Ch 02 Research Methodology Flashcards
administrative sources
Federal tax law that is created by the appropriate use of power that is granted to the Treasury Department by Congress. These sources of the law have a presumption of the authority of the statute, but they are subject to taxpayer challenge. Such sources include Regulations, rulings, revenue procedures, and other opinions that are used by the Treasury Department or the Internal Revenue Service.
collateral estoppel
The legal principle that limits one?s judicial exposure relative to a disputed item to one series of court hearings. In a tax environment, the principle can present hardships for the taxpayer who wishes to raise additional issues during the course of a judicial proceeding.
fact issue
A tax research issue in which the practitioner must determine whether a pertinent question of fact was satisfied by the taxpayer; for example, was an election filed with the government in a timely manner? What was the taxpayer?s motivation underlying the redemption of some corporate stock?
Internal Revenue Code
The primary statutory source of the Federal tax law, a collection of laws that have been passed by Congress and incorporated in Title 26 of the U.S. Code. The Code was last reorganized in 1954. It presently is known as the Internal Revenue Code of 1986. The chief subdivision of the Code is the section.
judicial sources
Certain federal court decisions that have the force of the statute in constructing the Federal tax law. The magnitude of this authority depends upon the level and location of the courts that issued the opinions.
law issue
A tax research question in which one must determine which provision of the Federal tax law applies to the client?s fact situation. This entails the evaluation of various statutory, administrative, and judicial provisions with respect to the client?s circumstances; for example, is the client?s charitable contribution subject to the 30 percent of adjusted gross income limitation?
primary authority
An element of the Federal tax law that was issued by Congress, the Treasury or Internal Revenue Service, or a Federal court, and thus carries greater precedential weight than elements of the tax law issued by other parties.
secondary authority
An element of the Federal tax law that was issued by a scholarly or professional writer for example, in a textbook, journal article, or treatise, and thus carries less precedential weight than elements of the tax law issued by primary sources.
statutory sources
The Constitution, tax treaties, and the Internal Revenue Code are the statutory sources of the Federal tax law. They have the presumption of correctness, unless a court modifies or overturns a provision in response to a taxpayer challenge. In this regard, legislative intent and history can be important in supporting the taxpayer?s case.
tax journals
A periodic publication that addresses legal, factual, and procedural issues encountered in a modern tax practice. As a secondary source of Federal tax law, analyses in tax journals can be used in support of a taxpayer?s case before a government agency or, especially, before a court.
tax services
A commercial tax reference including statutory, administrative, and judicial sources of Federal tax law. Structured to maximize the practitioner?s ease of use via a variety of indexes and finding lists. Often includes the text of the pertinent tax authorities and relevant scholarly or professional commentary.
