Federal Tax Research
12th Edition
ST
UV
SOLUTIONS
IA
MANUAL
_A
PP
Roby Sawyers
Steven Gill
RO
────────────────────────────────────────────────────
Comprehensive Solutions Manual for Instructors
VE
and Students
D?
© Roby Sawyers & Steven Gill. All rights reserved. Reproduction or distribution without
permission is prohibited.
?
© Successhands
, Solutions Manual for Federal Tax Research (12th Edition)
Roby Sawyers & Steven Gill
ISBN: 9780357366387
ST
PART 1: THE TAX RESEARCH ENVIRONMENT
Chapter 1. Introduction to Tax Practice and Ethics
Chapter 2. Tax Research Methodology
UV
PART 2: PRIMARY SOURCES OF FEDERAL TAX LAW
Chapter 3. Constitutional and Legislative Sources
Chapter 4. Administrative Regulations and Rulings
Chapter 5. Judicial Interpretations
IA
PART 3: RESEARCH TOOLS
Chapter 6. Thomson Reuters Checkpoint
Chapter 7. CCH AnswerConnect
_A
Chapter 8. Other Tax Services and Tax Periodicals
Chapter 9. Multijurisdictional Taxes
PART 4: IMPLEMENTING THE RESEARCH TOOLS
PP
Chapter 10. Communicating Research Results
Chapter 11. Tax Planning
Chapter 12. Working with the IRS
Chapter 13. Tax Practice and Administration
RO
VE
D?
?
© Successhands
, ASDFGHJKJHGFDFHWERTYUIUYTRYUIOOIUYTZXCVBNBVCXCVBNNBV
Solution Manual For:
Federal Tax Research 12th Edition by Roby Sawyers, Steven Gill
CHAPTER 1: INTRODUCTION TO TAX PRACTICE AND ETHICS
ST
DISCUSSION QUESTIONS
UV
1-1. In the United States, the tax system is an outgrowth of the following five disciplines: law,
accounting, economics, political science, and sociology. The environment for the tax system is
provided by the principles of economics, sociology, and political science, while the legal and
accounting fields are responsible for the system‘s interpretation and application.
IA
Each of these disciplines affects this country‘s tax system in a unique way. Economists address
such issues as how proposed tax legislation will affect the rate of inflation or economic growth.
Measurement of the social equity of a tax and determining whether a tax system discriminates
_A
against certain taxpayers are issues that are examined by sociologists and political scientists.
Finally, attorneys are responsible for the interpretation of the taxation statutes, and accountants
ensure that these same statutes are applied consistently.
PP
Page 4
1-2. The other major categories of tax practice in addition to tax research are as follows:
RO
• Tax compliance
• Tax planning
• Tax litigation
Page 5
VE
1-3. Tax compliance consists of gathering pertinent information, evaluating and classifying that
information, and filing any necessary tax returns. Compliance also includes other functions
necessary to satisfy governmental requirements, such as representing a client during an Internal
D?
Revenue Service (IRS) audit.
?
ASFGHJWERTYUIOIUYTRTYUISDFGHJZXCVBNMBVCCVBNASDFGHJ
, Page 5
1-4. Most of the tax compliance work is performed by commercial tax preparers, enrolled agents
(EAs), attorneys, and certified public accountants (CPAs). Noncomplex individual, partnership,
ST
and corporate tax returns often are completed by commercial tax preparers. The preparation of
more complex returns usually is performed by EAs, attorneys, and CPAs. The latter groups also
provide tax planning services and represent their clients before the IRS.
UV
An EA is one who is admitted to practice before the IRS by passing a special IRS-administered
examination, or who has worked for the IRS for five years and is issued a permit to represent
clients before the IRS. CPAs and attorneys are not required to take this examination and are
automatically admitted to practice before the IRS if they are in good standing with the appropriate
IA
professional licensing board.
Page 5 and Circular 230
_A
PP
1-5. Tax planning is the process of arranging one‘s financial affairs to minimize any tax liability. Much
of modern tax practice centers around this process, and the resulting outcome is tax avoidance.
There is nothing illegal or immoral in the avoidance of taxation as long as the taxpayer remains
RO
within legal bounds. In contrast, tax evasion constitutes the illegal nonpayment of a tax and cannot
be condoned. Activities of this sort clearly violate existing legal constraints and fall outside of the
domain of the professional tax practitioner.
Page 6
VE
1-6. In an open tax planning situation, the transaction is not yet complete; therefore, the tax practitioner
maintains some degree of control over the potential tax liability, and the transaction may be modi-
fied to achieve a more favorable tax treatment. In a closed transaction however, all of the pertinent
D?
actions have been completed, and tax planning activities may be limited to the presentation of the
situation to the government in the most legally advantageous manner possible.
?
12th Edition
ST
UV
SOLUTIONS
IA
MANUAL
_A
PP
Roby Sawyers
Steven Gill
RO
────────────────────────────────────────────────────
Comprehensive Solutions Manual for Instructors
VE
and Students
D?
© Roby Sawyers & Steven Gill. All rights reserved. Reproduction or distribution without
permission is prohibited.
?
© Successhands
, Solutions Manual for Federal Tax Research (12th Edition)
Roby Sawyers & Steven Gill
ISBN: 9780357366387
ST
PART 1: THE TAX RESEARCH ENVIRONMENT
Chapter 1. Introduction to Tax Practice and Ethics
Chapter 2. Tax Research Methodology
UV
PART 2: PRIMARY SOURCES OF FEDERAL TAX LAW
Chapter 3. Constitutional and Legislative Sources
Chapter 4. Administrative Regulations and Rulings
Chapter 5. Judicial Interpretations
IA
PART 3: RESEARCH TOOLS
Chapter 6. Thomson Reuters Checkpoint
Chapter 7. CCH AnswerConnect
_A
Chapter 8. Other Tax Services and Tax Periodicals
Chapter 9. Multijurisdictional Taxes
PART 4: IMPLEMENTING THE RESEARCH TOOLS
PP
Chapter 10. Communicating Research Results
Chapter 11. Tax Planning
Chapter 12. Working with the IRS
Chapter 13. Tax Practice and Administration
RO
VE
D?
?
© Successhands
, ASDFGHJKJHGFDFHWERTYUIUYTRYUIOOIUYTZXCVBNBVCXCVBNNBV
Solution Manual For:
Federal Tax Research 12th Edition by Roby Sawyers, Steven Gill
CHAPTER 1: INTRODUCTION TO TAX PRACTICE AND ETHICS
ST
DISCUSSION QUESTIONS
UV
1-1. In the United States, the tax system is an outgrowth of the following five disciplines: law,
accounting, economics, political science, and sociology. The environment for the tax system is
provided by the principles of economics, sociology, and political science, while the legal and
accounting fields are responsible for the system‘s interpretation and application.
IA
Each of these disciplines affects this country‘s tax system in a unique way. Economists address
such issues as how proposed tax legislation will affect the rate of inflation or economic growth.
Measurement of the social equity of a tax and determining whether a tax system discriminates
_A
against certain taxpayers are issues that are examined by sociologists and political scientists.
Finally, attorneys are responsible for the interpretation of the taxation statutes, and accountants
ensure that these same statutes are applied consistently.
PP
Page 4
1-2. The other major categories of tax practice in addition to tax research are as follows:
RO
• Tax compliance
• Tax planning
• Tax litigation
Page 5
VE
1-3. Tax compliance consists of gathering pertinent information, evaluating and classifying that
information, and filing any necessary tax returns. Compliance also includes other functions
necessary to satisfy governmental requirements, such as representing a client during an Internal
D?
Revenue Service (IRS) audit.
?
ASFGHJWERTYUIOIUYTRTYUISDFGHJZXCVBNMBVCCVBNASDFGHJ
, Page 5
1-4. Most of the tax compliance work is performed by commercial tax preparers, enrolled agents
(EAs), attorneys, and certified public accountants (CPAs). Noncomplex individual, partnership,
ST
and corporate tax returns often are completed by commercial tax preparers. The preparation of
more complex returns usually is performed by EAs, attorneys, and CPAs. The latter groups also
provide tax planning services and represent their clients before the IRS.
UV
An EA is one who is admitted to practice before the IRS by passing a special IRS-administered
examination, or who has worked for the IRS for five years and is issued a permit to represent
clients before the IRS. CPAs and attorneys are not required to take this examination and are
automatically admitted to practice before the IRS if they are in good standing with the appropriate
IA
professional licensing board.
Page 5 and Circular 230
_A
PP
1-5. Tax planning is the process of arranging one‘s financial affairs to minimize any tax liability. Much
of modern tax practice centers around this process, and the resulting outcome is tax avoidance.
There is nothing illegal or immoral in the avoidance of taxation as long as the taxpayer remains
RO
within legal bounds. In contrast, tax evasion constitutes the illegal nonpayment of a tax and cannot
be condoned. Activities of this sort clearly violate existing legal constraints and fall outside of the
domain of the professional tax practitioner.
Page 6
VE
1-6. In an open tax planning situation, the transaction is not yet complete; therefore, the tax practitioner
maintains some degree of control over the potential tax liability, and the transaction may be modi-
fied to achieve a more favorable tax treatment. In a closed transaction however, all of the pertinent
D?
actions have been completed, and tax planning activities may be limited to the presentation of the
situation to the government in the most legally advantageous manner possible.
?
