pter Research
1 Chapter 1: Tax Research
TAX RESEARCH (1 of2 Types of tax research Tax research process How facts affect tax consequences Sources of tax law and value ax services
2 TAX RESEARCH (1 of 2) Types of tax research Tax research process How facts affect tax consequences Sources of tax law and value Tax services
TAX RESEARCH (2 of2 Citator Tax practice guidelines for CPAs Computerized tax research Work papers and client communications Computerized tax research
3 TAX RESEARCH (2 of 2) Citators Tax practice guidelines for CPAs Computerized tax research Work papers and client communications Computerized tax research
ypes of Tax Research (1of2) Close-fact or tax compliance Facts already occurred Discovery of tax consequences Proper disclosure
4 Types of Tax Research (1 of 2) Close-fact or tax compliance –Facts already occurred –Discovery of tax consequences –Proper disclosure
Types of Tax Research (2of2) Open-fact or tax-planning Before structuring or concluding a transaction Minimization of taxes Careful compliance permits legal avoidance of taxation 5
5 Types of Tax Research (2 of 2) Open-fact or tax-planning –Before structuring or concluding a transaction – Minimization of taxes –Careful compliance permits legal avoidance of taxation
Steps in Tax Research Process (1 of 2) Determine the facts Identify the issues(questions) Locate applicable authorities Assess and evaluate authorities Choose which to follow when authorities conflict 6
6 Steps in Tax Research Process (1 of 2) Determine the facts Identify the issues (questions) Locate applicable authorities Assess and evaluate authorities –Choose which to follow when authorities conflict
Steps in Tax Research Process (2 of 2) Analyze facts in terms of applicable authorities Communicate conclusions and recommendations to client
7 Steps in Tax Research Process (2 of 2) Analyze facts in terms of applicable authorities Communicate conclusions and recommendations to client
How Facts Affect Tax Consequences Ambiguous situations(gray areas) Facts are clear but the law is not Law is clear but the facts are not Advance planning permits facts to develop that produce favorable tax consequences 8
8 How Facts Affect Tax Consequences Ambiguous situations (gray areas) –Facts are clear but the law is not – Law is clear but the facts are not Advance planning permits facts to develop that produce favorable tax consequences
Sources of tax law and Authoritative Value (1 of 2) Legislative authority Internal revenue Code Tax treaties Administrative authority -Treasury Regulations Administrative interpretations 9
9 Sources of Tax Law and Authoritative Value (1 of 2) Legislative authority – Internal Revenue Code –Tax treaties Administrative authority –Treasury Regulations –Administrative interpretations
Sources of tax law and Authoritative Value (2 of 2) Judicial decisions Trial courts Courts of Appeals Supreme Court Tax periodicals 10
10 Sources of Tax Law and Authoritative Value (2 of 2) Judicial decisions –Trial courts –Courts of Appeals –Supreme Court Tax periodicals
