The most important purpose of tax research is to find solutions to the tax probl

The most important purpose of tax research is to find solutions to the tax problems of your clients or employer. The process is similar to traditional legal research. The researcher must find authority, check the usefulness of that authority, and apply the results of the research to a specific situation.
One can identify two essential tax research skills:
1. Using certain mechanical techniques to identify and locate the tax authorities that relate to solving a problem.
2. A combination of reasoning and creativity and is more difficult to learn. Often, no legal authority addresses the problem. In that situation, the researcher must combine unrelated facts, ideas, and legal authority to arrive at a novel conclusion. This creative ability often spells the difference between success and failure in the research process.
As the tax problems of the client become more significant, the related tax research can become time-consuming and expensive. The tax researcher must work as efficiently as possible to get the solution to the client’s problem. A framework for the research process is essential.
The tax research process can be categorized into six major steps. Tax researchers must approach the resolution of a tax problem in a structured manner. So that the analysis of the problem will be thorough and the solution complete.
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1. Establish the facts.
2. Identify the issues.
3. Locate the authority.
4. Check the authority.
5. Develop conclusions and recommendations. 6. Communicate the recommendations.
You are presented with a set of facts for your client and must prepare a tax memorandum that contains your findings for the tax research and a recommendation as to the appropriate action the client should take. Your textbook and online platform includes a student edition of Thomason Reuters CheckpointTM, which provides a comprehensive tool to perform tax research. The format of the tax memorandum should be like the typical format used by firms.
You are to review the facts, applicable law, and cases. You are to analyze the law and case law and apply it to the facts and then make a recommendation to the client. Note: This is not a report. Read the facts, and authority provided. Analyze and provide a recommendation to the client.