Term
statutory
administrative
judicial |
|
Definition
| primary sources of tax law |
|
|
Term
|
Definition
| statutory sources of tax law come from what branch |
|
|
Term
|
Definition
| administrative sources of tax law come from what branch |
|
|
Term
|
Definition
| judicial sources of tax law come from what branch |
|
|
Term
| constitutional and legislative |
|
Definition
| what tax sources are often referred to as statutory sources |
|
|
Term
constitution
tax treaties
IRC |
|
Definition
| primary statutory sources |
|
|
Term
| first income tax created during civil war |
|
Definition
|
|
Term
| 16th amendment allowed income tax without apportionment among the states |
|
Definition
|
|
Term
| corporate tax constitutional because it was a special form of excise tax on the privilege of operating in the corporate form |
|
Definition
|
|
Term
|
Definition
| source of all federal laws both tax and non tax |
|
|
Term
no export taxes
taxes must be applied uniformly
no per capita or other direct taxes unless apportioned (other than income tax as in the exception of the 16th amendment) |
|
Definition
|
|
Term
| they are a form of excise taxes on the transfer of property |
|
Definition
| how are estate and gift taxes constitutional? |
|
|
Term
|
Definition
| agreements negotiated between countries concerning the treatment of entities subject to tax in both countries |
|
|
Term
|
Definition
| tax conventions are what? |
|
|
Term
| eliminate double taxation |
|
Definition
| purpose of tax treaties/tax conventions |
|
|
Term
|
Definition
| override rule for conflicting law in irc vs. treaties |
|
|
Term
| tax treaties are usually initiated by the state department not the treasury |
|
Definition
|
|
Term
expire
superseded by a newer treaty
terminated by mutual agreement |
|
Definition
| how are treaties terminated? |
|
|
Term
house ways and means committee
full house of representatives
senate
finance committee
entire senate
joint conference committee (if differences between house and senate)
congress for compromised bill
president |
|
Definition
| steps to tax lax legislation |
|
|
Term
|
Definition
| explains the elements of the proposed changes and the reasons for each of the proposals |
|
|
Term
ways and means
finance
joint conference |
|
Definition
| committee reports are results of what committees: |
|
|
Term
| congressional sessions last for two years |
|
Definition
|
|
Term
| committee reports = when new law is passed |
|
Definition
|
|
Term
| internal revenue code of 1939 |
|
Definition
| first fully organized the federal tax law |
|
|
Term
|
Definition
| what title is the IRC in the united states code? |
|
|
Term
| capital letters A through K |
|
Definition
|
|
Term
|
Definition
| the most important division of the IRC for the tax researcher |
|
|
Term
|
Definition
| agreements between countries, negotiated by the president and approved by the senate |
|
|
Term
| internal revenue service under US treasury department |
|
Definition
| responsible for the administration of the income tax law |
|
|
Term
| consists of both itnerpreting and enforcing tax laws |
|
Definition
|
|
Term
| treasury regs, revenue rulings, revenue procedures, private letter rulings |
|
Definition
| IRS interprets the law by issuing pronouncements including: |
|
|
Term
regulations
revenue rulings
revenue procedures
letter rulings |
|
Definition
| four major types of pronouncements |
|
|
Term
| gives IRS general authority to issue binding rules and regulations concerning title 26 of the us code |
|
Definition
|
|
Term
|
Definition
| constitute the IRS's and the Treasury's official interpretation of the irc |
|
|
Term
|
Definition
| regulations are issued in the form of: |
|
|
Term
|
Definition
| TD's before and during the hearings process |
|
|
Term
|
Definition
| do proposed regulations have the effect of law? |
|
|
Term
|
Definition
| td designation is usually dropped after the integration of proposed and final regulations and is simply referred to as regulation |
|
|
Term
|
Definition
| two distinct categories of regulations |
|
|
Term
|
Definition
| issued under the general authority granted to the IRS to interpret the language of the code, usually under a specific code directive of congress, and with specific congressional authority |
|
|
Term
|
Definition
| the IRS is directed by Congress to write a law and to specify the substantive requirement of a tax position |
|
|
Term
|
Definition
| bear the greatest precedential value of any IRS pronouncement |
|
|
Term
|
Definition
| not subject tot he public hearings procedure and are effective immediately upon publication |
|
|
Term
|
Definition
| how many years after issuance do temporary regulations expire? |
|
|
Term
| regulation can be effective retroactively |
|
Definition
|
|
Term
| internal revenue bulletin and then cumulative bulletin |
|
Definition
| where are TDs published when they are final? |
|
|
Term
|
Definition
| second to regulations as important administrative sources of federal tax law |
|
|
Term
|
Definition
| official pronouncement of the national office of the IRS |
|
|
Term
|
Definition
| deals with the application of the code and regulations to a specific factual situation, one that has been submitted by a taxpayer usually |
|
|
Term
|
Definition
| deal with the internal practice and procedures of the IRS in the administration of the tax laws |
|
|
Term
private letter rulings
determination letters
technical advice memoranda |
|
Definition
| types of letter rulings issued by the IRS |
|
|
Term
|
Definition
| issued by the national office of the IRS in response to a taxpayer's request for the IRS's position on a specified tax issue |
|
|
Term
| technical advice memoranda (TAM) |
|
Definition
| issued by the IRS's national office and concerns a completed transaction |
|
|
Term
|
Definition
| issued by a local office of the IRS in response to particular taxpayer/situation (completed transactions) |
|
|
Term
|
Definition
| indicates that the court decision, although it was adverse to the IRS, will be followed in similar situation |
|
|
Term
|
Definition
| indicates that the IRS disagrees with the adverse decision in the case and will follow the decision only for the specific taxpayer whose case resulted in the adverse ruling |
|
|
Term
| actions on decision (AOD) |
|
Definition
| acquiescence/nonacquiescences relative to tax court, district court, appeals court, federal claims court |
|
|
Term
| technical memorandum (TM) |
|
Definition
| prepared in the production of a proposed regulation |
|
|
Term
|
Definition
| public pronouncements that have immediate or short term value |
|
|
Term
|
Definition
| contain guidance involving substantive interpretations of the code or other provisions of the law that usually have long term application |
|
|
Term
| General counsel's memorandum (GCM) |
|
Definition
| assist in the preparation of revenue rulings and private letter rulings |
|
|
Term
|
Definition
| prepared when the IRS loses a case in court and convey the IRS decision to acquiesce/nonacquiesce |
|
|
Term
| FSA's - field service advice |
|
Definition
| nonbinding advice, guidance, and analysis provided by the IRS national office attorneys to IRS filed personnel |
|
|
Term
| chief counsel notices CCNs |
|
Definition
| temporary directives the IRS national office uses to disseminate policies, procedures, isntructions, and/or delegations of authroity to chief counsel employees |
|
|
Term
| SCA - service center advice |
|
Definition
| guidance provided by the IRS national office to IRS service centers and related IRS functions concerning their tax administration responsibilities |
|
|
Term
|
Definition
| a letter ruling issued on a completed transaction usually during an audit |
|
|
Term
|
Definition
| a regulation is promulgated or amended |
|
|
Term
|
Definition
| the official treasury or IRS interpretation of a portion of the IRC |
|
|
Term
|
Definition
| the IRS's application of the tax law to a specific fact situation |
|
|
Term
|
Definition
| a statement of IRS practice or procedure that affects taxpayers or the general public |
|
|
Term
|
Definition
| second option after dispute is taken up with administrative appeals process |
|
|
Term
tax court
US district courts
US court of federal claims |
|
Definition
| one of three courts in which a taxpayer can initital litigation with the IRS |
|
|
Term
|
Definition
| administrative review process examples |
|
|
Term
|
Definition
| third primary source of tax alw |
|
|
Term
|
Definition
| chief statutory basis for federal tax laws |
|
|
Term
| administrative pronouncements |
|
Definition
| interpret provisions of the code and explain their application |
|
|
Term
mismatching of expectations for the message
the chosen delviery method
the identiy and nature of the sneder and reciever
other events competing for attention
techniological problems
logistical difficulties |
|
Definition
| examples of noise that can disrupt the communicatiosn process include: |
|
|
Term
formal and informal evaluation processes
real time opportunties (Q&A, comments)
body language |
|
Definition
| feedback and corrective devices that can aid in accomplishing the dlivery of the disred message include: |
|
|
Term
|
Definition
| the heart of tax research communication |
|
|
Term
|
Definition
| designed to organize facts, issues, and conclusions of the project, facilitate a review of the resarch activities by the practitioner's supervisors or colleagues, and allow for a subsequent examination of the research issue, by the orgningal reseracher or by successor, with respect to the same or another client's identical or related fact situation |
|
|
Term
| regulations seldom are held to be invalid by a court |
|
Definition
|
|
Term
| revenue rulings/procedures frequintly modified or otherwise held to be invalid by acourt |
|
Definition
|
|
Term
| decisions of the 2nd, 9th, federal circuits sshould be assigned additional precendential value |
|
Definition
|
|
Term
|
Definition
| circuit typically the first to introduce an innovative or otherswise unusual interpretation of the law |
|
|
Term
|
Definition
| auhtoriative circuits in a more traditional vein |
|
|
Term
| IRS agents are bound only by the code, administrative pronouncements, and supreme court decisions |
|
Definition
|
|
Term
|
Definition
| by far the most comon form of substantive communication between the tax professional and the client |
|
|
Term
|
Definition
| foremost among the attributes of a client letter |
|
|
Term
|
Definition
| two major elements of a client file |
|
|
Term
engagement letter
builling and colelctio history
case, regulation, and ruling briefs that are prtinent to the file memo and links to important anlyses of the client's prevailing tax issues from treatises, journal articles, and other resrouces |
|
Definition
| other portions of the client file |
|
|
Term
for presentation slides:
no more than six lines of type
no more than six words on a line |
|
Definition
|
|
Term
|
Definition
| tax reserach process is smilar to that of traditional legal research; must find authroity, evaluate its useflness, apply the results to a specific situation |
|
|
Term
1. the ability to use certain mechanical techniques to idneify and locate the tax authorities that relate to solving aproblem
2. comibation of reasoning and creativity and is more difficult to learn |
|
Definition
| two essential tax reasearch skills |
|
|
Term
1. establish the facts
2. identify the issues
3. locate authority
4. evaluate authroity
5. develop conclusions and recommendations
6. communicat ethe recommednations |
|
Definition
| 6 major steps of the tax research process |
|
|
Term
| a moderate tax research problem often takes 8-10 hrs and bill can be $5000 |
|
Definition
|
|
Term
| an evalution of the client's factual situation |
|
Definition
| all tax research begins with: |
|
|
Term
| in gathering facts relative to a research problem, the researcher also must be aware of thenontax considerations that are pertitnetn to client's situation |
|
Definition
|
|
Term
1. fact issues
2. law issues |
|
Definition
| research issues can be divided into two major categories: |
|
|
Term
|
Definition
| concerned with information having an objective reality, such as the dates of transactions, the amounts involved in an exchange, resaonsablness, intent, and purpose |
|
|
Term
|
Definition
| arise when the facts are well established, but it is not clear which portion of the tax law applies to the issue |
|
|
Term
| apaprent conflict among code sections, genuine uncertainty as to the meaning of a term in the IRC, or no provisions in the law deal directly with the transaction at hand |
|
Definition
| why might an application of the law be unclear? |
|
|
Term
|
Definition
| bars relitigation on the same facts or the same issues |
|
|
Term
|
Definition
| the process of tax research is iterative in the sense that, once an answer is found, it often causes a new issue to appear and thus requires gathering more information |
|
|
Term
| the tax research process requires mechanical skills and critical thinking |
|
Definition
|
|
Term
|
Definition
| gained and sharped through both knowledge and experience |
|
|
Term
|
Definition
| usually gained through education in universities and other formal class work |
|
|
Term
|
Definition
| obtained through working in the field and ealing with real tax problems on a recurring basis |
|
|
Term
|
Definition
| hardest skill for the researcher to develop |
|
|
Term
|
Definition
| two classifications of tax authority |
|
|
Term
|
Definition
| orignial pronouncemtn that comes from statutory, adminsitrative, and judicial sources |
|
|
Term
|
Definition
| include the US constitution, tax treaties, and tax laws passed by cnognress |
|
|
Term
|
Definition
| the basis for all tax provisions |
|
|
Term
|
Definition
| constitutes the basis for all tax law and, therefore, the basis for arriving at solutions to all tax questions |
|
|
Term
statuorty
adminstriatve
judicial |
|
Definition
| primary sources of tax law |
|
|
Term
| adminsitarive and judicial authroity (2 primary soruces) |
|
Definition
| function primarily to interpret and explain the application of the provisions of the internal revenue code and the intent of congress |
|
|
Term
|
Definition
| include the various rulings of the treasury department and the IRS |
|
|
Term
|
Definition
| issued in the form of regulations, revenue rulings, and otehr pronouncments |
|
|
Term
|
Definition
| consist of the collected rulings of the various courts on federal tax matters |
|
|
Term
|
Definition
| consists of interpretation sof primary authority and is an unofficial soruce of tax information |
|
|
Term
| tax services, jounrals, textbooks and treatises, and newsletters |
|
Definition
| examples of secondary authority include: |
|
|
Term
| §6662 imposes a penalty on understatements of tax unless taxpayer has substnail authoirty (internal revenue code provions, temporary/final regualtions, court cases, adminsitartive pronouncments, tax treaties, and congressional intent as reflected in committee reports |
|
Definition
| why has the distinction between primary and secondary sources of authority become more importatn? |
|
|
Term
| treatises and legal periodicals articles NOT considered substnail authoirty under §6662 |
|
Definition
|
|
Term
| traditionally, tax services have been classified as either annotated or topical |
|
Definition
|
|
Term
|
Definition
| organized in internal revenue code section order |
|
|
Term
|
Definition
| arranged by topic, as defined by the publisher's editorial staff |
|
|
Term
|
Definition
| court decions are published in sets of bound voluems called: |
|
|
Term
|
Definition
| examples of major topic tax services |
|
|
Term
RIA US tax reporter
CCH standard federal tax reporter |
|
Definition
| examples of major code tax services |
|
|
Term
| both CCH and RIA provide citators as part of their tax services |
|
Definition
|
|
Term
|
Definition
| reference soruce that enables the reseracher to follow the judicial history of court cases |
|
|
Term
|
Definition
| the primary publicaion for IRS authority is in a set of bound volumes tittled: |
|
|
Term
|
Definition
| another source of information that can be useful to the tax reseracher |
|
|
Term
|
Definition
| provide awarenes sof many current problem areas in taxation, recent developments in tax law, tax compliance matters, and tax planning tecnhiques/opportunites |
|
|
Term
|
Definition
| the memorandum to the file usually contains more detail than does the ltter to the client |
|
|
Term
| communicate the reslts and recommendations of the research |
|
Definition
| final step in the research process |
|
|
Term
1. online subscription systems
2. online fress nonsubscription) internet sites |
|
Definition
| two chief ways to find computer information for tax research purposes |
|
|
Term
| it's possible for the user to index any signficant term, that is, by using it as a serach term in a query |
|
Definition
| primary benefit of using a computerized tax service is: |
|
|
Term
|
Definition
| used so the user can move to the related document indicated witha diferent color witha click of the mouse |
|
|
Term
database conents
search capbablites
training
customer support
price |
|
Definition
| factors in choosing acomputerized tax service |
|
|
Term
| step 3 (locate tax authority to solve research question) |
|
Definition
| in which step of the research model does one use a computer? |
|
|
Term
1. state the issue as a question
2. identify the keywords
3. construct a computer research query
4. select a database and execute the search
5. interpret and refine the search |
|
Definition
| the process of finding tax authroty using a cmoputer |
|
|
Term
communication
research
analysis
judgment
udnerstanding |
|
Definition
| the necessary skills for the CPA exam as defined by the board of examiners: |
|
|
Term
|
Definition
| the ability to efefcitvely eleict and/or express information through wirtten or oral means |
|
|
Term
|
Definition
| the ability to locate and extract relevant information from avialable rseource material |
|
|
Term
|
Definition
| the ability to organize, process, and niterpet data to provide options for decision making |
|
|
Term
|
Definition
| the ability to evaluate otpions for decision making and provide an appropariate conclusion |
|
|
Term
|
Definition
| the ablity to recognize and comprehend the meaning and application of a particular matter |
|
|
Term
Auditing and Attestation (AUD)
Business Environment and Concepts (BEC)
Financial Accounting and Reporting (FAR)
Regulation (REG) |
|
Definition
|
|
Term
|
Definition
covers knowledge of auditing procedures, GAAS and other standards related to attest engagements
4 hrs 30 min |
|
|
Term
|
Definition
covers knolwefge of general business environment and business concepts that candidates need to know in order to undersand the unerlying business reasons for and accounting implication so f business transactions
2 hrs 30 min |
|
|
Term
|
Definition
|
|
Term
|
Definition
| federal taxation, ethics, profesional and legal responsiblites, business law |
|
|
Term
| precedential value of cases |
|
Definition
| the legal authority established by the case |
|
|
Term
|
Definition
| tool through which a tax researcher can learn the history of a legal source and evaluate the stregnth of its holdings |
|
|
Term
|
Definition
| when one case refers to another case |
|
|
Term
|
Definition
| the case making reference to another case |
|
|
Term
|
Definition
| the case that is referenced |
|
|
Term
|
Definition
|
|
Term
|
Definition
| service that indexes cited cases, gives their full citations, and lists the citing cases and where each citing case can be found |
|
|
Term
|
Definition
| derogatory term for grassroots activism funded and aided by corporate interests. |
|
|
Term
|
Definition
| FreedomWorks IS headed by corporate lobbyist, former U.S. Representative from Texas (1985–2003) and House Majority Leader (1995–2003): |
|
|
Term
|
Definition
| three citators that exclusively cover tax cases |
|
|
Term
|
Definition
|
|
Term
| direct the researcher to the first page of the citing case |
|
Definition
|
|
Term
|
Definition
| aka pinpoint citation; directirng the researcher to teh exact page wehere the cited case is mentioend |
|
|
Term
|
Definition
| first major publisher to truly understand the commercial value of citators |
|
|
Term
|
Definition
| synonymous with the act of citation |
|
|
Term
|
Definition
| only major tax citator that is organized by case reporter series |
|
|
Term
|
Definition
| paragraphs in which the editors of the court reporter summarize the court's holdings on each issue of the case |
|
|
