Xiaomeng Zhang University of Michigan Law Library Urban
Community Clinic Seminar 956 February 15 th, 2010 Federal Tax Law
Research
Slide 2
What is Covered What are the major primary laws - Statutes and
Regulations - Case law - IRS rulings and documents How to find the
laws - Start with Secondary Resources - Loose-leaf Services -
Commercial databases
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Primary Sources of Federal Tax Law Statutes and Regulations -
Internal Revenue Code: Title 26 of the United States Code 1. Most
authoritative 2. Publications: a.Official publication: United
States Code b.Commercial Publication: Annotated Codes (U.S.C.A. and
U.S.C.S) c.Commercial Publications: CCHs Standard Federal Tax
Reporter; RIAs United States Tax Reporter; Lexis/Westlaw, CCH and
RIA Commercial Databases
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Primary Sources of Federal Tax Law Statutes and Regulations -
Treasury Regulations: Promulgated by Internal Revenue Service under
the supervision of Treasury Department. 1. Legislative Regulation (
under a specific congressional delegation ) v. Interpretative
Regulation ( under the general authority ) 2. Less Authoritative
than the Code: Greater details; more practical examples 3. Types of
Treasury Regulations: a.Proposed Treasury Regulations (Prop. Treas.
Reg.): notice of proposed rulemaking b.Final Regulations (Treas.
Reg.) c.Temporary Regulations (Treas. Reg. 1.71-1T) 4. Publication:
Title 26 of Code of Federal Regulations; CCHs Standard Federal Tax
Reporter; RIAs United States Tax Reporter
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Primary Sources of Federal Tax Law United States Supreme Court
Geographic Circuit Courts of Appeals (1 st through 11 th and D.C.
Circuits) Court of Appeals for the Federal Circuit Court of Federal
Claims United States Tax Court District Courts Regular opinions
(most authoritative) Memorandum opinions Summary opinions (no
precedential value) Adapted from Federal Tax Research, figure
5.1
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Primary Sources of Federal Tax Law A few words about finding
case law a. For official publication: check bluebook (no official
publication for US Tax Court Memo opinions and Summary opinions) b.
But all are available through commercial publications: CCH, RIA
etc.
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Primary Sources of Federal Tax Law IRS rulings and decisions -
Public Guidance: a. Revenue Rulings: (Rev. Rul.): i. Purpose:
interpret the Code by IRS; ii. Authoritative but subservient to the
Code, regulations, and case law; apply retroactively ( distinguish,
supersede, supplement, revoke, suspend etc. ) b. Revenue Procedures
(Rev. Proc.) c. Action on Decisions: ( AOD ) i. Acquiesce v. Refuse
to Acquiesce ii. Not authoritative d. IRS Announcements/Notices e.
Publications: Internal Revenue Bulletin and Cumulative (official);
CCHs Standard Federal Tax Reporter and RIAs United States Tax
Reporter
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Primary Sources of Federal Tax Law Administrative Agency
Decisions: IRS rulings and decisions - Written Determinations: no
precedential value; binding on the individual taxpayer; available
to public a. Private Letter Rulings: not yet under examination,
litigation or in appeals. b. Determination Letters: c. Technical
Advice Memoranda : d. General Counsel Memo (GCM): 1992; -
Publication: Varies; Check Library Catalog and IRS website; CCH Tax
Research Network and RIA Checkpoint
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How to Find the Law Research Question Client is CDC a community
development organization in a low-income, urban community. CDC is
incorporated as a non-profit corporation. The stated purpose of CDC
according to the filed Articles of Incorporation is to (a) aid and
benefit the unemployed, underemployed and/or minority residents of
an economically depressed area by establishing businesses owned by
and employing the residents of the community and providing them
with business planning, funding, marketing, and mentoring, etc.;
(b) improve and develop skills and employment opportunities of the
members of the community; and (c) make distributions to
organizations that qualify as exempt organizations under section
501(c)(3) of the Code. CDC was created by three directors from XYZ,
a nonprofit 501(c)(3) organization based in the same urban
community. XYZ is an evangelical youth group with the purpose of
sharing religious beliefs and encouraging social involvement. XYZ
has been having fundraising problems and the three XYZ directors
decided to create a separate nonprofit corporation (CDC) that would
be held at arms length. In addition to the purpose stated above,
XYZs other purpose for CDC is to funnel donations back to XYZ. The
small businesses being set up by CDC would, when they began to earn
a profit, donate 10% back to CDC. CDC would then distribute those
profits to other 501(c)(3)s in the community, including (but not
limited to) XYZ. Questions: What are the tax and nontax
implications of (1) requiring donations from the businesses they
created, and (2) taking the donations and redistributing them to
other nonprofits in the community, and specifically, XYZ?
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How to Find the Law Research Process - Start with Secondary
Resources: Overview + References to primary law 1. Treatises:
BookLists:
http://umil.iii.com/screens/booklists.htmlhttp://umil.iii.com/screens/booklists.html
a. Mertens Law of Federal Income Taxation: multi-volume treatises
(available in Westlaw (MERTENS))
http://umil.iii.com/record=b1253823~S0
http://umil.iii.com/record=b1253823~S0 b. KW or Subject Search in
the Library Catalog: e.g. nonprofit and tax (as kws); or Nonprofit
organizations -- Taxation -- Law and legislation United States
i.The Law of the Tax-exempt Organizations (available in Lexis)
http://umil.iii.com/record=b1383010~S0
http://umil.iii.com/record=b1383010~S0 ii.Nonprofit Organizations:
Law and Taxation (available in Westlaw: NPOLT )
http://umil.iii.com/record=b1492942~S0http://umil.iii.com/record=b1492942~S0
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How to Find the Law Research Process - Start with Secondary
Resources: 1. Law Review and Journal Articles : Specialized Law
Reviews/Journals on Tax; practitioner-oriented tax journals a.
Catalog search: e.g. Taxation -- United States PeriodicalsTaxation
-- United States Periodicals b. See handout: a list from Legal
Research Guides: Federal Income Tax Law, p42-43 2. Commercial
Databases: a. Lexis (Legal > Area of Law - By Topic >
Taxation > Search Analysis, Law Reviews & Journals > By
Subtopic > Exempt Organizations >): browse TOC/search; Tax
Analyst publicationsLegalArea of Law - By TopicTaxationSearch
Analysis, Law Reviews & JournalsBy SubtopicExempt Organizations
b. Westlaw (TX-TP)TX-TP c. RIA (Warren Gorham & Lamont journals
and treatises )
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How to Find the Law Research Process - Loose-Leaf Services: put
both Primary and Secondary Commentaries together with cross-
references; Currency; Heavily Regulated Areas of Law including Tax
1. CCHs Standard Federal Tax Reporter: 19 vol.
http://umil.iii.com/record=b1075510~S0
http://umil.iii.com/record=b1075510~S0 2. RIAs United States Tax
Reporter: 20 vol. http://umil.iii.com/record=b1077687~S0
http://umil.iii.com/record=b1077687~S0 3. Tips on using print
edition: read the users guide first; then use finding aids such as
index
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How to Find the Law Research Process - Online Databases: 1.
CCHs Tax Research Network: including the Standard Federal Tax
Reporter
http://umil.iii.com/record=b1262137~S0http://umil.iii.com/record=b1262137~S0
2. RIAs Check Point: including the United States Tax Reporter and
RIA Tax Coordinator http://umil.iii.com/record=e1000308~S0
;http://umil.iii.com/record=e1000308~S0 3. Lexis: Tax Center 4.
Coverage is not the same, but all cover many primary and secondary
resources including some treatises and journals and newsletters. 5.
Lots of Cross-References; but may be hard to Navigate
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Example: CCH Internet Research Network
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CCH Tax Research Network
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Take Away Points Federal Tax Law Research can be complicated:
many primary sources Start with Secondary Resources: Treatises and
Law Review and Journal Articles Updating laws: Shepards, Keycite,
Citator 2d (RIA), and Check Citator (CCH) Loose-Leaf Services: put
both primary and secondary resources in one place; using Finding
Aids Three Commercial Databases: CCH, RIA and Lexis (Tax Notes)
Reference Desk:
[email protected]@umich.edu
Slide 26
Sources of Help Joni Larson & Dan Sheaffer, Federal Tax
Research (2007) http://umil.iii.com/record=b1402236~S0
http://umil.iii.com/record=b1402236~S0 Christopher C. Dykes,
Federal Income Tax Law: A Legal Research Guide (2010)
http://umil.iii.com/record=b1495398~S0
http://umil.iii.com/record=b1495398~S0 Jasper L. Cummings, Legal
Research in Federal Taxation, Tax Notes (Oct. 17, 2005) (see
handout)