Assuming that you, unlike me, actually have an end purpose to your research other than just learning new stuff; today we are going to look at some avenues to put this information to use.
Obviously, the most basic reason for someone in our profession to do in-depth research is to complete the tax return. But that isn’t the only thing we need to do with our material. If you are taking a position from one of the lower standards in Part 2 of our series you may need to cite your research material on an IRS Form 8275, Disclosure Statement. This is the IRS form to use when you need to explain why you did something on a return that may not make sense to someone without the details. You need to lay out you case for the deviation and then include your citations for the authority to do so.
That isn’t your only use for the research you have done. If you are assisting a client with an IRS letter or audit you may need to quote your citations. Make sure you use IRS titles for the citations. Instead of putting IRC XXX.XX(x) put Cod. Sec. XXX.XX(x). When using citations you should drill down to the most relevant paragraph in your correspondence as well. Instead of putting Cod. Sec. 162, which is approximately 14 pages long, use Cod. Sec. 162(g)(1).
Some of the things you will use as citations frequently should be identified as follows:
IRC (Internal Revenue Code) = Cod. Sec. IRM (Internal Revenue Manuel) = IRM Section Revenue Rulings = Rev. Rul. Treasury Regulations = Treas. Rul. Revenue Procedures = Rev. Proc. Tax Court Decision = TC No. Tax Court Memorandum = TC Memo.When you are using citation in correspondence with the IRS or other taxing authority make sure you use the correct abbreviations or it could be a long process. I once put “IRC” 1341 on a tax return in a note and the IRS employee who input the information interpreted it as “Investment Regulated Credit” instead of Internal Revenue Code. And that led to a two year battle to get the client his refund back.
Next Up: How to build your client base through good research techniques and usage.
Anything and everything taxes. I also write the Louisiana State book to go to our new Income Tax Course learners and the state-wide training for upper level Tax Professionals. I am an Instructor of all levels of tax related classes. I love to teach and write as well as taking the absolute best care of my clients all year round.
26 years in Law Enforcement (13 in the Air Force and 13 at the Bossier City PD), 20 years doing income taxes professionally.
My goals now are to spend many years being my 3 grandchildren’s MeeMaw, taking the absolute best care of my clients, and continually learning new things.
Specialties
Taxes! I specialize in military, states, small business, and rentals.
The postings made on this site are my own and do not necessarily represent HR Block’s positions, strategies or opinions.
2 comments on “Research: Using What You Have Learned – Part 5 of a 6 Part Series”
Hi Kathryn,
Thanks for the articles series. New to the blog so how can access the first four parts if possible? Thank you
Terry, glad you find it useful. Simply click on my bio above and it will take you to my page. In the left column under my picture is a link to all my blog posts. Hope they help. Look for more coming soon.
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