Question

In: Accounting

What can a tax researcher learn by reviewing the history portion of a Code section?

What can a tax researcher learn by reviewing the history portion of a Code section?

Solutions

Expert Solution

A tax researcher learn by reviewing the history portion of a Code section: -

When a new section comes or any old section gets amended there's a always a reason for a new section to come or amendment for old sections. The Government comes up with a new section because of changes in the circumstances which require a new section to govern that portion that's why new section comes up or old section gets amended.

A tax researcher learn by reviewing the history portion of a Code section is how many times this section has changed till now and what were the causes to change that section.

A Smart tax researcher would make an idea of future changes in the section if something relating to that section gets changed.

By going through the history of the sections which is most important to the company and studying the changes effect on company would give an idea to the tax researcher and he/she would be cautious in regard to that specific sections.


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