Deck 10: Communicating Research Results

Question 1

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

Answer 1

A

Question 2

Toeffectively 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

Answer 2

B

Question 3

The twomajor 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

Answer 3

C

Question 4

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 5

Sound writing tips include:

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

Question 6

The heart of tax research communication is:

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

Question 7

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 8

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 tohelp 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 whois 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 towrite.
D)All of these are correct.

Question 9

Which of the following is CORRECT with respect toa 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 10

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

Question 11

Generally, it is better tocite more recent court decisions than older decisions tosupport one's position.

Question 12

In order toprovide the greatest amount of information tothe greatest number of listeners, the speaker should direct remarks tothe:

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

Question 13

Which of the following statements is INCORRECT regarding letters tounsophisticated clients?

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

Question 14

An effective speaker should:

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

Question 15

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

A)a posting on a general, business, or tax-oriented blog
B)a speech toa 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 16

The best way for a practitioner toconfirm 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 tothe client
D)ensure important discussions with clients only take place face toface

Question 17

Which of the following statements is CORRECT with respect toconflicting tax laws?

A)Revenue Rulings and Revenue Procedures seldom are held tobe invalid by a court.
B)Regulations are frequently held tobe 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 18

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 tothe 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

Question 19

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

A)Visual aids should be used toillustrate ideas that are difficult toconvey 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.

Question 20

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

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

Question 21

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 22

State the purposes for which a file memorandum is designed.

Question 23

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

Question 24

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

Question 25

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 toFrank $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 toAmy's assets in exchange for these securities. Both Frank and Amy are residents of Arizona.
The file memoyou 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, nogift tax is imposed due tothe 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 toan unsophisticated client explaining the gift tax consequences and the income tax consequences of the stock transfer.

Question 26

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

Question 27

IRS agents are not bound by District Court decisions.

Question 28

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

Question 29

Identify five types of tax-related communications.