RonBlair

Tax Research, Tax Research, Planning and Planning and

PracticePracticeACCT 6356

RonBlair

Tax PracticeTax 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.edu– art3601@attbi.com – Office: AHE 124 By Appointment.

Time: Thursday 7:00 – 9:45p.m. Fax: 972-867-4245

RonBlair

Tax law derives from many Tax law derives from many disciplinesdisciplines

Law– Interpretation– Litigation

Accounting– Interpretation– Application

(cont’d)

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Disciplines Disciplines (cont’d)(cont’d)

Economics

Politics

Sociology

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Tax Policy – Who Makes It?Tax Policy – Who Makes It?

Made by: Administration / Treasury

Impacted by:

General public acceptance

(All the disciplines discussed)

RonBlair

Tax Policy – Who Makes It?Tax Policy – Who Makes It?

Made by: Administration / TreasuryImpacted by:

– General public acceptance– (All the disciplines discussed)

RonBlair

Tax PracticeTax Practice

Tax Practice:= Application of the enacted legislation to

specific accounting situations.

Or, more simply stated – application of facts to the law.)

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Elements of a Tax PracticeElements of a Tax Practice

Tax ComplianceTax PlanningTax LitigationTax Research

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Tax ComplianceTax Compliance

Gathering pertinent informationEvaluation of the informationClassification of the same information Preparation of returns and other documentsRepresentation of clients before IRS in an

“administrative proceeding.”

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Tax PlanningTax 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]).

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Tax Planning Tax Planning (cont.)(cont.)

Tax avoidance vs. Tax evasion– Avoidance – planning, optimization– Evasion - A matter of “intent” to defraud the

government

Open transactions vs. Closed transactions

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Tax Planning Tax Planning (cont.)(cont.)

Two major categories – when would you like your client to come see you?

Open transactionClosed transaction

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Tax LitigationTax 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.

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Tax ResearchTax Research

Identify / define the issuesDetermine the authoritiesEvaluate the authoritiesApply the authorities to the facts

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Practice before the IRSPractice before the IRS

Authority – Circular 230Authorizes

– Attorneys– Certified Public Accountants– Enrolled Agents– Enrolled Actuaries

But what about Return Preparers?

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Questions?