Previous Monte Carlo simulations and empirical trials have demonstrated the power with which taxometric procedures distinguish between taxonic (categorical) and dimensional (continuous) latent structures. However, questions have been raised about results obtained using procedures modified to accommodate dichotomous indicators. The present investigation shows that the most widely used taxometric procedure (MAXCOV) can distinguish between latent structures when adapted for use with dichotomous indicators, although particularly large samples and substantially valid indicators are required. This study also illustrates the value of including a case removal consistency test as one component of a taxometric investigation.