Federal Tax Law Research
Strategies and Techniques
Paul D. Callister, JD, MSLIS
Director of the Leon E. Bloch Law Library
& Associate Professor of Law
UMKC School of Law
Thinking About Legal Research Problems
The Problem
Tax Practicum
Professor Wiseman
Research Problem
Fall, 2004
Facts:
Client received a $3,000,000 judgment in an employment discrimination case. Client’s attorney
(“Attorney”) received $1,000,000 out of this amount, and was paid directly by defendant (and
therefore, client only received $2,000,000). Client reported income of $2,000,000 on his tax
return. IRS assessed a deficiency claiming income was understated by $1,000,000. Client
thought this would be moot since he would receive a $1,000,000 deduction for Attorney's fees.
The IRS told him that the deduction would do him no good since he would be subject to the
alternative minimum tax (AMT).
Client lives in Missouri and the case was litigated in Missouri.
Questions:
1.
Does Client have any arguments to exclude the $1M paid directly to Attorney?
2.
How does the AMT come into play?
3.
Should a determination from the IRS be appealed? Has the Supreme Court ruled or
granted cert on this issue?
4.
Is there any pending legislation on the AMT issues? If so, should we be doing any
lobbying on this issue?
5.
Have any IRS personnel or members of Congress made any speeches or public
comments on these issues?
In researching these issues, you should know/learn the following and write down your approach:
1.
Find out background information about (a) exclusion from income of litigation awards and
(b) deduction for attorney’s fees and (c) AMT.
a. Assume you don’t know the code section—how do you find the relevant statutes
and authority?
b. Assume you know the code section (hint: one of sections is §61). How do you
find background information and authority on the issue?
c. Identify the sources of background information (editorial comments, treatises,
periodicals, IRS information, etc.)
d. Know how to find the documents identified in (c), above.
2.
Find the IRC and Treas. Regs. for AMT in:
i. CFR, IRC, CCH, RIA, CCH online, RIA online, two other internet sources
3.
Find cases (Tax Court and Fed.) and any IRS documents relevant to these questions.
(Describe how to find these documents both online and from print materials.)
4.
Are there any law review articles or any other periodical articles on these issues? If so,
find the article online and in print material (if it is in our library).
5.
Have there been any comments in Tax Notes on this subject?
6.
What BNA portfolios discuss these issues? Were they helpful in finding authority and
explanation? How?
7.
Is there any discussion of these issues in the NYU Tax Institute in the past four years? If
so, where?
8.
How do you find out if there is any pending legislation related to these issues? If there is
pending legislation, what is its status?
9.
How do you find out if there are any regulation projects related to these issues? How do
you find out if there are any new regulations within the past year related to these issues?
Solving Tax Problems
Working the Problem
Need to Know
Example
Parties
Who are we representing (i.e., which side of the
issue are we on–buyer or seller, plaintiff or
defendant, etc.)? What legal entities are involved
(any trusts, corporations, partnerships, etc.)?
What
Descriptive Words
of Facts
Descriptive Words
of Legal Issues
Besides the terms "Attorney Fees" and "AMT,"
what other terms should I be using?
Do you think that the best subject heading to
describe the problem would fall under "exculsions
from income" or "deductions"?
Specific Sources to For my research on AMT and "deductions," is
be Used
there a specific treatise or loose-leaf service I
should use?
Where
Applicable
Do you want me to research federal law within the
Jurisdictions
Eight Circuit? In Missouri?
When
Time Periods
When did the litigation take place? When were the
fees to be paid? When are the fees included in
income?
Your Answer
Who
How do I . . .
1.
. . . find a sample limited liability company operating agreement in
print? On Westlaw?
In print

On Westlaw
2.
. . . find a sample contract of sale for a restaurant business in
print? On lexis?
In print

On Lexis
3.
. . . determine the minimum filing requirements for a small private
placement offering in California?
In print

CCH Blue Sky Law Reporter
On Lexis
On Westlaw
4.
. . . form a corporation in Nevada?
What kind of search?
Legal Information Institute--Listing by Jurisdiction
wwwsecure.law.cornell.edu/states/listing.html
LexisOne State Resource Locator
www.lexisone.com/legalresearch/legalguide/states/states_reso
urces_index.htm
5.
. . . find a sample Illinois revocable trust in print? On Lexis? On
Westlaw? On the Web?
On Lexis
On Westlaw
LexisOne Forms
http://www.lexisone.com/
legalresearch/legalguide/
online_forms/forms_center
_index.htm
Findlaw Forms http://forms.lp.
findlaw.com/
6.
. . . use looseleaf services like CCH Standard Federal Tax
Reporter and BNA’s Tax Portfolios? Online?
On Lexis
On Westlaw
On CCH
On RIA
7.
. . . understand the “control group rules” under IRC § 1563?
On RIA
On CCH
On Lexis
8.
. . . find out if there are tax consequences if a client sells a
home within a year after moving there (as a result of a
neighbor abusing his child)?
On Lexis
On CCH
On RIA
9.
On CCH
. . . . understand Qualified Domestic Relations Orders
(QDROs) and how to draft them?
On RIA
On Lexis
10.
On CCH
. . . research all relevant tax cases similar to the Federal
Second Circuit case, Caplin v. US?
On RIA
On Lexis
On Westlaw
11.
. . . find Form 706 (federal estate tax return)? Find the equivalent
state return in Maine?
http://www.IRS.gov
12.
On CCH
. . . find private letter rulings?
On RIA
On Lexis
On Westlaw
13.
. . . find tax rates and the “Applicable Federal Rate”?
http://www.IRS.gov
The End