When researching any issue there are different types of sources you have primary sources and
secondary sources. A (tax) primary source has firsthand knowledge of this information such as
congress because they set the tax laws. However, the IRS is a secondary source because someone
gave them the information (second hand) of course. Such as Congress lets them know which
changes should be made in which areas and they simply place them into effect (PWC.com, 2018).
The IRS is the police of tax, and they look for wrong to wares but have nothing to do with setting
these laws. Much like our everyday police officers they do not make the rules they leave that up to
politician and simply enforce the law that are in place.
The importance of the primary source is so that you know you have direct information from the
people who set these rules in place (Sawyers, 2021). Now to help find more information these
secondary sources are great for back up information or to help get to a primary source. Also,
secondary sources give validity to your story by letting the reader know that others have found the
same information that you did, also it will help you fill your story out to give a complete and
accurate account of why, when, and who all the ins and outs in between (Sawyers, 2021). The
primary source like a judicial decision or revenue ruling shows exactly the point at what the author
is getting at, and the secondary source can help you explain how it all fits in everyday life or on
your end of year tax filing.
Tax research and understanding tax laws, regulations, and policies are crucial for navigating the
complex world of taxation. Tax research involves diving into various sources of tax law to gain
insights into legal principles and guidance relevant to taxes. These sources can be divided into
primary and secondary sources, each serving a unique purpose in the field.
Primary sources are the bedrock of tax law and hold the highest legal authority. These are the
official documents that directly establish tax laws and regulations. For example, tax codes and
statutes are laws passed by the country's legislative body, such as the parliament or congress.
These codes outline the nitty-gritty taxation details, including tax rates, taxable events, deductions,
and exemptions. The Internal Revenue Code (IRC) in the United States is an example of a primary
source. I want to point out that referring to the IRC is essential because it includes all federal tax
laws, serving as a fundamental reference for both tax professionals and taxpayers.
While primary sources lay down the law, secondary sources offer invaluable support in
understanding and applying tax laws. Secondary sources do not hold the same legal authority as
primary sources but provide critical analysis and interpretation. Individuals can benefit from these
sources to better understand complex tax issues. For example, tax commentaries, academic
writings, tax articles, and tax journals authored by tax law experts offer in-depth analyses and
interpretations of tax laws. These secondary sources help us stay updated on changes in tax
legislation and provide valuable insights for our research papers and projects.
Additionally, tax court decisions also fall under secondary sources. While not law-making bodies,
tax courts play a vital role in shaping tax law interpretations. Their findings set legal precedents that
can influence future tax cases.
Lastly, understanding the distinction between primary and secondary sources is crucial for
conducting comprehensive tax research. The legal authority of primary sources carries the force of
law. They provide the definitive rules and regulations that taxpayers and tax professionals must
follow. Adherence to primary sources can have significant legal consequences. A secondary source
adds value by providing context, explanations, and interpretations of primary tax laws. These
sources help us grasp the intent and implications behind tax legislation, making it easier to apply
them to practical scenarios.
Reference:
Legal Information Institute. (n.d.). Internal revenue code. Legal Information Institute.
https://www.law.cornell.edu/wex/internal_revenue_code
Tax Adviser. AICPA. (n.d.). https://www.aicpa-cima.com/topic/tax
Tax code, regulations, and Official Guidance. Internal Revenue Service. (n.d.).
https://www.irs.gov/privacy-disclosure/tax-code-regulations-and-official-guidance
IRS, IRC of Conduct. (2022). Who Must Withhold on Partnership Withholding. Retrieved from
IRS.gov: https://www.irs.gov/individuals/international-taxpayers/who-must-withhold
PWC.com. (2018). Tax Strategy and corporate reputation, a business issue. Retrieved from
PWC.com/ceosurvey: chrome-
extension://efaidnbmnnnibpcajpcglclefindmkaj/https://www.pwc.com/gx/en/tax/publications/asset
s/pwc-tax-strategy-and-corporate-reputation-a-tax-issue-a-business-issue.pdf
Sawyers, R. G. (2021). Federal Tax Research. Retrieved from McGraw Hill.com:
https://mbsdirect.vitalsource.com/reader/books/9780357366448/pageid/1
