Final answer:
Under Circular 230, 'covered opinions' do not typically include oral advice on tax avoidance transactions, so the correct answer is 'b. False'. For the historical question, the American colonists' objection was to the lack of representation in tax-related decisions, confirming the statement as 'a. True'.
Step-by-step explanation:
The question asks whether under Circular 230, "covered opinions" include oral advice on tax avoidance transactions. The correct answer is b. False. Covered opinions under Circular 230 generally relate to written advice on certain tax matters, including tax avoidance transactions. Oral advice does not usually fall under the definition of a covered opinion as per the regulations set by Circular 230.
In response to Exercise 7.3.1, the correct answer is a. True. The American colonists' main contention with British taxes was not so much the taxation itself, but the way in which the tax revenue was utilized, particularly without adequate representation of the colonies in the decision-making processes.