Communicating Research Results
Chapter 10
Communicating Research Results
“……… communication truly occurs only
when the message desired to be sent by the
speaker or writer is received by the intended
audience.” (Raabe, Whittenburg, Bost and
Sanders, West’s Federal Tax Research (5th),
2000, South-Western Publishing, 330.)
The File Memo
Purpose
Organize
Facilitate Review
Facilitate Subsequent Examination
Subsequent update
(Refer to Exhibit in Chapter 10)
The File Memo (cont’d)
•
•
•
•
•
•
1.
2.
3.
4.
5.
6.
Identification
Facts
Issue
Conclusion
Analysis
Summary
The File Memo (cont’d)
• 1. Identification
–
–
–
–
Date (very important)
To: (Client) File
Preparer
Re: (Client problem)
• 2. Facts – brief description of all pertinent facts
(this means your client’s factual situation).
– Everything that will potentially influence the outcome,
especially in case of litigation.
– Disclose facts you consider to be pivotal.
The File Memo (cont’d)
• 3. Issues - identify all issues – accurate
identification is extremely important. If you
have the wrong issue, you will conclude
with the wrong answer – not to mention the
embarrassment. Include IRC §§.
The File Memo (cont’d)
• 3. Issue (cont’d)
• Formulate the issue (discussed previously):
– Is it a question of deductibility, recognition, taxable?
– If so, what kind of outlay (or other) is it?
– What is the nature of the outlay that places its status
in doubt?
– Is it a business expense, page 2, other?
– Do you already know the controlling IRC §
The File Memo (cont’d)
• 3. Issue (cont’d)
• Is the $1,000 payment to Vendor on February 22
deductible? – will get you nowhere
• Is the purchase of a processor at a cost of $1,000
deductible as a business expense? – better
• Is the $1,000 purchase of a processor deductible
as a business expense under IRC §162? – better,
if you already know the controlling IRC §
• Is the $1,000 purchase of a processor deductible
as a business expense under IRC §162, or must it
be capitalized under IRC §263A? - better
The File Memo (cont’d)
• 3. Issue (cont’d)
• Does the $1,000 cost of a processor qualify as a
deduction under IRC §179?
– Much depends upon how much you already
know about the controlling law, if any, when
you begin your search
– To begin with, some key works might be –
processor – deductible - capitalize
The File Memo (cont’d)
• 4. Conclusion – review6. Summary
(below) briefly state your conclusion on all
issues, e.g., deductible, not deductible,
inconclusive. (don’t be wish-washy; be firm
with support, generally in Summary)
• (All brief, but complete)
The File Memo (cont’d)
 5. Analysis
 Include all pertinent authorities identified, both
pro and con.
 General order:
1. Statute
2. Regulations
3. Rulings
4. Cases
 Properly state cite for each authority. If it is a
court decision, be sure to identify the court.
 Emphasis – Always defend your position with
reliable authorities, with complete citation
The File Memo (cont’d)
5. Analysis (cont’d)
Compare the facts in each of the authorities
with those of your client; consider any
similarities /dissimilarities, and whether
they are favorable or unfavorable to your
situation. Disclose both the strengths and
weaknesses.
Why the weaknesses?
The File Memo (cont’d)
 5. Analysis (cont’d)
 Evaluate the interplay among the various
authorities, including their sources
 Compare the consistencies and inconsistencies among
the authorities. Explore to determine the reasons.
 Look for the pivotal factor leading to the decision in the
case. Is it favorable or unfavorable to your client?
 Don’t forget to recognize the holding of each authority.
The File Memo (cont’d)
• 5. Analysis (cont’d)
• BE SURE YOUR CITE IS ACCURATE /
COMPLETE (discussed earlier – see
Exhibit B: Standard Tax Citations
The File Memo (cont’d)
6. Summary – after reviewing / comparing all
your authorities, pros and cons, strengths
and weaknesses, summarize.
The File Memo (cont’d)
• TREAT YOUR FILE MEMO AS A MATH
PROBLEM:
– (facts + law) ÷ authoritative analysis (both
pro and con, and including court decisions) =
conclusion
– BE SPECIFIC – DO NOT DISCUSS IN
GENERALITIES
– BE SURE TO ISOLATE THE
“DETERMATIVE” FACTS
DOES IT “FLOW?”
• DOES IT MAKE SENSE
Court Case Brief
Refer to Exhibit in Chapter 5
Purpose – many court cases are very lengthy,
difficult to read and analyze. A brief will assist
you and your colleagues in recalling the details of
the case in the future without another complete
review and analysis.
Here, you are simply summarizing what the Court
said, the Court’s analysis, in your own words, for
future recall.
Court Case Brief (cont’d)
Refer to Exhibit in Chapter 5.
• CITATION – complete citation.
• ISSUE(S) – briefly state the issues as identified
the Court.
• FACTS – briefly state all facts considered by the
Court in reaching it’s decision. Attempt to isolate
the pivotal facts, those that swayed the court.
• HOLDING – state the court’s holding.
• ANALYSIS – analyze all the above, as the court
did in coming to it’s decision. Include pivotal
facts.
Paper Grading Standard
• Point Discount:
• Failure of
•
1. Format
•
2. Complete/concise statement of facts
•
3. Correct identification/description of issue
•
4. Identification of IRC § and or Reg §, or
•
IRC § stated, but incorrect
•
5. Identification of all appropriate authorities
•
5a. Proper standard citation for each citation
•
6. Proper assessment of each authority
•
7. Valid/supported summary and conclusion on the
issue
•Questions?