Question

When performing tax research, you may come across a vague answer that does not fit your client’s facts. If the code sections do not provide an answer, where would you turn for additional resources? How often should we reference the committee reports to see what was discussed on the congressional floor? Give an example of when you would (or did) use additional resources to find the answer for a client’s unique situation.

Answer 1

If the code sections do not provide an answer, where would you turn for additional resources?

• U.S. Treasury Regulations
• Judicial Authority
• IRS Positions
• Secondary sources: Unofficial sources that carry lower weight of authority than primary sources; should not be cited as authority

How often should we reference the committee reports to see what was discussed on the congressional floor?

In a matter of national importance where the basic law is discussed and it is required to understand what the law makers intent was while framing the law

Give an example of when you would (or did) use additional resources to find the answer for a client’s unique situation.

I used the Juducial Authority to ascertain whether our client is engaged in a trade or business within the U.S. since his horse entered the Kentucky Derby. We took help of case law of Johansson v. U.S. (CA-5, 1964) where a professional boxer who engaged in only one U.S. prize fight was held that the one event was so significant that it constituted a U.S. trade or business

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