BRIEF CONTENTS - nscpolteksby.ac.id

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B R I E F C O N T E N T S

Part I The Tax Research Environment . . . 1

Chapter 1 Introduction to Tax Practice and Ethics . . . 3

Chapter 2 Tax Research Methodology . . . 47

Part II Primary Sources of Federal Tax Law . . . 83

Chapter 3 Constitutional and Legislative Sources . . . 85

Chapter 4 Administrative Regulations and Rulings . . . 119

Chapter 5 Judicial Interpretations . . . 149

Part III Research Tools . . . 189

Chapter 6 Tax Services and Periodicals . . . 191

Chapter 7 Legal Services and Internet Sites. . . 233

Chapter 8 Citators and Other Finding Devices . . . 273

Chapter 9 State Tax Services . . . 307

Chapter 10 International Tax Services. . . 349

Part IV Implementing the Research Tools . . . 379

Chapter 11 Communicating Research Results . . . 381

Chapter 12 Tax Planning. . . 411

Chapter 13 Working with the IRS . . . 437

Chapter 14 Tax Practice and Administration: Sanctions, Agreements, and Disclosures. . . . 469

Appendix A Time Value of Money Tables . . . 515

Appendix B Standard Tax Citations. . . 518

Appendix C IRS Circular 230. . . 522

Glossary . . . 551

Index . . . 565

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Preface . . . .xv

PARTI T^HET^AXR^ESEARCHE^NVIRONMENT . . . .1

Chapter 1: Introduction to Tax Practice and Ethics . . . 3

Elements of Tax Practice . . . 5

Tax Compliance . . . 5

Tax Planning . . . 5

Tax Litigation . . . 6

Tax Research . . . 6

Rules and Ethics in Tax Practice . . . 7

Circular 230 (Complete Text in Appendix C) . . . . 7

AICPA Code of Professional Conduct . . . 14

Statements on Standards for Tax Services . . . 19

Sarbanes-Oxley and Taxation . . . 23

ABA Model Code of Professional Responsibility . . . 24

Nonregulatory Ethical Behavior Models . . . 25

Ethical Dilemmas. . . 25

Ethical Reasoning. . . 25

Ethical Professional Behavior . . . 26

Morality . . . 27

Social Responsibility . . . 28

Business Ethics . . . 28

Tax Planning Ethics. . . 28

Other Ethical Standards . . . 29

Ethics Training and Education. . . 31

Tax Research by Certified Public Accountants . . . 32

Historical Developments . . . 32

CPAs and Other Nonattorneys . . . 33

Summary. . . 34

Tax Tutor . . . 34

Key Words . . . 34

Discussion Questions. . . 35

Exercises . . . 38

Research Cases . . . 43

Chapter 2: Tax Research Methodology . . . 47

Outline of the Tax Research Process . . . 48

Step 1: Establish the Facts . . . 49

Step 2: Identify the Issues. . . 50

Step 3: Locate Authority . . . 53

Step 4: Evaluate Authority . . . 56

Step 5: Develop Conclusions and Recommendations . . . 56

Step 6: Communicate the Recommendation . . . 57

Overview of Computerized Tax Research . . . 58

Benefits of Using a Computerized Tax Service . . 60

Factors in Choosing a Computerized Tax Service . . . 61

Using a Computer in Tax Research . . . 61

Step 1: State the Issue as a Question . . . 62

Step 2: Identify the Key Words . . . 62

Step 3: Construct a Computer Search Query . . . . 63

Step 4: Select a Database and Execute the Search . 63 Step 5: Interpret and Refine the Search . . . 64

IRS Web Site Research . . . 65

Tax Research on the CPE Exam . . . 65

Summary. . . 70

Tax Tutor . . . 70

Key Words . . . 70

Exercises . . . 74

PÂRTII PRIMARYSOURCESOFFEDERAL TÂXLÂW. . . .83

Chapter 3: Constitutional and Legislative Sources . . . 85

Sources of Federal Tax Law . . . 86

History of U.S. Taxation . . . 86

U.S. Constitution . . . 89

Tax Treaties . . . 91

The Legislative Process . . . 93

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Where to Find Committee Reports . . . .96

Internal Revenue Code . . . .96

Organization of the Internal Revenue Code . . . .97

Where to Find the Internal Revenue Code . . . .102

Interpreting the Internal Revenue Code. . . .104

Summary. . . .107

Tax Tutor . . . .107

Key Words . . . .107

Discussion Questions. . . .107

Exercises . . . .109

Research Cases . . . .115

Chapter 4: Administrative Regulations and Rulings. . . 119

Regulations . . . .120

Temporary Regulations . . . .121

Effective Date of Regulations . . . .121

Citing a Regulation . . . .122

Assessing Regulations . . . .123

Locating Regulations. . . .124

Revenue Rulings . . . .124

Revenue Ruling Citations . . . .126

Locating Revenue Rulings . . . .127

Revenue Procedures . . . .127

Letter Rulings . . . .128

Private Letter Rulings . . . .129

Technical Advice Memoranda . . . .130

Determination Letters. . . .131

Public Inspection of Written Determinations . . . .131

Written Determination Numbering System. . . . .132

Locating Written Determinations. . . .132

Other IRS Pronouncements . . . .132

Acquiescences and Nonacquiescences. . . .132

Internal Revenue Bulletin . . . .134

Chief Counsel Memoranda . . . .135

Announcements and Notices . . . .135

Miscellaneous Publications . . . .137

Summary. . . .138

Chapter 5: Judicial Interpretations . . . 149

Federal Court System . . . .150

Legal Conventions . . . .151

Tax Court. . . .153

District Courts. . . .162

Court of Federal Claims . . . .163

Courts of Appeals . . . .165

Supreme Court . . . .168

Case Briefs . . . .170

The Internet and Judicial Sources . . . .171

Computer Tax Service Example. . . .172

Summary. . . .173

PARTIII RESEARCHTOOLS. . . 189

Chapter 6: Tax Services and Periodicals. . . . 191

Tax Services . . . .192

Illustrative Research Example . . . .193

Approaching the Research Problem . . . .193

Assessing Tax Information. . . .194

RIA Checkpoint . . . .195

Keyword Search . . . .195

Contents Search . . . .202

Citation Search . . . .205

CCH Tax Research Network. . . .207

Keyword Search . . . .209

Citation and Contents Searches . . . .210

ATX/Kleinrock . . . .212

Tax Periodicals . . . .213

Citing Articles . . . .213

Types of Periodicals. . . .214

Locating Relevant Tax Articles . . . .217

Summary. . . .219

Exercises . . . .222 x Contents

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Extensive Case. . . 230

Chapter 7: Legal Services and Internet Sites 233 LexisNexis. . . 234

Tax Center . . . 234

LexisNexis Academic. . . 238

Tax Analysts . . . 242

Research Library . . . 242

Newsletters . . . 244

Westlaw . . . 246

Data and Access . . . 246

Searching Westlaw. . . 247

Business News . . . 251

Mertens Service . . . 252

Bittker Lokken Service. . . 253

BNA . . . 254

Portfolios. . . 254

News Reports . . . 256

Internet Sites . . . 256

Summary. . . 259

Tax Tutor . . . 260

Key Words . . . 260

Exercises . . . 262

Advanced Cases . . . 269

Extensive Cases . . . 270

Chapter 8: Citators and Other Finding Devices . . . 273

Citators . . . 274

What Is a Citator? . . . 274

Commercial Citators. . . 276

Shepard’s . . . 277

Lexis. . . 281

Westlaw Citator System . . . 282

RIA Citator 2nd . . . 287

CCH Citator . . . 292

Summary. . . 296

Tax Tutor . . . 296

Key Words . . . 296

Exercises . . . 298

Chapter 9: State Tax Services. . . 307

Importance of State and Local Taxes . . . 308

Historical Perspective . . . 312

Legal Perspective. . . 312

Supremacy. . . 313

Commerce . . . 313

Due Process . . . 313

Uniformity and Equal Protection . . . 315

Privileges and Immunities . . . 316

State Tax Structure . . . 316

Constitution. . . 316

Legislative. . . 316

Administrative . . . 317

Judicial. . . 319

Multistate . . . 320

Illustrative Research Examples . . . 321

RIA State and Local Service. . . 321

Special Features . . . 322

Keyword Search . . . 323

Citation Search . . . 325

Contents Search . . . 326

CCH NetWork State Service . . . 327

State Tax Tab . . . 327

Citation Search . . . 330

LexisNexis Academic . . . 331

Search . . . 331

Sources . . . 331

Westlaw State Services. . . 332

Find and KeyCite . . . 333

Directory. . . 333

Tax Tab . . . 334

BNA State Services . . . 335

Other Resources . . . 337

Periodicals and Internet Sites. . . 337

Journals . . . 337

Newsletters . . . 337

Summary. . . 338

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Tax Tutor . . . 339

Key Words . . . 339

Exercises . . . 341

Chapter 10: International Tax Services . . . . 349

Overview of International Taxation . . . 350

Full Inclusion Model . . . 350

Territorial Model. . . 351

Blended Model . . . 351

Income Sourcing . . . 352

Source Determination. . . 352

Deduction Apportionment . . . 352

Tax Treaties . . . 354

Tax Havens . . . 355

BNA . . . 356

BNA Foreign Income Library . . . 356

BNA International Service . . . 357

LexisNexis. . . 360

Tax Center . . . 361

Academic. . . 363

RIA . . . 364

International Tax Products . . . 365

Westlaw . . . 368

CCH. . . 369

Service Offering. . . 370

Summary. . . 372

Tax Tutor . . . 372

Key Words . . . 372

Discussion Questions . . . 372

Exercise. . . 374

PARTIV IMPLEMENTING THERESEARCHTOOLS. . . . .379

Chapter 11: Communicating Research Results . . . 381

Communicating and the Tax Professional . . . . 382

The Heart of Tax Research Communication: The File Memo . . . 384

Evaluating the Sources of Law . . . 388

Client Letters . . . 390

Comprehensive Illustration of Client File. . . 393

Oral Presentations of Research Results . . . 396

Summary. . . 401

Tax Tutor . . . 401

Key Words . . . 401

Tax Research Assignments. . . 401

Problems . . . 402

Advanced Cases . . . 407

Chapter 12: Tax Planning. . . 411

Economics of Tax Planning, Avoidance, and Evasion . . . 412

Tax Rate Terminology . . . 414

Tax Base. . . 415

Tax Rates . . . 415

Tax Planning in Perspective . . . 417

Fundamentals of Tax Planning. . . 418

Avoiding Income Recognition . . . 420

Postponing Income Recognition . . . 421

Changing Tax Jurisdictions. . . 422

Controlling Classification of Income . . . 423

Spreading Income among Related Taxpayers . . . 423

Departing from the Fundamentals . . . 424

Exploiting Inconsistencies in the Statute . . . 425

Inconsistencies between Transactions . . . 425

Inconsistencies between Taxpayers . . . 425

Inconsistencies between Years . . . 426

Avoiding Tax Traps. . . 427

Statutory Tax Traps. . . 427

Judicial Tax Traps . . . 427

Tax Planning Illustrations . . . 430

Summary. . . 431

Tax Tutor . . . 432

Key Words . . . 432

Exercises . . . 432

Problems . . . 433

Extended Cases . . . 434

Chapter 13: Working with the IRS. . . 437

Organization of the IRS. . . 438

IRS National Office . . . 439 xii Contents

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IRS Service Centers . . . 442

Taxpayer Assistance Orders . . . 442

Local Taxpayer Advocates . . . 443

Taxpayer Rights . . . 443

The Audit Process . . . 446

Preliminary Review of Returns . . . 447

Selection of Returns for Examination . . . 448

Examinations. . . 451

Correspondence Examinations . . . 451

Office Examinations . . . 453

Field Examinations. . . 453

Dealing with an Auditor. . . 454

Conclusion of Examination . . . 455

Thirty-Day Letter . . . 455

File a Protest or Go Straight to Court? . . . 456

The Appeals Process . . . 456

Appeals Conference . . . 457

Ninety-Day Letter . . . 457

Entering the Judicial System . . . 461

Summary. . . 462

Tax Tutor . . . 462

Key Words . . . 463

Exercises . . . 465

Problems . . . 465

Chapter 14: Tax Practice and Administration: Sanctions, Agreements, and Disclosures. . . . 469

Taxpayer Penalties. . . 471

Civil Penalties . . . 471

Criminal Penalties . . . 482

Penalties on Return Preparers . . . 484

Definition of Return Preparer . . . 485

Definition of Return Preparation . . . 485

Preparer Disclosure Penalties . . . 486

Preparer Conduct Penalties . . . 486

Injunctions . . . 492

Action to Enjoin TRPs . . . 492

Action to Enjoin Promoters of Abusive Tax Shelters . . . 492

Interest . . . 492

Interest-Computation Conventions . . . 492

Applicable Interest Rate. . . 496

Statutes of Limitations. . . 496

Nature of Statutes of Limitations . . . 496

Assessment. . . 497

Collection . . . 498

Claim for Refund or Credit . . . 499

Suspension of Period of Assessment and Collection 500 Mitigation of Statute of Limitations . . . 501

Statutory Agreements . . . 501

Closing Agreements . . . 501

Offers in Compromise . . . 502

Summary. . . 504

Tax Tutor . . . 504

Key Words . . . 505

Discussion Questions . . . 505

Exercises . . . 507

Problems . . . 508

APPENDIXA Time Value of Money Tables . . . 515

A^PPENDIXB Standard Tax Citations . . . 518

APPENDIXC IRS Circular 230 . . . 522

GLOSSARY. . . .551

INDEX. . . .565