Question

Todd has been working on a tax research question for a client. He knows he will be referring the issue to the client’s CPA and attorney, but he wanted to give the client some general information about how the issue could be handled and they wanted to discuss it together. Todd has found several private letter rulings, one court case, and a revenue ruling, all from 1980 or earlier that are contrary to what his client is trying to do. He has found three appeals court rulings more recent than 1980 that somewhat support what his client wants to do. He also found a Temporary Regulation that is similar to his situation, but not exactly, and provides some support. Finally, Todd found a Technical Advice Memorandum very similar to his position which supports his position. Which documents should Todd place the greatest reliance on? In general, should Todd tell his client that tax law appears to support or not support the client’s position? (3pts)

Answer 1

Todd should rely on technical advice memorandum.He should keep in mind that he cannot please it legally because it will have no standing.He should pick relevant points from the memorandum which supports the clients contention.

Also, the recent ruling after 1980 will help Tod to build up a case in clients favour. He should also look whether any of these rulings have taken care of the previous rulings which are against him if that is the case it will be a plus point.

Courts observation is very important if the court has taking care of any fact which is in clients favour, Todd should place that relevant paragraph by giving proper citation of that judgement.

Short should not tell the client that law appears to support or not support the client position because that will not be proper. He should clarify that we don't have a open and shut case so it will take time and the result are not guaranteed as law is not clear and it will depend on the interpretation of the court. What we can do is to place our facts in the best possible manner.