Solution Manual For Federal Tax research
Federal Tax research 13th edition
By Roby sawyers (Author), Steven gill (Author)
,Chapter 1
Introduction To Tax practice And ethics
Discussion questions
1-1. In The united states, The Tax system IS An Outgrowth Of The following five
disciplines: Law, accounting, economics, political science, And sociology. The
environment For The Tax system IS provided By The principles Of economics, sociology,
And political science, while The Legal And accounting fields Are responsible For The
system‘S interpretation And application.
Each Of these disciplines affects this Country‘S Tax system In A unique Way. Economists
address Such issues AS How proposed Tax legislation will Affect The Rate Of inflation Or
economic Growth. Measurement Of The social equity Of A Tax And determining Whether
A Tax system discriminates against certain taxpayers Are issues That Are examined By
sociologists And political scientists.
Finally, attorneys Are responsible For The interpretation Of The taxation statutes, And
accountants ensure That these Same statutes Are applied consistently.****8880()
Page;; 4
1-2. The Other Major categories Of Tax practice In addition To Tax research Are AS follows:
• Tax compliance
• Tax planning
• Tax litigation Page;; 5
1-3. Tax compliance consists Of gathering pertinent information, evaluating And
classifying That information, And filing Any necessary Tax returns. Compliance also
includes Other functions necessary To satisfy Governmental requirements, Such AS
representing A client during An Internal Revenue service (irs) audit.
,Page;; 5
1-4. Most Of The Tax compliance Work IS Performed By commercial Tax preparers,
Enrolled agents (eas), attorneys, And certified public accountants (cpas). Noncomplex
individual, partnership, And Corporate Tax returns Often Are Completed By commercial
Tax preparers. The preparation Of More Complex returns usually IS Performed By eas,
attorneys, And cpas. The Latter groups also provide Tax planning services And represent
their clients Before The irs.
An Ea IS One Who IS admitted To practice Before The irs By passing A special irs-
administered examination, Or Who has Worked For The irs For five years And IS issued
A permit To represent clients Before The irs. Cpas And attorneys Are Not required To
Take this examination And Are automatically admitted To practice Before The irs If They
Are In Good standing with The appropriate professional licensing Board.
Page;; 5 And circular 230
1-5. Tax planning IS The process Of arranging One‘S financial affairs To minimize Any
Tax liability. Much Of Modern Tax practice centers Around this process, And The resulting
Outcome IS Tax avoidance.
There IS nothing Illegal Or Immoral In The avoidance Of taxation AS Long AS The Taxpayer
remains within Legal bounds. In contrast, Tax evasion constitutes The Illegal Nonpayment
Of A Tax And Cannot Be Condoned. Activities Of this Sort Clearly violate existing Legal
constraints And Fall outside Of The domain Of The professional Tax practitioner.
, Page;; 6
1-6. In Can Copen Ctax cplanning csituation, Cthe ctransaction CIS Cnot Cyet Ccomplete;
Ctherefore, Cthe Ctax cpractitionercmaintains csome Cdegree Cof Ccontrol Cover Cthe
cpotential Ctax cliability, Cand Cthe ctransaction Cmay Cbe cmodi- cfied Cto cachieve Ca
Cmore Cfavorable Ctax Ctreatment. Cin Ca cclosed ctransaction Chowever, Call Cof Cthe
cpertinentcactions Chave Cbeen Ccompleted, Cand Ctax cplanning cactivities Cmay Cbe
climited Cto Cthe cpresentation Cof Cthe csituation Cto Cthe Cgovernment cin Cthe cmost
Clegally cadvantageous Cmanner cpossible.
Page;; C6
1-7. Tax clitigation CIS Cthe cprocess Cof csettling Ca cdispute cwith Cthe cirs cin Ca
Ccourt Cof Claw. Ctypically, Ca Ctaxcattorney chandles Ctax clitigation Cthat cprogresses
Cbeyond Cthe cfinal cirs Cappeal.
Page;; C6
1-8. Cpas cserve CIS Ca csupport ccapacity cin Ctax clitigation.
Page;; C6
1-9. Tax cresearch cconsists Cof Cthe cresolution Cof cunanswered ctaxation
cquestions. Cthe Ctax cresearch cprocesscincludes Cthe cfollowing:
1. Identification Cof cpertinent cissues;
2. Specification Cof Cproper cauthorities;
3. Evaluation Cof Cthe cpropriety Cof cauthorities; Cand,
4. Application Cof cauthorities Cto Ca cspecific csituation.
Federal Tax research 13th edition
By Roby sawyers (Author), Steven gill (Author)
,Chapter 1
Introduction To Tax practice And ethics
Discussion questions
1-1. In The united states, The Tax system IS An Outgrowth Of The following five
disciplines: Law, accounting, economics, political science, And sociology. The
environment For The Tax system IS provided By The principles Of economics, sociology,
And political science, while The Legal And accounting fields Are responsible For The
system‘S interpretation And application.
Each Of these disciplines affects this Country‘S Tax system In A unique Way. Economists
address Such issues AS How proposed Tax legislation will Affect The Rate Of inflation Or
economic Growth. Measurement Of The social equity Of A Tax And determining Whether
A Tax system discriminates against certain taxpayers Are issues That Are examined By
sociologists And political scientists.
Finally, attorneys Are responsible For The interpretation Of The taxation statutes, And
accountants ensure That these Same statutes Are applied consistently.****8880()
Page;; 4
1-2. The Other Major categories Of Tax practice In addition To Tax research Are AS follows:
• Tax compliance
• Tax planning
• Tax litigation Page;; 5
1-3. Tax compliance consists Of gathering pertinent information, evaluating And
classifying That information, And filing Any necessary Tax returns. Compliance also
includes Other functions necessary To satisfy Governmental requirements, Such AS
representing A client during An Internal Revenue service (irs) audit.
,Page;; 5
1-4. Most Of The Tax compliance Work IS Performed By commercial Tax preparers,
Enrolled agents (eas), attorneys, And certified public accountants (cpas). Noncomplex
individual, partnership, And Corporate Tax returns Often Are Completed By commercial
Tax preparers. The preparation Of More Complex returns usually IS Performed By eas,
attorneys, And cpas. The Latter groups also provide Tax planning services And represent
their clients Before The irs.
An Ea IS One Who IS admitted To practice Before The irs By passing A special irs-
administered examination, Or Who has Worked For The irs For five years And IS issued
A permit To represent clients Before The irs. Cpas And attorneys Are Not required To
Take this examination And Are automatically admitted To practice Before The irs If They
Are In Good standing with The appropriate professional licensing Board.
Page;; 5 And circular 230
1-5. Tax planning IS The process Of arranging One‘S financial affairs To minimize Any
Tax liability. Much Of Modern Tax practice centers Around this process, And The resulting
Outcome IS Tax avoidance.
There IS nothing Illegal Or Immoral In The avoidance Of taxation AS Long AS The Taxpayer
remains within Legal bounds. In contrast, Tax evasion constitutes The Illegal Nonpayment
Of A Tax And Cannot Be Condoned. Activities Of this Sort Clearly violate existing Legal
constraints And Fall outside Of The domain Of The professional Tax practitioner.
, Page;; 6
1-6. In Can Copen Ctax cplanning csituation, Cthe ctransaction CIS Cnot Cyet Ccomplete;
Ctherefore, Cthe Ctax cpractitionercmaintains csome Cdegree Cof Ccontrol Cover Cthe
cpotential Ctax cliability, Cand Cthe ctransaction Cmay Cbe cmodi- cfied Cto cachieve Ca
Cmore Cfavorable Ctax Ctreatment. Cin Ca cclosed ctransaction Chowever, Call Cof Cthe
cpertinentcactions Chave Cbeen Ccompleted, Cand Ctax cplanning cactivities Cmay Cbe
climited Cto Cthe cpresentation Cof Cthe csituation Cto Cthe Cgovernment cin Cthe cmost
Clegally cadvantageous Cmanner cpossible.
Page;; C6
1-7. Tax clitigation CIS Cthe cprocess Cof csettling Ca cdispute cwith Cthe cirs cin Ca
Ccourt Cof Claw. Ctypically, Ca Ctaxcattorney chandles Ctax clitigation Cthat cprogresses
Cbeyond Cthe cfinal cirs Cappeal.
Page;; C6
1-8. Cpas cserve CIS Ca csupport ccapacity cin Ctax clitigation.
Page;; C6
1-9. Tax cresearch cconsists Cof Cthe cresolution Cof cunanswered ctaxation
cquestions. Cthe Ctax cresearch cprocesscincludes Cthe cfollowing:
1. Identification Cof cpertinent cissues;
2. Specification Cof Cproper cauthorities;
3. Evaluation Cof Cthe cpropriety Cof cauthorities; Cand,
4. Application Cof cauthorities Cto Ca cspecific csituation.
