A399 - Research Project

The research project for A339 is divided into a number of tasks which must be completed sequentially and by specified dates. This arrangement demonstrates the steps to be taken in any tax-law research project, and makes it impossible to start and complete the entire project in a 24- or 48-hour period.

Hasty and/or incomplete research can be disasterous -- and not only for the client. In an adversary system, which almost every tax system is, the opposing sides constantly scrutinize the other's work and delight in calling attention to deficiencies. Clients read the opposition's papers with probably a higher level of attention than they do the papers prepared by their own accountants, advisors, attorneys. When the ultimate results do not satisfy the client, she or he has (in opposition-prepared papers) arguments sufficient to call his or her advisors to account, i.e. sue for malpractice. In malpractice cases, judges and juries may understand that time limits how much one can do, but they are not particularly sympathetic -- time can always be allocated as a person wishes.

The multi-task format of the research project is intended, in part, to demonstrate the number of steps necessary for adequate research. It also gives the student some idea of how much time must be devoted to even "simple" tax questions. THEREFORE:

The following tasks are based on the facts and problems presented in the "Research Problem Scenario". The tax issue(s) presented in the scenario will be discussed in class a reasonable period of time before the Task 1 submission is due. All submissions must conform to the requirements stated in the "Technical Specifications for Written Submissions".

TASK 1 -- Code and Regs

• Locate the principal Code section(s) relating to the issue(s) presented by the problem.

• Locate subsidiary Code sections that qualify, define, explain, create exceptions to, etc., all or parts of the Code section(s) identified in the previous step.

• Locate the Regulations ("Regs") associated with the Code sections identified in the previous steps and identify the portions of those Regs that address the issue(s) presented by the problem.

• Submit a paper citing the located Code and Regs sections. Use the proper citation format.

TASK 2 -- IRS Pronouncements and Publications

• Locate IRS publications and pronouncements that relate to the Code and Regs identified in Task 1 and to the problem. For this project "IRS publications and pronouncements" include Revenue Rulings (Rev. Rul.), Revenue Procedures (Rev. Proc.), IRS private letter rulings (LTR), and the less-authoritive IRS numbered "Publications" (Pub.).

• Identify any other relevant documents or publications that you come across which may be relevant to the problem, such as model treaties, United Nations publications, OECD publications, etc.

• Submit a paper citing the various located items. Use the proper citation format.

TASK 3 -- Tax Court and Federal Court Decisions

• Locate Tax Court decisions that discuss, in whole or part, issues similar to, or analogous to, those in the problem. The most efficient way to start finding these cases is to use a "citator" or search program starting with the Code and Regs sections identified in Task 1. Each court decision cites prior court decisions, and both the decision being read, and the decisions it cites can be used as a starting point for finding additional cases.

• Locate Federal Court (U.S. District Court, U.S. Court of Appeals, U.S. Supreme Court) decisions that discuss, in whole or part, issues similar to, or analoguous to, those in the problem. These may be found using the methods mentioned in the preceding paragraph.

• Submit a paper citing the located court decisions. Use the proper citation format.

TASK 4 -- File Memorandum

Write and submit a file memorandum (see Research Memoranda - Format and Content) concerning the problem presented in the Research Problem Scenario.

EXTRA CREDIT -- Foreign Law Comparison

• Locate the income tax law of a foreign country. There are various ways that can be done. The U.S. Library of Congress has many foreign laws, some in English. Some of the "Big 5" accounting firms (e.g. Ernst & Young) have local laws of countries in which they have offices.

• Identify the portions of that country's tax law that deals with the issues in the assigned problem.

• Write and submit a memorandum comparing the foreign country's tax law to the U.S. Internal Revenue Code with respect to the issues in the assigned problem. This memorandum should include only the "Analysis" portion of the Research Memoranda - Format and Content directions.

Extra credit up to 40% of the credit possible for the Research Project (see Syllabus) can be earned. Special consideration will be given to submissions that are unique, i.e. ones that are the only extra credit submissions to discuss the laws of a particular country.