8e-sm-06 - Federal Tax Research Eighth Edition Page 6-1...

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Unformatted text preview: Federal Tax Research, Eighth Edition Page 6-1 CHAPTER 6 TAX SERVICES and PERIODICALS DISCUSSION QUESTIONS 6-1. The function of commercial tax services is to act as an index for primary and secondary resources. Page 192 6-2. Annotated services are organized by the numerical structure of Code. A topical service divides the tax law into its functional components and organizes these components by topic. Page 192 6-3. While practitioners can retrieve most primary tax sources at no cost, this free access does not translate into more effective research. This is because there is a voluminous amount of information and this takes time to sort, read, and comprehend, which can lead to information overload and inefficiency. All this information must be managed; otherwise, using the Internet for tax research is not effective. Consequently, Internet access to primary sources cannot substitute for a subscription to comprehensive tax services. Page 193 6-4. Daily or continuous updating does not necessarily mean that what happened yesterday or an hour ago will be accessible today. Processing time is still required. It does mean, however, that as soon as the information is processed it can be entered into the system. There is no waiting to batch information for distribution. Page 192 6-5. Just because the research question is refined to its final state does not guarantee that controlling authority will be found for a definite answer to the tax research question. The final conclusion may be that one solution appears more supportable than another, or that the IRS or the courts are more likely to interpret the facts and circumstances in a particular manner when making a decision. Most tax decisions require professional judgment because the controlling law is imprecise and can be interpreted differently by the taxpayer and the IRS. Professional judgment is what taxpayers are seeking when they hire CPAs. Page 194 6-6. The key to effective tax research is finding the pertinent materials necessary to formulate an informed conclusion about the optimum treatment of the transaction. How a tax service is entered will determine how efficiently the relevant materials are found. Page 194 Page 6-2 Instructors Manual 6-7. Researchers unfamiliar with the research topic should start with an editorial explanation and overview of the applicable tax law. This commentary will help the researcher identify the most pertinent elements of the project and introduce applicable primary tax law. Page 194 6-8. The procedural knowledge necessary for efficient use of tax services can only be required through hands- on practice. Page 193 6-9. Commercial providers of tax services offer a plethora of tax products (databases) that can be bundled in a variety of ways. The tax databases used in this chapter may not be what is available to the student. Each library purchases only those resources that it can afford and finds useful in its practice. Additionally, the tax services are constantly updating their products to maintain their competitive edges. Therefore, the tax services are constantly updating their products to maintain their competitive edges....
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8e-sm-06 - Federal Tax Research Eighth Edition Page 6-1...

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