Iva White ACCT 612
Tax Research Problems 1
Iva White
Problems:
1. Use the CCH IntelliConnect Federal Tax database to answer the following questions:
a. What are the major database categories provided?
Answer: The major database categories provided by IntelliConnect are Federal
Tax Editorial Content, Federal Tax Legislation, Federal Tax Primary Source,
Federal Tax Practice Tools and Federal Tax Archives.
b. Select 2007 in the Federal Tax Achieves. What is the highest amount of taxable
income a single taxpayer can earn before paying a 35 percent marginal tax rate in
2006? HINT: Use the Master Tax Guide - 2007.) When would it be useful to
know what the IRC was in a prior year?
Answer: According to the 2007 Master Tax Guide, a single tax payer making
under $336,550, will fall into the 33% or under tax bracket. Knowing the IRC of a
prior year would be important to the professionals doing an audit.
c. Find the Action on Decisions listed in Letter Rulings & IRS Positions and
perform a keyword search for “Milligan”. Did the IRS acquiesce to the Milligan
decision?
Answer: The IRS did not Acquiesce to the Milligan decision. 26 U.S.C §1402 (k)
pertains to the information that was argued in this case. “Codification of
Treatment of Certain Termination Payments Received by Former Insurance
Salesmen” [Unk2].
d. Look at “Bills Worth Watching” in the Federal Tax Legislation database. Which
bills does CCH think are worth watching?
Answer: HR 1625 Consolidated Appropriations ACT 2018
HR 1892 Bipartisan Budget Act 2018
2. You are trying to find the current standard deduction amount for an individual.
a. Using a contents search, locate Chapter 1 (Individuals), Computation of Tax
Liability, in the U.S. Master Tax Guide for the most current year. What is the
standard deduction for a single filer for the most current year?
Answer: $6350
Iva White ACCT 612
b. Browse the contents of the Standard Federal Tax Reporter and select Deductions –
Secs. 161-249. How many results do you get when you perform a keyword
search for the selected content in the Standard Federal Tax Reporter for the
keywords “standard deduction” (without quotation marks)?
Answer: 6318
c. Reperform the search in part b, except now use the keywords “standard
deduction” (using quotation marks) – how many results?
Answer: 38
d. How many of the results from the search performed in part c are from the Internal
Revenue Code?
Answer: 0
e. Use the history tabs and click on the browse tab (your U.S. Master Tax Guide
document [paragraph 126] should still be in the window). What is the primary
source link for the most recent standard deduction amounts?
Answer: Rev. Proc. 2016-55
3. Use the CCH IntelliConnect Browse function and select the Federal Tax Editorial
Content heading to answer the following questions:
a. Using Quick Answers Tax Rates, Tables and Credits, determine the personal
exemption amounts for the three 3 previous years.
Answer: 2017- $4050
2016- $4050
2015- $4000
2014- $3950
b. In the Interactive Research Aids for Tax Research Consultant, for Individuals,
who is the author of the decision tree for qualified moving expenses?
Answer: Sharon Stipe, MTA, JD, LLM
c. Using the Master Tax Guide, determine whether the Adoption Credit is a
refundable or nonrefundable credit? In what paragraph number is the discussion
of this credit located?
Answer: It is a nonrefundable tax credit. The discussion is found in paragraph
1307.
Iva White ACCT 612
d. What is the most recent Joint Committee on Taxation Blue Book available in the
Federal Tax Legislation heading?
Answer: The most recent Joint Committee on Taxation Blue Book was from the
115th Congress in 2016.
4. Use the CCH IntelliConnect Practice Tools database to answer the following questions:
a. Using the Election and Compliance Toolkit, determine what election might need
to be made to elect to expense the cost of property un IRC Sec 179 (Not mine
equipment or in a controlled group) and when the election is due.
Answer: By filling out Form 4562, IRC §179 is elected. This amount is due with
the return that is filed for the year of election.
b. Using the Depreciation Toolkit, determine the depreciation n in year 5 for $45,000
of Dairy Cattle, 150 percent DB method for Farm Property with half-year
convention.
Answer: The depreciation in year 5 for the Dairy Cattle, with the stipulations, is
$7497.
c. Using the Federal/ State Taxes, Tax Calendar, prepare a calendar for the current
year for all the taxes for the state within which your college is located. Print one
1 month that shows payment due dates.
Answer: I could not get the calendar to work. It took me to a page giving a
list of databases.
d. Explain whether the Practice Tools offered in the Main Menu (where Browse,
Citations, and so forth are located) are the same as in the Practice Tools, listed in
the expanding Browse option?
Answer: There are more options in the tools in the main menu than what is
offered in the browse options, but most are the same.
5. Using a contents search in IntelliConnect’s Standard Federal Tax Reporter:
a. What is the title of I.R.C. Sec 265?
Answer: Expenses and Interest Relating to Tax Exempt Income
b. How many regulations exist related to Sec 265?
Answer: There is one regulation found in the search results
Iva White ACCT 612
c. What is the paragraph number of the explanations covering “wholly exempt” income?
Answer: Standard Federal Tax Reporter (2013), 14,054.021, Expenses and Interest
Relating to Tax-Exempt Income: “Wholly exempt” income.
d. Using a contents search, locate the Sec 265 related annotations and provide the name
of the case that discussed legal fees and expenses for a wrongful death claim against a
father serving as administrator of his son’s estate.
Answer: L.E. deWeese, DC Fal., 67-2 ustc paragraph 9695
“The administrator of his son's estate was not entitled to a deduction for
legal fees incurred in a wrongful death claim since the fees were allocable to
tax-exempt income.
L.E. deWeese, DC Fla., 67-2 USTC ¶9695” [Unk6].
6. Use the CCH IntelliConnect Citator to answer the following questions regarding Notice
2010- 10:
a. Where is the Notice located in the Internal Revenue Bulletin?
Answer: 2010-3, 299
b. Where is the Notice annotated?
Answer: 2018FED ¶32, 487.0211, ¶32,487.055, ¶32,487.058, 2010 CCH ¶48,208
c. What other notice as Notice 2010-10 been cited in?
Answer: Notice 2012-3
7. Use the CCH IntelliConnect Citator to evaluate the 1956 William George Tax Court case.
a. What is the citation for the case?
Answer: 26 TC 396
b. What is the title of the paragraph where George is annotated?
Answer: Standard Federal Tax Reporter 2018FED¶16,753.707
c. What Code section is related to the George case?
Iva White ACCT 612
Answer: Sec. 368- Definitions Relating to Corporate Reorganizations
d. A Revenue Ruling cites the George case. What is the citation and title? How does
the Revenue Ruling evaluate the George case?
Answer: Rev. Rul. 78-47, 1978-1 CB 113
8. Use CCH IntelliConnect Citator to answer the following questions:
a. Find the discontinued Miscellaneous MS 347; 1950- 1 CB 281 ruling (Hint: use
CB citation to find it). What is its current standing and why?
Answer: MS 347, 1950 – 1 CB 281 is currently not valid and was replaced by by
Rev. Rul. 67-45
b. Find court decision 93 T.C. 67. Give the name of the case and all of its parallel
citations.
Answer: 93 T.C. 67’s name is National Starch and Chemical Corp. Citations
include CCH Dec. 45,851, 93 TC No. 67, 93 TC No. 7.
c. Find the Treasury Decision 9568. Give the date it was filed with the Federal
Register, Code Section to which it applies, and the dates of any corrections.
Answer: Treasury decision 9568 was filed with the Federal Register on
December 16, 2011, It was filed under section 482 of Internal Revenue Code, and
was corrected in January of 2012 and February of 2012.
9. Use the CCH IntelliConnect Citator to evaluate the 290th Revenue Ruling issued in 1955.
a. What is its complete Cumulative Bulletin citation? Is this Revenue Ruling still
valid?
Answer: Rev. Rul. 1955-290, 1955-1 CB 320 and it is no longer valid, it was
superseded by Rev. Rul, 2001-60
b. What tax issue does the Revenue Ruling address?
Answer: Whether the cost of green construction should be added to the original
cost of the land and depreciated.
c. List the citations of any cases that cite Revenue Ruling 1955- 290.
Iva White ACCT 612
Answer: Regulations 118, Section 39.24 (a)-2: Capital expenditures
d. In what paragraph of the CCH service was this ruling initially discussed?
Answer: 1955 CCH¶6304
10. Use the CCH IntelliConnect Citator to answer the following questions regarding the 19th
Revenue Procedure of 2002:
a. What does this Procedure address? What Code sections are involved?
Answer: The procedure addresses the modification of Rev. Proc. 97-27. It
addresses the procedures that are taken to gain the consent of the Commissioner
of Internal Revenue to change the current accounting method. Some of the code
sections involved include §§ 446 and 481.
b. What is its current status?
Answer: Rev. Proc. 2002-19 has been updated by Rev. Proc. 2002-54
c. What types of pronouncements have cited this Procedure? That is the most current
citing of the Procedure?
Answer: The most current citing of this Procedure was in the 13th Revenue
Procedure of 2015.
Notice 2003-12 has cited this Procedure
Rev. Rul. 2015-13, 2015-1,2013-1, among others have cited this Procedure.
T.D.s 9318, 9285 and 9217 have cited this Procedure.
References
Unknown. (n.d.). Federal Tax- Bills Worth Watching. Retrieved from
https://intelliconnect.ezproxy.liberty.edu/scion/secure/ctx_5330432/index.jsp?cpid=WKUS-TAA-
IC#page[10]
Unknown. (n.d.). Standard Federal Tax Reporter (2018), 14,054.36, Expenses and Interest Relating to Tax-
Exempt Income: Nondeductible expenses for exempt income-Legal fees and expenses. Retrieved
from Intelliconnect:
https://intelliconnect.ezproxy.liberty.edu/scion/secure/ctx_5331712/index.jsp?
disableAutoLogin=true&wksso=false&cpid=WKUS-TAA-IC#page[31]
Unknown. (n.d.). U.S, Master Tax Guide (2017). Retrieved from
https://intelliconnect.ezproxy.liberty.edu/scion/secure/ctx_5330432/index.jsp?cpid=WKUS-TAA-
IC#page[16]
Iva White ACCT 612
Unknown. (n.d.). U.S. Master Tax Guide- 2007, 11, Schedule X Single Individuals. Retrieved from
Intelliconnect: https://intelliconnect.ezproxy.liberty.edu/scion/secure/ctx_5330996/index.jsp?
disableAutoLogin=true&wksso=false&cpid=WKUS-TAA-IC#page[20]
Unknown. (n.d.). U.S.C. §1402. Retrieved from Intelliconnect:
https://intelliconnect.ezproxy.liberty.edu/scion/secure/ctx_5330432/index.jsp?cpid=WKUS-TAA-
IC#page[6
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