Tax Research and Planning Exam Preparation Guide
Course Introduction
Tax Research and Planning is a course designed to equip students with the analytical skills and technical knowledge necessary to navigate complex tax issues faced by individuals and businesses. The course covers advanced tax research methodologies, interpretation of tax laws and regulations, and utilization of primary and secondary tax authorities. Students learn to apply research findings to real-world scenarios, develop tax planning strategies that maximize compliance and minimize liability, and effectively communicate results. Emphasis is placed on problem-solving, critical thinking, and the ethical considerations involved in tax practice, preparing students for professional roles in public accounting, industry, or government.
Recommended Textbook
Federal Tax Research 11th Edition by Roby B. Sawyers
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14 Chapters
691 Verified Questions
691 Flashcards
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Chapter 1: Introduction to Tax Practice and Ethics
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54 Verified Questions
54 Flashcards
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Sample Questions
Q1) Tax practice can be defined as the application of the tax laws to specific accounting situations.
A)True
B)False
Answer: True
Q2) Tax litigation is a process of:
A)participating in an administrative audit
B)settling tax-related disputes in a court of law
C)filing amended tax returns as prescribed by tax laws
D)arranging a taxpayer's affairs to minimize tax liabilities
Answer: B
Q3) Under Section 10.3, Subpart A, of Circular 230, the following individuals may practice before the IRS EXCEPT:
A)unenrolled agents
B)enrolled agents
C)enrolled actuaries
D)enrolled retirement plan agents
Answer: A
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3
Chapter 2: Tax Research Methodology
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49 Verified Questions
49 Flashcards
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Sample Questions
Q1) Thomson Reuters Checkpoint is a web-based tax research service that contains research material on federal, state, local, and international taxation.
A)True
B)False
Answer: True
Q2) The IRS website is a full-service, tax research resource.
A)True
B)False
Answer: False
Q3) Tax researchers should not consider the client's potential liability in determining how much time to spend on a client's problem.
A)True
B)False
Answer: False
Q4) All primary source material has the same precedential value.
A)True
B)False
Answer: False
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Page 4
Chapter 3: Constitutional and Legislative Sources
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49 Flashcards
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Sample Questions
Q1) Historically, the 1913 income tax was a tax on wealthy and high-income taxpayers.
A)True
B)False
Answer: True
Q2) The "General Explanation" of tax legislation, called the "Blue Book," is prepared by the Joint Conference Committee.
A)True
B)False
Answer: False
Q3) In the House of Representatives, tax law changes are primarily considered by:
A)the Finance Committee
B)a Conference Committee
C)the Budget Committee
D)the Ways and Means Committee
Answer: D
Q4) Trade or business deductions are contained in Code Section 62.
A)True
B)False Answer: False
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Chapter 4: Administrative Regulations and Rulings
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Sample Questions
Q1) The IRS issues General Regulations under the general authority granted to the IRS to interpret the language of the Code, usually under a specific Code (or committee report) directive of Congress.
A)True
B)False
Q2) Compare and contrast IRS Proposed Regulations, IRS Temporary Regulations, and IRS Final Regulations. Explain the weight of authority and citations for each type of regulation.
Q3) Field Service Advice (FSAs) are binding guidance provided by the IRS National Office to IRS service centers.
A)True
B)False
Q4) An acquiescence indicates that a court decision will be:
A)appealed by the IRS
B)followed in similar situations only if it favors the IRS
C)followed in similar situations, even if it is adverse to the IRS
D)ignored by the IRS
Q5) T.D. 9479 refers to a Treasury Determination letter.
A)True
B)False
6
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Chapter 5: Judicial Interpretations
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Sample Questions
Q1) Which of the following statements is INCORRECT regarding headnotes and case briefs?
A)Headnotes are usually inserted at the beginnig of a case by the court reporter editors.
B)Headnotes help researchers quickly determine if a case is relevant.
C)Case briefs are a summary of a case identifying the facts, issue, holding and analysis.
D)All of the above statements are correct.
Q2) In most tax cases, the Internal Revenue Code places the burden of proof on the taxpayer.
A)True
B)False
Q3) Tax Court Memorandum decisions can be located in which of the following reporters?
A)CCH
B)AFTR2d
C)the Tax Court of the United States Reports (T.C.)
D)none of these are correct
Q4) Briefly explain how the burden of proof concept is applied.
Q5) Why would a taxpayer want to bring a case in the U.S. Court of Federal Claims?
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Chapter 6: Tax Services Ria Checkpoint
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43 Flashcards
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Sample Questions
Q1) The only support recognized by the IRS and courts are primary sources and not the editorial explanations of a tax service.
A)True
B)False
Q2) Which is an editorial service provided by Checkpoint?
A)Federal Tax Coordinator
B)United States Tax Reporter
C)Federal Tax Handbook
D)all of these are correct
Q3) The footnote links in Checkpoint editorial services are not important to tax researchers.
A)True
B)False
Q4) If you want to retrieve documents relating to amortizing legal fees paid for organization of a partnership, which search query would yield the best results in Thomson Reuters Checkpoint?
A)amortizing and legal fees
B)amortiz* "legal fees" partnership
C)amortization organization not corporations
D)amortize and "legal fees" or partnerships
Page 8
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Chapter 7: Tax Services CCH Intelliconnect
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Sample Questions
Q1) Coverage of treatises by IntelliConnect is as comprehensive as would likely be found in a periodical or journal article.
A)True
B)False
Q2) Editorial analyses that provide in-depth coverage of a particular tax area are called:
A)tax periodicals
B)tax treatises
C)citators
D)tax research
Q3) Performing a keyword search in IntelliConnect is equal to performing a search on the Internet using a search engine.
A)True
B)False
Q4) The precedential value of a case refers to:
A)whether it was appealed
B)the monetary value at stake in that case
C)the legal authority established by that case
D)all of these are correct
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Chapter 8: Tax Services Specialty and Others
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Sample Questions
Q1) What are some of BNA's publications? Describe each briefly.
Q2) The Westlaw service to which many schools and universities subscribe, which has a more limited range of data than WestlawNext is called:
A)WestlawNow
B)Westlaw Universal Research
C)Westlaw Campus Research
D)Westlaw Taxation Research
Q3) BNA Portfolios are grouped by area of common topic into COLLECTIONS (e.g., there are multiple portfolios on income tax accounting that will be displayed if one clicks on that heading).
A)True
B)False
Q4) The service that presents the practitioner with databases that include primary sources and analytical materials is called:
A)Lexis Advance Tax
B)Sources Unlimited
C)Federal Topical
D)Business and News
Q5) What are KeySearch and the West Key Number System?
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Chapter 9: Multijurisdictional and Other Research
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60 Verified Questions
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Sample Questions
Q1) Thomson Reuters Checkpoint State and Local Tax (SALT) service is a comprehensive analysis of:
A)state imports and exports
B)state and local taxes
C)state and local tax issues
D)international tax issues
Q2) The OECD is an organization known for its:
A)belief in democratic governments and market economies
B)role in helping to obtain multilateral economic agreements for countries
C)publication of economic and social data and statistics
D)all of these are correct
Q3) Discuss in brief about some of the most useful resources offered within the CCH International Tax Service.
Q4) Once tax statutes are enacted, they must be interpreted and enforced. These duties usually fall to entities created by either statutory or constitutional provisions. These entities are called:
A)state legislatures
B)constitutional statutes
C)judicial systems
D)administrative agencies
Page 11
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Chapter 10: Financial Accounting Research
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Sample Questions
Q1) A position taken in a previously filed return or expected to be taken in a future return is known as:
A)an audit position
B)a tax position
C)an uncertain tax position
D)none of these are correct
Q2) Which of the following statements is CORRECT regarding the FASB Accounting Standards Codification Research System (CRS)?
A)Subsections represent a collection of related guidance for a specific area.
B)A no-cost basic version is available that allows the user to browse but not search the Codification.
C)Keyword searching is not available in the Codification Research System.
D)No cross-referencing to older guidance documents is provided.
Q3) ASC 740 requires taxpayers to examine each and every "tax position" taken.
A)True
B)False
Q4) What is meant by "tax position"? Explain the requirements of ASC 740 for the reporting of tax positions.
Q5) Explain the basic principles of accounting for deferred taxes.
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Chapter 11: Communicating Research Results
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Sample Questions
Q1) Identify five types of tax-related communications.
Q2) Which of the following statements is CORRECT with respect to conflicting tax laws?
A)Revenue Rulings and Revenue Procedures seldom are held to be invalid by a court.
B)Regulations are frequently held to be invalid by a court.
C)The decisions of courts that are higher in the judicial hierarchy should receive additional precedential weight.
D)All of the these are correct.
Q3) By far the most common form of substantive communication between the tax professional and his or her client is a:
A)file memo
B)text message
C)tax-oriented blog
D)telephone call or e-mail
Q4) A file memorandum should include citations to secondary sources of tax law, such as commercial tax services.
A)True
B)False
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Chapter 12: Tax Planning
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Sample Questions
Q1) Taxpayers are rewarded more for finding ways to save taxes than for earning an equal amount in the marketplace.
A)True
B)False
Q2) The judicial doctrine "business purpose" can decrease the taxpayer's ability to employ effective planning techniques.
A)True
B)False
Q3) Investing in non-dividend-paying stock that is expected to appreciate yearly by 5 percent instead of investing in 5 percent corporate bonds is an example of tax planning by:
A)spreading income through portfolio diversification
B)avoiding income recognition
C)changing the timing of recognition of taxable income
D)changing the character of income
Q4) Taxpayers can always minimize their tax liability simply by moving income and assets out of one jurisdiction to another.
A)True B)False
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Chapter 13: Working With the IRS
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63 Verified Questions
63 Flashcards
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Sample Questions
Q1) The IRS:
A)facilitates the processing of tax returns
B)enforces the internal revenue laws of the United States
C)is a bureau within the U.S. Department of Finance
D)all of these are correct
Q2) A RAR contains a brief explanation of the proposed adjustments and lists the balance due or the overpayment.
A)True
B)False
Q3) In case of underpayment of taxes, if the deficiency is not paid in a timely fashion, interest is imposed on the unpaid amount for a period that begins on the date of:
A)filing the return and ends on the date of payment or the last working day of the respective year, whichever is later
B)filing the return and ends on the date of payment
C)the notice and demand and ends on the date of payment
D)the notice and demand and ends on the date when the taxpayer receives the notice
Q4) What are the functions performed by the mathematical/clerical error program?
Q5) What are the "dos and don'ts" in negotiating with a government auditor?
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Chapter 14: Tax Practice and Administration: Sanctions, Agreements,
and Disclosures
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Sample Questions
Q1) Assessable penalties are subject to review by the Tax Court.
A)True
B)False
Q2) Cite two instances that would lead to imposition of criminal penalties on tax return preparers.
Q3) When a taxpayer is subject to both underpayment and overpayment computations for the same time period, which of the following rates of interest applies to the net amount payable to or receivable from the government?
A)4%
B)6%
C)0%
D)5%
Q4) How do the courts define reasonable cause? List the examples of reasonable cause.
Q5) If a taxpayer is convicted of criminal fraud, he or she can contest a civil fraud determination.
A)True
B)False
Q6) What is the procedure for claiming a refund or credit for overpayment of tax?
Page 16
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