While carrying out tax research, the use of vague answers that are
not aligned with the clients’ facts has the potential to diminish the
quality of the available information. In such a situation, it is
instrumental to turn to additional resources that can shed light on the
specific situation of the client. Some of the additional resources that
can be of immense value to a tax professional include tax treaties,
treasury regulations, and committee reports. Tax treaties serve as
instrumental documents that contain comprehensive details relating
to tax-related matters (Internal Revenue Service, n.d.). These
resources can be used for carrying out a detailed analysis to
understand complex tax situations in real-life. Similarly, treasury
regulations can be used as additional resources since they assist in
the interpretation and administration of the Internal Revenue Code
(IRC) (Research Guides at Library of Congress, n.d.).
Committee reports act as another vital source that can be used as an
external aid to understand the taxation situation of a client in a better
way. These reports and recommendations basically precede the
enactment of a specific statute, and hence they can be used for
understanding and interpreting ambiguous phrases that have been
covered in statutory provisions. By using this resource, there is a
possibility for tax professionals to have better clarity regarding the
tax situation of a client. It is possible for tax professionals to use the
committee reports as a reference to see what was discussed on the
congressional floor if they are familiar with the process by which a tax
bill transforms into a law (Committee Reports, n.d.).
An example of a specific situation in which additional resources might
have to be used to get answers involves the establishment of a
unique business by a client which operates in a niche market by
targeting only remote professionals. Due to the uniqueness of the
business concept and operations, the tax professional may decide to
take the help of additional resources so that they can have better
clarity and understanding relating to tax treatment that has not been
clearly covered in the Internal Revenue Code. In such a situation, the
use of committee reports may be of high relevance to get a thorough
conceptual insight into how the relevant tax laws can be applied in
the situation to align with the client’s scenario. By leveraging
additional resources, it is possible to reduce the complexity of
taxation for the client.
Reference
Federal Tax Research: Committee reports. Committee Reports - Federal
Tax Research - LibGuides at New York University Law Library. (n.d.).
https://nyulaw.libguides.com/c.php?g=773839&p=5551961
Researching tax treaties. Internal Revenue Service. (n.d.).
https://www.irs.gov/individuals/international-
taxpayers/researching-tax-treaties
Research guides: Federal tax law: A beginner’s guide: Primary sources of
law. Primary Sources of Law - Federal Tax Law: A Beginner’s Guide -
Research Guides at Library of Congress. (n.d.).
https://guides.loc.gov/tax-law/primary-
sources#:~:text=Federal%20tax%20research%20involves%20a,by%2
0the%20Internal%20Revenue%20Service.
