Question 1

Greene is an individual taxpayer residing in Colorado (the Tenth Circuit).She has a disagreement with the IRS on a transaction.Her former accountant told her that she has "less than a 50/50 chance of winning." However,she was recently told of one case with similar facts that was decided in a way that would favor Greene.The U.S.Circuit Court of Appeals for the Fifth Circuit decided that case.If Greene takes her case to the U.S.Tax Court,should she feel confident of prevailing?
 Explain.

Accepted Answer

The answer of Greene is an individual taxpayer residing in...

Question 2

Which of the following statements is correct?
I.The history of a cited case refers to all other decisions by higher or lower courts in the same case.
II.The citator gives information about how the decision of a cited case has been interpreted by other courts.

Accepted Answer

Statement I is correct in defining the history of a cited case, while statement II correctly describes the role of a citator in providing information about the interpretation of a cited case by other courts.

Question 3

Rewrite each of the following citations in proper form:
a.Subsection (b) of the third treasury regulation issued under Code Section 614 (Income Tax).
b.Revenue Ruling 72-151, found on page 88 of the second cumulative bulletin of 1972.
c.Metropolitan Laundry Co., case 52-1 USTC 9129 Vol 100 Federal Supplement at page 803 District Court of California.
d.Henry M. Rodney (Tax Court 1969), volume 53 Reports of the U.S Tax Court, page 287.
e.Paragraph 3 of subsection b, Section 217 of the Internal Revenue Code of 1986.

Accepted Answer

The answer of Rewrite each of the following citations in...

Question 4

In planning situations,tax research is undertaken
I.To always attempt to minimize taxes.
II.Considering the client's nontax objectives.
III.To find the best way to accomplish a desired result.
IV.Considering the client's tax objectives.

Accepted Answer

Tax research should not only aim to minimize taxes but also consider the client's nontax objectives and find the best way to accomplish a desired result. It should also take into account the client's tax objectives, such as maximizing deductions or deferring taxes. Thus, all statements except I are correct.

Question 5

Taxpayers may choose one of several different courts in which to initiate litigation.Discuss the pros and cons of the different trial level courts.

Accepted Answer

The answer of Taxpayers may choose one of several different...

Question 6

This problem requires determining the type of tax law authority and the relative importance within that authority category.Indicate "1" for the highest-ranking item within each category.Indicate "2" for the next-highest ranking item within each category.Each column may have zero,one,or more items ranked.
 $$\begin{array} { | l | l | l | l | l | } 
\hline & \text { Legislative } & \text { Judicial } & \text { Administrative } & \text { Secondary } \
\hline \text { Internal Revenue Code } & & & & \
\hline \text { Treasury Regulations } & & & & \
\hline \text { US Constitution } & & & & \
\hline \text { Standard Federal Tax } \
\text { Reporter (CCH) }\\hline \text { Revenue Frocedures } & \
\hline \text { Supreme Court } & \
\hline \text { Tax Court } & \
\hline
\end{array}$$

Accepted Answer

The answer of This problem requires determining the type of...

Question 7

Dwayne is upset by an IRS agent's decision after an audit of Dwayne's tax return.Dwayne tells you,"I'm taking this case all the way to the Supreme Court." Comment on the appropriateness of Dwayne's statement.

Accepted Answer

The answer of Dwayne is upset by an IRS agent's...

Question 8

All of the following are advantages of computer-assisted tax research (CATR),except

Accepted Answer

This statement is incorrect as CATR sources contain both primary and secondary sources of tax law.

Question 9

Citators

Accepted Answer

Citators give information on the history of a court case, including whether it has been overruled, supplemented, or distinguished by later cases. This information is crucial for effective tax research as it helps to determine the current status and precedential value of a case.

Question 10

During the past week,Dennis contacted his CPA to obtain advice on the most advantageous way to make a generous contribution to the accounting program at his alma mater.The CPA's work is

Accepted Answer

Dennis is seeking advice from his CPA on how to make a contribution in the most advantageous way. This implies that he wants to minimize the tax impact of his contribution, making it a tax planning situation.

Question 11

Which of the following is (are)secondary sources of tax law?
I.Revenue Ruling.
II.The Tax Adviser.
III.Murphy and Higgins' Concepts in Federal Taxation.
IV.Tax Treaty with Denmark.

Accepted Answer

I. Revenue Ruling is a primary source of tax law since it is issued by the IRS and provides guidance on how the IRS interprets and applies tax law.
II. The Tax Adviser is a secondary source of tax law since it is a publication that provides commentary, analysis, and interpretation of tax law, but does not have authoritative legal status.
III. Murphy and Higgins' Concepts in Federal Taxation is a secondary source of tax law since it is a textbook that provides commentary, analysis, and interpretation of tax law, but does not have authoritative legal status.
IV. Tax Treaty with Denmark is a primary source of tax law since it is a formal agreement between two sovereign states and has the force of law in both countries.

Question 12

Describe the steps of the tax research process.

Accepted Answer

The answer of Describe the steps of the tax research...

Quiz 16: Tax Research

Which of the following statements is correct? I.The history of a cited case refers to all other decisions by higher or lower courts in the same case. II.The citator gives information about how the decision of a cited case has been interpreted by other courts.

In planning situations,tax research is undertaken I.To always attempt to minimize taxes. II.Considering the client's nontax objectives. III.To find the best way to accomplish a desired result. IV.Considering the client's tax objectives.

Taxpayers may choose one of several different courts in which to initiate litigation.Discuss the pros and cons of the different trial level courts.

Dwayne is upset by an IRS agent's decision after an audit of Dwayne's tax return.Dwayne tells you,"I'm taking this case all the way to the Supreme Court." Comment on the appropriateness of Dwayne's statement.

All of the following are advantages of computer-assisted tax research (CATR) ,except

Citators

During the past week,Dennis contacted his CPA to obtain advice on the most advantageous way to make a generous contribution to the accounting program at his alma mater.The CPA's work is

Which of the following is (are) secondary sources of tax law? I.Revenue Ruling. II.The Tax Adviser. III.Murphy and Higgins' Concepts in Federal Taxation. IV.Tax Treaty with Denmark.

Describe the steps of the tax research process.