimportantstosconsidersnontaxsobjectivessasswellsasstaxsobjectives.sForsinstance,si
fsaswealthys
clientswantsstosminimizeshersestatestaxesswhilespassingsthesgreatestsvaluespossiblestoshersdes
cendants,s
youswouldsnotssuggeststhatsshesleavesthesmajoritysofshersestatestoscharitysandsonlysasfewshun
dreds
thousandsdollarsstoshersdescendants.sAlthoughsthisswouldsreduceshersestatestaxsliabilitystosze
ro,sitswoulds
besinconsistentswithshersobjectivesofsallowingshersdescendantsstosreceivesassmuchsafter-
taxswealthsass
possible.s
PagesRef.:ssC:1-3s
Objective:ss1s
s
LO2:ssStepssinsthesTaxsResearchsProcesss
s
1)sIdentifyswhichsofsthesfollowingsstatementssisstrue.s
A)sTaxsplanningsissansintegralspartsofsbothsclosed-factssituationssandsopen-factssituations.s
B)sThesfirstsstepsinsconductingstaxsresearchsisstosclearlysunderstandsthesissuessinvolved.s
C)sThesStatementssonsStandardssforsTaxsServicessrecommendsthatsonlyswrittenstaxsadvicesbes
providedstos
thesclientsinsallssituations.s
D)sAllsofsthesabovesaresfalse.s
Answer:ssCs
Explanation:ssThesStatementssonsStandardssforsTaxsServicessrecommendsthatsonlyswrittensta
xsadvicesbes
providedstosthesclientsinsallssituations.s
PagesRef.:ssC:1-3sthroughsC:1-5s
Objective:ss2s
s
2)sDescribesthesformatsofsasclientsmemo.s
Answer:ssAsclientsmemosshouldsincludesasstatementsofsthesfacts,saslistsofsissues,sasdiscussionsof
srelevants
authority,sanalysis,sandsrecommendationssofsappropriatesactionsstosthesclientsbasedsonsthesre
searchs
results.s
PagesRef.:ssSeesAdditionalsCommentspagesC:1-4s
,Objective:ss2s
s
3)sOutlinesandsdiscusssthestaxsresearchsprocess.s
Answer:s
1)sThesfactssmustsbesdetermined.sHowever,ssomesfactssmaysnotshavesoccurredsinsansopen-
factssituation.s
Wheresfactsshavesnotsyetsoccurred,sitsissusefulstosreviewstaxsresearchsmaterialstosdeterminesw
hichsfactss
wouldsproducesthesmostsfavorablesoutcome.s
2)sThesissuessmustsbesdetermined.sThesissuessmaysnotsalwayssbesclearsandsmaysbesdifferentst
hansthes
clientsbelieves.sThus,sonlysasthoroughsunderstandingsofsthesfactsspermitssansadequatesformul
ationsofsthes
issues.s
3)sDetermineswhichsauthoritiessaresapplicable.s
4)sEvaluatesthesauthorities.sChoosesthesonesstosfollowswhenstheresaresconflictingsauthorities.s
5)sCommunicatesthesresultstosthesclient.sThescommunicationswithsthesclientsshouldsnotsresults
insas
misunderstanding.sWhilesdiscussionsswithsthesclientsmaysbessuitable,sitsissrecommendedsbyst
hesAICPA'ss
StatementssonsStandardssforsTaxsServicessthatsthescommunicationsbeswrittenswheresissuessa
resimportant,s
unusualsorscomplicated.sManysfirmssrequiresthatsconclusionssbescommunicatedsinswriting.s
PagesRef.:ssC:1-5s
Objective:ss2s
ACCESSsTestsBanksforsPearson'ssFederalsTaxations2023sComprehensives36th
ssssssssssssssssssssssssssssEditionsRupert
mynursytest.store
3s
Copyrights©s2023sPearsonsEducation,sInc.s
s
4)sClientsapproachessyousregardingsthestaxsimplicationssofsansacquisitionsofsascompetitor'ssb
usiness.s
Describesthessixsbasicsstepssofstaxsresearchsprocessstosassiststhesclient.s
Answer:ssInsbothsopen-sandsclosed-
factssituations,sthestaxsresearchsprocesssinvolvesssixsbasicssteps:s
1.sDeterminesthesfacts.s
2.sIdentifysthesissuess(questions).s
3.sLocatesthesapplicablesauthorities.s
4.sEvaluatesthesauthoritiessandschoosesthosestosfollowswheresthesauthoritiessconflict.s
5.sAnalyzesthesfactssinstermssofsthesapplicablesauthorities.s
6.sCommunicatesconclusionssandsrecommendationsstosthesclient.s
PagesRef.:ssC:1-3s
Objective:ss2s
s
, 5)sWhensshouldsoralsclientscommunicationssbesfollowedsupsinswriting?s
Answer:ssWrittenscommunicationssaresrecommendedsinsimportant,sunusual,ssubstantials
dollarsvalue,sorscomplicatedstransactions.s
PagesRef.:ssC:1-5s
Objective:ss2s
s
LO3:ssImportancesofsthesFactsstosthesTaxsConsequencess
s
1)sThestaxsconsultantscansgivesansopinionsonsastaxsfactspatternswithoutsallsthesfacts.s
Answer:ssFALSEs
Explanation:ssTaxspractitionersshouldsnotsprovidesansopinionswithoutsallsrelevantsfacts.s
PagesRef.:ssC:1-6s
Objective:ss3s
s
2)sTaxscompliancesissthesbiggestscomponentsofsastaxspractice.s
Answer:ssFALSEs
Explanation:ssTaxsconsultingsissthesbiggestscomponentsofstaxspractice.s
PagesRef.:ssC:1-6s
Objective:ss3s
s
LO4:ssThesSourcessofsTaxsLaws
s
1)sThesInternalsRevenuesCodesofs1986scontainssthescurrentsversionsofsthestaxslaw.s
Answer:ssTRUEs
Explanation:ssTheslastsupdateswass1986.s
PagesRef.:ssC:1-8s
Objective:ss4s
s
2)sRegulationssissuedspriorstostheslateststaxslegislationsdealingswithsasspecificsCodessectionsar
esstills
effectivestosthesextentstheysdosnotsconflictswithsthesprovisionssinsthesnewslegislation.s
Answer:ssTRUEs
Explanation:ssPersIRCsthissremainssaccurate.s
PagesRef.:ssC:1-9s
Objective:ss4s
s
ACCESSsTestsBanksforsPearson'ssFederalsTaxations2023sComprehensives36th
ssssssssssssssssssssssssssssEditionsRupert
mynursytest.store
4s
Copyrights©s2023sPearsonsEducation,sInc.s
3)sFinalsregulationsshavesalmoststhessameslegislativesweightsassthesIRC.s
Answer:ssTRUEs
Explanation:ssThesCourtsshavesfollowedsthissconcept.s
PagesRef.:ssC:1-10s
Objective:ss4s
s
4)sAsrevenuesrulingsississuedsbysthesInternalsRevenuesServicesonlysinsresponsestosasverbalsinq
