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acct 827 outline of tax research process

acct 827 outline of tax research process - 8 whether the...

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Outline of the Tax Research Process STEP 1. Determine what are the “MATERIAL” FACTS? Significant tax facts often include: 1. Client’s tax identity- Individual, corporation, trust 2. Client’s family status and stability 3. Client’s past, present, and projected marginal tax rates 4. Client’s place of domicile and citizenship 5. Client’s motivation for the transaction 6. Relationships among the client and other parties who are involved in the transaction 7. whether special tax rules apply to the taxpayer due to the type of business in which the taxpayer is engaged (i.e. he or she is a farmer, fisherman, or long-term contractor) AND
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Unformatted text preview: 8. whether the transaction is proposed or completed (has already happened!) Biggest Problem in STEP 1?: Client will OMIT important information that is vital to the solution. It is important to dig until ALL “material” facts are known. Pay attention and record ALL details a client discloses. NON-Tax information A “MATERIAL” fact is a fact that if know “MIGHT” make a difference in the tax advice. 2. Identify the Issues 3. Locate the Authority 4. Evaluate the Authority 5. Develop Conclusions and Recommendations 6. Communicate the Recommendations...
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