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Tax Research Process

Steps in the Tax Research Process. AMIS 856 Ch2, (c) 2011 Dr Wm A Raabe. Step 1: Establish the Facts . Get all relevant facts Irrelevant facts may become relevant later eg Significant factsClient's tax entity Client's marginal tax ratesClient's legal domicile/citizenshipClient's motivation Application of special tax status Transaction proposed or complete .

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Tax Research Process

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    1. Tax Research Process 1. Establish the facts 2. Identify the issues 3. Locate authority 4. Evaluate authority 5. Develop conclusions & recommendations 6. Communicate conclusions, recommendations AMIS 856 Ch2, (c) 2011 Dr Wm A Raabe

    2. AMIS 856 Ch2, (c) 2011 Dr Wm A Raabe

    3. Step 1: Establish the Facts Get all relevant facts Irrelevant facts may become relevant later eg Significant facts Client’s tax entity Client’s marginal tax rates Client’s legal domicile/citizenship Client’s motivation Application of special tax status Transaction proposed or complete AMIS 856 Ch2, (c) 2011 Dr Wm A Raabe

    4. Step 2: Identify the Issues Fact issues Information with objective reality Dates Amounts Reasonableness, intent, or purpose Law issues Unclear how tax law applies Possible conflict between IRC sections No provision found that addresses the client’s specific issue Simple situations can generate many research issues New issues result from solving original problem AMIS 856 Ch2, (c) 2011 Dr Wm A Raabe

    5. Step 3: Locate Authority Primary Authority Statutory Administrative Judicial Secondary Authority Annotated services Topical services Court reporters Tax Journals, Blogs AMIS 856 Ch2, (c) 2011 Dr Wm A Raabe

    6. Step 4: Evaluate Authority Different Authorities may suggest different treatments Different Authorities have different precedential values AMIS 856 Ch2, (c) 2011 Dr Wm A Raabe

    7. Step 5: Develop Conclusions, Recommendations May have no single “best” alternative All alternatives must be considered Conclusions should include alternatives, recommendations AMIS 856 Ch2, (c) 2011 Dr Wm A Raabe

    8. Step 6: Communicate Recommendations Memo to file Letter to client AMIS 856 Ch2, (c) 2011 Dr Wm A Raabe

    9. Factors in Choosing a Computerized Tax Service Database contents Search capabilities Training Customer Support Price AMIS 856 Ch2, (c) 2011 Dr Wm A Raabe

    10. Accessing Tax Documents Search Link Browse Remember that you are thinking in terms of quotes by the author, not index entries AMIS 856 Ch2, (c) 2011 Dr Wm A Raabe

    11. The Search Process 1. State the issue as a question 2. Identify key words 3. Construct a research query 4. Select databases and execute the search 5. Interpret and refine search AMIS 856 Ch2, (c) 2011 Dr Wm A Raabe

    12. More on Searching: Tax Analysts Wildcard * Connectors AND OR AND NOT sentence paragraph Parens and Quotes Search Terms Noise words Spelling Meanings AMIS 856 Ch2, (c) 2011 Dr Wm A Raabe

    13. IRS Web Site Research IRS web site NOT a full-service tax research site Limited tax research can be conducted Contains searchable and downloadable tax information including: Tax forms Tax form instructions IRS publications Frequently Asked Questions Other IRS information AMIS 856 Ch2, (c) 2011 Dr Wm A Raabe

    14. Tax Research on CPA Exam Tax is majority of Regulations section Research = Locate and extract relevant information from available resources Simulations ? Identify relevant authority, draw conclusions, to solve a problem. Use writing skills Example: Search the Code to find an “answer,” write a letter or memo AMIS 856 Ch2, (c) 2011 Dr Wm A Raabe

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