6.1 Tax Law Research

Tax law research is a complex yet crucial skill for legal professionals. It involves navigating a maze of statutes, regulations, and case law to understand and apply tax rules. From the Internal Revenue Code to IRS guidance, researchers must master various sources to tackle tax issues effectively.

Effective tax law research requires utilizing specialized databases and resources. Commercial platforms like Westlaw and LexisNexis offer comprehensive coverage, while the IRS website provides free access to official documents. Researchers must also employ strategic approaches, from starting with secondary sources to using citators for thorough analysis.

Primary Sources of Tax Law

Internal Revenue Code and Treasury Regulations

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• The Internal Revenue Code (IRC) is the main body of statutory tax law in the United States
  • Organized into subtitles, chapters, subchapters, and sections
  • Establishes the legal framework for federal income, estate, gift, and excise taxes
• Treasury Regulations are administrative rules and interpretations issued by the Department of the Treasury and the Internal Revenue Service (IRS)
  • Provide guidance on the implementation and enforcement of the IRC
  • Three types: Final, Temporary, and Proposed

Tax Case Law and IRS Guidance

• Tax case law consists of judicial decisions that interpret and apply tax statutes and regulations
  • Decisions come from U.S. Tax Court, U.S. District Courts, U.S. Court of Federal Claims, U.S. Courts of Appeals, and the U.S. Supreme Court
  • Establish precedents and clarify ambiguities in the tax law
• Other important primary sources include IRS Revenue Rulings, Revenue Procedures, Notices, Announcements, and Private Letter Rulings
  • Provide official interpretations and guidance from the IRS on specific tax issues
  • Help taxpayers and practitioners understand how the IRS applies tax law in different situations

Tax Law Databases and Resources

Commercial Databases and Specialized Platforms

• Westlaw, LexisNexis, and Bloomberg Law are the main commercial databases for tax law research
  • Offer comprehensive access to primary and secondary tax law sources
  • Provide powerful search tools and analytics to streamline research
• CCH IntelliConnect and Thomson Reuters Checkpoint are specialized tax research platforms
  • Provide extensive coverage of tax laws, regulations, cases, and commentary
  • Include practice tools, calculators, and other resources for tax professionals

IRS Website and Secondary Sources

• The IRS website (irs.gov) is a free online resource for tax law research
  • Provides access to official tax forms, publications, instructions, and guidance
  • Offers a searchable database of IRS written determinations and a tax code navigator
• Tax law treatises, practice guides, and journals are valuable secondary sources
  • Examples include Mertens Law of Federal Income Taxation and the Journal of Taxation
  • Offer in-depth analysis and expert commentary on tax law topics

Tax Law Interpretation and Application

Statutory Interpretation and Regulatory Analysis

• Statutory interpretation involves examining the plain language, context, and purpose of tax code provisions
  • Requires applying canons of construction (ordinary meaning rule, rule against surplusage, ejusdem generis rule)
  • Helps determine the meaning and scope of tax statutes
• When interpreting tax regulations, researchers must consider several factors
  • Validity (consistency with the underlying statute)
  • Level of authority (final vs. temporary vs. proposed)
  • Degree of deference under administrative law principles

Case Law Analysis and Application to Scenarios

• Analyzing tax case law requires understanding the hierarchy of judicial authority
  • Binding or persuasive value of decisions from different courts
  • Distinguishing between holdings and dicta
  • Applying principles of stare decisis and common law reasoning
• Applying tax law sources to specific scenarios involves several steps
  • Identifying relevant facts and characterizing transactions and relationships
  • Determining applicable law and reasoning by analogy or distinction
  • Reaching a conclusion or recommendation based on legal analysis

Research Strategies for Tax Law

Starting with Secondary Sources and Formulating Searches

• Begin research with secondary sources (treatises, practice guides, commentaries)
  • Gain an overview of relevant tax law principles, issues, and authorities
  • Identify key concepts and terms to guide further research
• Formulate search queries using key terms, Boolean operators, and field restrictions
  • Locate relevant primary sources (code sections, regulations, cases) in tax law databases
  • Refine searches based on initial results and new information

Using Citators and Documenting Findings

• Use citators (KeyCite, Shepard's) to check the current status and treatment of primary sources
  • Identify related authorities and trace the development of legal issues over time
  • Ensure reliance on good law and up-to-date information
• Analyze and synthesize relevant authorities to construct legal arguments
  • Identify potential counterarguments and address them proactively
  • Reach a well-reasoned conclusion or recommendation on the research question
• Document and communicate research findings clearly and concisely
  • Use appropriate citation formats (Bluebook, ALWD)
  • Explain the reasoning and authorities relied upon to support conclusions