Assig4[1].2.LC - Primary Authorities Statutory Sources of...

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Assignment 4   Primary   Authorities Statutory Sources of Federal Tax Law (File 2 of 3 files)
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Statutory Sources of Federal Tax Law Acts of Congress These Acts are the source of the Internal Revenue Code. The IRC contains virtually all of the tax rules that affect us everyday!
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THE INTERNAL REVENUE CODE You must understand the importance of the Internal Revenue Code in answering tax problems The Code is THE LAW Have a tax question? The “Code” is our friend.
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THE INTERNAL REVENUE CODE
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The IRC or Code is THE most important resource in the tax research process The Code is the Bible, the Torah, the Koran, the holy scriptures of tax law It contains the rules—the laws. The Code is a compilation of almost all tax statutes enacted by Congress. Primary Authority: The Internal Revenue Code
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What is the researcher’s responsibility, my responsibility, when answering a tax question? Determine how the Code—the rules of the game—applies to the given set of facts
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Primary Authority The Internal Revenue Code The hunt for authority begins with the Code Start here!
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Start all research with the Code Always start with Code Always read the Code Reaching a conclusion may start and end with the Code The Code may be sufficient unto itself If you cannot determine the answer from the IRC, you must turn to other legal authority (Treasury and judicial interpretations) Primary Authority The Internal Revenue Code
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Primary Authority The Internal Revenue Code Start your research with the Code Frame the issue in terms of the law— this law says this , and this law says that Example: Are the expenses related to my home office deductible? General rule: Section 162 provides that business expenses are deductible Exception: Section 280A provides that no deductions are allowed for expenses related to a personal residence except
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Primary Authority The Internal Revenue Code A reference service (CCH or RIA) can help locate the applicable statutory authority A tax service, like a textbook, can be extremely helpful in explaining the law However, a tax service is NOT a substitute for the Code, because the opinions found in the tax service are secondary authority You must still carefully read (and cite) the Code
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Primary Authority The Internal Revenue Code The Code by itself may hold the answer to the question The new CPA exam requires applicants to read the Code and other primary authorities to find solutions to tax research questions
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Go forth and read the Code!
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Origin of the IRC The Constitution is the source and foundation of all U.S. federal laws. The 16th Amendment, added in 1913, enables income tax; it eliminated all controversy about whether Congress had the right to impose an income tax.
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