Deck 11: Communicating Research Results

Question 1

In client files, a practitioner should include all of the following types of underlying legal authority EXCEPT:

A)underlined or highlighted portions of important legal documents
B)case, regulation, and ruling briefs that are pertinent to the file memo
C)a listing of legal citations and computer files that would show a researcher's analysis
D)all of this information should be included in a client file

Answer 1

D

Question 2

Which of the following statements is INCORRECT regarding the use of visual aids in oral presentations?

A)Visual aids should be used to illustrate ideas that are difficult to convey strictly with words.
B)On average, allow at least three minutes of spoken presentation for each slide.
C)Slides should be colorful with substantial amounts of text.
D)All of these are correct.

Answer 2

C

Question 3

An effective speaker should:

A)not be afraid of silence
B)get physically close to the audience
C)vary the pitch of his or her voice
D)all of these are correct

Answer 3

D

Question 4

Effective written business communication often makes use of which of the following guidelines?

A)Write in direct, active voice and use short sentences. Organize your writing in paragraphs and use transition words to help the reader follow your logic and thought process.
B)Consider the reader--all audiences are not the same. Writing for another tax professional is very different from writing for a client who is not skilled in tax law.
C)Be organized.Make sure you understand the objective of your communication and organize your thoughts and your message before you start to write.
D)All of these are correct.

Question 5

The best way for a practitioner to confirm his or her understanding of the discussion in a telephone conversation with a client is to:

A)tape all client telephone calls
B)take accurate notes during the conversation
C)send a hard copy of a follow-up letter to the client
D)ensure important discussions with clients only take place face to face

Question 6

To effectively convey the results of a tax research project, the practitioner must:

A)consult IRS officials
B)apply professional judgment and communication skills
C)have an informal discussion with the client
D)all of these are correct

Question 7

Which of the following statements is INCORRECT regarding letters to unsophisticated clients?

A)Citations to controlling authority should not be included.
B)The letter should give the answer in the first paragraph.
C)A practitioner should always attach a file memo to give the client more detailed information.
D)All of these are correct.

Question 8

The audience for tax research communication is primarily:

A)the client
B)the practitioner's supervisor
C)none of these are correct
D)all of these are correct

Question 9

The heart of tax research communication is:

A)the file memo
B)primary source material
C)secondary source material
D)network links

Question 10

Which of the following is CORRECT with respect to a file memo?

A)It should include only the strengths of the client's position.
B)It should include a list of the tax issues that are in dispute and a matching conclusion for each identified issue.
C)It should be prepared only in closed-fact situations.
D)All of these are correct.

Question 11

The two major elements of a client file are:

A)invoices and full-text court opinions
B)internal firm memos and invoices
C)a client letter and a research memo
D)a written summary of telephone conversations and e-mails

Question 12

All of the following are INCORRECT regarding the proper form for a client letter EXCEPT:

A)client letters should be brief
B)client letters should be lengthy and detailed in order to avoid malpractice problems
C)client letters should not exceed four pages
D)all of these statements are correct

Question 13

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

Question 14

Tax-related communications can come in many forms, for example:

A)a posting on a general, business, or tax-oriented blog
B)a speech to a general audience
C)an article for publication in a professional journal
D)an appearance on a broadcast with more or less serious tone
E)all of these are correct

Question 15

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.

Question 16

Initial determinations of the facts of a tax issue are likely to be incomplete because:

A)taxpayers tend to see the dispute only from their side
B)taxpayers not being trained in the tax law may be unable to determine which facts are important to convey
C)fact-gathering often depends on the reliability of the memory of taxpayers
D)all of these are correct

Question 17

Sound writing tips include:

A)be brief and to the point
B)write in direct, active voice and use short sentences
C)use correct grammar and punctuation
D)all of these are correct

Question 18

In order to provide the greatest amount of information to the greatest number of listeners, the speaker should direct remarks to the:

A)front of the room
B)back of the room
C)highlights and general results of the research
D)the host or hostess

Question 19

Other factors being equal, decisions of which of the following Circuit Courts should be given additional weight when evaluating sources?

A)the Second and Ninth Circuits
B)the Sixth and Ninth Circuits
C)the Federal and First Circuits
D)all the these courts have equal weight

Question 20

All of the following statements are CORRECT with regard to the weight of authority of tax documents EXCEPT:

A)District and Circuit Court opinions have direct bearing on the taxpayer only if they were issued in the taxpayer's jurisdiction.
B)The opinions of the Court of Federal Claims and Tax Court are not binding on a taxpayer if they were issued with respect to a taxpayer who lives in a different jurisdiction.
C)Revenue Rulings and Revenue Procedures are frequently modified or held to be invalid by courts.
D)Older court decisions should be given a declining degree of importance unless they are Supreme Court cases.

Question 21

Generally, it is better to cite more recent court decisions than older decisions to support one's position.

Question 22

In slides and other visual aids, fancy fonts and many colors should be used to create a more sophisticated presentation.

Question 23

IRS agents are not bound by District Court decisions.

Question 24

In oral communications, a speaker should always aim the presentation at the audience members who have the least amount of knowledge.

Question 25

More research engagements entail closed-fact settings than open-fact situations.

Question 26

Tax treatises and journal articles should not be used in the formation of the practitioner's research schedule.

Question 27

Even if all of the judicial precedent supports a taxpayer's position, the court still may hold against the taxpayer.

Question 28

Consulting firms and tax departments do not use the same format for client files.

Question 29

The tone and nature of the file memo should recognize that its reader (the client) probably is not well versed in the federal tax law.

Question 30

Identify the major elements of a client letter, and briefly discuss the difference between a letter to a sophisticated client and to an unsophisticated client.

Question 31

Paper reduction should be the main goal in deciding whether or not to include duplications of controlling law in a client file.

Question 32

Identify five types of tax-related communications.

Question 33

Well-written case opinions typically provide a summary of the evolution of the pertinent tax law and a discussion of the parties' competing interpretations.

Question 34

A file memorandum should include citations to secondary sources of tax law, such as commercial tax services.

Question 35

The tax researcher spends most of his or her time writing the memorandum to the client's file.

Question 36

Generally, the file memo should be accompanied in the file by briefs of one or more pertinent cases or administrative pronouncements.

Question 37

State the purposes for which a file memorandum is designed.

Question 38

IRS agents are bound only by which types of authority?

A)the Code
B)the Code, administrative pronouncements and Supreme Court decisions
C)Second and Ninth Circuit Court Decisions
D)the Code and Regulations

Question 39

Public speaking is an important part of the tax practitioner's professional life and can be an accurate predictor of success.

Question 40

You are preparing for an audit with an IRS agent for an important client. Your research has uncovered several favorable rulings and court decisions. What are the key points that should guide you in evaluating sources of the law?

Question 41

Amy and Frank got married and they have approached you seeking your views about the gift tax and income tax consequences on the following facts.??As per the prenuptial agreement, Amy gave to Frank $100,000 of appreciated stock on the morning of their wedding. Amy's basis in the stock was $35,000. Under the terms of the agreement, Frank surrendered all other marital rights and claims to Amy's assets in exchange for these securities. Both Frank and Amy are residents of Arizona.??The file memo you prepared contains the following legal conclusions, based on controlling authority:•IRC Section 2501 imposes a tax on the transfer of property by gift, not when it is received by the donee, but upon the transfer. The donor is taxed, not the donee.?•The Supreme Court has held that prenuptial transfers in relinquishment of marital rights are not adequate and full consideration for the transfer of property. So, the transfer is treated as a gift.?•Since the prenuptial agreement is enforceable only after the marriage, the transfer has not taken place until after the marriage occurred. Thus, the transfer is eligible for the gift tax marital deduction.?•Although the transaction resulted in a gift, no gift tax is imposed due to the application of the annual exclusion and the unlimited gift tax marital deduction.?•Neither party recognizes gross income upon release of the marital rights. Gross income does not include the value of property acquired by gift.?•The donee takes the donor's income tax basis in the transferred property.Based on the information provided above, draft a client letter to an unsophisticated client explaining the gift tax consequences and the income tax consequences of the stock transfer.