Chapter 2 Tax Compliance, the IRS, and Tax Authorities

(1)
[LO4] What are the three committees that debate proposed tax
legislation? What documents do these
committees generate, and how might they be used?

(2)
[LO4] The president recently
vetoed a tax act passed by the House and Senate. Is the tax act dead? If not, what will it take for the act to be
passed?

(3)
[LO5] What are the five basic
parts of an internal research memo?

(4)
[LO5] What is the difference
between primary and secondary authorities?
Explain the role of each authority type in conducting tax research.

[LO5] Jorge is puzzled that the IRS and his CPA could legitimately reach
different conclusions on a tax issue.
Why does this happen?

(5)
[LO5] What is the difference
between open and closed facts? How is
this distinction important in conducting tax research?

[LO5] In writing a research memo, what types of facts should be included in the
memo?

[LO5] Amber is a tax expert, whereas Rob is a tax novice. Explain how their process in identifying tax
issues may differ.

(6)
[LO5] Discuss the basic
differences between annotated and topical tax services. How are these services used in tax research?

(7)
[LO5] In constructing a keyword
search, what should the keyword search include?

(8)
[LO5] Lindley has become very
frustrated in researching a tax issue using keyword searches. What suggestions can you give her?

[LO5] Nola is a tax novice and has a fairly simple tax question. Besides tax services, what are some sources
that she can use to answer her question?

(9)
[LO5] Armando identifies a tax
research question as being a question of fact.
What types of authorities should he attempt to locate in his research?

(10)
[LO5] How are citators used in
tax research?

(11)
[LO5] What is the general rule
for how many authorities a research memo should discuss?

(12)
[LO6] Identify some of the
sources for tax professional standards.
What are the potential ramifications of failing to comply with these
standards?

(13)
[LO6] Levi is recommending a
tax return position to his client. What
standard must he meet to satisfy his professional standards? What is the source of this professional
standard?

(14)
[LO6] What is Circular 230?

(15)
[LO7] What are the basic differences between
civil and criminal tax penalties?

(16)
[LO7] What are some of the most
common civil penalties imposed on taxpayers?

(17)
[LO7] What are the taxpayer’s
standards to avoid the substantial understatement of tax penalty?

(18)
[LO7] What are the tax
practitioner’s standards to avoid a penalty for recommending a tax return
position?