The facts for your Tax Research Assignment III are as follows: Joe Bon Joni is a self-employed rock star who is and hires you as his new CPA. He explains that in 2013 he spent $10,000 on special

The facts for your Tax Research Assignment III are as follows:

Joe Bon Joni is a self-employed rock star who is and hires you as his new CPA. He explains that in 2013 he spent $10,000 on special “flashy” clothes and outfits for his rock concerts. Joe would like to deduct the cost of these clothes as work-related because the clothes are not acceptable to his sense of fashion. He would like to know under what circumstances he can deduct the cost of these work clothes.

Please research the relevant tax law and write Joe a brief memo of no more than two pages, in which you communicate the results of your research. Use the format for communicating research findings discussed on pages 20-22 of chapter 2 of your textbook for your memorandum. Identify relevant statutory, regulatory, and judicial authorities and discuss how these authorities affect your conclusion concerning the deductibility of Joe’s clothing expenses. He likes to do his own reading of the tax law, so he would like you to provide him with the relevant citations in your memo.

If you do a really good job, he may send his rock star buddies your way to do their taxes – that could help you earn a really good living!

Your research assignment will be graded using the following criteria:

1. Recognition of the important facts and issues

2. Correct conclusion

3. Clarity of writing

4. Proper use of relevant sources to support your conclusion and analysis.

5. Proper citation of relevant sources

6. Proper format, spelling & grammar

Attachment 1

Attachment 2

ATTACHMENT PREVIEW

Download attachment

CHAPTER 2 – ADDITIONAL TAX RESEARCH GUIDANCE
To complete Tax Research Assignments, you will need to conduct research in the three
areas of primary tax law. Work through the searches below to learn how to do tax
research. Review these steps each time you begin working on a new research assignment.
There are many different ways to do research. The list below is one method, but keep in
mind it is not the only way to find documents. There are a number of great websites in
the Webliography section of the Web Tycho classroom; you can try them all to see which
you prefer.
If an area is new to you, you may wish to use Google first, to see what others say on the
topic and figure out what kinds of authority might exist on the issue. The power of
Google is that it can quickly pinpoint an IRS Code citation or Revenue Ruling or
Procedure on your issue. However, as you may know, Google can turn up anything on
the internet, and might lead you to sites that have incorrect, outdated, or misleading
information. Exercise your good judgment accordingly, and in this class, for your
research projects and homework, only cite to primary sources, not secondary sources that
you may find on the web. In other words, feel free to use Google as a way to learn what
Code sections or administrative materials may apply. But then use a more reliable
internet site (such as UMUC’s library) to actually provide you with the text that you will
evaluate and cite.
Once you get a sense of the topic, and maybe even a code section or other citations, you
can turn to LexisNexis (in the Tax Law library) to pull up specific legislative,
administrative, or judicial authority. As a future professional and a member of
this class,
these three areas of primary tax law (legislative, administrative, and
judicial) are the only types of authority you should cite in your research work.
1.
Legislative Authority
Internal Revenue Code (IRC), Chapter 2, pp. 2-11through 2-14 textbook
a.
Lexis/Nexis legal library from UMUC: Lexis/Nexis combines many tax resources in
one spot and offers fast, up-to-date information. Your future employers may expect you
to be familiar with Lexis (or its rival, Westlaw) so take the time now to learn how it
works:
www.umuc.edu.
Link to Library (under “Students”).
Link to “Subject Guides.”
Link to “Accounting”. Click “Go.”
Under the Most Recommended Resources bar, link to “LexisNexis Academic”.
Log in to your account if necessary.
On the Left Menu Bar, tap “Sources”.
Link “Find Sources”.
In the Keyword box, enter: Internal Revenue Code and click the red button (upper right)
to continue.
.

Unlock Solution Unlocking…

Check the first “Internal Revenue Code” box to continue, and click the red OK-Continue
Box in the right corner.
Under “Terms and Connectors” enter your search term(s).
Search.
b.
Cornell website: If you know what code section you are looking for, one of the fastest
ways to find it is through Cornell University Law School’s website at this link:
http://www.law.cornell.edu/uscode/ But note that the Code on Cornell’s website may not
be current enough for research assignments. Lexis/Nexis is a current database. If you put
“26” in the Title box and the Code section in the section box and hit Go, you can retrieve
the specified Code section.
You can also “search this title” using key words.
2.
Administrative Authority
, Chapter 2, pp. 2-15 through 2-17 of the textbook:
a.
Treasury Regulations (Regs);
b.
Revenue Rulings (Rev. Rul.);
c.
Revenue Procedures (Rev. Proc.);
d.
Private letter rulings (PLR)
When looking for administrative materials where you do not have a citation, you can start
by putting key words into the search function at the IRS.gov homepage. If regulations or
rulings have been published on the issue, they will usually pop up here. The IRS
publications can also be helpful in providing an overview, but they are not considered
primary authorities.
a.
Treasury Regulations
If you know the regulation citation, some direct ways to pull it up are:
Steps to research the Regs:
www.irs.gov
Link to Help & Resources at the top of the page
Link to Tax Code, Regulations & Guidance on left side of page
Select Treasury (Tax) Regulations
Link to Go table of Contents
Leave IRS website
Under actions, browse Code of Federal Regulations.
Under Related Resources, click on the link to Electronic Code of Federal Regulations
Scroll down to Title 26 and hit Go. This will take you to a list of links to Treasury Tax
Regulations.
Or
www.umuc.edu.
Link to Library.
Link to “Subject Guides”.

Show entire document

ATTACHMENT PREVIEW

Download attachment

The facts for your Tax Research Assignment III are as follows:
Joe Bon Joni is a self-employed rock star who is and hires you as his new CPA. He explains that
in 2013 he spent $10,000 on special “flashy” clothes and outfits for his rock concerts.
Joe would
like to deduct the cost of these clothes as work-related because the clothes are not acceptable to
his sense of fashion.
He would like to know under what circumstances he can deduct the cost of
these work clothes.
Please research the relevant tax law and write Joe a brief memo of no more than two pages, in
which you communicate the results of your research.
Use the format for communicating
research findings discussed on pages 20-22 of chapter 2 of your textbook for your memorandum.
Identify relevant statutory, regulatory, and judicial authorities and discuss how these authorities
affect your conclusion concerning the deductibility of Joe’s clothing expenses.
He likes to do his
own reading of the tax law, so he would like you to provide him with the relevant citations in
your memo.
If you do a really good job, he may send his rock star buddies your way to do their taxes – that
could help you earn a really good living!
Your research assignment will be graded using the following criteria:
1. Recognition of the important facts and issues
2. Correct conclusion
3. Clarity of writing
4. Proper use of relevant sources to support your conclusion and analysis.
5. Proper citation of relevant sources
6. Proper format, spelling & grammar
*Please submit your memo as a word or PDF document into your assignment folder. This
assignment is due to me by
Sunday, November 3 at 11:59 pm EST

Leave a Comment