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