Solution Manual For Federal Tax Research, 13th Edition by Roby Sawyers, Steven Gill, Verified Chapters 1 - 13, Complete

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Solution Manual Federal Tax Research
13th Edition by Sawyers and Steven
Chapters 1 -13

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CHAPTERk1
INTRODUCTIONkTOkTAXkPRACTICEkANDkETHICS



DISCUSSIONkQUESTIONS


1-1.
InkthekUnitedkStates,kthektaxksystemkiskankoutgrowthkofkthekfollowing
kfivekdisciplines:klaw,kaccounting,keconomics,kpoliticalkscience,kandksociology.
kThekenvironmentkforkthektaxksystemkiskprovidedkbykthekprincipleskofkecono
mics,ksociology,kandkpoliticalkscience,kwhilektheklegalkandkaccountingkfieldsk
arekresponsiblekforktheksystem‘skinterpretationkandkapplication.

Eachkofkthesekdisciplineskaffectskthiskcountry‘sktaxksystemkinkakuniquekway.k
Economistskaddressksuchkissueskaskhowkproposedktaxklegislationkwillkaffectkth
ekratekofkinflationkorkeconomickgrowth.kMeasurementkofktheksocialkequitykof
kaktaxkandkdeterminingkwhetherkaktaxksystemkdiscriminateskagainstkcertaink
taxpayerskarekissueskthatkarekexaminedkbyksociologistskandkpoliticalkscientis
ts.

Finally,kattorneyskarekresponsiblekforkthekinterpretationkofkthektaxationkstatu
tes,kandkaccountantskensurekthatktheseksamekstatuteskarekappliedkconsistently
.****8880()
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1-2.
Thekotherkmajorkcategorieskofktaxkpracticekinkadditionktoktaxkresearchkarekaskfol
lows:


 Taxkcompliance
 Taxkplanning
 Taxklitigati


onkPagek5

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1-3.
Taxkcompliancekconsistskofkgatheringkpertinentkinformation,kevaluating
kandkclassifyingkthatkinformation,kandkfilingkanyknecessaryktaxkreturns.kCom
pliancekalsokincludeskotherkfunctionsknecessaryktoksatisfykgovernmentalkrequi
rements,ksuchkaskrepresentingkakclientkduringkankInternalkRevenuekServicek(IR
S)kaudit.

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1-4.
Mostkofkthektaxkcompliancekworkkiskperformedkbykcommercialktaxkpr
eparers,kenrolledkagentsk(EAs),kattorneys,kandkcertifiedkpublickaccountantsk(C
PAs).kNoncomplexkindividual,kpartnership,kandkcorporatektaxkreturnskoftenkar
ekcompletedkbykcommercialktaxkpreparers.kThekpreparationkofkmorekcomple
xkreturnskusuallykiskperformedkbykEAs,kattorneys,kandkCPAs.kTheklatterkgrou
pskalsokprovidektaxkplanningkserviceskandkrepresentktheirkclientskbeforekthekI
RS.

AnkEAkiskonekwhokiskadmittedktokpracticekbeforekthekIRSkbykpassingkakspecia
lkIRS-
administeredkexamination,korkwhokhaskworkedkforkthekIRSkforkfivekyearskandk
iskissuedkakpermitktokrepresentkclientskbeforekthekIRS.kCPAskandkattorneyskare
knotkrequiredktoktakekthiskexaminationkandkarekautomaticallykadmittedktokpra
cticekbeforekthekIRSkifktheykarekinkgoodkstandingkwithkthekappropriatekprofess
ionalklicensingkboard.

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1-5.
Taxkplanningkiskthekprocesskofkarrangingkone‘skfinancialkaffairsktokminim
izekanyktaxkliability.kMuchkofkmodernktaxkpracticekcenterskaroundkthiskprocess,
kandkthekresultingkoutcomekisktaxkavoidance.
Therekisknothingkillegalkorkimmoralkinkthekavoidancekofktaxationkasklongkaskth
ektaxpayerkremainskwithinklegalkbounds.kInkcontrast,ktaxkevasionkconstituteskthe
killegalknonpaymentkofkaktaxkandkcannotkbekcondoned.kActivitieskofkthisksortkcl
earlykviolatekexistingklegalkconstraintskandkfallkoutsidekofkthekdomainkofkthekp
rofessionalktaxkpractitioner.