2. RonBlair

3. Tax Research, Planning and Practice ACCT 6356

4. RonBlair Tax Practice ACCT 6356: Tax Research, Planning and Practice Text: West’s Federal Tax Research, 6E, Raabe, Whittenburg, Sanders and Bost ISBN: 0-324-12385-X Lecturer: Art Agulnek, CPA – 972-883-xxxx – mailto: axa022000@utdallas.eduaxa022000@utdallas.edu – art3601@attbi.comart3601@attbi.com – Office: AHE 124 By Appointment. Time: Thursday 7:00 – 9:45p.m. Fax: 972-867-4245

5. RonBlair Tax law derives from many disciplines Law – Interpretation – Litigation Accounting – Interpretation – Application (cont’d)

6. RonBlair Disciplines (cont’d) Economics Politics Sociology

7. RonBlair Tax Policy – Who Makes It? Made by: Administration / Treasury Impacted by: General public acceptance (All the disciplines discussed)

8. RonBlair Tax Policy – Who Makes It? Made by: Administration / Treasury Impacted by: – General public acceptance – (All the disciplines discussed)

9. RonBlair Tax Practice Tax Practice: = Application of the enacted legislation to specific accounting situations. Or, more simply stated – application of facts to the law.)

10. RonBlair Elements of a Tax Practice Tax Compliance Tax Planning Tax Litigation Tax Research

11. RonBlair Tax Compliance Gathering pertinent information Evaluation of the information Classification of the same information Preparation of returns and other documents Representation of clients before IRS in an “administrative proceeding.”

12. RonBlair Tax Planning Purpose – Optimization Arranging one’s financial affairs in a manner as to optimize any tax liability. “…. There is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. ………. for nobody owes any public duty to pay more than the law demands: taxes are forced extractions, not voluntary contributions.” (Justice Learned Hand, Comm. V. Newman, 159 F.2d 848 [CA-2, 1947]).

13. RonBlair Tax Planning (cont.) Tax avoidance vs. Tax evasion – Avoidance – planning, optimization – Evasion - A matter of “intent” to defraud the government Open transactions vs. Closed transactions

14. RonBlair Tax Planning (cont.) Two major categories – when would you like your client to come see you? Open transaction Closed transaction

15. RonBlair Tax Litigation Process of settling a tax dispute in a court of law. Generally handled by an attorney once a dispute becomes within the jurisdiction of a Federal court. CPAs are beginning to infringe on lawyers’ historical role. Accountants play an important role in an advisory or support capacity.

16. RonBlair Tax Research Identify / define the issues Determine the authorities Evaluate the authorities Apply the authorities to the facts

17. RonBlair Practice before the IRS Authority – Circular 230 Authorizes – Attorneys – Certified Public Accountants – Enrolled Agents – Enrolled Actuaries But what about Return Preparers?

18. RonBlair Questions?