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9 Research Memo Examples & Samples

Editable Memo Template in Word

❶The nonresident alien in Johansson v.

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The tax professional should provide complete and specific cites. In tax research, reviewers understand statutory cites to be references to the Internal Revenue Code and regulatory cites to be references to Treasury Regulations. Under the method we recommend, the tax researcher provides authoritative support in Section B for positions taken in Section A. Thus, Section A cites to judicial decisions should include only the title, court, and year of the decision.

For example, Jones v. DC-Pa, , Smith v. The reviewer does not need this additional information since, under the method we recommend, the authoritative support is provided in Section B. Likewise, citations to Revenue Rulings should not include the volume and page number. Abbreviate very common tax terms as appropriate, especially in cites.

However, avoid the temptation to abbreviate many words or phrases beyond those that are commonly accepted. For more information about appropriate abbreviations, see the lesson on wordiness. But it saves the reviewer time. The photocopied support materials that appear in Section B must include the full text beginning to end of any Code section, regulation, ruling, or judicial decision cited.

Similarly, if you cite Reg. If you cite a judicial decision or revenue ruling, the entire decision or ruling must be included. This procedure allows the reviewer to examine your supporting authority in context if he or she wishes.

Reviewers sometimes do not have ready or convenient access to authoritative support. Even when reviewers can be assumed to have ready access, it is important to direct the reviewer to the exact passage on the correct page that is relevant. Unless the researcher and the reviewer are using the same research materials, even a page reference will not necessarily lead the reviewer to the correct page of a referenced source because the paging system may differ.

Attaching copies of support materials avoids these potential inefficiencies. When authoritative support e. This is very important. It emphasizes the pertinent passage and absolves the reviewer from reading every word.

Never highlight the headnote or syllabus of a ruling or judicial decision. Headnotes are not part of the official opinion, carry no legal weight, and sometimes are ambiguous, misleading, or wrong. Do not highlight passages in Section B that are not specifically cited in Section A since the result can be distracting.

In fact, avoid the temptation to highlight large portions of the page; try to narrow it down to one or two sentences or a few lines. The reviewer always can read this material in context if desired. When the reviewer sees a cross-reference in the right-hand margin of Section A and turns to the cross-referenced page in section B, he or she should immediately see the specific sentence to which you refer. Do not expect the reviewer to wade through several highlighted sentences or paragraphs to find the specific passage that you reference.

Writing Tax Research Memos Tax professionals often must document and communicate their tax research. Organize the Research Memo Tax research memos should contain features allowing reviewers to read and understand their contents quickly.

Express Issues Clearly and Conclusions Early As with the statement of facts, the tax professional should express all issues clearly and unambiguously; that is, the meaning of issues should be subject to only one possible interpretation.

Cite Tax Authority Documentation is a very important part of communicating the results of tax research. You should not simply refer the reviewer to your source. Do not force the reviewer to interpret the tax authority, wonder how your cited authority relates to the issue, or otherwise guess your line of reasoning.

Make it so clear that misinterpretation is impossible. Consider the example below, which involves the statutory law: Section e indicates that theft losses are deductible in the taxable year sustained. Thus, the theft loss is deductible in Look at these examples: Based on Johansson v. CA-5, , our client is engaged in a trade or business within the U. Our client is engaged in a trade or business within the U. The taxpayer in Johansson v. CA-5, was a professional boxer who engaged in only one U.

The court held that the one event was so significant that it constituted a U. Similarly, our client is engaged in a trade or business within the U.

San Luis Obispo, CA The applicable values for the machine are as follows: This all happens in Tax Year 1 and now the tax year has closed. All taxpayers are on the calendar year system. Will the partnership recognize a gain or loss on the transfer of interest to the service providing partner if it is holding an appreciated or depreciated asset? If the partnership decides to not recognize the gain or loss of the transfer of interest, will it be subjected to the I.

Will the tax return preparer be subject to the I. AB Partnership should opt for nonrecognition of a gain or loss because with little substantial authority on the issue of recognition when a service providing partner is involved, we can interpret the silence of the courts on the issue to be in our favor.

In terms of the penalties, we can expect not to be subjected to neither the substantial understatement penalty nor the preparer penalty because there is little authority governing the recognition of gain or loss, we will not be willfully evading payment of tax liability or knowingly reporting and understating tax liability on a return.

The section mentions the recognition of property in an exchange of interest, but services are not considered property. However, the regulation does not address to whom the delivery must be made. Fly Jones , In Rev. However, if the charities had not authorized the treasurer to act as collecting agent, members could not deduct their contributions until the taxable year in which the treasurer forwarded such funds to the charities.

The Slammin-Jammin Club is not an authorized agent of the American Red Cross since the latter did not know of the contribution until it was actually received. Thus, payments made to the club are deductible in the year the club transfers the payment to the American Red Cross. In contrast, the issue in a judicial brief should be written in more general terms.

When the case is attached, the only relevant information is the court and year. The traditional cite, consisting of the volume, reporter series, and page number, is unnecessary information that clutters the research memo. This statement is the rule of law. Generally, you should discuss each judicial decision or ruling briefly to show its relevance; the example here is an exception to this usual procedure.

This sentence applies the Welch v. An explicit application of law to facts is very important in a research memo. Deduction for AGI is a more favorable outcome for many taxpayers than an itemized deduction, which the next paragraph addresses. The same is true of IRS rulings. The traditional cite, which includes the volume, reference to the Cumulative Bulletin, and page number, provides unnecessary information that clutters the research memo.

Sufficient facts are provided about Rev. The same is true of judicial decisions. For example, the dollar amount of the fines is used in the issue. Note that issues 1 and 2 could be combined as follows: Sometimes an issue requires that several subpoints be addressed e. In this situation, a short conclusion at the beginning of each subpoint is an organization strategy that can increase readability.

As a Tax Court memorandum decision, other sources besides and perhaps better than Wilson could have been cited to establish the general principle that only the payor of an expense or donation is entitled to a deduction.


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The tax research memo on this web site illustrates one way in which tax research can be documented and communicated. Before reviewing this memo, study the lesson for writing a research memo, read the fact scenario we provide, complete the research, and write a .

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example of the tax research memo by Terry_Pandy5/5(1).

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View Notes - Tax Research Memorandum - Example from ACCOUNTING at University of Wisconsin. Tax Research Memorandum To: Date: By: Re: John Davis January 24, Student (Put your name on the%(34). Writing Tax Research Memos BA Individual Tax Purposes To find a solution to the tax problems of one’s clients or employer • To organize the facts, issues, and conclusions of the project To facilitate a review of the research activities by colleagues To allow for subsequent examination of the research issue Audience Users: are well versed in federal tax law understand frequent and.

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Unfortunately, this often leaves little time to spend hours conducting tax research. This is where I come in. When you’ve got a tax question, I’m there to answer it for you. Depending on the question, I may write a formal memo but for others an email exchange or phone call will suffice. You can check out my work with these sample. Tax Research Memo #1. Prepare tax research memorandum for the case below. You should conduct some preliminary tax research (suggest you use topical indices such as the Master Tax Guide and/or the Research Consultant) to identify the “tax issues” you believe relevant to your case.