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Solution Manual Federal Tax Research
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tt 13th Edition by Roby Sawyers, Steven Gill
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Chapters 1 -13
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,Page7 2 1- SOLUTIONS
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CHAPTER7 2 1
INTRODUCTION7 2 TO7 2 TAX7 2 PRACTICE7 2 AND7 2 ETHICS
DISCUSSION7 2 QUESTIONS
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, Page7 2 1- SOLUTIONS
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arch, 1
Solution Manual Federal Tax Research
tt tt tt tt
tt 13th Edition by Roby Sawyers, Steven Gill
72tt 2
7
tt 2
7
tt tt 72tt 72tt
Chapters 1 -13
tt tt 72tt
,Page7 2 1- SOLUTIONS
2
CHAPTER7 2 1
INTRODUCTION7 2 TO7 2 TAX7 2 PRACTICE7 2 AND7 2 ETHICS
DISCUSSION7 2 QUESTIONS
1-1.
In7 2 the7 2 United7 2 States,7 2 the7 2 tax7 2 system7 2 is7 2 an7 2 outgrowth7 2 of7 2 the7 2 fol
lowing7 2 five7 2 disciplines:72law,7 2 accounting,7 2 economics,7 2 political7 2 science,7 2 and
7 2 sociology.7 2 The7 2 environment7 2 for7 2 the72tax7 2 system7 2 isprovided7 2 by7 2 the7 2 pr
inciples7 2 of7 2 economics,7 2 sociology,7 2 and7 2 political7 2 science,72while7 2 the7 2 legal
7 2 and7 2 accounting7 2 fields7 2 are7 2 responsible7 2 for7 2 the7 2 system‘s7 2 interpretatio
n72and7 2 application.
Each7 2 of7 2 these7 2 disciplines7 2 affects7 2 this7 2 country‘s7 2 tax7 2 system7 2 in7 2 a7 2 uni
que7 2 way.72Economists7 2 addressttsuch7 2 issues7 2 as7 2 how7 2 proposed7 2 tax7 2 legislati
on7 2 will7 2 affect7 2 the72rate7 2 of72inflation7 2 or7 2 economic7 2 growth.Measurement7 2 o
f7 2 the7 2 social7 2 equity7 2 of7 2 a7 2 tax7 2 and72determining7 2 whether7 2 a7 2 tax7 2 syste
m7 2 discriminates7 2 against7 2 certain7 2 taxpayers7 2 are7 2 issues72that7 2 are7 2 examined7
2 by72sociologists7 2 and7 2 political7 2 scientists.
Finally,7 2 attorneys7 2 are72responsible7 2 for7 2 the72interpretation7 2 of7 2 the7 2 taxation
7 2 statutes,7 2 and72accountantsttensure7 2 that7 2 these7 2 same7 2 statutes7 2 are7 2 applie
d7 2 consistently.****8880()7 2 Page7 2 4
1-2.
The7 2 other7 2 major7 2 categories7 2 of7 2 tax7 2 practice7 2 in7 2 addition7 2 to7 2 tax7 2 research7 2 are7
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Tax7 2 planning
Tax72lit
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1-3.
,Federal7 2 Tax7 2 Rese 13th Page7 2 1-
arch, 3 7
Tax7 2 compliance7 2 consists7 2 of7 2 gathering7 2 pertinent7 2 information,7 2 evaluating
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al7 2 requirements,7 2 such7 2 as7 2 representing7 2 a7 2 client72during7 2 an7 2 InternalttRevenue
7 2 Service7 2 (IRS)7 2 audit.
, Page7 2 1- SOLUTIONS
4
Page7 2 5
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Page7 2 57 2 and7 2 Circular7 2 230
1-5.
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to7 2 minimize7 2 any7 2 tax72liability.7 2 Muchttof7 2 modern7 2 tax7 2 practice7 2 centers7 2 a
round7 2 this7 2 process,7 2 and7 2 the7 2 resulting72outcome7 2 is7 2 tax7 2 avoidance.
There7 2 is7 2 nothing7 2 illegal7 2 or7 2 immoral7 2 in7 2 the7 2 avoidance7 2 of7 2 taxation7 2 as7 2 lo
ng7 2 as7 2 the7 2 taxpayer72remains7 2 within7 2 legal7 2 bounds.7 2 In7 2 contrast,7 2 tax7 2 evas
ion7 2 constitutes7 2 the7 2 illegal7 2 nonpayment72of7 2 a7 2 tax7 2 and7 2 cannotbe7 2 condoned.7
2 Activities7 2 of7 2 this7 2 sort7 2 clearly7 2 violate7 2 existing7 2 legal72constraints7 2 and7 2 fall7 2
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