Summary CHAPTER 2 WORKING WITH THE TAX LAW (South-Western Federal Taxation 2023: Individual Income Taxes)

LEARNING OBJECTIVES: After completing Chapter 2, you should be able to: • LO.1 Distinguish between the statutory, administrative, and judicial sources of the tax law and understand the purpose of each source. • LO.2 Locate and work with the appropriate tax law sources. • LO.3 Develop an awareness of tax research tools. • LO.4 Describe the tax research process. • LO.5 Communicate the results of the tax research process in a client letter and a tax file memorandum. • LO.6 Apply tax research techniques and planning procedures. • LO.7 Be aware of taxation on the CPA examination. CHAPTER OUTLINE • 2-1 Tax Sources, 2-2 ◦ 2-1a Statutory Sources of the Tax Law, 2-2 ◦ 2-1b Administrative Sources of the Tax Law, 2-6 ◦ 2-1c Judicial Sources of the Tax Law, 2-11 ◦ 2-1d Other Sources of the Tax Law, 2-20 • 2-2 Working with the Tax Law—Tax Research Tools, 2-21 ◦ 2-2a Commercial Tax Services, 2-21 ◦ 2-2b Using Online Tax Services, 2-21 ◦ 2-2c Noncommercial Online Tax Services, 2-22 • 2-3 Working with the Tax Law—Tax Research, 2-23 ◦ 2-3a Identifying the Problem, 2-25 ◦ 2-3b Refining the Problem, 2-25 ◦ 2-3c Locating the Appropriate Tax Law Sources, 2-26 ◦ 2-3d Assessing the Validity of the Tax Law Sources, 2-26 ◦ 2-3e Arriving at the Solution or at Alternative Solutions, 2-30 ◦ 2-3f Communicating Tax Research, 2-30 • 2-4 Working with the Tax Law—Tax Planning, 2-32 ◦ 2-4a Nontax Considerations, 2-32 ◦ 2-4b Components of Tax Planning, 2-33 ◦ 2-4c Tax Avoidance and Tax Evasion, 2-34 ◦ 2-4d Follow-Up Procedures, 2-34 ◦ 2-4e Tax Planning—A Practical Application, 2-35 • 2-5 Taxation on the CPA Examination, 2-35